Blockchain implementation in supply chains: adoption barriers and transparency outcomes in Ogun State, Nigeria
Submitted: 2025-04-16
|Accepted: 2025-06-09
|Published: 2025-06-16
Copyright (c) 2025 Dr Adekunle Musa, Ayomide Idris Musa
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Downloads
Keywords:
blockchain technology, supply chain management, transparency, traceability, adoption challenges, performance optimization
Supporting agencies:
Abstract:
The modern supply chain management now incorporates blockchain technology which delivers revolutionary developments for supply chain transparency effectiveness and tracking. This research examines the effects blockchain technology brings to supply chain systems especially for the Nigerian market. The researchers conducted a mixed-method survey study with 150 supply chain professionals from Ogun State. Functions and providers have recognized blockchain applications as substantial potential for procurement and logistics management and inventory management but have not fully implemented them yet. A majority of survey respondents removed traceability (65.3%) and transparency (75.3%) as positive outcomes that correspond with international studies. The surveyed professionals experience ongoing difficulties regarding expense of implementation (70%) and shortage of qualified personnel (80%). Technical combinations between blockchain technology and both IoT and AI systems show evidence of enhancing organizational operational capacities while strengthening system defenses. Survey participants predict blockchain adoption to develop within the upcoming 2-3 years by 34.7%. The findings suggest that blockchain adoption will speed up through proper regulatory guidelines and specific training programs as well as accessible implementation procedures. The research contributes toward revealing blockchain adoption drivers and barriers and provides Nigerian industries with practical advice and specifies future research directions. Developing economies can use blockchain as their principal supply chain transformation framework when they fix present obstacles and match international technological developments.
References:
Attaran, M. (2022). Blockchain technology in healthcare: Challenges and opportunities. International Journal of Healthcare Management, 15(1), 70–83. https://doi.org/10.1080/20479700.2020.1843887
Bodemer, O. (2023). Utilizing blockchain technology for enhanced governance: A comprehensive analysis of potential applications and innovations in the governmental sector of the EU. TechRxiv. September 27, 2023. https://doi.org/10.36227/techrxiv.24173400.v1
Casino, F., Dasaklis, T. K., & Patsakis, C. (2019). A systematic literature review of blockchain-based applications: Current status, classification, and open issues. Telematics and Informatics, 36, 55–81. https://doi.org/10.1016/j.tele.2018.11.006
Central Bank of Nigeria. (2023). Annual economic report 2022. https://www.cbn.gov.ng/Out/2023/SD/2022%20Annual%20Report.pdf
Chang, S. E., & Chen, Y. (2020). When blockchain meets supply chain: A systematic literature review on current development and potential applications. IEEE Access, 8, 62478–62494. https://doi.org/10.1109/ACCESS.2020.2983601
Darvazeh, S. S., Vanani, I. R., & Musolu, F. M. (2020). Big data analytics and its applications in supply chain management. In New trends in the use of artificial intelligence for the industry (Vol. 4, p. 175). Springer.
Denter, N. M. (2021). Blockchain breeding grounds: Asia’s advance over the USA and Europe. World Patent Information, 67, 102082. https://doi.org/10.1016/j.wpi.2021.102082
Dwivedi, S. K., Amin, R., & Vollala, S. (2020). Blockchain-based secured information sharing protocol in supply chain management system with key distribution mechanism. Journal of Information Security and Applications, 54, 102554. https://doi.org/10.1016/j.jisa.2020.102554
Ejairu, E., Mhlongo, N. Z., Odeyemi, O., Nwankwo, E. E., & Odunaiya, O. G. (2024). Blockchain in global supply chains: A comparative review of USA and African practices. International Journal of Science and Research Archive, 11(1), 2093–2100. https://doi.org/10.30574/ijsra.2024.11.1.0278
Food and Agriculture Organization. (2022). The state of food and agriculture: Leveraging automation for resilient agri-food systems. https://doi.org/10.4060/cb9479en
Frizzo-Barker, J., Chow-White, P. A., Adams, P. R., & Mentanko, J. (2020). Blockchain as a disruptive technology for business: A systematic review. International Journal of Information Management, 51, 102029. https://doi.org/10.1016/j.ijinfomgt.2019.10.014
Ghadge, A., Weiß, M., Caldwell, N. D., & Wilding, R. (2020). Managing cyber risk in supply chains: A review and research agenda. Supply Chain Management: An International Journal, 25(2), 223–240. https://doi.org/10.1108/SCM-10-2018-0357
Gohil, D., & Thakker, S. V. (2021). Blockchain-integrated technologies for solving supply chain challenges. Modern Supply Chain Research and Applications, 3(2), 78–97. https://doi.org/10.1108/MSCRA-10-2020-0028
Hastig, G. M., & Sodhi, M. S. (2020). Blockchain for supply chain traceability: Business requirements and critical success factors. Production and Operations Management, 29(4), 935–954. https://doi.org/10.1111/poms.13147
Hellani, H., Sliman, L., Samhat, A. E., & Exposito, E. (2021). On blockchain integration with supply chain: Overview on data transparency. Logistics, 5(3), 46. https://doi.org/10.3390/logistics5030046
Hofmann, E., Strewe, U. M., & Bosia, N. (2017). Supply chain finance and blockchain technology: The case of reverse securitisation. Springer. https://doi.org/10.1007/978-3-319-62371-9
Hugos, M. H. (2024). Essentials of supply chain management (5th ed.). Wiley.
