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Chinese Journal of Management Science ›› 2025, Vol. 33 ›› Issue (9): 280-290.doi: 10.16381/j.cnki.issn1003-207x.2022.1748

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Optimal Blockchain Platform Construction and Joining Strategy of Supply Chain under Product Quality Differentiation

Xiaohong Chen1,2, Weidong Zhang1, Fuqiang Wang1()   

  1. 1.School of Business,Central South University,Changsha 410083,China
    2.School of Frontier Crossover Studies,Hunan University of Technology and Business,Changsha 410205,China
  • Received:2022-08-10 Revised:2023-03-08 Online:2025-09-25 Published:2025-09-29
  • Contact: Fuqiang Wang E-mail:wfqqfw11@foxmail.com

Abstract:

Recently, blockchain technology has been increasingly applied in supply chain operation management. However, the successful implementation of blockchain needs the participation of upstream and downstream enterprises of the supply chain. Therefore, it is a critical issue to identify the conditions for upstream and downstream enterprises of the supply chain to adopt blockchain technology in a competitive environment.In this paper, a supply chain that composed of two upstream suppliers with differences in product quality and one downstream retailer is considered. The retailer can choose to build the blockchain platform according to the market situation, and the suppliers can choose to join the blockchain platform. The models for maximizing profits of the suppliers and the retailer are constructed with regard to the retailer does not build a blockchain platform (the suppliers cannot join the blockchain platform) and the retailer builds a blockchain platform (the suppliers choose to join the blockchain platform or do not join the blockchain platform). Then, by solving the models, the optimal decisions of the retailer and the suppliers are obtained in different scenarios. Further, the profits of the retailer and the suppliers are compared to analyze the optimal strategies of the retailer and the suppliers. On this basis, equilibrium results are gotten for the retailer and the suppliers.Several important results are shown through the theoretical analysis. First, whether upstream suppliers join the blockchain platform depends mainly on the cost of blockchain, the increase of market potential after adopting blockchain technology and the differentiation level of product quality of upstream suppliers. Second, when the low-quality supplier decides to join the blockchain platform, the optimal strategy for high quality supplier is to always join the blockchain platform. In the end, upstream suppliers joining the blockchain platform is not always beneficial for retailer and overall supply chain profit. Particularly, only when the production competition intensity is small or the upstream suppliers’ product quality differentiation is significant, it would be better for retailer to construct the blockchain platform. Overall, the research can provide theoretical support for the decision of the retailer to build the blockchain platform in reality, and can also provide theoretical and ideological reference for different types of suppliers to join the blockchain platform.

Key words: blockchain technology, supplier competition, competition intensity, product quality differentiation

CLC Number: