Abstract
So far, the term ‘smart contract’ is mainly reflected in research addressing technology, IT applications or peculiar businesses like stock exchange or bitcoin. However, a smart contract is an issue of purchasing and supply management (PSM) due to its potential to connect suppliers with customers through state-of-the-art digital means. Thus, we identify the need to define the concept of smart contracts within the PSM domain. Therefore, the main research aim is to clarify the construct of a smart contract. The core finding is that a deconstruction of existing definitions reveals peculiarities in the perspectives and domains but gives insufficient validity to PSM analysis. Thus, the result of this research is a definition proposal for smart contract. The implications of this analysis could pave the way for a wider discussion of how smart contracts affect PSM outside the typical blockchain and bitcoin arenas.
This paper is funded by dtec.bw – Digitalization and Technology Research Center of the Bundeswehr which we gratefully acknowledge [project DigiPeC].
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Androulaki, E., et al.: Hyperledger fabric: a distributed operating system for permissioned blockchains. ACM 18, 1–15 (2018). https://doi.org/10.1145/3190508.3190538
Angieri, S., Garcia-Martinez, A., Liu, B., Yan, Z., Wang, C., Bagnulo, M.: A distributed autonomous organization for internet address management. IEEE Trans. Eng. Manage. 67, 1459–1475 (2020). https://doi.org/10.1109/TEM.2019.2924737
Antonopoulos, A.M., Wood, G.: Mastering Ethereum: Building smart contracts and DApps. EBL-Schweitzer. O'Reilly; EBL, Beijing, Boston, Farnham, Sebastopol, Tokyo [München] (2018)
Becher, S.I., Zarsky, T.Z.: E-Contract Doctrine 2.0: Standard Form Contracting in the Age of Online User Participation. Mich. Telecomm. & Tech. L. Rev. 14:303 (2007)
Berman, S., Bell, R.: Digital Transformation: Creating New Business Models Where Digital Meets Physical (2011)
Buterin, V.: Ethereum White Paper: A next generation smart contract & decentralized application platform. Ethereum Org, 1–36 (2014)
Carson, B., Romanelli, G., Walsh, P., Zhumaev, A.: Blockchain beyond the hype: What is the strategic business value? https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/blockchain-beyond-the-hype-what-is-the-strategic-business-value (2018). Accessed 18 February 2021
Casino, F., et al.: Blockchain-based food supply chain traceability: a case study in the dairy sector. Int. J. Prod. Res. (2020). https://doi.org/10.1080/00207543.2020.1789238
Chang, S., Chen, Yi-Chian., Ming-Fang, L.: Supply chain re-engineering using blockchain technology: a case of smart contract based tracking process. Technol. Forecast. Soc. Change 144, 1–11 (2019). https://doi.org/10.1016/j.techfore.2019.03.015
Chiu, D.K.W., Cheung, S.C., Till, S.: A three-layer architecture for e-contract enforcement in an e-service environment. IEEE Xplore, 10 pp. https://doi.org/10.1109/HICSS.2003.1174188 (2002)
Choo, K.-K.R., Ozcan, S., Dehghantanha, A., Parizi, R.M.: Editorial: Blockchain ecosystem—technological and management opportunities and challenges. IEEE Trans. Eng. Manage. 67, 982–987 (2020). https://doi.org/10.1109/TEM.2020.3023225
Christidis, K., Devetsikiotis, M.: Blockchains and smart contracts for the internet of things. IEEE Access 4, 2292–2303 (2016). https://doi.org/10.1109/ACCESS.2016.2566339
