INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH

2023, VOL. 61, NO. 11, 3505–3511

https://doi.org/10.1080/00207543.2023.2185397

Platform supply chain innovations in the blockchain era: the ABCDE framework
Tsan-Ming Choia , Jing Chenb , Guo Lic and Xiaohang Yued
a Centre for Supply Chain Research, University of Liverpool Management School, Liverpool, UK; b Faculty of Management, Dalhousie University,

Halifax, Canada; c School of Management and Economics, Beijing Institute of Technology, Beijing, China; d Lubar College of Business, University
of Wisconsin-Milwaukee, Milwaukee, WI, USA

ABSTRACT ARTICLE HISTORY

Platforms are giants in today’s operations. Companies like Amazon and eBay are huge enterprises KEYWORDS
which belong to top enterprises in the world. In this article, we discuss platform supply chain inno- Blockchain; platform supply
vations in the blockchain era. We first search the literature and identify the level of popularity of the chains; digital supply chains;
topic over the past years. Next, we review some closely related studies in the literature and introduce disruptive technologies;
the featured papers in this IJPR special issue. After that, we identify research gaps, present the ABCDE ABCDE framework
framework and propose a future research agenda.

1. Introduction that policy makers and platform operations should pay

attention to.
With the emergence of digital technologies such as
Pinpointing challenges associated with data, block-
mobile computing and smartphones (Choi et al. 2022),
chain technology plays a critical role (Li et al. 2022). In
giant platform operations, such as Amazon, Apple (App
essence, it is known that blockchain can be regarded as a
Store), and Google, rule the business world! This is fur-
digital distributed ledger. It is formed based on the idea
ther accelerated with the global COVID-19 pandemics
of decentralisation. The beauty of blockchain is that it
(Choi 2020; Xu et al. 2023), which makes e-commerce
can build a highly reliable and super secure system for
operations (Yu et al. 2022) and virtual platforms (Wang,
platform operators. At the same time, transparency and
Chen, and Song 2021) more important and significant
immutability of data can be maintained along the whole
than usual.
supply chain. Some other functions such as smart con-
There is no doubt that the development of mod-
tracting (Dolgui et al. 2020) can further automate prod-
ern platform economy has created new opportunities
ucts and financial transactions. In short, blockchain can
and challenges for all stakeholders in the supply chain.
help members of the supply chain to achieve a higher level
Service platforms, such as on-demand platform Uber,
of data transparency and security. This will ultimately
have changed the way the whole ride-hailing industry
lead to improved operational efficiency and potentially
is operated. Retailing platforms, such as eBay and JD,
can benefit all supply chain stakeholders.
also make purchasing more convenient than ever (Zheng
et al. 2021). The use of information as well as challenges
in information (dis)advantages (Chen, Pun, and Zhang 2. Literature review
2023; Li, Tian, and Zheng 2021) are also very different
2.1. Overall popularity
in platform supply chains (compared to the traditional
non-platform-based supply chains). To have a better idea about the popularity of ‘blockchain’
Despite being highly successful, there are also risks and/or ‘platform’ operations, we conducted a casual
and related challenges for platform operations. For exam- Google Scholar search on 4 February 2023. The findings
ple, many platforms declare bankruptcy (e.g. ofo, Trust- are summarised in Table 1, which presents the number of
Buddy, and Ezubao). Governments in different parts of studies per year with respect to each topic.
the world also consider imposing rules on platforms Table 1 clearly shows that ‘platform’ has been a
which create another type of risks and challenges to plat- very popular topic over the past decade. Its popularity
form operators. In particular, data security and usage, increases steadily until 2021 and then becomes stabilise.
user privacy, misinformation, etc. are all important issues For blockchain, its popularity increases sharply over the

CONTACT Tsan-Ming Choi T.M.Choi@liverpool.ac.uk Centre for Supply Chain Research, University of Liverpool Management School, Liverpool, UK

