The research aimed to analyse the impact of blockchain technology on international trade and find out how blockchain technology can improve the various fields of international trade. The research also intended to find the challenges regarding the implementation of blockchain technology in international trade to help companies achieve successful collaboration and understand what requirements need to be met in advance.
The literature review of this research covered the fundamentals of blockchain technology, blockchain's role in facilitating supply chain and trade finance, the impact and adoption of blockchain technology, and blockchain implementation's key challenges. A qualitative approach was used based on 12 semi-structured in-depth interviews with ten companies operating in different business fields and two blockchain specialists to obtain empirical data.
This research found that blockchain technology has significantly impacted international trade by improving supply chain efficiency, reducing the complexity of the paper-based trade process, and enabling faster cross-border payments. The empirical findings presented that blockchain can facilitate the supply chain by providing a high level of transparency and better product traceability. Furthermore, the findings showed that smart contracts could facilitate trade finance by providing automatic payments and eliminating intermediaries and blockchain-based ICOs could be a great fundraising option for innovative projects. However, this research also found that the large-scale implementation of blockchain in trade finance is still not possible due to government regulations.
Blockchain technology ensures to transform the supply chain and trade finance and reduce the complexity of the current international trade process. However, some critical challenges are associated with blockchain implementation, and some essential requirements need to be met in advance for successful implementation, which was discussed in this research. Furthermore, several suggestions regarding the large-scale implementation of blockchain in trade finance were presented.
The empirical findings will help companies develop their adoption strategies and prepare to implement the technology in the trade process. Furthermore, the findings of this research can bring new insight into the policymaking process regarding the implementation of blockchain in trade finance.
Table of Contents
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION
1.2 BACKGROUND
1.3 RESEARCH RATIONALE
1.4 RESEARCH AIM
1.5 RESEARCH OBJECTIVES
1.6 RESEARCH QUESTIONS
1.7 RESEARCH METHODOLOGY
1.8 LIMITING AND DELIMITING FACTORS
1.9 PROPOSED SIGNIFICANCE OF THE RESEARCH
1.10 DISSERTATION STRUCTURE
1.11 SUMMARY
CHAPTER 2: LITERATURE REVIEW
2.1 INTRODUCTION
2.2 FUNDAMENTALS OF BLOCKCHAIN TECHNOLOGY
2.3 KEY CHARACTERISTICS OF BLOCKCHAIN TECHNOLOGY
2.4 BLOCKCHAIN USE CASES RELATED TO INTERNATIONAL TRADE
2.5 IMPACT OF BLOCKCHAIN TECHNOLOGY ON INTERNATIONAL TRADE
2.6 BLOCKCHAIN’S ROLE IN FACILITATING SUPPLY CHAIN & TRADE FINANCE
2.7 INCREASE IN BLOCKCHAIN ADOPTION IN INTERNATIONAL TRADE
2.8 KEY CHALLENGES FOR BLOCKCHAIN IMPLEMENTATION
2.9 RESEARCH GAP
2.10 CONCEPTUAL FRAMEWORK
2.11 SUMMARY
CHAPTER 3: METHODOLOGY
3.1 INTRODUCTION
3.2 RESEARCH PHILOSOPHY
3.3 RESEARCH DESIGN
3.3.1 Literature Search
3.3.2 Research Approach
3.4 DATA COLLECTION
3.4.1 Data Collection Method
3.4.2 Research Sample
3.4.3 Data Gathering Process
3.4.4 Participants in the Research
3.5 DATA ANALYSIS
3.6 RESEARCH ETHICS
3.7 RELIABILITY AND VALIDITY
3.8 SUMMARY
CHAPTER 4: FINDINGS
4.1 INTRODUCTION
4.2 PARTICIPANTS’ BACKGROUND AND COMPANY DESCRIPTION
4.2.1 Companies Offering Blockchain Solutions
4.2.2 Companies Using Blockchain Solutions
4.2.3 Companies Interested in Using Blockchain Solutions
4.2.4 Companies from Developing Countries
4.2.5 Blockchain Specialists
4.2.6 Additional Empirical Data
4.3 KEY FINDINGS
4.3.1 Role of Blockchain Facilitating Supply chain & Trade Finance
4.3.2 Industries that are Adopting Blockchain Technologies
4.3.3 Factors that Influenced the Adoption
4.3.4 Impact of Blockchain Implementation
4.3.5 Critical Challenges for Blockchain Implementation
4.3.6 Possible Future of Blockchain Technology in International Trade
4.4 SUMMARY
CHAPTER 5: DISCUSSION
5.1 INTRODUCTION
5.2 ROLE OF BLOCKCHAIN FACILITATING SUPPLY CHAIN & TRADE FINANCE
5.3 BLOCKCHAIN ADOPTION IN INTERNATIONAL TRADE
5.3.1 Industries Adopting Blockchain Technology
5.3.2 Factors that Influence the Adoption
5.4 IMPACTS OF BLOCKCHAIN TECHNOLOGY ON INTERNATIONAL TRADE
5.5 IMPLEMENTATION OF BLOCKCHAIN SOLUTION IN COMPANIES
5.5.1 Challenges Associated with Blockchain Implementation
5.5.2 Requirements for Successful Blockchain Implementation
5.6 CONNECTION WITH THE CONCEPTUAL FRAMEWORK
5.7 SUMMARY
CHAPTER 6: CONCLUSION
6.1 INTRODUCTION
6.2 SUMMARY OF THE STUDY
6.3 RECOMMENDATIONS
6.4 THEORETICAL AND PRACTICAL CONTRIBUTIONS
6.4.1 Theoretical Contributions
6.4.2 Practical Contributions
6.5 ADDRESSING RESEARCH GAP
6.6 LIMITATIONS AND FURTHER RESEARCH
6.7 SUMMARY
Research Objectives and Core Themes
This research aims to conduct a comprehensive analysis of the impact of blockchain technology on international trade, evaluating how it can improve supply chain efficiency and facilitate trade finance. Furthermore, the study seeks to identify key challenges hindering blockchain implementation to provide companies with actionable insights for adoption strategies and policymaking.
