Blockchain Technology Application in an E-Commerce Supply Chain: Privacy Protection and Sales Mode Selection

This article investigates the impact of blockchain technology adoption for consumer privacy protection on an e-commerce supply chain and explores the sales mode selection when adopting blockchain technology. Stackelberg game models are set up to maximize the supply chain member profits, and backward induction is used to derive the equilibrium solutions. The results indicate that supply chain members and consumers can benefit from blockchain technology adoption if the operating cost is low or the consumer privacy concern cost is high. The supply chain members can achieve win-win outcomes in the resale mode if the operating cost is sufficiently low, or if the production cost is low, the commission rate is high and the operating cost is moderate. They can also achieve win-win outcomes in the market mode when the production cost is low, the commission rate is low, and the operating cost is moderate, or when the production cost is high and the operating cost is moderate. An important managerial implication is that the platform can interfere with the supplier sales mode selection by adjusting the commission rate, thereby achieving a win-win outcome if the production cost is low or the operating cost is moderate.