Do blockchain and circular economy practices improve post COVID-19 supply chains? A resource-based and resource dependence perspective

Using the resource-based and the resource dependence theoretical approaches of the firm, the paper explores firm responses to supply chain disruptions during COVID-19. The paper explores how firms develop localization, agility and digitization (L-A-D) capabilities by applying (or not applying) their critical circular economy (CE) and blockchain technology (BCT)-related resources and capabilities that they either already possess or acquire from external agents.

An abductive approach, applying exploratory qualitative research was conducted over a sample of 24 firms. The sample represented different industries to study their critical BCT and CE resources and capabilities and the L-A-D capabilities. Firm resources and capabilities were classified using the technology, organization and environment (TOE) framework.

Findings show significant patterns on adoption levels of the blockchain-enabled circular economy system (BCES) and L-A-D capability development. The greater the BCES adoption capabilities, the greater the L-A-D capabilities. Organizational size and industry both influence the relationship between BCES and L-A-D. Accordingly, research propositions and a research framework are proposed.

Given the limited sample size, the generalizability of the findings is limited. Our findings extend supply chain resiliency research. A series of propositions provide opportunities for future research. The resource-based view and resource-dependency theories are useful frameworks to better understanding the relationship between firm resources and supply chain resilience.

The results and discussion of this study serve as useful guidance for practitioners to create CE and BCT resources and capabilities for improving supply chain resiliency.

The study shows the socio-economic and socio-environmental importance of BCES in the COVID-19 or similar crises.

The study is one of the initial attempts that highlights the possibilities of BCES across multiple industries and their value during pandemics and disruptions.