- Role of blockchain in supply chain and trade finance facilitation
- Identification of industries adopting blockchain technologies
- Analysis of factors influencing blockchain adoption
- Evaluation of blockchain implementation impacts
- Examination of critical challenges and regulatory hurdles
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2.2 Fundamentals of Blockchain Technology
There have been two ways to hold money: owning physical items (cash, gold pieces, etc.) or middleman-mediated forms of money or payments (bank accounts, credit cards, checks, etc.). However, both methods have their problems; for example, tangible money is insecure, inconvenient and cannot be used for digital payments; on the other hand, middleman-mediated money solves these problems but introduces problems of fees, lack of accessibility, and a different form of insecurity (Mehta et al., 2019). Furthermore, middleman mediated forms of money or payments introduce intangibility, but one needs to trust financial institutions to manage or move their money, which often costs high transaction fees (Mehta et al., 2019).
Technical inefficiency is one reason for the centralization of most databases; in these databases, third-party errors have the effect of slowing down or corrupting the data (Pilkington, 2016). Blockchain first appeared in 2008 within the framework of the Bitcoin project with the purpose of transferring online payments from one party to another without relying on intermediaries (Gatteschi et al., 2018). A blockchain is a distributed ledger, comparable to a database that aggregates and updates data in real-time through a consensus algorithm, but instead of being controlled by a central authority, the ledger is dispersed across numerous computers which can be located all over the world, and once data is added to the ledger, it cannot be removed or altered (Ledger SAS, 2019). According to Pilkington (2016), blockchain is also known as distributed ledger technology that creates the historical details of digital assets and makes them transparent and immutable with the process of cryptographic hashing and decentralization mechanism.
Summary of Chapters
CHAPTER 1: INTRODUCTION: This chapter introduces the research context, outlines the background of blockchain in international trade, and details the research objectives and methodology.
CHAPTER 2: LITERATURE REVIEW: This chapter evaluates existing research on blockchain fundamentals, its role in supply chain and trade finance, and identifies current implementation challenges and research gaps.
CHAPTER 3: METHODOLOGY: This chapter describes the research philosophy, design, and qualitative data collection strategy, including semi-structured interviews with blockchain experts and industry representatives.
CHAPTER 4: FINDINGS: This chapter presents the empirical results derived from the interviews, covering participant backgrounds and key insights regarding blockchain adoption in various industries.
CHAPTER 5: DISCUSSION: This chapter interprets the empirical findings in relation to the literature review, analyzing the impact and challenges of blockchain integration in business environments.
CHAPTER 6: CONCLUSION: This chapter synthesizes the findings, provides recommendations for industry stakeholders, and acknowledges research limitations while suggesting areas for future study.
Keywords
Blockchain technology, International trade, Supply chain, Trade finance, Blockchain implementation, Digital ledger, Smart contracts, Supply chain traceability, Data security, Cryptocurrency, Regulatory frameworks, Blockchain challenges, Innovation, Transparency, Distributed ledger technology
Frequently Asked Questions
What is the primary focus of this research?
The research explores the impact of blockchain technology on international trade, specifically investigating how it can improve supply chain processes and facilitate trade finance.
What are the central thematic fields covered?
The study covers supply chain management, trade finance, blockchain implementation, digital asset tokenization, and the role of emerging technologies in global trade.
What is the core objective of the dissertation?
The main objective is to provide a holistic analysis of how blockchain can enhance international trade efficiency while identifying the challenges and prerequisites for successful corporate implementation.
Which scientific methodology was applied?
The research employs a qualitative strategy using an abductive approach, based on 12 semi-structured, in-depth interviews with blockchain companies, users, and specialists, supplemented by secondary data from whitepapers.
What does the main body of the research address?
The main chapters cover the fundamentals of blockchain, a detailed literature review, research methodology, presentation of empirical findings from interviews, and a discussion on adoption barriers and regulatory hurdles.
Which keywords characterize this work?
Core keywords include blockchain technology, international trade, supply chain, trade finance, transparency, traceability, and regulatory challenges.
How does blockchain specifically improve supply chain traceability?
According to the findings, blockchain links physical products to digital identities using technologies like QR codes or RFID, ensuring that every movement of goods is recorded securely and transparently, thereby reducing counterfeit risks.
Why is large-scale implementation of blockchain in trade finance currently difficult?
The research concludes that regulatory hurdles, such as the lack of legal status for cryptocurrencies in many countries, and the complexity of integrating blockchain with existing legacy infrastructure remain significant obstacles.
What role does the "research onion" play in this study?
The "research onion" framework by Saunders et al. (2015) is utilized as a structural guide to frame the methodology, justifying the choice of philosophy, approach, and strategy for the research.
- Quote paper
- Mehedi Hasan (Author), 2021, Blockchain Technology and its Impact on International Trade. What does the Future Hold?, Munich, GRIN Verlag, https://www.grin.com/document/1138816