© 2023 Informa UK Limited, trading as Taylor & Francis Group

3506 T. M. CHOI ET AL.

Table 1. Google scholar search on blockchain and/or platform. problem, which brings inefficiency to the supply chain.
Year Platform Blockchain Platform and blockchain They also propose how to use blockchain to fight against
2022 25,900 13,200 299 cheating problems under the markdown contract. Jiang
2021 30,100 13,000 300 et al. (2022) study the more fundamental game using
2020 24,800 11,000 305
2019 23,600 11,900 260
game theory in blockchain platforms, which is between
2018 21,900 11,300 205 the miners and customers. The authors establish an ana-
2017 20,400 5460 79 lytical model to study how important factors, such as
2016 17,000 2390 20
2015 15,400 549 4 ‘block size’ and ‘transaction fee’, affect the dynamics in
2014 15,200 113 0 the game. The authors uncover that the congestion level
2013 13,500 22 0
2012 12,700 14 0 and risk preference (of players) are critical, and they affect
the optimal ‘transaction fee’ decisions of platforms with
different block-sizes.
past decade (from only 14 studies in 2012 to 13,200 stud- Wu and Wang (2023) analytically explore the chal-
ies in 2022). This is understandable as more and more lenge of ‘platform-leading blockchain adoption for trace-
real-world applications and operations are making use of ability’ with the consideration of supplier competition.
blockchain. Finally, for studies exploring both ‘platform’ The authors reveal that it is optimal to deploy blockchain
and ‘blockchain’, we see a sharp increase from 2012 to for enhancing supply chain performance when the
2020 (from none study in 2012 to 305 studies in 2020). upstream suppliers can supply products with good qual-
The number of studies then turns to a ‘steady state’ with ity. Most recently, Xu et al. (2023) theoretically study
around 300 studies from 2020 to 2022. the use for blockchain in platform-based operations for
reverse logistics. They uncover the impacts brought by
the use of blockchain for different platform operational
2.2. Related studies
modes with remanufacturing.
Section 2.1 illustrates that the topic related to blockchain
and platform is having high awareness in the academia.
2.3. Studies in the ‘platform supply chain
In this sub-section, we focus on reviewing some stud-
innovations in the blockchain era’ SI
ies on ‘blockchain’ and ‘platform’ in production research
and operations management. Note that it is not our intent In this special issue, we have featured many interesting
to comprehensively review the vast literature. We only studies on the use of blockchain for supply chain oper-
select a few important recent studies and highlight their ations in the platform age. We summarise these featured
findings. studies and highlight the methodology used as well as the
To the best of our knowledge, the first theoretical study core topics in Table 2.
in operations which analytically explores blockchain From Table 2, we can see that this SI has featured a
based platforms is by Choi (2019), who examines the variety of studies with different methodologies and topics
use of blockchain technology for diamond authentica- on the use of blockchain for supply chains in the platform
tion with reference to real-world practices. The author age. For topics, it is noted that traceability of blockchain is
compares different scenario and reveals the values of a core topic that many papers explore. For real practices,
using blockchain-based certification to foster consumer food supply chains as well as financing are popular. This
trust and simply the related operations. After that, Choi is logical as these two topics are currently the most widely
et al. (2020) analytically investigate on-demand platforms known applications of blockchain in the real world.
and show the values of using blockchain. The authors
highlight the importance of using blockchain to help
2.4. Research gaps
identify the type of customers which help improve the on-
demand service operations. Shen, Xu, and Yuan (2020) From the literature review, we find that some important
explore an e-platform with the use of blockchain to trade areas are still under-explored, even though many impor-
used clothing items. The function of blockchain is to tant topics have been examined in prior studies. Some of
help disclose trustworthy quality information regarding them are identified and discussed briefly below.
the product. The authors find that by using blockchain, Optimisation methods: Platform supply chains with
the platform would prefer to sell ‘low-uniqueness and blockchain should require various advanced optimisa-
low-quality’ used products. Cai, Choi, and Zhang (2021) tion tools (e.g. in the consensus algorithms and integrated
study the use of platforms to sell ‘end-of-season product operations). Current studies in production research and
leftovers’ from retailers. The authors argue that this plat- operations management have not drilled deep in this
form operation would yield the ‘triple marginalisation’ domain.
 INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH 3507

Table 2. Details of the featured papers in this SI.

