Blockchain adoption in the supply chain – a game theoretic perspective: the case of the diamond industry

ABSTRACTThis case study of the gem-diamond industry applies the lens of game theory to explore how the adoption of blockchain technology can be achieved throughout a supply chain. We identify strategies that blockchain providers and beneficiaries in the case study have used or, in some cases, could have used to create a game-theoretic equilibrium across supply chain participants, resulting in the end-to-end adoption of a blockchain solution. We review the benefits that such a solution provides to the ultimate consumer and to supply-chain participants.KEYWORDS: Blockchainsupply chaingame theorydiamondsindustry case study AcknowledgmentsThe authors acknowledge and appreciate the review, comments, and suggestions of Sinan Erzurumlu on an earlier draft of this manuscript.Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1 An international nonprofit organization. See https://www.pactworld.org/.2 An international regulatory framework for banks was created in response to the financial crisis of 2007–2009.Additional informationNotes on contributorsSteven R. GordonSteven R. Gordon is Professor of Information Technology Management at Babson College. Dr. Gordon's research focuses on digital platforms, including blockchain and cryptocurrency platforms, platform adoption by incumbent companies, and the use of social media platforms in support of social movements. He has been published widely in the academic press and is the co-author of three textbooks and the editor of three research anthologies. Before joining Babson, Dr. Gordon was founder and president of Beta Principles, Inc. and a consultant to the aviation industry. He holds a Ph.D. in Transportation Systems from the Massachusetts Institute of Technology.Ruth GilleranRuth Gilleran is an Associate Professor of Practice in the Operations and Information Management Division at Babson College where she teaches courses in technology and entrepreneurship. She also serves as the Faculty Co-Director of the college’s core technology course. Prior to joining Babson College, Ms. Gilleran worked for Computer Associates where she held the position of Assistant Vice President of Development in its business application division. Prior to entering the software field, she worked for the Gillette Company as the North American and Asia Pacific Internal Audit Supervisor. Her research interests include digital disruption, robotic process automation, and blockchain.G. ShankaranarayananG. Shankaranarayanan (Shankar) is a faculty in Babson College. He obtained his Ph.D. in Management Information Systems from The University of Arizona, Eller School of Management. His research has appeared in journals including Journal of Data Management, Decision Support Systems, Communications of the ACM, Communications of the AIS, Journal of Information Technology Management, Journal of Computer Information Systems, ACM Journal on Data and Information Quality and, IEEE Transactions on Knowledge and Data Engineering. He serves as the Area Editor of the International Journal of Information Quality and as an Associate Editor of the ACM Journal for Data and Information Quality.Donna B. StoddardDonna B. Stoddard is Associate Dean of Faculty, Associate Professor and Chair of the Operations and Information Management (OIM) Division at Babson College. Dr. Stoddard teaches undergraduate, graduate, and executive education courses related to management information systems and business strategy. Before joining the Babson faculty, Dr. Stoddard was on the faculty at Harvard Business School where she taught in the MBA and executive education programs. She is a graduate of Creighton University, University of North Carolina at Chapel Hill, and Harvard Business School where she received her BS, MBA and DBA, respectively.Brad A. JohnsonBrad A. Johnson is an Assistant Professor of Practice at Babson College in the Operations and Information Management Division and teaches Supply Chain Management and Technology and Operations Management. Johnson has extensive experience in e-commerce and business operations including Vice President Operations at Wayfair, and Chief Operating Officer of Intrepid Learning Solutions. Johnson is a member of the Board of Directors of Dorel Industries and a strategic advisor to Foundry Brands, and Formio Sequoyah. Mr. Johnson holds an MBA from the University of Virginia Darden School of Business, BBA from St. Bonaventure University, and CPA from the State of New York.