Iansiti, M., & Lakhani, K. R. (2017). The truth about blockchain. Harvard Business Review, 95(1), 118–127.
Ji, G., Zhou, S., Lai, K. H., Tan, K. H., & Kumar, A. (2022). Timing of blockchain adoption in a supply chain with competing manufacturers. International Journal of Production Economics, 247, 108430. https://doi.org/10.1016/j.ijpe.2022.108430
Kamble, S. S., Gunasekaran, A., & Arha, H. (2021). Understanding the blockchain technology adoption in supply chains—Indian context. International Journal of Production Research, 59(11), 3379–3395. https://doi.org/10.1080/00207543.2020.1868597
Katsikouli, P., Wilde, A. S., Dragoni, N., & Høgh-Jensen, H. (2021). On the benefits and challenges of blockchains for managing food supply chains. Journal of the Science of Food and Agriculture, 101(6), 2175–2181. https://doi.org/10.1002/jsfa.10883
Khan, M. B., Ahmed, S., Rehman, M. U., & Saghar, K. (2024). Blockchain technology in supply chain management: Enhancing transparency and efficiency. Journal of Management & Educational Research Innovation, 2(2), 50–64.
Kim, H. M., & Laskowski, M. (2018). Toward an ontology-driven blockchain design for supply chain provenance. Intelligent Systems in Accounting, Finance and Management, 25(1), 18–27. https://doi.org/10.1002/isaf.1424
Kshetri, N. (2018). Blockchain’s roles in meeting key supply chain management objectives. International Journal of Information Management, 39, 80–89. https://doi.org/10.1016/j.ijinfomgt.2017.12.005
Kumar, R., Tripathi, R., & Bera, R. (2021). Integration of blockchain and IoT with 5G: Requirements, benefits, and challenges. In Internet of Things (Vol. 13, p. 100348). Elsevier.
Latan, H., de Sousa Jabbour, A. B. L., Sarkis, J., Jabbour, C. J. C., & Ali, M. (2024). The nexus of supply chain performance and blockchain technology in the digitalization era: Insights from a fast-growing economy. Journal of Business Research, 172, 114398. https://doi.org/10.1016/j.jbusres.2023.114398
Lehmann, M. (2021). National blockchain laws as a threat to capital markets integration. Uniform Law Review, 26(1), 148–179. https://doi.org/10.1093/ulr/unab004
Li, X., Jiang, P., Chen, T., Luo, X., & Wen, Q. (2020). A survey on the security of blockchain systems. Future Generation Computer Systems, 107, 841–853. https://doi.org/10.1016/j.future.2017.08.020
Li, Z. P., Ceong, H. T., & Lee, S. J. (2021). The effect of blockchain operation capabilities on competitive performance in supply chain management. Sustainability, 13(21), 12078. https://doi.org/10.3390/su132112078
Mistry, S., Tanwar, S., Tyagi, S., & Kumar, N. (2020). Blockchain for 5G-enabled IoT for industrial automation: A systematic review, solutions, and challenges. Mechanical Systems and Signal Processing, 135, 106382. https://doi.org/10.1016/j.ymssp.2019.106382
Mohamed, S. K., Haddad, S., Barakat, M., & Rosi, B. (2023). Blockchain technology adoption for improved environmental supply chain performance: The mediation effect of supply chain resilience, customer integration, and green customer information sharing. Sustainability, 15(10), 7909. https://doi.org/10.3390/su15107909
Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. https://bitcoin.org/bitcoin.pdf National Bureau of Statistics. (2023). Nigeria logistics performance index 2022. https://nigerianstat.gov.ng
National Information Technology Development Agency. (2023). Blockchain skills gap assessment report. https://nitda.gov.ng/blockchain-report-2023
Ojukwu, P. U., Cadet, E., Osundare, O. S., Fakeyede, O. G., Ige, A. B., & Uzoka, A. (2024). Exploring theoretical constructs of blockchain technology in banking: Applications in African and US financial institutions. International Journal of Frontline Research in Science and Technology, 4(01), 035–042. https://doi.org/10.56355/ijfrst.2024.4.1.0051