Papers Methodologies Core topics
Govindan et al. (2022) Structural approach Prioritising adoption barriers of platforms based on blockchain technology
(DEMATEL)
Li et al. (2021) Literature review Blockchain in food supply chains
Liu et al. (2021) Conceptual Blockchain in maritime supply chains
Liu et al. (2021) Analytical modelling Optimal supply chain strategies with blockchain platform finance
Liu et al. (2021) Analytical modelling Impacts of platform restriction on manufacturer quality transparency using blockchain
Liu et al. (2022) Analytical modelling Promoting product idea for product improvement in online innovation communities
Meng et al. (2021) Analytical modelling Strategic reliable supply chain network design with risk considerations
Shen et al. (2021) Analytical modelling Dealing with counterfeit masks during the COVID-19 outbreak using blockchain
Shi et al. (2021) Literature review and Innovative platform operations with the use of technologies in the blockchain era
conceptual
Tao et al. (2022) Analytical modelling How using blockchain technology affects the pricing and quality decisions in platform supply chains
Wang et al. (2021) Optimisation Blockchain-secured multi-factory production using Q-learning-based optimisation approach
Wu and Yu (2022) Analytical modelling Impacts of using blockchain on platform supply chains from the transaction cost and information
transparency perspectives.
Wu et al. (2021) Analytical modelling Strategies for adopting blockchain in the fresh product supply chains.
Wu et al. (2022) Optimisation Blockchain applications in supply chain finance
Xu et al. (2021) Analytical modelling Contract selection for fresh produce suppliers cooperating with a platform under a markdown-pricing policy
Xu and He (2021) Analytical modelling Information disclosure strategies for retail platforms using blockchain
Xu et al. (2021) Analytical modelling Supply chain coordination with an online platform considering green technology and blockchain
Yang et al. (2022) Analytical modelling Blockchain-enabled traceability functions and producer’s incentive to outsource delivery
Zhang et al. (2021) Analytical modelling Multi-period price competition with blockchain supported platforms under network effect

Governance: Platform operations using blockchain future research directions forms the ‘ABCDE’ future
will involve many new issues and business models, which research agenda.
can bring challenges to the society (Choi et al. 2022). Advanced optimisation: Technically, how to optimise
Research on the related new policies and governance the platform operations with the use of blockchain is
measures are far from sufficient in the current literature. a critical topic which requires advanced knowledge in
This is a major research gap which urgently needs to be optimisation and supply chain engineering (Dolgui and
filled. Proth 2010). There are two levels for the advanced
Cyber world: Most current studies mainly focus on optimisation analysis. At the micro-level, we focus on
the physical world. But the emergence of metaverse has how to develop more efficient blockchain-based systems
changed the rules. In particular, there are insufficient (and the related consensus protocols) which can work
analytical studies on the integration of cyber-physical with the platforms. At the macro-level, how different
world. Cyber-security (Luo and Choi 2022) is also an platform-blockchain systems can be integrated together
under-explored topic for platform operations. to form an industrial blockchain-supported platform
Data: Prior studies have examined issues such as how eco-system. To achieve breakthrough, future research
blockchain can address data security and quality prob- could be conduct by using techniques from both engi-
lems. However, critical issues such as debates on data neering and operations research, and validated through
ownership are still under-explored. real-world applications in platforms and production
Energy: Blockchain is known to consume a lot of systems.
energy. This is a rather notorious feature of this tech- Blockchain governance: Currently, policy makers are
nology. Currently, very limited studies in operations and examining and exploring different governance rules on
production have examined this issue. How to address the use of blockchain for many operations (including
this energy-related challenge is a big research gap in the but not limited to platforms). This involves two major
production research literature. areas. First, many platforms help operations to secure
funding and enhance corporate finance. Blockchain is
known as the cornerstone for many platform-based
3. The ‘ABCDE’ framework and future research
operations such as initial coin offerings (ICOs) as well
agenda
as NFT, and many challenges exist. These blockchain-
With references to the above-reviewed papers and real- based financial tools/applications are important while
world practices, we propose several future research direc- many potential holes and tricks may exist. To protect
tions in this section. They are mainly based on those the general public from suffering heavy losses as well
research topics/areas which are important in practice as support the healthy development of business opera-
but have limited/insufficient research. Combining these tions, new rules should be imposed. Second, for general
3508 T. M. CHOI ET AL.

