Blockchain’s Impact on Accounting and Auditing: A Use Case on Supply Chain Traceability

2021 ◽  
Author(s):  
Manlu Liu ◽  
Ashok Robin ◽  
Kean Wu ◽  
Jennifer Xu
Keyword(s):  
Supply Chain ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Information Quality ◽  
Use Case ◽  
Transaction Cost Theory ◽  
Future Studies ◽  
Business Transactions ◽  
Blockchain Technology ◽  
Potential Impact

We use the transaction cost theory, originally proposed by Coase (1937), as a theoretical framework to examine the potential impact of the blockchain technology on accounting and auditing processes in terms of information timeliness, information quality, and auditing costs. Since a blockchain enables recording, tracking, and managing business transactions and assets of firms, it offers natural advantages to accounting and auditing processes, and has the potential to lower various transaction costs. A use case on a supply chain of food products is presented to illustrate how a blockchain can be used to trace the movement of goods and record the related transactions. Subsequently, building on this scenario, we use the transaction cost framework to generate propositions related to accounting and auditing that can be empirically tested in future studies as data become available.

scholarly journals The bullwhip effect in Brazilian supply chain of organic products: an analysis from the perspective of transaction cost theory

2019 ◽  
Vol 10 (3) ◽  
pp. 1015
Author(s):  
Paolo Edoardo Coti-Zelati ◽  
Mauricio Jucá de Queiroz ◽  
Davi Lucas Arruda de Araújo
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Strategic Management ◽  
Transaction Costs ◽  
Conceptual Model ◽  
Transaction Cost ◽  
Bullwhip Effect ◽  
Transaction Cost Theory ◽  
Chain Management ◽  
Organic Products

This paper deals with the to the supply chain strategic management of organic products. The objective of this study is to propose a model that integrates the concepts of supply chain management (SCM), transaction costs theory (TTC) and bullwhip effect in supply chain of organic products generating propositions that will direct future empirical research. Therefore, this paper proposes that the SCM and TTC can contribute in reducing the distortion of perception of demand along the supply chain of organic products. A conceptual model relating the three variables studied was elaborated and three theoretical future empirical investigations to propositions in order to solve the problem of the bullwhip effect, namely the distortion of perception of demand along the supply chain of organic products.

scholarly journals On Deploying Blockchain Technologies in Supply Chain Strategies and the COVID-19 Pandemic: A Systematic Literature Review and Research Outlook

2021 ◽  
Vol 13 (19) ◽  
pp. 10566
Author(s):  
Mohammad Nabipour ◽  
M. Ali Ülkü
Keyword(s):  
Supply Chain ◽  
Literature Review ◽  
Systematic Literature Review ◽  
Web Of Science ◽  
Environmental Issues ◽  
Future Studies ◽  
Blockchain Technology ◽  
Industrial Sectors ◽  
Holistic Review ◽  
Review Study

The emergence of a new pandemic, known as COVID-19, has touched various sections of the supply chain (SC). Since then, numerous studies have been conducted on the issue, but the need for a holistic review study that highlights the gaps and limits of previous research, as well as opportunities and agendas for future studies, is palpable. Through a systematic literature review on blockchain technology (BCT) deployment in supply-chain management (SCM) concerning the COVID-19 pandemic, this research seeks to add to the content of previous studies and to enlighten the path for future studies. Relevant papers were found using a variety of resources (Scopus, Google Scholar, Web of Science, and ProQuest). Seventy-two articles were systematically selected, considering the PRISMA procedure, and were thoroughly analyzed based on BCT, methodologies, industrial sectors, geographical, and sustainability context. According to our findings, there is a significant lack of empirical and quantitative methodologies in the literature. The majority of studies did not take specific industries into account. Furthermore, the articles focusing on the sustainability context are few, particularly regarding social and environmental issues. In addition, most of the reviewed papers did not consider the geographical context. The results indicate that the deployment of BCT in several sectors is not uniform, and this utilization is reliant on their services during the COVID-19 pandemic. Furthermore, the concentration of research on the impacts of the BCT on SCM differs according to the conditions of various countries in terms of the consequences of the COVID-19 pandemic. The findings also show that there is a direct relationship between the deployment of BCT and sustainability factors, such as economic and waste issues, under the circumstances surrounding COVID-19. Finally, this study offers research opportunities and agendas to help academics and other stakeholders to gain a better knowledge of the present literature, recognize aspects that necessitate more exploration, and drive prospective studies.

