The application of blockchain technology in the recycling chain: a state-of-the-art literature review and conceptual framework

Abstract

More practitioners are embracing blockchain technology to improve recycling performance. However, current research on the use of blockchain is mostly confined to general discussions on sustainable supply chains and circular economy, with limited studies specifically focusing on the recycling chain. This paper conducts a thorough content-based review of the literature related to the application of blockchain technology in the recycling chain with the objective to identify a conceptual framework. Although descriptive and thematic analyses show limited developments, blockchain technology can offer four distinct functions in the recycling chain: transparency, integration, behaviour channelisation, and service transformation. The adoption of blockchain in this area has technical, organisational, and environmental limitations that have not been overcome yet. In terms of benefits, blockchain technology improves recycling performance in terms of cost, dependability, flexibility, sustainability, and risk reduction. To summarise the findings, the paper proposes a novel conceptual framework for blockchain implementations in the recycling chain to support practitioners and guide scholars in further blockchain technology exploration.

KEYWORDS:

• Blockchain technology
• recycling chain
• sustainable supply chain
• literature review
• sustainability

Acknowledgments

We would like to thank all anonymous reviewers, the associate editor, and the editor-in-chief, who provided us with expert guidance and critique to improve our manuscript. We are grateful to VeChain Foundation, a leading blockchain company which offered PhD sponsorship for the first author. Special thanks to Dr Steve New, from Saïd Business School, the University of Oxford, who provided valuable advice to our initial manuscript.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

The data that support the findings of this study are available from the corresponding author, upon reasonable request.

Additional information

Funding

This research was funded by ‘Thirteenth Five-Year’ National Key Research and Development Program of China [grant number 2018YFC1903000] and National Science Fund for Distinguished Young Scientists of China [grant number 71825006].

Notes on contributors

Shenghao Xie

Mr Shenghao Xie is a PhD candidate at Southampton Business School, the University of Southampton, UK. His research interest focuses on blockchain technology, recycling, sustainable supply chain and circular economy. In his academic experience, he obtained his master’s in MSc Supply Chain Management from University of Leeds (UK) with Distinction; bachelor’s degree from University of Plymouth (BA Operations Management) with First Degree. Shenghao has published research paper in the Business Strategy and the Environment (ABS 3) and teaching case in Ivey Publications, and a few conferences papers in prestige international academic conferences.

Yu Gong

Dr Yu Gong is an Associate Professor in Operations Management at the University of Southampton, UK. He received his Ph.D. degree from Exeter Business School, the University of Exeter, UK. He serves as an associate editor of the Business Strategy and the Environment and Journal of Computer Information Systems. He has published more than 50 papers in journals such as IJOPM, IJPE, IJPR, IMM, TRD and BSE. His current research interests include sustainable supply chain management and supply chain innovation.

Martin Kunc

Martin Kunc is Professor of Management Science at Southampton Business School, University of Southampton, UK. He serves as editor-in-chief of the Journal of the Operational Research Society and associate editor for the Journal of Simulation and Journal of Business Analytics. He has published more than 50 papers in journals such as SMJ, Omega, JORS and TFSCh. His current research interests include simulation, scenario planning and behavioural operations.

Zongguo Wen

Prof. Zongguo Wen is a Tenured Professor in School of Environment at the Tsinghua University, and Honorary Professor at the University College London. He received his Ph.D. degree from School of Environment, Tsinghua University, China. He serves as associate editor of National Science Open. He has published more than 120 papers in international peer-reviewed journals such as Nature Communications and Nature Sustainability. His current research interests include municipal solid waste recycling and circular economy, and energy and environmental system engineering.

Steve Brown

Professor Steve Brown is known internationally in the areas of Operations Management and Strategy. He has taught in the UK, Europe and North America. He was Editor in Chief of the International Journal of Operations & Production Management, which is in the top 3 in the world for its subject and he led its transformation from a 3 to a 4 rated journal in ABS listings. He has been a Professor at Bath, Exeter, and Southampton Universities and a Visiting Professor at Baruch College in New York. He is an Honorary Professor at Sussex University. He has been involved in consulting in a range of organisations in manufacturing and service sectors including government level engagements. His interests include the role of operations strategy both within a firm-specific basis as well as within complex networks; service management, where he has published in, and consulted on, operations management’s contribution to healthcare.