use of blockchain for platform operations, what roles Data: In platform operations, especially those with
governments and policy makers should play is critical the support of blockchain, a massive amount of data
but under-explored. These two levels of blockchain gov- could be created over time. Challenges hence arise. First,
ernance deserve deeper investigation in the future. who should own the data? Conventional wisdom may
Cyber-physical world: Nowadays, with the devel- suggest that the platforms should own the data but natu-
opment of platforms, both cyber and physical worlds rally, the data and many details are related to the privacy
co-exist. There is no doubt that metaverse has emerged of many users (e.g. customers, service providers, sup-
as an appealing topic for platform operations. First, pliers, etc.). A second thought of this question reveals
how to develop new business models which are prof- that this is a non-trivial question. There are controversies
itable and efficient in the cyber-physical integrated world behind and hence deeper research should be conducted
is largely unknown. Second, how to protect impor- to generate insights to address it. Second, blockchain is
tant human welfare (Sheu and Choi 2022) and busi- commonly believed to give secure and permanent data
ness benefits such as copyrights, corporate rights, and records which help support many related business opera-
individual ownerships, are essentially important but tions (e.g. in providing certification to diamonds). How-
far from being perfect in real-world practices. These ever, currently, there is no formal definition of what
two areas relate to the emerging cyber-physical busi- we mean by ‘blockchain-based systems’ and whether all
ness operations. Expectedly, platforms and blockchain such systems are secure is not guaranteed. This relates
definitely have significant parts to play but this is to another perspective of data. So, in the future, more
an area almost untouched in the production litera- precise definitions and taxonomy for blockchain, which
ture. More studies would hence be conducted in the probably relate to different features, types, and applica-
future. tion domains of blockchain should be established.

Figure 1. The ABCDE framework.

 INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH 3509

Energy: Blockchain is expensive to run because it is Notes on contributors

known to consume a lot of energies! This brings negative Tsan-Ming Choi is currently Chair in
concerns to both the economic cost and the environment. Operations and Supply Chain Manage-
Currently, in production research, very few studies have ment, and Director of Centre for Supply
touched this topic. We hence propose that future research Chain Research at University of Liver-
can be conducted to investigate the ‘energy’ aspect related pool Management School. Prof. Choi is
a highly cited researcher who has pub-
to the use of blockchain in platform operations. First,
lished extensively in leading journals in
considerations could be on whether blockchain systems the fields of operations management, engi-
can be designed in a way which can use less energy while neering management, logistics, and supply chain management.
achieving their essential functions. Second, whether the He is currently serving the profession as the Co-Editor-in-
energies (e.g. heat) generated when blockchain systems Chief of Transportation Research Part E: Logistics and Trans-
operate can be better used for other purposes is also a portation Review, a Department Editor of IEEE Transactions
on Engineering Management, a Senior Editor of Production
potentially interesting topic. and Operations Management, and Decision Support Systems,
Figure 1 shows the ABCDE framework, which high- an Associate Editor of Decision Sciences, and IEEE Transac-
lights the future research agenda we proposed in this tions on Systems, Man and Cybernetics – Systems, and an
article for further studies in production research. editorial board member of International Journal of Production
Figure 1 illustrates the critical factors which are Economics, International Journal of Production Research, etc.
He is also a member of the Engineering Panel of Research
directly related to the ‘ABCDE’ challenges. We argue that
Grants Council of Hong Kong. He has taught at The Chinese
addressing them can help establish effective and efficient University of Hong Kong, The Hong Kong Polytechnic Univer-
platform supply chains using blockchain technology. sity, National Taiwan University, and University of Liverpool
Management School, altogether for more than 20 years.
Jing Chen is a William A. Black Chair
4. Concluding remarks in Commerce and a professor of Supply
Chain Management & Decision Sciences
With the advance of digital technologies (Ivanov, Dolgui, at the Faculty of Management, Dalhousie
and Sokolov 2019; Ivanov and Dolgui 2021), platform University. Professor Chen also holds the
operations are prominent in supply chain management. appointment at Department of Industrial
Engineering, Dalhousie University. She
Blockchain technology, with its many unique and power- received her PhD from the Richard Ivey
ful functions, has gained its spotlight as the super-star in School of Business, Western University. She has published more
supporting platform supply chains. than 80 research papers in leading journals in the field, 16 Ivey
In this article, we first concisely search the literature Business cases, and 1 case book. Professor Chen was a recipi-
and highlight the popularity of the topic over the past ent of 2020 President’s Research Excellence Award for Research
Impact from Dalhousie University. She is an Associate Editor
years. We then briefly review the closely related studies in
of The International Journal of Management Science (OMEGA),
the related literature and introduce the featured papers in Journal of the Operational Research Society (JORS), and Inter-
this IJPR special issue. Finally, we identify research gaps, national Transactions in Operational Research (ITOR). She also
establish the ABCDE framework, and propose future served as a guest editor for several special issues, including
research directions and agenda. for International Transactions in Operational Research, Interna-
Before closing, we sincerely thank Professor Alexan- tional Journal of Production Research, and Annals of Operations
Research. She is also serving as a board of directors of the
dre Dolgui for supporting our ideas of organising Federation for the Humanities and Social Sciences.
this important special issue. We especially feel grate-
Guo Li is a professor of Operations Man-
ful to all contributors for sending in their interesting
agement at the School of Management
research to this special issue. We must thank the review- and Economics, Beijing Institute of Tech-
ers who diligently help with constructive and critical nology, China. He obtained his PhD
reviews which help ensure the quality of this special from Huazhong University of Science and
issue. We want to express our gratitude to Koei Yuen Technology, China. His research interests
and Yandy Wong for their clerical assistance during include supply chain management, data-
driven decision analytics, and operation
the preparation of this editorial. Finally, we thank all management and marketing interface. He has authored/edited
readers for their interests in this special issue. Enjoy several research handbooks and published over 70 papers in
reading! peer-refereed academic journals such as Journal of Operations
Management, Production and Operations Management, Deci-
sion Sciences, Naval Research Logistics, European Journal of
Operational Research, Transportation Research Part E: Logistics
Disclosure statement and Transportation Review, and International Journal of Pro-
No potential conflict of interest was reported by the author(s). duction Research. He has been featured in the list of World’s
3510 T. M. CHOI ET AL.

