Blockchain Technology and Manufacturing Industry: Real-Time Transparency and Cost Savings

Taehyun Ko, Jaeram Lee and Doojin Ryu
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Taehyun Ko: College of Economics, Sungkyunkwan University, Jongno-gu, Seoul 03063, Korea
Jaeram Lee: College of Business, Gachon University, Seongnam-si, Gyeonggi-do 13120, Korea
Doojin Ryu: College of Economics, Sungkyunkwan University, Jongno-gu, Seoul 03063, Korea

Sustainability, 2018, vol. 10, issue 11, 1-20

Abstract: Blockchain technology has been recommended for the sustainability in the manufacturing industry, owing to its benefits in terms of real-time transparency and cost savings. To verify this, we first examine how firms can employ distributed ledger technology by adopting blockchain technology to achieve real-time transparency and cost savings. We also review the current blockchain technology applications in the financial industry and supply chains to explain this technology’s mechanisms for enabling real-time transparency and cost savings in the manufacturing industry. Finally, we theoretically compare the profits of manufacturing firms in two managerial delegation games under a duopoly situation. This theoretical model suggests that the real-time transparency and cost savings secured by blockchain technology improve the profitability and competitiveness of manufacturing firms, which, in turn, assure the sustainability in the manufacturing industry.

Keywords: blockchain; cost saving; distributed ledger technology; manufacturing industry; real-time transparency; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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