Managerial approaches to blockchain technology adoption in the rail freight sector: An emerging market perspective

Abstract

Modern supply chains demand adaptability driven by the globalization of production and markets, the fourth industrial revolution (4IR) and recent events such as the unexpected closure of the Suez Canal, the Russia-Ukraine war, and the Covid-19 pandemic. Investing in digital supply chain technologies boosts end-to-end visibility, mitigates risk, and improves the resilience of supply chains. Many disruptive technologies are currently changing the business landscape in Africa. However, Africa has traditionally been an adopter rather than a pioneer of technologies for business development. Although there has been an increase in the use of blockchain technology in various industries, there is still a challenge of understanding how the technology can be applied in the South African rail supply chain context. Thus, it is crucial to investigate how managers perceive the technology and how this understanding affects the decision to use the technology in the rail freight Container Corridor. A gap exists between the understanding, organizational support and benefits of the technology and its application within the corridor. A case study approach was utilized to collect primary data obtained through a structured self-administered survey questionnaire. The main findings of the study were that the understanding of blockchain influenced managers perceptions and willingness to adopt the technology. While the railway operator was committed to implementing blockchain, other operational constraints and inefficiencies still present on the corridor were impediments to further investigation. Furthermore, potential benefits and challenges, costs and resources required as well as the impact on current operations and workings were highlighted by management as important decision-making factors. The study provides valuable insights into disruptive technologies applications within the transport supply chains. It substantiates the significance of how managers view blockchain as a technology to address various challenges as well as enhance operations within the South African freight rail sector.