1 Introduction

A phenomenon known as the “bullwhip effect” increases SC demand variance upstream. Demand amplification has led several academics to quantify the Bullwhip effect, uncover possible sources and effects, and propose solutions [1]. Information gaps increase demand variance, SC structure, and collaboration. The bullwhip effect raises SC costs and lowers customer service by shifting the performance of chains away from the efficiency frontier, decreasing profitability [2]. It occurred when decreased orders from companies downstream in the SC caused further irregularities along the SC due to decreased end-consumer demand. The COVID-19 pandemic and the Russian–Ukrainian war are unexpected and disruptive “black swan disruptions.”[3]. In response to government lockdowns and restrictions on daily life, there has been unrested to control the spread of COVID-19. COVID-19 has disrupted the global supply chain, revealing weaknesses. Pandemic difficulties persist in manufacturing, production, and distribution. Global trade has suffered from semiconductor chip shortfall, port congestion, increasing commodity costs, and carrier constraints. Managing the bullwhip effects caused by COVID-19 requires situation awareness, localization, and an intelligent supply chain [4]. Political tensions and wars have exacerbated these issues [5]. Sanctions imposed by the USA and Western Europe on Russia have also impacted supply chain links, including supply, demand, and logistics [6]. Raw material supply disruptions have also increased. Russia supplies 30% of palladium, a semiconductor chip metal. The United States Geological Survey (USGS) says Russia supplies six minerals that the US imports above 50% of. Ukrainian imports include titanium and gallium.

The US imports 90% titanium and 100% gallium. China supplies 90% of rare earths like neodymium. Without a reliable domestic supply, these commodities threaten the US economy and security [5]. Furthermore, all levels of SC are impacted by this disruption because of the interconnected nature of the global SC [7]. Inventory buildups were a major issue at the start of the pandemic, especially for businesses that are part of a larger SC. The COVID-19 pandemic has significantly impacted every sector of the world economy [8]. Since the pandemic began, Intel has been unable to meet the demand for laptop and desktop CPUs. Out-of-stock raw supplies and increased pricing cause this [9]. As a result, stockouts and large inventory surpluses directly resulted from the altered ordering behavior [10]. However, rising global competition makes an effective semiconductor SC more valuable than ever [11, 12].

Semiconductors are small chips of conductive materials like silicon that control an electronic device's critical functions. They can be found in any electronic device, from computers and smartphones to appliances, video game consoles, medical tools, and other electronic gadgets. Also, many laptop parts, such as integrated circuits, keyboards, mice, monitors, processors, memory chips, and transistors, are made of semiconductor materials [13]. Even before the COVID-19 pandemic, the semiconductor industry had problems with long lead times (up to four months), fluctuating demand, and slow response times (due to long machine setup times). One of the hardest things for the semiconductor SC is to keep working well in these conditions [14,15,16]. The most significant shift, however, is related to demand shifts, which will amplify with the bullwhip effect as a company moves further upstream in an SC [17]. With the unprecedented disruptions of SC, organizations are being pushed to adopt recent technologies such as blockchain to meet challenges, improve performance, and gain a competitive advantage [18,19,20]. In this regard, several causes of the bullwhip effect were discussed in [21], as well as the potential of blockchain to mitigate this effect in SCs.

Blockchain is one of the most revolutionary technologies to emerge recently. Blockchain operates as an immutable data storage, eliminating the requirement for one or more third parties. It can save businesses and consumers time and money [22]. It was first established in the Bitcoin protocol [23] as a protocol of open, transparent, and secure distributed ledger technology (DLT) that does away with the necessity for a trusted third party [24]. A blockchain is a distributed ledger consisting of a chronological chain of blocks containing the whole history of all network activity. Once a block has been added to the ledger, it cannot be altered [25]. There is a reference in each block to the previous block's hash. A hash is used to ensure data integrity and immutability. The first block in a blockchain is called the genesis block or block 0 [25]. Due to the immutable nature of the blockchain, it is possible to identify and reverse fraudulent transactions [25]. Blockchains can be either permission-less (public) or permissioned (private), depending on the access mechanism they use [26]. Permissionless blockchains allow users to stay anonymous and provide some form of incentive for users to remain consistent with the network. Bitcoin and Ethereum are built on public blockchain networks. Permissioned blockchains are a type of blockchain where access is restricted to those who have been invited to join [26,27,28].

