Mitigating information asymmetry in inventory pledge financing through the Internet of things and blockchain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lixin Liu ◽  
Justin Zuopeng Zhang ◽  
Wu He ◽  
Wenzhuo Li
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Information Asymmetry ◽  
Commercial Banks ◽  
Business Models ◽  
Service Providers ◽  
The Internet ◽  
Novel Ecosystem ◽  
Content Type ◽  
The Internet Of Things

PurposeRisks resulted from asymmetric information have become crucial barriers for commercial banks to implement supply chain finance (SCF) – mainly the inventory pledge financing (IPF). At the same time, online financial service providers (OFSPs) are emerging as strong competitors in the SCF market. As a result, commercial banks need to update their traditional SCF business models and alleviate their over-dependence on OFSPs.Design/methodology/approachThe authors employ a multi-case-study method to investigate how the Internet of things (IoT) and blockchain technologies can be jointly leveraged to mitigate SCF risks. In-depth interviews were conducted to depict the business models and their novel ecosystem to reinforce traditional banks' ability in SCF services.FindingsFrom the perspective of information asymmetry, the authors categorize IPF risks into three groups based on the principal-agent theory: collateral, warehousing and liquidity risk. The findings suggest that IoT can primarily improve traditional banks' information acquisition ability, and blockchain can facilitate credible information transformation, enabling banks to acquire knowledge from collaterals. Besides, the e-platform in the new architecture increases banks' involvement in the supply chain and builds a fair network to curtail warehousing risks. The employment of smart contracts and collaborative mechanism ensure process and outcome control in mitigating liquidity risks.Originality/valueThe research contributes to the literature by confirming the role of emerging technologies in reducing information asymmetry risks. Besides, the findings provide valuable insights for practitioners to promote effective practices and approaches in IPF.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.

IoT ecosystem faces fragmented future

2019 ◽  
Keyword(s):  
Artificial Intelligence ◽  
Cloud Computing ◽  
Supply Chain ◽  
Internet Of Things ◽  
Data Privacy ◽  
The Internet ◽  
Privacy And Security ◽  
Content Type ◽  
Iot Devices ◽  
The Internet Of Things

Subject IoT ecosystem. Significance The market for the Internet of Things (IoT) or connected devices is expanding rapidly, with no manufacturer currently forecast to dominate the supply chain. This has fragmented the emerging IoT ecosystem, triggering questions about interoperability and cybersecurity of IoT devices. Impacts Firms in manufacturing, transportation and logistics and utilities are expected to see the highest IoT spending in coming years. The pace of IoT adoption is inextricably linked to that of related technologies such as 5G, artificial intelligence and cloud computing. Data privacy and security will be the greatest constraint to IoT adoption.

scholarly journals Three-level supply chain coordination of fresh agricultural products in the Internet of Things

2017 ◽  
Vol 117 (9) ◽  
pp. 1842-1865 ◽  
Author(s):  
Bo Yan ◽  
Xiao-hua Wu ◽  
Bing Ye ◽  
Yong-wang Zhang
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Agricultural Product ◽  
The Internet ◽  
Market Demand ◽  
Content Type ◽  
Revenue Sharing Contract ◽  
The Internet Of Things

Purpose The Internet of Things (IoT) is used in the fresh agricultural product (FAP) supply chain, which can be coordinated through a revenue-sharing contract. The purpose of this paper is to make the three-level supply chain coordinate in IoT by considering the influence of FAP on market demand and costs of controlling freshness on the road. Design/methodology/approach A three-level FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT is regarded as the research object. This study improves the revenue-sharing contract, determines the optimal solution when the supply chain achieves maximum profit in three types of decision-making situations, and develops the profit distribution model based on the improved revenue-sharing contract to coordinate the supply chain. Findings The improved revenue-sharing contract can coordinate the FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT, as well as benefit all enterprises in the supply chain. Practical implications Resource utilization rate can be improved after coordinating the entire supply chain. Moreover, loss in the circulation process is reduced, and the circulation efficiency of FAPs is improved because of the application of IoT. The validity of the model is verified through a case analysis. Originality/value This study is different from other research in terms of the combination of supply chain coordination, FAPs, and radio frequency identification application in IoT.

