Conceptual analysis demonstrates blockchain adoption reduces transaction costs and improves inventory and data security in retail supply chains, indicating enhanced operational efficiency.
Purpose Blockchain technology (BCT) is increasingly recognized for its potential to revolutionize various industries, including retail. However, it is still unclear how adopting BCT in retail develops sustainable competitive advantages for firms. Therefore, through this study, we addressed two research objectives: First, to assess the role of BCT in minimizing transaction costs, improving inventory management and improving data security. Second, to evaluate the impacts of these drivers on enhancing supply chain efficiency to create sustainable competitive advantages for the Indian retail industry. Design/methodology/approach This study was conceptualized using resource-based theory (RBT) to evaluate blockchain adoption as a sustainable competitive advantage. A survey-based research design was employed, collecting data from 198 experienced mid- or senior-level managers with deep insights into supply chain challenges and BCT knowledge. The data were analysed using partial least squares-structural equation modelling (PLS-SEM) with the help of SmartPLS 3.0 software. Findings The study suggested that BCT significantly reduces the overall transaction cost, improves inventory management, and enhances data security and overall operational efficiency. Further, these drivers significantly influenced the efficient management of the supply chain. Originality/value This study extends the resource-based view by showing that blockchain delivers sustainable performance gains only when embedded in operational capabilities, particularly data-security improvements and inventory accuracy, rather than through cost-cutting alone. It provides measurable capability targets (data security improvements (DSI), inventory management accuracy (IMA)) for converting blockchain adoption into supply chain efficiency (SCE) and offers actionable guidance for practitioners to enhance traceability, process efficiency and resilience across multi-tiered retail operations.
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Sharma et al. (2025) studied this question.
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