Unfortunately, the product's journey to the consumer is not simple; sometimes, dozens of intermediaries participate in this process, and there may be no connection between them. Trust is a big problem in the supply chain because all these intermediaries with different goals may not trust each other enough to share the information needed to avoid the problems listed above. The supply chain ecosystem faces challenges related to transparency and trust among stakeholders. Instead of relying on a centralized server or database to record transactions, blockchain technology uses a decentralized, distributed ledger called a peer-to-peer (P2P) network [29]. Blockchain technology provides a decentralized and transparent solution, enabling consensus-based decision-making and ensuring an immutable ledger [30, 31]. Public blockchain technology provides the ideal answer: It secures, transparently distributes, and enhances process quality [32], while private or consortium blockchains can be useful for specific use cases that require restricted access or control, public blockchains offer unique strengths in terms of decentralization, security, transparency, interoperability, and community participation.

This article [33] explores the integration of public blockchain in supply chain management, addressing key issues and proposing solutions. The proposed model, utilizing Ethereum blockchain, enhances performance and brings trust, transparency, and security through immutability, benefiting diverse supply chain domains.

These factors make public blockchains a compelling choice for many applications, particularly those prioritizing openness, trust, and collaboration on a global scale [34].

A blockchain with other connected technologies can improve the communication and visibility of an SC and enhance its resilience and efficiency than previously [35, 36]. It eliminates the need for double verification and saves time, money, and space [37, 38]. Recently, some Fortune 500 companies have considered using blockchain to improve their SC communication and visibility. IBM and Walmart can trace products using their blockchain networks [39] and trace around 1.1 million products from their origin to internal and external stakeholders [40]. In May 2017, Walmart announced that the tracking time for food had been lowered from days to minutes [41], adding that even though food takes many weeks to arrive, it only takes “2.2 s to trace an area for the food” [42, 43]. However, blockchain has not yet been widely implemented to enhance SC visibility and communications.

Public blockchain (PB) technology can reduce the supply chain bullwhip impact. Let us explain further:

Distributed Networking: All nodes in a public blockchain network share information. This removes information asymmetry and gives stakeholders real-time inventory, demand, and order data. Information loss or delays lessen the bullwhip effect when all participants have corrected and synchronized information [44].

Decentralization: PB distributes power without central authority. This assures equal access and prohibits any single party from influencing or controlling data, improving supply chain ecosystem trust and fairness [44].

PB allows supply chain data synchronization. Participants update and check the shared ledger to ensure data consistency. A single source of truth reduces demand forecast inconsistencies and the bullwhip impact of distorted information. In order to address the issue of trust in a decentralized network, blockchain technology provides multiple trust solutions [45]. Blockchain data are protected by strong digital encryption. This keeps critical data like pricing, client information, and product specs secure. Blockchain prevents manipulation and bullwhip effect amplification by protecting data [2].

PB openness improves supply chain traceability and visibility. The blockchain tracks every transaction and product movement, providing a complete audit trail. Supply chain players can notice fluctuations, highlight inefficiencies, and address the bullwhip effect with comprehensive traceability.

PB data cannot be changed once recorded. This functionality ensures data integrity and an accurate supply chain history. An immutable ledger lets stakeholders safely examine historical performance, detect patterns, and make informed decisions to reduce the bullwhip effect [2].

Transparency: PB allows all parties to see and share data. Transparency reduces information distortion and improves bullwhip effect decision-making [46]. This innovation can potentially deliver business value over other solutions.

Possible obstacles of PB:

  • Scalability: Public blockchains with many transactions and users may have scalability issues. Blockchain technology is developing layer 2 solutions and sharing to overcome these restrictions.

