Blockchain technology empowers the cross-border dual-channel supply chain: Introduction strategy, tax differences, optimal decisions

Fueled by the widespread adoption of blockchain technology in supply chain management and international trade, this paper develops a cross-border dual-channel supply chain consisting of a domestic manufacturer, a domestic cross-border e-commerce company, and an overseas physical store. This paper aims to explore the impacts of tax differences, market competition intensity, consumers' sensitivity to products with blockchain attributes, blockchain technology investment costs, and production quantity deviations on the strategies for adopting blockchain technology. Through simulation analysis, this study compares blockchain investment efforts, wholesale prices, retail prices, and the profits generated by supply chain members across different scenarios. The results show that when production quantity deviations are greater than 0, the domestic manufacturer's adoption of blockchain technology provides free-riding benefits to other supply chain members, thereby enhancing the overall profitability of the supply chain. However, the introduction of blockchain technology by the domestic manufacturer does not always yield benefits; when the production quantity deviations are less than 0 and the blockchain investment cost coefficient is too high, it decreases the willingness of the domestic manufacturer to adopt blockchain technology. Moreover, from a profit maximization perspective, regardless of the changes in production quantity deviations and whether the domestic manufacturer introduces blockchain technology, both the domestic cross-border e-commerce company and the overseas physical store should adopt blockchain technology. Finally, The five influencing factors mentioned earlier will, to some extent, affect the profits and decision-making of supply chain members, suggesting that these members should vigilantly track these variables.