Transaction Costs and Information Systems: Does IT Add Up?

2006 ◽  
Vol 21 (3) ◽  
pp. 195-202 ◽  
Author(s):  
Antonio Cordelia
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Information And Communication Technology ◽  
Information Flow ◽  
Communication Technology ◽  
Flow Distribution ◽  
Transaction Cost Theory ◽  
Design And Implementation ◽  
Is Research ◽  
Information And Communication

Transaction cost theory has often been used to support the use of information and communication technology (ICT) to reduce imperfection in the economic system. Electronic markets and hierarchies have repeatedly been described as solutions to inefficiencies in the organisation of transactions in complex and uncertain settings. Far from criticising this assumption, this paper highlights the limits associated with this application of transaction cost theory that has been prevalent in IS research. Building on the concepts first proposed by Ciborra, the paper argues that information-related problems represent only some of the elements contributing to transaction costs. These costs also emerge due to the interdependencies among the various factors contributing to their growth. The study of the consequences associated with ICT design and implementation, grounded in transaction cost theory, should consider the overall implication associated with the adoption and use of ICT and not only the direct effect on problems associated with information flow, distribution, and management.

To affiliate, or not to affiliate. Transaction costs and governance choices in luxury hotels in Germany

2019 ◽  
Vol 20 (3) ◽  
pp. 272-287
Author(s):  
Matteo Pedrini ◽  
Chiara De Bernardi
Keyword(s):  
Regression Analysis ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Transaction Cost Theory ◽  
Luxury Hotels ◽  
Entry Strategies ◽  
Property Owners ◽  
Luxury Hotel ◽  
Governance Choices ◽  
Hotel Chain

This paper examines the choice of affiliation or no affiliation to a large hotel chain from the viewpoint of luxury hotel property owners in Germany. Grounded in transaction cost theory, this study identifies how uncertainty and frequency influence the owners’ choice of unaffiliated operation and affiliation. The study augments the traditional governance literature in the field of the hotel by shedding light on the market/hierarchy decision of property owners rather than on the market entry strategies of international hotels firm. Through a multiple regression analysis on a sample of 122 existing five-star hotels in Germany, this study provides new empirical evidence that a frequent contract conclusion with the same hotel chain and a “hotel unrelated” background of the owner increases the likelihood of affiliation. In contrast to what transaction cost theory traditionally predicts, our results reveal that uncertainty is not influencing the owners’ market/hierarchy decision.

Developing a framework for considering blockchain pilots in the supply chain – lessons from early industry adopters

2019 ◽  
Vol 25 (1) ◽  
pp. 115-121 ◽  
Author(s):  
Remko van Hoek
Keyword(s):  
Supply Chain ◽  
Case Studies ◽  
Empirical Research ◽  
Lessons Learned ◽  
Use Cases ◽  
Use Case ◽  
Content Type ◽  
Early Adopters ◽  
Design Considerations ◽  
Blockchain Technology

Purpose There is a lot of interest in blockchain technology in the supply chain, but to date, there is little empirical research to support managerial decision-making. Verhoeven et al. (2018) suggested five screens for ensuring mindful development of use cases for blockchain in the supply chain. This paper aims to extend the Verhoeven et al.’s (2018) framework and empirical research beyond the use case stage into the pilot stage. Design/methodology/approach Three case studies in different industries (logistics services, consumer products and retail), supply chain positions (manufacturer, carrier, and retailer) and geographies (Europe and USA) are conducted to explore lessons learned by early adopters of blockchain technology in the supply chain. Findings The case studies indicate that the Verhoeven et al.’s (2018) screens, with one added screen, are helpful in considering “what to adopt.” Based on the insights from the case studies, it is also possible to develop pilot design considerations that can inform “where to start.” Lessons learned include that there is value in scoping pilots in a targeted manner, including the use of existing technology in the pilot (as opposed to replacing existing technology) and that there is the ability to start a pilot fast, provided the existence of executive and stakeholder engagement. Practical implications In addition to the need to be being mindful in considering what use case for blockchain in the supply chain to potentially adopt, mindful consideration of blockchain technology in the supply chain extends into the design of pilots. Six specific design considerations are offered. Originality/value Based on the insights from early adopters in industry, the author extends guidance for the mindful adoption of blockchain in the supply chain beyond the development of use cases, into the design of actual pilots. These insights directly address calls for research from literature (including from Dobrovnik et al., 2018 and Ferdows, 2018).

