Blockchain-based smart dairy supply chain: catching the momentum for digital transformation

Abstract

Purpose

This research attempted to establish the underlying dimensions of supply chain management practices, blockchain technology and supply chain performance in the Indian dairy industry. Additionally, the study proposes a conceptual model that shows the mediating effects of blockchain technology in the relationship between supply chain management practices and supply chain performance.

Design/methodology/approach

Structural equation modelling (SEM) is incorporated to examine the proposed model using SPSS and AMOS version 24. The study population includes 119 registered Indian dairy processing units operating in Uttar Pradesh and New Delhi (source: Dairy – India). Individual registered dairy processing unit's top four executives, that is Head of the Dairy Processing Plant, Supply Chain head and Marketing Head, and IT head are chosen as the respondents of the study, which renders the sample size of 476. Judgmental sampling based on the organisation's market position and plant production capacity (i.e. one lakh litre per day) has been set as the benchmark for selecting the dairy processing units. The executives are selected as respondents as they are well-versed in the phenomenon of supply chain management practices, blockchain technology and supply chain performance compared to other staff working in the dairy industry. The data was collected from December 2021 to March 2022 through judgmental sampling. The target sample size was 476, but only 286 questionnaires were received in a completed state and were further used for analysis.

Findings

Manufacturing practices, information sharing, distribution management, inventory management and blockchain technology have a significant and positive impact on supply chain performance in the Indian dairy industry. Furthermore, the research demonstrates that blockchain technology partially mediates the relationship between supply chain management practices and supply chain performance in the context of the Indian dairy industry.

Research limitations/implications

This research is focused on the Indian dairy industry operating in only two states, namely New Delhi and Uttar Pradesh. More research is needed to determine whether SCM practices and the prospects for blockchain technology among channel members are universally applicable to merchants in non-dairy products. Similar investigations should be carried out on dairy industry operating in various formats and in numerous geographic locations. Further, case studies can be conducted by future researchers to learn how supply chain management methods are deployed, what precisely these practices entail and what costs and time demands are required by these practices in context of small independent retailers across different germane expanse.

Originality/value

While the available literature on the research area is spread out, the influence of blockchain technology in the Indian dairy industry has not yet been sufficiently analysed. Therefore, the research article focused on exploring underlying dimensions of the constructs of supply chain management practices, blockchain technology adoption and supply chain performance in the context of the Indian dairy industry.

Citation

Kumar, R. and Kumar, D. (2023), "Blockchain-based smart dairy supply chain: catching the momentum for digital transformation", Journal of Agribusiness in Developing and Emerging Economies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JADEE-07-2022-0141