How does blockchain application impact on supply chain alliance?

Recent advancements in blockchain technologies have attracted significant global attention in supply chain management due to their potential to revolutionize this field. Our study examines the relationship between a firm's blockchain application and its alliances with supply chain partners at a dyadic level. Furthermore, the study sheds light on the influence of geographical and technological proximities as critical contextual factors in this dynamic. This study predicts that blockchain integration within a firm fosters the formation of supply chain alliance between firms, with the positive effect being amplified when firms are geographically and technologically closer. Such proposition is evidenced by analysis based on a comprehensive dataset compiled from public annual reports, details of supply chain partnerships, and patent records of 3281 Chinese listed firms over the period 2012–2020. This research offers novel insights into how emerging technologies foster trust-based collaboration within supply chains, and contributes not only to the expanding literature on blockchain applications in supply chain management, but also addresses the need for a deeper understanding of how specific contextual factors, such as geographic and technological proximity, shape the impact of blockchain integration.