Putting things to work: social and policy challenges for the Internet of things

Info ◽  
2014 ◽  
Vol 16 (3) ◽  
pp. 1-21 ◽  
Author(s):  
William H. Dutton
Keyword(s):  
Internet Of Things ◽  
Everyday Life ◽  
Radio Frequency Identification ◽  
Business Models ◽  
The Internet ◽  
Individual Choice ◽  
Economic Implications ◽  
Content Type ◽  
The Right ◽  
The Internet Of Things

Purpose – This paper aims to provide a critical assessment of the Internet of things (IoT) and the social and policy issues raised by its development. While the Internet will continue to become ever more central to everyday life and work, there is a new but complementary vision for an IoT, which will connect billions of objects – “things” like sensors, monitors, and radio-frequency identification devices – to the Internet at a scale that far outstrips use of the Internet as we know it, and will have enormous social and economic implications. Design/methodology/approach – It is based on a review of literature and emerging developments, including synthesis of a workshop and discussions within a special interest group on the IoT. Findings – Nations can harvest the potential of this wave of innovation not only for manufacturing but also for everyday life and work and the development of new information and services that will change the way we do things in many walks of life. However, its success is not inevitable. Technical visions will not lead inexorably to successful public and private infrastructures that support the vitality of an IoT and the quality of everyday life and work. In fact, the IoT could undermine such core values as privacy, equality, trust and individual choice if not designed, implemented and governed in appropriate ways. Research limitations/implications – There is a need for more multi-disciplinary research on the IoT. Practical implications – Policymakers and opinion formers need to understand the IoT and its implications. Social implications – If the right policies and business models are developed, the IoT will stimulate major social, economic and service innovations in the next years and decades. Originality/value – This paper pulls together discussions and literature from a social science perspective, as one means to enable more multidisciplinary studies of emerging developments.

Optimization approach for increasing revenue of perishable product supply chain with the Internet of Things

2017 ◽  
Vol 117 (4) ◽  
pp. 729-741 ◽  
Author(s):  
Rui Yan
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
The Internet ◽  
Human Society ◽  
Content Type ◽  
Perishable Product ◽  
Before And After ◽  
Revenue Models ◽  
The Internet Of Things

Purpose The purpose of this paper is to optimize a two-level perishable product supply chain by increasing its revenue with the Internet of Things (IoT). It particularly investigates how radio-frequency identification (RFID) technology impacts the revenue of the supply chain. Design/methodology/approach In this paper, two revenue models were built to calculate the revenue of perishable product supply chain before and after the application of IoT to analyze the influences of IoT on perishable product supply chain. In the case study, particular data of an aquatic product supply chain were analyzed through these models which were later solved by a computer simulation method based on Colonial Competitive Algorithm, a new heuristic algorithm inspired by imperialistic competition in human society. Findings Using these revenue models to compare the revenues of supply chain before and after the application of IoT, this paper concludes that the application of IoT can efficiently optimize a perishable product supply chain by balancing its wholesale profits and its total costs including logistics costs, therefore, increasing its overall revenue. However, this conclusion is only applicable for large enterprises, while small enterprises are not supposed to introduce IoT due to its high cost. Originality/value The revenue models built in this paper can be used to evaluate the profits of supply chain and help enterprises determine how to maximize their profits and whether they should introduce IoT in a perishable product supply chain. In addition, through the analysis of case study, this paper gives several valuable suggestions to help enterprises reduce their logistics costs and increase their overall revenue.

Financial service providers and banks’ role in helping SMEs to access finance

2018 ◽  
Vol 48 (1) ◽  
pp. 69-92 ◽  
Author(s):  
Hua Song ◽  
Kangkang Yu ◽  
Qiang Lu
Keyword(s):  
Supply Chain ◽  
Information Asymmetry ◽  
Case Studies ◽  
Commercial Banks ◽  
Service Providers ◽  
Financial Service ◽  
Dyadic Relationship ◽  
Content Type ◽  
The Impact ◽  
Depth Interviews

Purpose Despite their crucial role in sustaining national economies, small and medium enterprises (SMEs) are beset by the constraint of financing at better conditions. The purpose of this paper is to compare supply chain finance (SCF) solutions provided by commercial banks and financial service providers (FSPs) that help SMEs access financing. Design/methodology/approach This study looks at multiple case studies using in-depth interviews with focal firms (lenders) to answer the research questions. In-depth interviews were conducted with three Chinese FSPs and three commercial banks providing working capital to the same SMEs. The unit of analysis is SCF solutions that have made the companies competitive in the industry. Findings The case studies show that the acquisition of transaction information and business credit in SCF can reduce ex ante information asymmetry. SCF utilizing receivable transfers, closed-loop business, relational embeddedness, and a combination of outcome control and behavioral control can also reduce ex post information asymmetry. For these reasons, compared with commercial bank-dominated SCF, SCF adopted by FSPs in the supply chain can better reduce information asymmetry. Originality/value This study contributes to the emerging literature exploring the impact of SCF on SMEs accessing financing. In particular, this study provides supply chain management and operations insights on SCF and their consequent influence. Previous research has focused on the direct dyadic relationship between lenders and borrowers while neglecting supply chain effects. Uniquely, this study explores the different ways commercial banks and FSPs implement SCF solutions.

