Self-Built or Third-Party Blockchain Traceability Strategy in a Dual-Channel Supply Chain Considering Consumers’ Traceability Awareness

Abstract

Blockchain is widely used in the manufacturing industry. This paper establishes a dual-channel supply chain composed of a manufacturer and an e-retailer. A monopoly manufacturer conducts indirect online selling through retailers as well as direct offline selling. The manufacturer chooses to adopt a self-built blockchain traceability system (SBT) or a third-party blockchain traceability system (TBT). Game analysis is developed to depict the pricing decision for the manufacturer and e-retailer. The optimal pricing decisions of the supply chain between manufacturer and e-retailer for different blockchain traceability strategies are obtained. We explore the influence of consumers’ traceability awareness on the decisions of dual-channel supply chain members when adopting different blockchain traceability strategies. The main results show that when the fee paid to the blockchain service provider is low, the manufacturer will prefer to adopt TBT. Moreover, we prove that consumers’ traceability awareness, the cost of adopting TBT, the blockchain traceability technology level, and the research and development cost factor of blockchain technology could affect the decisions of supply chain members. Finally, some management suggestions are provided.