Towards circular economy: Leveraging blockchain technology for circular supply chain

During the last few years, there is an increased focus on transition towards circular economy (CE) to address the issues of environmental deterioration and resource scarcity. Circular supply chain (CSC) can help to achieve the objectives of CE. This study explores how Blockchain technology (BT) can support CSC and improve firm performance. In this regard, we examine the role of BT-enabled supply chain capabilities, namely information sharing and supply chain integration (SCI), which can help in CSC implementation. A conceptual model underpinned in resource-based view (RBV) is tested using survey data from 109 US manufacturing firms. Findings confirm that BT helps to develop information sharing and SCI capabilities. We did not find support for direct relationship between information sharing and CSC, rather information sharing indirectly supports CSC implementation through SCI. Finally, CSC has significant positive effect on firm performance. The study guides managers in manufacturing firms on how BT can help in developing supply chain capabilities, which can support CSC implementation and improve firm performance. Specifically, managers should focus on leveraging BT for building information sharing and SCI capabilities for CSC. The study also provides empirical evidence on capabilities enabled by BT.