Top 2% Scientists published by Stanford University (2022). He Dolgui, A., D. Ivanov, S. Potryasaev, B. Sokolov, M. Ivanova,
is currently serving as senior editor for Information Technology and F. Werner. 2020. “Blockchain-oriented Dynamic Mod-
& People, associate editor for Decision Sciences and area editor elling of Smart Contract Design and Execution in the Supply
for Frontiers of Engineering Management, managing guest edi- Chain.” International Journal of Production Research 58 (7):
tor for Annals of Operations Research, Transportation Research 2184–2199. doi:10.1080/00207543.2019.1627439.
Part E: Logistics and Transportation Review, Journal of Busi- Dolgui, A., and J. M. Proth. 2010. Supply Chain Engineering:
ness Research, Computers & Industrial Engineering, and Elec- Useful Methods and Techniques. New York: Springer.
tronic Commerce Research, and editorial review board member Govindan, K., A. K. Nasr, S. M. Heidary, S. Nosrati-
for Production and Operations Management and International Abarghooee, and H. Mina. 2022. “Prioritizing Adop-
Journal of Logistics Research and Applications. tion Barriers of Platforms based on Blockchain Technol-
ogy from Balanced Scorecard Perspectives in Healthcare
Xiaohang Yue received the PhD degree in
Industry: A Structural Approach.” International Journal of
operations management from The Univer-
Production Research, 1–15. doi:10.1080/00207543.2021.201
sity of Texas at Dallas, Richardson, TX,
3560.
USA. He is currently a Professor of Sup-
Ivanov, D., and A. Dolgui. 2021. “A Digital Supply Chain Twin
ply Chain/Operations Management with
for Managing the Disruptions Risks and Resilience in the
the Lubar School of Business, University of
Era of Industry 4.0.” Production Planning and Control 32 (9):
Wisconsin–Milwaukee. He has published
775–788. doi:10.1080/09537287.2020.1768450.
more than 50 articles in leading journals,
Ivanov, D., A. Dolgui, and B. Sokolov. 2019. “The Impact
such as Operations Research, Production and Operations Man-
of Digital Technology and Industry 4.0 on the Rip-
agement, Information System Research, Naval Research Logis-
ple Effect and Supply Chain Risk Analytics.” Interna-
tics, Decision Sciences, IIE Transactions, IEEE Transactions,
tional Journal of Production Research 57 (3): 829–846.
European Journal of Operational Research, Omega, Interna-
doi:10.1080/00207543.2018.1488086.
tional Journal of Production Economics and Journal of Business
Jiang, S., Y. Li, S. Wang, and L. Zhao. 2022. “Blockchain Com-
Research. He is currently serving as Senior Editor for Production
petition: The Trade-Off Between Platform Stability and Effi-
and Operations Management, and an editorial advisory board
ciency.” European Journal of Operational Research 296 (3):
for Transportation Research Part E: Logistics and Transportation
1084–1097. doi:10.1016/j.ejor.2021.05.031.
Review.
Li, K., J. Y. Lee, and A. Gharehgozli. 2021. “Blockchain in Food
Supply Chains: A Literature Review and Synthesis Analysis
of Platforms, Benefits and Challenges.” International Journal
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