  • Adoption and Integration: All stakeholders must collaborate to implement public blockchain in the supply chain. Resistance and system compatibility can be difficult.

  • The stakeholder of a high-tech SC, such as semiconductors, may gain enormous advantages by adopting a public blockchain that has not been presented yet in any published academic research papers to enhance their SC and mitigate the disruptions mentioned above. Therefore, the main research objectives (ROs) of this study are:

  • RO1: Develop a structured framework consisting of three research questions. Each one includes critical success factors to assess the public blockchain adoption opportunity in a particular supply chain.

  • RO2: Validate the proposed framework by applying it to the shortage of semiconductors in the electronic devices SC, especially personal computing devices, to clarify to which extent the public blockchain's fitness to solve the disruption issue.

  • RO3: Introduce some public blockchain platforms that can be implemented in the semiconductors SC.

Generally, the choice of the semiconductor industry for this study was deliberate due to its critical role in various sectors, including electronics, automotive, and healthcare as shown in Fig. 1. By focusing on the semiconductor industry, we aimed to shed light on the specific challenges and opportunities that arise in this complex supply chain.

Fig. 1
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Global semiconductor market size in 2019 and estimated 2024 [50, 64]

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It is essential to highlight the specific application value of blockchain technology in the semiconductor industry. Blockchain offers several benefits, such as enhanced transparency, traceability, and data immutability. These features can greatly benefit the semiconductor supply chain, which involves numerous stakeholders, complex processes, and a vast a. By leveraging blockchain, stakeholders can have a shared, tamper-proof record of transactions and product information, enabling improved trust, efficiency, and accountability throughout the supply chain.

We acknowledge the importance of considering the unique characteristics of the semiconductor supply chain that make blockchain applications relevant. The semiconductor industry faces challenges such as long lead times, rapid technology upgrades, uncertain demand, and complex global networks of suppliers. These characteristics make the industry susceptible to inefficiencies, counterfeit products, and data discrepancies. Blockchain technology can help address these issues by providing a decentralized and secure platform for data sharing, ensuring the integrity of information, and enabling real-time visibility across the supply chain.

We agree that it is crucial to reflect on the specific problems that can be addressed through the application of blockchain in the semiconductor industry. These problems may include supply chain inefficiencies, counterfeiting, data integrity, and trust among stakeholders. By utilizing blockchain technology, the industry can potentially mitigate these challenges, streamline processes, reduce costs, and enhance overall supply chain resilience. As a result, the company or industry's owner can invest their money in improving the company's performance [47, 48].

This paper is organized as follows: the related work of blockchain adoption in semiconductors SC are surveyed in Sect. 1.1. Then, the proposed framework has been developed in Sect. 2 to address the first research objective. Then, the framework was developed and validated in the shortage of semiconductors in the electronic devices SC to address the second research objective in Sects. 2.1 and 2.2. Methodology and results are presented in Sub-Sects. 2.3 and 2.4. The proposed public blockchain network is presented in Sect. 3. Regarding addressing the last research objective in Sect. 4, there are many public blockchain platforms to be used in the semiconductors supply chain, which is the appropriate one to select. Finally, the conclusion, the suggested future research directions, and the limitations are presented in Sect. 5.

1.1 Related work

Semiconductors have become essential in a wide range of products, including personal computers, mobile phones, home appliances, video game consoles, medical equipment, and even automobiles, as shown in Fig. 1. The lack of semiconductor-based integrated circuits worries materials researchers. As computer chip use skyrockets, the global economy relies on them. A new semiconductor plant requires years, money, and cutting-edge manufacturing technology. Worker shortages, plant shutdowns, and port backlogs impair global supply chains. These hurdles are driving US investors to Mexico for semiconductor manufacturing [5]. Despite their significance, research papers addressing the shortage of semiconductors have focused larger on the automotive industry than electronic ones, explained later in detail and concluded in Table 1, neglecting their usage in many other fields. This has resulted in our undervaluing their importance. Due to the surge in demand from various industries globally, a shortage of semiconductors has emerged.

