Blockchain implementation and inventory turnover: The moderating role of environmental and task factors

Amid increasing supply chain disruptions and environmental uncertainty, adoption of digital technologies is critical for firms seeking to enhance their supply chain agility and inventory management capabilities. Blockchain ensures data security and accuracy through encryption and consensus mechanisms, creating new opportunities for firms’ inventory management activities. This study investigates how and to what extent blockchain can improve inventory turnover, using data from manufacturing firms listed on the Shanghai and Shenzhen A-share markets between 2017 and 2022. Empirical results demonstrate that blockchain implementation significantly improves inventory turnover. We draw on Adaptive Structuration Theory to further explore the contextual factors that moderate this relationship and find that market trust lessens the positive impact of blockchain implementation on inventory turnover, whereas product diversity and the geographic dispersion of subsidiaries strengthen this relationship. This study comprehensively illustrates how firms leverage blockchain’s technological advantages to improve inventory management.