Coyne, J.G., McMickle, P.L.: Can blockchains serve an accounting purpose? J. Emerg. Technol. Account. 14, 101–111 (2017). https://doi.org/10.2308/jeta-51910
Debono, P.: Transforming public procurement contracts into smart contracts. Int. J. Inform. Technol. Project Manag. 10, 16–28 (2019). https://doi.org/10.4018/IJITPM.2019040103
Dolgui, A., Ivanov, D., Potryasaev, S., Sokolov, B., Ivanova, M., Werner, F.: Blockchain-oriented dynamic modelling of smart contract design and execution in the supply chain. Int. J. Prod. Res. 58, 2184–2199 (2019). https://doi.org/10.1080/00207543.2019.1627439
Drummer, D., Neumann, D.: Is code law? Current legal and technical adoption issues and remedies for blockchain-enabled smart contracts. J. Inform. Technol. 35(2), 337–360 (2020)
Durach, C.F., Kembro, J., Wieland, A.: A new paradigm for systematic literature reviews in supply chain management. J. Supply Chain Manag. 53(4), 67–85 (2017)
Ellram, L.M., et al.: Purchasing and supply management’s identity: crisis? What crisis? J. Purch. Supply Manag. 26, 100583 (2020). https://doi.org/10.1016/j.pursup.2019.100583
Elsäßer, C., Glas, A.H., Eßig, M.: Dgital/ization – A Single Construct Amidst Supply Chain Management? In: Bierwirth, C., Kirschstein, T., Sackmann, D. (eds.) Logistics Management, pp. 3–18. Springer International Publishing, Cham (2019)
Epiphaniou, G., Pillai, P., Bottarelli, M., Al-Khateeb, H., Hammoudesh, M., Maple, C.: Electronic regulation of data sharing and processing using smart ledger technologies for supply-chain security. IEEE Trans. Eng. Manage. 67, 1059–1073 (2020). https://doi.org/10.1109/TEM.2020.2965991
Essig, M., Amann, M.: E-procurement and its role in supply management and supplier valuation. In: The SAGE Handbook of Strategic Supply Management, pp. 422–441. SAGE Publications Ltd, London, UK (2013). https://doi.org/10.4135/9781446269886.n18
Essig, M., Glas, A.H., Selviaridis, K., Roehrich, J.K.: Performance-based contracting in business markets. Ind. Mark. Manage. 59, 5–11 (2016). https://doi.org/10.1016/j.indmarman.2016.10.007
Fisher, G., Aguinis, H.: Using theory elaboration to make theoretical advancements. Organ. Res. Methods 20, 438–464 (2017). https://doi.org/10.1177/1094428116689707
Gatteschi, V., Lamberti, F., Demartini, C., Pranteda, C., Santamaría, V.: Blockchain and smart contracts for insurance: is the technology mature enough? Future Internet 10, 20 (2018). https://doi.org/10.3390/fi10020020
Glas, A.H., Kleemann, F.C.: Performance-based contracting: contextual factors and the degree of buyer supplier integration. JBIM 32, 677–692 (2017). https://doi.org/10.1108/JBIM-04-2016-0065
Gourisetti, S.N.G., Mylrea, M., Patangia, H.: Evaluation and demonstration of blockchain applicability framework. IEEE Trans. Eng. Manage. 67, 1142–1156 (2020). https://doi.org/10.1109/TEM.2019.2928280
Guerar, M., Merlo, A., Migliardi, M., Palmieri, F., Verderame, L.: A fraud-resilient blockchain-based solution for invoice financing. IEEE Trans. Eng. Manage. 67, 1086–1098 (2020). https://doi.org/10.1109/TEM.2020.2971865
Holmström, J., Holweg, M., Lawson, B., Pil, F.K., Wagner, S.M.: The digitalization of operations and supply chain management: theoretical and methodological implications. J. Oper. Manag. 65, 728–734 (2019). https://doi.org/10.1002/joom.1073
Howells, G.: Protecting consumer protection values in the fourth industrial revolution. J. Consum. Policy 43(1), 145–175 (2019). https://doi.org/10.1007/s10603-019-09430-3
Hughes, A., Park, A., Kietzmann, J., Archer-Brown, C.: Beyond bitcoin: what blockchain and distributed ledger technologies mean for firms. Bus. Horiz. 62, 273–281 (2019). https://doi.org/10.1016/j.bushor.2019.01.002
Jabbar, A., Dani, S.: Investigating the link between transaction and computational costs in a blockchain environment. Int. J. Prod. Res. 58, 3423–3436 (2020). https://doi.org/10.1080/00207543.2020.1754487
Kher, R., Terjesen, S., Liu, C.: Blockchain, bitcoin, and ICOs: a review and research agenda. Small Bus. Econ. 56(4), 1699–1720 (2020). https://doi.org/10.1007/s11187-019-00286-y
Kim, H., Laskowski, M.: A perspective on blockchain smart contracts: reducing uncertainty and complexity in value exchange. SSRN Electron. J. (2017). https://doi.org/10.2139/ssrn.2975770
Kleemann, F., Glas, A.: Einkauf 4.0: Digitale Transformation der Beschaffung. Springer Fachmedien Wiesbaden, Wiesbaden (2020)
Kumar, A., Liu, R., Shan, Z.: Is blockchain a silver bullet for supply chain management? Technical challenges and research opportunities. Decision Sci. 51, 8–37 (2020)
Lee, K.M., Ra, I.: Data privacy-preserving distributed knowledge discovery based on the blockchain. Inform. Technol. Manage. 21(4), 191–204 (2020). https://doi.org/10.1007/s10799-020-00317-1
Legenvre, H., Henke, M., Ruile, H.: Making sense of the impact of the internet of things on purchasing and supply management: a tension perspective. J. Purch. Supply Manag. 26, 100596 (2020). https://doi.org/10.1016/j.pursup.2019.100596
Leng, J., et al.: Makerchain: a blockchain with chemical signature for self-organizing process in social manufacturing. J. Clean. Prod. 234, 767–778 (2019). https://doi.org/10.1016/j.jclepro.2019.06.265
Lockl, J., Schlatt, V., Schweizer, A., Urbach, N., Harth, N.: Toward trust in internet of things ecosystems: design principles for blockchain-based IoT applications. IEEE Trans. Eng. Manage. 67, 1256–1270 (2020). https://doi.org/10.1109/TEM.2020.2978014
Lohmer, J., Bugert, N., Lasch, R.: Analysis of resilience strategies and ripple effect in blockchain-coordinated supply chains: an agent-based simulation study. Int. J. Prod. Econ. 228, 107882 (2020). https://doi.org/10.1016/j.ijpe.2020.107882
Manupati, V.K., Schoenherr, T., Ramkumar, M., Wagner, S.M., Pabba, S.K., Inder Raj Singh, R.: A blockchain-based approach for a multi-echelon sustainable supply chain. Int. J. Prod. Res. 58, 2222–2241 (2020). https://doi.org/10.1080/00207543.2019.1683248
Meier, O., Sannajust, A.: The smart contract revolution: a solution for the holdup problem? Small Bus. Econ. (2020). https://doi.org/10.1007/s11187-020-00339-7
Mooney, J.G., Gurbaxani, V., Kraemer, K.L.: A process oriented framework for assessing the business value of information technology. Database Adv. Inform. Syst. 27 (1996)
Nelaturu, K., et al.: On public crowdsource-based mechanisms for a decentralized blockchain Oracle. IEEE Trans. Eng. Manage. 67, 1444–1458 (2020). https://doi.org/10.1109/TEM.2020.2993673
Nicoletti, B.: Agile Procurement. Springer International Publishing, Cham (2018). https://doi.org/10.1007/978-3-319-61082-5
Osmanoglu, M., Tugrul, B., Dogantuna, T., Bostanci, E.: An effective yield estimation system based on blockchain technology. IEEE Trans. Eng. Manage. 67, 1157–1168 (2020). https://doi.org/10.1109/TEM.2020.2978829
Panja, S., Bag, S., Hao, F., Roy, B.: A smart contract system for decentralized Borda count voting. IEEE Trans. Eng. Manage. 67, 1323–1339 (2020). https://doi.org/10.1109/TEM.2020.2986371
Pereira, J., Tavalaei, M.M., Ozalp, H.: Blockchain-based platforms: decentralized infrastructures and its boundary conditions. Technol. Forecast. Soc. Chang. 146, 94–102 (2019). https://doi.org/10.1016/j.techfore.2019.04.030
PwC: Blockchain und Smart Contracts. https://www.pwc.de/de/newsletter/it-security-news/blockchain-und-smart-contracts.html (2017). Accessed 18 February 2021
Raskin, M.: The law and legality of smart contracts. Georgetown Law Technol. Rev. 1, 305–341 (2017)
Saberi, S., Kouhizadeh, M., Sarkis, J., Shen, L.: Blockchain technology and its relationships to sustainable supply chain management. Int. J. Prod. Res. 57, 2117–2135 (2019). https://doi.org/10.1080/00207543.2018.1533261
Salmerón-Manzano, E., Manzano-Agugliaro, F.: The role of smart contracts in sustainability: worldwide research trends. Sustainability 11, 3049 (2019). https://doi.org/10.3390/su11113049
Schmidt, C.G., Wagner, S.M.: Blockchain and supply chain relations: a transaction cost theory perspective. J. Purch. Supply Manag. 25, 100552 (2019). https://doi.org/10.1016/j.pursup.2019.100552
Schmitz, J., Leoni, G.: Accounting and auditing at the time of blockchain technology: a research agenda. Aust. Account. Rev. 29, 331–342 (2019). https://doi.org/10.1111/auar.12286
SearchCompliance: Smart Contract: Definition. https://searchcompliance.techtarget.com/definition/smart-contract (2021). Accessed 19 February 2021
Szabo, N.: Smart Contracts. https://www.fon.hum.uva.nl/rob/Courses/InformationInSpeech/CDROM/Literature/LOTwinterschool2006/szabo.best.vwh.net/smart.contracts.html (1994). Accessed 19 February 2021
Szabo, N.: View of Formalizing and Securing Relationships on Public Networks | First Monday. https://firstmonday.org/ojs/index.php/fm/article/view/548/469 (1997). Accessed 19 February 2021
Thomson, B.M.: Computers in Ship Design and Production: Necessary Steps to the Payoff. Naval Surface Warfare Center, Bethesda, MD (1978)
Verband der Hochschullehrer für Betriebswirtschaft e.V.: Gesamtliste – vhbonline.de. https://vhbonline.org/vhb4you/vhb-jourqual/vhb-jourqual-3/gesamtliste (2021). Accessed 19 February 2021
Weber, I., Xu, X., Riveret, Régis., Governatori, G., Ponomarev, A., Mendling, J.: Untrusted business process monitoring and execution using blockchain. In: La Rosa, Marcello, Loos, Peter, Pastor, Oscar (eds.) BPM 2016. LNCS, vol. 9850, pp. 329–347. Springer, Cham (2016). https://doi.org/10.1007/978-3-319-45348-4_19
Williamson, O.E.: The theory of the firm as governance structure: from choice to contract. J. Econ. Perspect. 16, 171–195 (2002)
Yeh, L.-Y., Lu, P.J., Huang, S.-H., Huang, J.-L.: SOChain: a privacy-preserving DDoS data exchange service over SOC consortium blockchain. IEEE Trans. Eng. Manage. 67, 1487–1500 (2020). https://doi.org/10.1109/TEM.2020.2976113
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Ates, K., Glas, A., Eßig, M. (2021). Smart Contract: A Literature-Based Analysis and Development of a Taxonomy Framework. In: Buscher, U., Lasch, R., Schönberger, J. (eds) Logistics Management. Lecture Notes in Logistics. Springer, Cham. https://doi.org/10.1007/978-3-030-85843-8_4
Download citation
DOI: https://doi.org/10.1007/978-3-030-85843-8_4
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-85842-1
Online ISBN: 978-3-030-85843-8
eBook Packages: Economics and FinanceEconomics and Finance (R0)