Blockchain-driven operation strategy of financial supply chain under uncertain environment

AbstractThe emergence of blockchain creates a new possibility to solve the fraudulent problem of financial supply chain. We construct a game model to verify the strategic choice of the financial supply chain in an uncertain environment. We derive the equilibrium results and investigate the strategic choice of blockchain service for the financial supply chain. We also study the product price, product quantity, financing interest rate, and supply chain risk transmission, respectively. Specifically, when the blockchain is not considered, the financial model of supply chain led by core enterprises depends on firms' reputation. The retail and wholesale prices increase when fraud occurs or consideration payment increases. Besides, the market stability reduces price performance. In the blockchain environment, the strategic choices are divided into two cases: when choosing the core enterprise model and the third-party service model, the third-party service model is the equilibrium strategy; when choosing the third-party service model and the platform model, the platform model is the equilibrium strategy.KEYWORDS: Supply chain financeblockchain servicemarket uncertaintystrategic choicerisk transmissiongame theory AcknowledgementsWe appreciate editors and reviewers that spent time on the original manuscript.Disclosure statementNo potential conflict of interest was reported by the author(s).Supporting informationWe submit an electronic E-Appendix to provide supporting information for this study.Data availability statementThe authors confirm that the data supporting the findings of this study are available within the article and its E-appendix.Additional informationFundingThis research was supported by the National Natural Science Foundation of China [grant number 71774019], the Fundamental Research Funds for the Central Universities [grant number 3132022608], and the Cultivation Program for the Excellent Doctoral Dissertation of Dalian Maritime University [grant number 0143210271].Notes on contributorsHuida ZhaoHuida Zhao is currently a PhD student at the School of Maritime Economics and Management, Dalian Maritime University. His main research directions include supply chain management, blockchain economy, and maritime operations management. He has published academic papers in the International Journal of Production Economics, Annals of Operations Research, and Computers & Industrial Engineering.Jiaguo LiuJiaguo Liu is currently a Professor and Head of the Department of Management Business Administration at the School of Maritime Economics and Management, Dalian Maritime University. His research interests include Supply Chain Management, Maritime Operations Management. He has published more than 120 peer-reviewed journal and conference publications, such as Transportation Research Part B, Transportation Research Part E, European Journal of Operational Research, International Journal of Production Economics, International Journal of Production Research, Transport Policy, Ocean & Coastal Management, Ocean Engineering, Maritime Policy & Management. His research has been supported by the National Science Foundation of China and the National Development and Reform Commission.Guoqing ZhangGuoqing Zhang is a Professor in Industrial Engineering, and the director of supply chain and logistics optimisation research lab at the Department of Mechanical, Automotive & Materials Engineering, University of Windsor. He received the Ph.D. degree in management sciences from City University of Hong Kong in 2000. His recent research interests include supply chain management and optimisation, logistics, warehouse management, algorithms design and development, operations research, data-driven optimisation, and intelligent decision support systems. He has published over 70 articles on those areas in journals such as Operations Research, Eur. J. Oper. Res., IIE Transactions, Transport Res B-Meth, and E-Log, Omega, Int. J. Prod. Res., Int. J. Prod. Econ., Comput Oper Res., and so on. Dr Zhang has provided consulting to several world-leading companies on Automotive, Energy, Airline, and food industries. Dr. Zhang and his team won the first place in the Canadian Operations Research Society Practice Prize competition in 2015.