A blockchain technology for improving financial flows in humanitarian supply chains: benefits and challenges

Abstract

Purpose This study aims to determine how the applications of blockchain technology (BT) can play a crucial role in managing financial flows in the humanitarian supply chain (HSC) and what benefits and challenges are associated with BT in a humanitarian setting. Design/methodology/approach The present study used a qualitative research approach, incorporating a systematic literature review and conducting semi-structured interviews with 12 experts in the fields of humanitarian operations, supply chain management, fintech and information technology. Findings The findings show that the humanitarian sector has the potential to reap significant benefits from BT, including secure data exchange, efficient SCM, streamlined donor financing, cost-effective financial transactions, smooth digital cash flow management and the facilitation of cash programs and crowdfunding. Despite the promising prospects, this study also illuminated various challenges associated with the application of BT in the HSC. Key challenges identified include scalability issues, high cost and resource requirements, lack of network reliability, data privacy, supply chain integration, knowledge and training gaps, regulatory frameworks and ethical considerations. Moreover, the study highlighted the importance of implementing mitigation strategies to address the challenges effectively. Research limitations/implications The present study is confined to exploring the benefits, challenges and corresponding mitigation strategies. The research uses a semi-structured interview method as the primary research approach. Originality/value This study adds to the existing body of knowledge concerning BT and HSC by explaining the pivotal role of BT in improving the financial flow within HSC. Moreover, it addresses a notable research gap, as there is a scarcity of studies that holistically cover the expert perspectives on benefits, challenges and strategies related to blockchain applications for effective financial flows within humanitarian settings. Consequently, this study seeks to bridge this knowledge gap and provide valuable insights into this critical area.