The influence of blockchains and internet of things on global value chain

Despite the increasing proliferation of deploying the Internet of Things (IoT) in global value chain (GVC), several challenges might lead to a lack of trust among value chain partners, e.g., technical challenges (i.e., confidentiality, authenticity, and privacy); and security challenges (i.e., counterfeiting, physical tempering, and data theft). In this study, we argue that Blockchain technology, when combined with the IoT ecosystem, will strengthen GVC and enhance value creation and capture among value chain partners. Thus, we examine the impact of Blockchain technology when combined with the IoT ecosystem and how it can be utilized to enhance value creation and capture among value chain partners. We collected data through an online survey, and 265 UK Agri-food retailers completed the survey. Our data were analyzed using structural equation modelling (SEM). Our finding reveals that Blockchain technology enhances GVC by improving IoT scalability, security, and traceability when combined with the IoT ecosystem. Which, in turn, strengthens GVC and creates more value for value chain partners – which serves as a competitive advantage. Finally, our research outlines the theoretical and practical contribution of combining Blockchain technology and the IoT ecosystem.