Balancing stability and flexibility: The effects of blockchain adoption on supply chain resilience

Firms are increasingly adopting blockchain technology to enhance risk management strategies. Nevertheless, the extent to which blockchain adoption influences firm resilience and its broader spectrum of stakeholders remains uncertain. Our study investigates how a focal firm's adoption of blockchain in the supply chain affects its resilience, encompassing both financial stability and operational flexibility. We then explore the spillover effects of the focal firm's use of blockchain on the resilience of both suppliers and customers, and further examine the moderating effects of supply chain diversification. Drawing on data from Chinese listed manufacturers and their supply chain partners, the empirical results reveal that blockchain significantly improves the financial stability of focal firms while its relationship with operational flexibility follows an inverted U-shaped pattern. In terms of supply chain spillover effects, the blockchain adoption of focal firms is linked to decreased financial stability for customers, but it concurrently boosts the operational flexibility of suppliers and customers. Supply chain diversification moderates the relationship between blockchain adoption and the operational flexibility of both suppliers and customers. These insights illuminate the trade-offs introduced by blockchain for supply chain resilience, providing a nuanced understanding of how supply chain members are influenced by the focal firm's blockchain adoption.