Online operations in a multichannel supply chain under service cost difference: The adoption of blockchain technology

Hui Li, Devika Kannan and Qi Xu

Transportation Research Part E: Logistics and Transportation Review, 2025, vol. 199, issue C

Abstract: E-commerce has been growing at an unprecedented rate over the last decade. Nowadays, products are sold either on online e-platforms or at traditional offline stores. Two online operation modes between suppliers and e-platforms are dominant: reselling and agency. We examine the supplier’s trade-offs for blockchain technology adoption in both online operation modes. There are two potential win–win scenarios in which the supplier and e-platform could mutually benefit. The advent of blockchain technology has not impacted the competition between online and offline channels or the selection of online operation modes. The decision of the supplier to adopt blockchain technology is also not contingent on the online operation mode. Blockchain adoption may lead to an increase in the wholesale price of products, but will not necessarily promote an increase in product demand. However, the supplier adopting blockchain technology produces an all-win effect, When the blockchain operational cost is low, all supply chain members’ attitudes toward blockchain adoption are aligned. When consumers’ trust in product information is lower, the relative effectiveness of adopting blockchain technology increases. Finally, we find that the government subsidy enables all supply chain members to achieve Pareto improvement, and supply chain coordination can be achieved through the provision of government subsidies.

Keywords: Online operation modes; Blockchain technology; Service cost difference; Platform supply chain; Government subsidy (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.tre.2025.104170

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