Using blockchain technology to drive operational excellence in perishable food supply chains during outbreaks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yasanur Kayikci ◽  
Damla Durak Usar ◽  
Batin Latif Aylak
Keyword(s):  
Supply Chain ◽  
Food Supply ◽  
Case Analysis ◽  
Use Case ◽  
Food Supply Chain ◽  
Managerial Decision ◽  
Content Type ◽  
Blockchain Technology ◽  
Single Use ◽  
Operational Excellence

PurposeThis paper aims to explore the potential of blockchain technology (BT) to support the operational excellence in perishable food supply chain (PFSC) during outbreaks, by doing use-case analysis.Design/methodology/approachA systematic literature review is performed to determine the dimensions of operational excellence in the food supply chain (FSC), then a single use-case analysis is conducted to explore the potential of blockchain in order to achieve operational excellence for PFSC during the pandemics by applying context, interventions, mechanism and outcomes (CIMO) logic.FindingsThe findings of this study reveal that blockchain capabilities such as immutability and transparency, visibility, traceability, integration and interoperability, disintermediation and decentralisation, smart contracts and consensus mechanism provide better sustainable operational excellence outcomes for PFSCs to be more responsive, flexible, efficient and collaborative to cope with the impacts of COVID-19.Research limitations/implicationsThis research employs only one real case with multiple PFSC participants. Statistical generalisation is not possible at this stage of the research. However, the findings are not restricted to this single use-case.Practical implicationsThis study provides a research direction to explore the potential of BT to achieve operational excellence in the PFSC during outbreaks and generates prescriptive knowledge for better managerial decision-making across the PFSC during outbreaks.Originality/valueThis research conducts semi-structured interviews with different participants in one blockchain ecosystem to understand multiple participants' perspectives of operational excellence within PFSC.

scholarly journals SUPPLY CHAIN MANAGEMENT AND ITS PRACTICAL IMPACT

2021 ◽  
Vol 9 (2) ◽  
pp. 357-364
Author(s):  
Shreyansh Jain, Et. al.
Keyword(s):  
Supply Chain ◽  
Information Quality ◽  
Joint Decision ◽  
Future Studies ◽  
Independent Variables ◽  
Performance Risk ◽  
And Performance ◽  
The Impact ◽  
Practical Impact

This paper studied about the role of different independent factors on supply chain responsiveness. Here, we considered factors such as joint decision making, information quality and performance risk as three independent variables and supply chain responsiveness as a dependent variable. We tried to survey different supply chain professionals working in different sectors to have an unbiased image in our study. After applying Pearson corelation in our study, we understood the significance of our independent variables on supply chain responsiveness. The positive significance shows the importance of these factors while working on our dependent variable. All three relationships are showcasing either positive or strong corelation. Finally, we could infer that there are a lot more factors that we can take in to consideration for calculating the impact on supply chain responsiveness in future studies. This will definitely strengthen the case and will help in practical explanation.                       

scholarly journals Axiomatic Formulation of the Optimal Transaction Cost Theory in the Legal Process Through Cobb-Douglas Optimization

2021 ◽  
Vol 14 (3) ◽  
pp. 385-389
Author(s):  
Kwadwo Osei Bonsu
Keyword(s):  
Transaction Costs ◽  
Utility Function ◽  
Transaction Cost ◽  
Hessian Matrix ◽  
Legal Framework ◽  
Social Utility ◽  
Transaction Cost Theory ◽  
Optimal Parameters ◽  
Legal Process ◽  
The Social

Abstract Subject and purpose of work: This paper uses Cobb-Douglas optimization to formulate an optimal transaction cost algorithm within the constraint of a generalized legal framework. Materials and methods: The author has adopted a Lagrangian approach to formulate the social utility function, then, from a set of legally allowed strategies established the Karush-Kuhn-Tucker conditions for the legal game so as to find the optimal parameters within the social utility function. Finally, the optimal transaction cost algorithm was developed. Results: The Bordered Hessian Matrix from the partial differentials of the social utility function showed that there is a particular parameter within the social utility function which describes the optimal transaction cost. An adjustment of this parameter is essential in mechanism design for legal games. Conclusions: The author has shown how transaction costs influence the set of strategies played by players in a legal game, and has described the essence of a social utility function and how it can be optimized.

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