Blockchain Technology Adoption for Economic and Social Upgrading

A significant technological advancement in recent years is the emergence of blockchain technology. The implementation of blockchain technology in supply chains has had drastic impacts on economic, social, and environmental outcomes. In this conceptual paper, we aim to provide a reflective perspective on the current literature to understand the role of blockchain technology adoption on economic and social upgrading in global value chains. This work focuses on the trade-offs between economic and social upgrading for suppliers in developing economies and on the conditions under which this trade-off can be minimized. We argue that blockchain technology adoption can lead to process upgrading and social upgrading for suppliers in developing economies. However, the adoption of blockchain technology is likely to increase lead firms’ power and will moderate the outcomes from process and social upgrading.