The Roles of Blockchain Adoption and Smart Contract Automation in Improving Supply Chain Digital Efficiency

Abstract

This study investigates the relationship between blockchain application and smart contract automation (SCA) and their effect on supply chain digital efficiency (SCDE). The study is focused on logistics companies and food distribution companies in Jordan. They looked at both direct and indirect effects using SCA as the mediator. Purposive sampling was used in this study. A total of 408 respondents from logistics and supply chain firms in Jordan who were directly engaged in procurement, distribution and operations were used for this study. The analysis of data used in this research was structural equation modeling (SEM) to prove the direct and indirect effects in the research model. The results of the research indicate a direct and positive impact of blockchain and SCA on SCDE. Additionally, there is a positive indirect effect, with blockchain affecting SCDE, mediated by SCA. Finally, this study confirms the results of the previous studies, there are both direct and indirect implications for supply chain efficiency. The use of blockchain technology and SCA plays a crucial role in the transition to digital supply chains and its impact on operational accuracy, transparency, and transaction reliability. All these factors guarantee logistics performance and digital competitiveness in the long-term. This is unique research because of its research context. In this study, the researchers chose logistics firms and food distribution companies in Jordan as the subjects of the study, as they are most likely to be affected by SCDE influenced by blockchain and SCA. Digital supply chain transformation is a key element in achieving operational excellence and in being competitive in emerging markets.