The internet of things in the food supply chain: adoption challenges

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ammar Mohamed Aamer ◽  
Mohammed Ali Al-Awlaqi ◽  
Ifadhila Affia ◽  
Silvia Arumsari ◽  
Nabeel Mandahawi
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Literature Review ◽  
Food Supply ◽  
Future Research ◽  
The Internet ◽  
Food Supply Chain ◽  
Content Type ◽  
Contextual Understanding ◽  
The Internet Of Things

PurposeThe food supply chain (FSC) challenges coupled with global disruptions, such as the recent coronavirus disease 2019 (COVID-19) pandemic outbreak, exacerbate its vulnerability. The Internet of things (IoT) is one of the disruptive technologies being adopted in food supply chain management (FSCM). This study aims to address the challenges of IoT adoption in the FSC by systematically analyzing the prior pertinent literature.Design/methodology/approachA structured literature review was used to collate a list of peer-reviewed and relevant publications. A total of 72 out of 210 articles were selected for the final evaluation.FindingsThe literature review findings suggest five themes: technical, financial, social, operational, educational and governmental related challenges. A total of 15 challenges were devised from the review related literature of IoT adoption. The study concludes with future research recommendations for scholars and practical implications for practitioners.Research limitations/implicationsWhile this study focuses on the overall FSC, further research should address other domains in the FSC such as cold supply chain, agriculture and perishable food to gain a better contextual understanding of the specific case.Originality/valueThe topic of IoT adoption in the FSCM is still considered emerging. Therefore, the present work contributes to the limited studies and documentation on the level of IoT implementation in the FSCM. This study should help organizations to assimilate how to adopt and manage the IoT application by addressing the factors and challenges presented in this research.

A four-step blueprint for digital reinvention

2016 ◽  
Vol 44 (4) ◽  
pp. 18-25 ◽  
Author(s):  
Saul J. Berman ◽  
Peter J. Korsten ◽  
Anthony Marshall
Keyword(s):  
Internet Of Things ◽  
Design Methodology ◽  
The Internet ◽  
Content Type ◽  
New Ways Of Working ◽  
Partner Relationships ◽  
Strategic Focus ◽  
The Internet Of Things ◽  
Practical Implications ◽  
Customer Need

Purpose Digital reinvention helps organizations create unique, compelling experiences for their customers, partners, employees and other stakeholders. Design/methodology/approach Digital reinvention combines the capabilities of multiple technologies, including cloud, cognitive, mobile and the Internet of Things (IoT) to rethink customer and partner relationships from a perspective of fundamental customer need, use or aspiration. Findings The most successful digitally reinvented businesses establish a platform of engagement for their customers, with the business acting as enabler, conduit and partner Practical implications For successful digital reinvention, organizations need to pursue a new strategic focus, build new expertise and establish new ways of working. Originality/value The article offers a blueprint for digital reinvention that involves rethinking customer and partner relationships from a perspective of fundamental customer need, use or aspiration.

The Internet of Things and its impact on the library

2016 ◽  
Vol 117 (3/4) ◽  
pp. 289-292 ◽  
Author(s):  
Bruce Massis
Keyword(s):  
Internet Of Things ◽  
Literature Review ◽  
Design Methodology ◽  
Security And Privacy ◽  
The Internet ◽  
Content Type ◽  
Privacy Concerns ◽  
Potential Impact ◽  
The Internet Of Things

Purpose – The purpose of this paper is to consider the Internet of Things (IOT) and its potential impact on libraries. Design/methodology/approach – This paper presents a literature review and a commentary on this topic that have been addressed by professionals, researchers and practitioners. Findings – In communicating the issues when comprehending the scope of the IOT, libraries need not succumb to the sometimes near-hysteria that surrounds the rhetoric regarding security and privacy. But, librarians must actively engage in the conversation and its subsequent actions to respond to patrons who use library networks and devices with calm, logical and transparent answers to those questions concerning what they are doing to ensure that security and privacy vulnerabilities are regularly addressed. Originality/value – The value in concentrating on this topic is to provide background and suggest several approaches to security and privacy concerns regarding the IOT.

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