Revisiting trust in supply chains: How does blockchain redefine trust?

Discussions about the use of blockchain in supply chains often claim a strengthening of trust. In this chapter, we argue that blockchains are not about trust per se and that supply chains can and do function effectively – with the mediation of blockchain technologies – without the presupposition of trust. Through the phenomenological lens of Heidegger, Merleau-Ponty and Todes, we posit how blockchains redefine trust in the supply chain context with an exploratory field study. Our analysis suggests that blockchains are better understood as sources of information reliability and accountability that make supply chain transactions possible in a zero-trust environment. Overcoming information asymmetry as a basis for enhanced supply chain functionality through undisrupted parallel flows of products, money and information is what blockchain can significantly contribute towards. If blockchains are – despite commonly held beliefs – not in-and-of-itself about trust, their technology-mediated features can redefine trust in supply chains. The chapter exemplifies the argument by looking at the rise of social commerce in China, which is a good example to illustrate such possibilities.