Implementing Blockchain Technology for Transparent Supplier Selection in Supply Chains

Thesis Abstract

The increasing complexity of global supply chains and the rising demand for transparency and ethical sourcing have underscored the need for more effective and trustworthy supplier selection processes. Traditional methods often face challenges related to data falsification, lack of transparency, and inefficiencies in verifying supplier credentials, which can lead to reputational damage and increased operational risks. This study aims to explore the feasibility and effectiveness of implementing blockchain technology as a solution for enhancing transparency and trustworthiness in supplier selection within supply chains. The specific objectives include examining the theoretical foundations of blockchain in supply chain management, identifying key barriers and enablers for blockchain adoption, and assessing the impact of blockchain-based supplier verification on procurement outcomes. A mixed-methods research design was adopted, integrating qualitative and quantitative approaches to provide a comprehensive analysis. The population of the study consisted of 150 procurement managers and supply chain professionals working in manufacturing firms within a nationally significant industrial region. A stratified random sampling technique was used to select a sample of 90 participants, ensuring representation across different industries. Data collection was conducted through semi-structured interviews with 20 key informants and a structured survey administered to the remaining 70 participants, utilizing validated questionnaires tailored to measure perceptions of blockchain utility, implementation barriers, and procurement performance metrics. To ensure validity and reliability, the survey instruments underwent pilot testing with a sample of 15 professionals, and Cronbach’s alpha coefficients exceeded 0.85 across all scales. Data analysis involved thematic analysis for qualitative interview transcripts to identify emergent themes related to blockchain adoption, and statistical techniques such as multiple regression analysis and ANOVA were employed to examine relationships among variables and differences across industry sectors. A conceptual framework grounded in the Institutional Theory and the Diffusion of Innovations Theory guided the analysis, providing insights into organizational influences and innovation adoption processes. Expected findings indicate that blockchain technology significantly enhances transparency, data integrity, and traceability in supplier verification processes. The study hypothesizes that perceived ease of implementation, organizational readiness, and regulatory support positively influence blockchain adoption, while concerns over complexity, cost, and lack of technical expertise serve as major barriers. Quantitative results are anticipated to demonstrate a statistically significant relationship between blockchain implementation and improvements in procurement efficiency, supplier reliability, and compliance metrics. The qualitative analysis is expected to reveal critical success factors such as leadership commitment, stakeholder engagement, and adequate technological infrastructure. This research contributes to the existing body of knowledge by providing empirical evidence on the practical application of blockchain in supply chain transparency, particularly in supplier selection. It extends theoretical understanding by integrating insights from the Institutional Theory and Diffusion of Innovations Theory in the context of blockchain adoption. The findings offer valuable implications for practitioners, suggesting that strategic implementation of blockchain can mitigate traditional supplier verification challenges, thereby fostering more ethical, reliable, and efficient supply chain operations. The study concludes that blockchain technology holds considerable potential for transforming supplier selection processes, but its successful implementation requires addressing technical, organizational, and regulatory barriers. Policy recommendations include fostering supportive regulatory environments and devising tailored capacity-building initiatives. Future research should explore longitudinal impacts of blockchain deployment in supply chain systems and assess scalability across different sectors and geographic regions. Overall, this study underscores the importance of technological innovation in advancing supply chain integrity and enhances understanding of how emerging ICT tools can reshape procurement practices to promote transparency and trustworthiness in global supply networks.