Cross-Border Supply Chain System Constructed by Complex Computer Blockchain for International Cooperation

Author:

Deng Xiaoguang1ORCID,Ouyang Yuxuan2

Affiliation:

1. Economics and Management School, Wuhan University, Wuhan 430072, Hubei, China

2. Columbia University, New York, NY 10027, USA

Abstract

The rapid development of China’s local e-commerce and the continuous improvement of its business model have not only pushed the country to the forefront of the globe but also opened up the unprecedented potential for China’s cross-border e-commerce. Therefore, it is imperative to build a balanced and sustainable cross-border e-commerce system, and cross-border e-commerce on the Silk Road has become a new highlight of China’s e-commerce development. This study proposes a cross-border supply chain model based on the complex computer blockchain for international cooperation scenarios, contrasts and analyzes decision making in two cross-border supply chain scenarios with and without blockchain implementation, and investigates the sufficient conditions for blockchain implementation in the cross-border supply chain from the perspective of various value objectives. The analysis reveals that the cross-border supply chain has sufficient incentive to implement blockchain when the value gain generated by implementing blockchain is high or the value gain is low but the potential market size weakening factor of cross-border products is greater than a certain degree. It demonstrates that the link between cross-border product price elasticity, manufacturer cross-border effort cost, and customer cross-border preference degree would impact the circumstances for adopting blockchain in cross-border supply chains. The model also lays out a plan for the government to improve cross-border e-commerce logistics, strengthen oversight, and create a regional financial service network system to reduce credit risk.4

Publisher

Hindawi Limited

Subject

General Mathematics,General Medicine,General Neuroscience,General Computer Science

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