Blockchain applications in the supply chain management in German automotive industry

Abstract

The automotive industry appears to be a particularly attractive application case for blockchain technology adoption. Blockchain is one of the innovations that has much potential to change current business processes in German original equipment manufacturers (OEMs) and enable new services for their customers. This paper combines collective case study and in-depth interviews to explore the potentials and existing challenges of blockchain technology-based applications at German OEMs. The results suggest that blockchain applications have advantages in aggregating product information, securing transaction information, and establishing a reliable supply chain. Based on the TOE (technology, organisation and environment) model, our case study shows that the biggest obstacles for blockchain technology adoption in the automotive supply chain include: technology immaturity, lack of guidance and industry standards, non-cooperation of chain members, and legislative ambiguity. Based on auto manufacturers investigated, blockchain technology is perceived to have great potentials in reducing process costs, ensure product quality, and enhance the automotive supply chain’s visibility and digitisation.

Keywords:

• Blockchain technology
• case study
• supply chain management
• German automotive industry

Disclosure statement

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

Additional information

Notes on contributors

Xiaojing Xu

Xiaojing Xu is currently a PhD research student of Business School at Nanjing University (NJU). She holds MA in Management at Southeast University, and BA in Industrial Engineering at Nanjing University of Finance and Economics. Her research interests include supply chain management and operation management.

Lukas Tatge

Lukas Tatge is the founder and CEO of a fintech startup in Nanjing, China. His research interest includes innovations and technology in the area of blockchain, decentralized finance, and quantitative algorithm trading, as well as the automotive supply chains.

Xiaolin Xu

Xiaolin Xu is a professor at Nanjing University Business School. He obtained his PhD degree in System Engineering and Engineering Management at The Chinese University of Hong Kong in 2006. His research interests include supply chain management and business analytics.

Ying Liu

Ying Liu is a doctoral student from the Business School of Nanjing University and an associate researcher at Nanjing Medical University. Her research interests include organizational behavior, medical education, and public health.