Park, A., & Li, H. (2021). The effect of blockchain technology on supply chain sustainability performances. Sustainability, 13(4), 1726. https://doi.org/10.3390/su13041726
PricewaterhouseCoopers. (2023). Blockchain adoption in Nigeria: Trends and barriers. https://www.pwc.com/ng/en/publications
Razak, G.M., Hendry, L.C., & Stevenson, M. (2021). Supply chain traceability: a review of the benefits and its relationship with supply chain resilience. Production Planning & Control, 34(11), 1114–1134. https://doi.org/10.1080/09537287.2021.1983661
Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2019). Blockchain technology and its relationships to sustainable supply chain management. International Journal of Production Research, 57(7), 2117–2135. https://doi.org/10.1080/00207543.2018.1533261
Saeed, G., Kohler, J. C., Cuomo, R. E., & Mackey, T. K. (2022). A systematic review of digital technology and innovation and its potential to address anti-corruption, transparency, and accountability in the pharmaceutical supply chain. Expert Opinion on Drug Safety, 21(8), 1061–1088. https://doi.org/10.1080/14740338.2022.2091543
Tanwar, S., Parmar, A., Kumari, A., Jadav, N. K., Hong, W. C., & Sharma, R. (2022). Blockchain adoption to secure the food industry: Opportunities and challenges. Sustainability, 14(12), 7036. https://doi.org/10.3390/su14127036
Tirkolaee, E. B., Sadeghi, S., Mooseloo, F. M., Vandchali, H. R., & Aeini, S. (2021). Application of machine learning in supply chain management: A comprehensive overview of the main areas. Mathematical Problems in Engineering, 2021, 1476043. https://doi.org/10.1155/2021/1476043
Tiwari, S., Wee, H. M., & Daryanto, Y. (2018). Big data analytics in supply chain management between 2010 and 2016: Insights to industries. Computers & Industrial Engineering, 115, 319–330. https://doi.org/10.1016/j.cie.2017.11.017
Treiblmaier, H. (2018). The impact of the blockchain on the supply chain: A theory-based research framework and a call for action. Supply Chain Management: An International Journal, 23(6), 545–559. https://doi.org/10.1108/SCM-01-2018-0029
Treiblmaier, H. (2019). Toward more rigorous blockchain research: Recommendations for writing blockchain case studies. Frontiers in Blockchain, 2, 1–16. https://doi.org/10.3389/fbloc.2019.00003
Vu, N., Ghadge, A., & Bourlakis, M. (2023). Blockchain adoption in food supply chains: A review and implementation framework. Production Planning & Control, 34(6), 506–523. https://doi.org/10.1080/09537287.2021.1939902
Wang, Y., Singgih, M., Wang, J., & Rit, M. (2020). Making sense of blockchain technology: How will it transform supply chains? International Journal of Production Economics, 228, 107677. https://doi.org/10.1016/j.ijpe.2020.107677
Wang, M., Wu, Y., Chen, B., & Evans, M. (2020). Blockchain and supply chain management: A new paradigm for supply chain integration and collaboration. Operations and Supply Chain Management: An International Journal, 14(1), 111–122. https://doi.org/10.31387/oscm0440290
Wang, Y., Han, J. H., & Beynon-Davies, P. (2021). Understanding blockchain technology for future supply chains: A systematic literature review and research agenda. Supply Chain Management: An International Journal, 26(2), 105–121. https://doi.org/10.1108/SCM-03-2020-0111
World Bank. (2023). Logistics performance index 2023. https://lpi.worldbank.org
Zheng, Z., Xie, S., Dai, H., Chen, X., & Wang, H. (2018). An overview of blockchain technology: Architecture, consensus, and future trends. 2017 IEEE International Congress on Big Data (BigData Congress), 557–564. https://doi.org/10.1109/BigDataCongress.2017.85
Zhuo, X., Irresberger, F., & Bostandzic, D. (2023). Blockchain for cross-border payments and financial inclusion: The case of Stellar network (SSRN No. 4550837). https://ssrn.com/abstract=4550837
