Journal of Entrepreneurship Research

Journal of Entrepreneurship Research

Application of the Internet of Things and Blockchain to Clarify Information in the Financing of the Supply Chain of Businesses

Document Type : Research Article

Authors
Moheb Ali Rahdar
Mohammad Reza Asghariyan
Department of Industrial Engineering, Shahid Nikbakht Faculty of Engineering, University of Sistan and Baluchestan, Zahedan, Iran.
10.22034/jer.2023.2007862.1049
Abstract
The main factor in successful supply chain financing services is the use of business-oriented information systems. The current research aimed to further associate blockchain technology with the Internet of Things (IoT) and apply them in the field of supply chain finance. The research presents a new information management framework based on blockchain technology and IoT, which contributes to information transparency in the supply chain financing process. By managing information based on blockchain technology and IoT, the operational cost of the entire supply chain can be greatly reduced due to the integration of capital, information, and commercial flows in the supply chain. The results can be summarized as follows: (1) In a symmetric information environment subject to the limitation of maximizing the expected return of all parties, the incentive subsidy under the compatible incentive mechanism has a positive relationship with the maturity of blockchain technology and the operational capability of small and medium-sized enterprises (SMEs) and a negative relationship with the action level coefficient, absolute risk aversion coefficient, and external uncertainty of these companies. (2) The expected income that satisfies the mechanism of incentive compatibility has a positive relationship with the maturity of the blockchain technology, the broker’s profitability, and the net profit received by the employer. (3) In an asymmetric information environment, a varied incentive subsidy is more effective than an equal incentive subsidy in different SMEs with different operational capabilities and provides different incentives for these companies. Therefore, it can be concluded that in a symmetrical information environment, the equal incentive subsidy is more effective, but in an asymmetric information environment, a varied incentive subsidy is more effective.
Keywords
Blockchain
Business Financing
Information Clarity
Internet of Things
Supply Chain Financing

