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Combining Blockchain Technology and the Physical Internet to Achieve logistics Article Combining Blockchain Technology and the Physical Internet to Achieve Triple Bottom Line Sustainability: A Comprehensive Research Agenda for Modern Logistics and Supply Chain Management Horst Treiblmaier Department of International Management, MODUL University Vienna, Am Kahlenberg 1, 1190 Vienna, Austria; [email protected] Received: 27 December 2018; Accepted: 22 February 2019; Published: 27 February 2019 Abstract: Integrating triple bottom line (TBL) goals into supply chains (SCs) is a challenging task which necessitates the careful coordination of numerous stakeholders’ individual interests. Recent technological advancements can impact TBL sustainability by changing the design, structure, and management of modern SCs. Blockchain technology enables immutable data records and facilitates a shared data view along the supply chain. The Physical Internet (PI) is an overarching framework that can be applied to create a layered and comprehensive view of the SC. In this conceptual paper, I define and combine these technologies and derive several high-level research areas and research questions (RQ) to investigate adoption and management as well as structural SC issues. I suggest a theory-based research agenda for the years to come that exploits the strengths of rigorous academic research, while remaining relevant for industry. Furthermore, I suggest various well-established theories to tackle the respective research questions and provide specific directions for future research. Keywords: blockchain; distributed ledger technology; physical internet; logistics; supply chain management; research framework; innovation; information technology; triple bottom line; sustainability 1. Introduction Information technology (IT) is not only a crucial constituent of modern supply chains (SCs), but also their main innovation driver [1–3]. Consequently, it has played an important role in previous research on SCs and value networks, yielding a wide range of topics such as the usefulness and performance of IT, the use of RFID (radio frequency identification), process design, optimization, and inter-organizational orientation [4,5]. Every technological wave opens up new possibilities, but simultaneously brings along new challenges. Progressive computerization throughout the 1960s and 1970s enabled innovation in logistics planning, ranging from randomized storage to inventory optimization and truck routing. In the 1980s, personal computers emerged, which further improved planning activities, followed by the widespread adoption of networked computing and enterprise resource systems (ERPs) in the 1990s [6]. The proliferation of networking technology based on TCP/IP replaced face-to-face management, manual tracking systems, paper-dominated order processing, and wired communication links with Internet-based purchasing, computer-supported relationship management, and electronic marketplaces [7]. In the early 2000s, for example, a major focus of supply chain management (SCM) research was on the implementation of different IT systems including ERP, product data management (PDM), customer relationship management (CRM), computer-aided design (CAD), supply chain planning (SCP), manufacturing execution systems (MESs), and electronic commerce technology [8]. Logistics 2019, 3, 10; doi:10.3390/logistics3010010 www.mdpi.com/journal/logistics Logistics 2019, 3, 10 2 of 13 Logistics 2018, 2, x FOR PEER REVIEW 2 of 13 Technological progressprogress is is far far from from slowing slowing down, down, and emergingand emerging technologies technologies both in both the physical in the andphysical the virtualand the sphere virtual bear sphere substantial bear substantial potential forpotential optimizing for optimizing value networks value thatnetworks span intra-that span and inter-organizationalintra- and inter-organizational processes [9processes]. Two of [9]. these Tw technologieso of these technologies include the include blockchain, the blockchain, a distributed a ledgerdistributed technology ledger thattechnology fundamentally that fundamentally alters the way al inters which the way data in is stored,which data accessed, is stored, and processed, accessed, asand well processed, as the PI, as a well comprehensive as the PI, a SCcomprehensiv frameworke endorsed, SC framework among endorsed, others, by among the European others, by Union the (EU).European While Union the former (EU). While transforms the former data flows, transforms the latter data comprises flows, the both latter physical comprises and informationalboth physical flows.and informational Properly applied flows. Properly and combined, applied both and ofcomb themined, can both support of them the can achievement support the of achievement key supply chainof key managementsupply chain objectivesmanagement [10 ],objectives such as [10], the creationsuch as the of value,creation the of satisfactionvalue, the satisfaction and loyalty and of customers,loyalty of customers, as well as improved as well as profit improved margins, profit profitability, margins, andprofitability, corporate growthand corporate for companies growth [11for]. Furthermore,companies [11]. the Furthermore, optimization the of optimization intricate value of intricate networks value through networks technology through aims technology not only aims at increasingnot only at effectivenessincreasing effectiveness and efficiency and atefficiency the level at of the individual level of individual corporations, corporations, but also atbut creating also at sustainablecreating sustainable SCs that minimizeSCs that theminimize use of scarcethe use resources. of scarce It isresources. therefore It the is intelligent therefore combinationthe intelligent of physical,combination informational, of physical, and informational, financial flows and that financi enablesal flows the achievementthat enables ofthe triple achievement bottom line of (TBL)triple sustainabilitybottom line (TBL) [12]. sustainability [12]. TBL sustainability has three majormajor areas,areas, whichwhich maymay bebe conflictingconflicting atat times:times: economic development, environmental performance, and social gainsgains [[13].13]. As is shown in Figure 1 1,, thosethose threethree areas partially overlap and it is only the coordinated interplay of all three that finally finally leads to sustainability. InIn logistics logistics and and SCM SCM research, research, this frameworkthis framework has been has successfully been successfully applied, applied, for example, for toexample, analyze to theanalyze effect the of effect the of sustainable the sustainable supply supply chain chain design design of socialof social businesses businesses [12 [12],], toto show that sustainable supplier co-operation has positive effects on firmfirm performance across all three dimensions [[14],14], and to find find viable paths for integrating integrating the social social dimension dimension with general general sustainable SCM theory and practice [[15].15]. Given its inclusive na nature,ture, TBL sustainability provides the ideal target system for a comprehensive logistics and SCM framew framework.ork. Additionally, Additionally, substa substantialntial literature exists on how TBL reporting can be implementedimplemented and how widespread it isis amongamong companiescompanies [[16].16]. It is noteworthy that the distinction between strong and weak sustainability, the latter of which assumes that a substitution of natural capital by man-made ca capitalpital is sustainable [17], [17], is beyond the focus of this paper. Figure 1. Triple bottom line (TBL) goal system. In the context of logistics and SCM, examples for social goals include the reliable and timely In the context of logistics and SCM, examples for social goals include the reliable and timely provision of goods to those who need it, the improvement of the working conditions in the provision of goods to those who need it, the improvement of the working conditions in the transportation industry, and the overall reduction of traffic. The latter is also a highly important transportation industry, and the overall reduction of traffic. The latter is also a highly important environmental goal, since the transport industry accounts for a substantial part of environmental environmental goal, since the transport industry accounts for a substantial part of environmental pollution through the emission of pollutants such as CO2, NOx, and fine particles. This situation is pollution through the emission of pollutants such as CO2, NOx, and fine particles. This situation is aggravated by the transport of empty or half-empty containers and traffic jams especially in urban aggravated by the transport of empty or half-empty containers and traffic jams especially in urban areas. Furthermore, logistics constitutes a substantial proportion of organizational costs and worldwide areas. Furthermore, logistics constitutes a substantial proportion of organizational costs and GDP and any successful attempt to reduce these costs will yield economic benefits for organizations worldwide GDP and any successful attempt to reduce these costs will yield economic benefits for and nations alike [18–20]. organizations and nations alike [18–20]. Logistics 2019, 3, 10 3 of 13 This paper is structured as follows: In Section2, I briefly elaborate on the basic functioning of the blockchain and the PI, including a short history and the current state of development. In Section3, I first develop a framework that showcases seven layers of the PI and integrates the
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