Applicability of blockchain technology in improving efficiency in supply chain operations in public procurement in Tanzania

Abstract

The primary aim of this study was to assess the suitability of blockchain technology for improving the efficiency of supply chain operations in the public sector in Tanzania. Blockchain technology (BT) is a contemporary and rapidly growing technology that has gained widespread popularity globally due to its capacity to connect several stakeholders (blocks) worldwide with the aim of enhancing efficiency in business transactions. With this perspective in mind, the researcher was driven to evaluate the capabilities of blockchain technology in the field of supply chain in Tanzania. This evaluation concentrated on three distinct areas: the degree of public awareness of blockchain technology, the strategies used by public bodies to use blockchain technology, and the significant issues that obstruct the implementation of blockchain technology. The study utilized network theory as a framework to analyze the findings. It employed a descriptive survey approach, with a sample size of 192 respondents who were engaged as registered procurement experts in public institutions. In collecting data from respondents, structured questionnaires were prepared using Google Forms and submitted to respondents through their e-mails. A total of 154 questionnaires were properly filled out and submitted, for a response rate of 80.2%. The data was analyzed using descriptive statistics and correlation analysis. The results show that 74.7% of the respondents are unaware of the application of blockchain technology in supply chain operations. In terms of practice, the majority of public entities (67%) use e-payment as the main application of blockchain technology. Additionally, 64% of the respondents identified technical issues and a lack of understanding as the main challenges affecting the application of blockchain technology. Moreover, the study demonstrates a robust correlation between the utilization of blockchain technology and the enhancement of efficiency in supply chain operations. Ultimately, the study suggests implementing an extensive awareness campaign targeted at practitioners in order to enhance the rate of adoption and fully use the capabilities of blockchain technology in Tanzania.