Subjects

Azrour, M., Mabrouki, J., Guezzaz, A., & Farhaoui, Y. (2021). New Enhanced Authentication Protocol for Internet of Things. Journal of the Big Data Mining and Analytics, 4(1), 1-9.
Berger, A. N., & Udell, G. F. (2006). A More Complete Conceptual Framework for SME Finance. Journal of Bank Finance, 30(11), 2945-2966.
Basu, P., & Nair, S. (2012). Supply Chain Finance Enabled Early Pay: Unlocking Trapped Value in B2B Logistics. International Journal of Logistic. System and Management, 12(3), 334-353.
Banerjee, A. (2018).  Blockchain Technology: Supply Chain Insights from ERP. Advances in Computers, 111, 69-98.
Calero, C., Mancebo, J., Garcia, F., Moraga, M. A., Berna, J. A. G., Fernandez-aleman, J. L., & Toval, A. (2020). 5Ws of Green and Sustainable Software. Tsinghua Science and Technolology, 25(3), 401-414.
Christidis, K., & Devetsikiotis., M. (2016). Blockchains and smart contracts for the internet of things, IEEE Access 4, 2292–2303.
Du, M., Chen, Q., Xiao, J., Yang, H., & Ma, X. (2002). Supply Chain Finance Innovation Using Blockchain. IEEE Transections. Engineering and Management, 67(4), 1045-1058.
Deng, R., & Chuen, D. (2017). Handbook of Blockchain, Digital Finance, and Inclusion. EBook ISBN: 9780128123003, China: AP Publications.
Eyal, I. (2017). Blockchain Technology: Transforming Libertarian Cryptocurrency Dreams to Finance and Banking Realities. Computer, 50(9), 38-49.
Gottlieb, D., & Moreira, H. (2022). Simple Contracts with Adverse Selection and Moral Hazard. Journal of Econometric Society Social, 17(3), 1357-1401.
Hofmann, E. (2005). Supply Chain Finance: Interorganizational Operations Management. Germany: Springer Gabler.
Hofmann, E., Strewe, U. M., & Bosia, N. (2017). Supply Chain Finance and Blockchain Technology. Germany: Springer Briefs in Finance.
Hartley, W. (2000). Supply Chain Finance System and Method. Patent and Trademark Office, Washington DC, 1-14.
Jia, F., Blome, C., Sun, H., Yang, Y., & Zhi, B. (2020). Toward an Integrated Conceptual Framework of Supply Chain Finance: An Information Processing Perspective. International Journal of Production Economics, 219, 18-30.
Li, Z., Guo, H., Wang, W. M., Guan, Y., Ali, V. B., Huang, G. Q., McFall, K. S., & Chen, X. (2019) A Blockchain and AutoML Approach for Open and Automated Customer Service. IEEE Transections on Industrial Informatics, 15(6), 3642-3651.
Lamoureux, M. (2008). A Supply Chain Finance Prime. Retrieved from: www.esourcingwiki.com.
Leora, K. (2004). The Role of "Reverse Factorin" in Supplier Financing of Small and Medium Sized Enterprise. World Bank, 102-103.
Mabrouki, J., Azrour, M., Fattah, G., Dhiba, D., & Hajjaji, S. E. (2021). Inteligent Monitoring System for Biogas Detection Based on the Internet of Things: Mohammedia, Morocco City Landfill Case. Big Data Mining and Analytics, 4(1), 10-17.
Nakamoto, S. (2008). Bitcoin: A Peer-To-Peer Electronics Cash System. Retrieved from: www.bitcoin.org.
Prakash, R., Anoop, V. S., & Ashraf, S. (2022). Blockchain Technology for Cybersecurity: A Text Mining Literature Analysis. International Journal of Information Management Data Insights, 2(2), 90-112.
Sangpech, P., & Ueasang Komsate, P. (2022). Supply Chain Management and The Circular Economy: A Review of Current Research and Future Trends. IEEE Publishing, Thailand, 13-28.
Seebacher, S., & Schuritz, R. (2017).  Blockchain Technology as an Enabler of Service Systems: A Structured Literatyre Review. 8th International Conference on Exploring Service Science, Italy, 12-23.
Salah, K., Nizamuddin, N., Jayaraman, R., Omar, M. (2019). Blockchain-Based Soybean Traceability in Agricultural Supply Chain. IEEE Access, Vol:7, 73295-73305.
Shuani Ren, Y., Quan Ma, CH., & Ran Wang, Y. (2023). Sustainable Finance and Blockchain: A Systematic Review and Research Agenda. Research in International Business and Finance, 64, 101-117.
Treleaven, P., Brown, R. G., & Yang, D. (2017). Blockchain Technology in Finance. Computer 50(9), 14-17.
Timme, G. (2000). Supply Chain Management Review. The Financial- SCM Connection, 4(2), 33-40.
Tan, X., Zhang, J., Qin, Z., Ding, Y., Wang, X. (2021). A PUF-Based and Cloudassisted Lightweight Authentication for Multi-Hop Body Area Network. Tsinghua Science and Technology, 26(1), 36-47.
Wei, S., Jing, L., Dong, L., Feng, G., Peng, L. (2004). Business Models and Solution Architectures for SMB Financing in A Supply Chain Ecosystem. IEEE International Conference On E-Commerce Technology for Dynamic, EBusiness, 130-133.
Yan, K., Ji, Z., Jin, Q., & Wang, Q. G. (2021). Guest Editorial: Machine Learning for Al-Enhanced Healthcare and Medical Services: New Development and Promising Solution. IEEE ACM Transections, Computers, Biology, Bioinformatics, 18(3), 850-851.
Yan, K., Huang, J., Shen, W., & Ji, Z. (2020). Unsupervised Learning for Fault Detection and Diagnosis of Air Handling Units. Energy and Buildings, 210, 109-126.
Zhang, W., Chen, X., & Jiang, J. (2021). A Multi-Objective Optimization Method of Initial Virtual Machine Fault-Tolerant Placement for Star Topological Data Centers of Cloud Systems. Tsinghua Science and Technology, 26(1), 95-111.
Zhou, X., Liang, W., Shimizu, S., Ma, J., & Jin, Q. (2021). Siamese Neural Network Based Few-Shot Learning for Anomaly Detection in Industrial Cyber-Physical Systems. IEEE Transactions on Industrial Informatics, 17(8), 5790-5798.

  • Receive Date 26 July 2023
  • Revise Date 27 December 2023
  • Accept Date 27 December 2023