Blockchain and agency theory in supply chain management: A question of trust
Maximiliano Jeanneret Medina, Cédric Baudet, Jean‐Fabrice Lebraty
Abstract
This paper aims to explore how does the introduction of blockchain technologies impact trust in existing supply chain relationships. To do so, we conducted a multiple case study through the lens of agency theory. Three Swiss companies which are carrying out blockchain projects for their supply chain have been analyzed in semi-structured interviews and document analysis. Two significant findings of the impact on principal-agent relationships are stressed. Firstly, blockchain technologies can reduce the asymmetry of information, increase the control of agents, and consequently minimize the trust in the principal towards the agents. Secondly and paradoxically, the control mechanisms inherent in these technologies can decrease the agent's trust in the principal. Thus, questioning trust is necessary, both as an antecedent and an unexpected consequence when adopting blockchain technologies. Finally, we provide guidelines for initiating the adoption of blockchain technologies in supply chains.