Table 1 Semiconductors supply chain disruptions summary
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A study [49] on the shortage of automotive semiconductor chips after 2020 aimed to examine its causes, impacts, and duration. The study analyzed 209 news articles thematically and developed a model to explain why disruptions in the auto-industry persisted for a long time. The study's significant contribution to the supply chain risk literature is its focus on systemic disorders that affect entire industries rather than a single business. The purpose of this research [50] is threefold. Firstly, it aims to provide a clear definition of the semiconductor supply chain and examine the reasons behind past disruptions. Secondly, it underscores the significance of resilience management in this field for both nations and corporations during times of upheaval. Lastly, it delves into the potential applications of Geographic Information System (GIS), spatial analysis, and artificial intelligence in managing the semiconductor supply chain.

In January 2021, Honda's Swindon plant experienced its third production halt, causing supply chain disruptions. This shortage is wider than Honda, as VW Group, which includes Audi, has also reduced output at its German assembly plants and plans to do so elsewhere. Toyota and Nissan are also feeling the impact [51]. According to a review by the authors of [52], blockchain technology has the potential to enhance security, agility, trust, and transparency in the supply chain and logistics industry. The integration of the Internet of Things (IoT) and blockchain technologies, along with smart contracts and asset tracking, holds great promise for the future of multi-organizational businesses that use blockchain technology. According to a research paper [53] consortium blockchain technology is highly suitable for electronic supply chains and can be utilized to detect counterfeit electronics. In conclusion, the blockchain-based framework for electronic device counterfeiting detection has potential but needs to be improved in scope, extension complexity, data privacy, ledger integration, and performance. The paper highlights that this approach is pragmatic and can help identify fraudulent activities such as recycling, annotation, copying, and overproduction of Integrated Circuits (ICs). Blockchain ledgers can also be incorporated into the framework [54] to address issues of supply chain fraud and data privacy. This can include Original Component Manufacturer (OCM), Printed Circuit Board (PCB) assemblers, and system integrators. Moreover, faster enrollment, ledger data search, and peer node regulation can be integrated into the system.

A recent study [55] delved into the causes of supply chain issues in the semiconductor industry and their ripple effects on the automotive sector, including the challenges and opportunities they present. The research primarily focused on China and the US, considering the impact of COVID-19 on both industries and the effect of increasing crude oil prices on semiconductor manufacturing. Another study [56] analyzed the auto-industry crisis through quantitative market analysis and qualitative expert interviews. Specifically, it explored the strategies and options available to German automotive Original Equipment Manufacturers (OEMs) and suppliers to enhance supply chain resilience and navigate the current situation. Additionally, a novel approach was proposed in the study [13] that combines simulation modeling with tree-based supervised machine learning to investigate the effects of disruptions in end-market demand. To help businesses effectively manage the adverse impact of market disorders, study [57] employed a system dynamics simulation model to demonstrate the multi-tiered supply chain's response to market changes. In conclusion, the semiconductor automotive supply chain faces significant operational consequences due to solid demand dynamics, especially during and after disruptions like the COVID-19 pandemic.

Through collaboration among supply chain (SC) actors, SC resilience to unforeseen events like the pandemic can be strengthened. One study [58], proposed a private blockchain-based platform, utilizing InterPlanetary File System (IPFS) off-chain storage for scalability and integrity, to trace and audit reverse logistics in the electronics value chain. The blockchain stores only reverse logistics data hashes to save space. Their framework focused on theoretical blockchain experimentation without considering its ability to create real-world value. Another proposal [59] suggested integrating IoT and BCT to increase electronics industry circularity. This solution employs IoT devices to track the availability and location of materials, while the permissioned blockchain Hyperledger Fabric manages access control. Finally, a recent paper [60] presents a consortium blockchain-based manufacturing supply chain management system that uses intelligent contracts and Node.js to offer ordering, trading, tracking, querying of information, and other services to supply chain actors on the Ethereum platform.

This research paper [61] delves into the impact of chip supply chain disruptions caused by COVID-19 on global supply chains and company operations. The shortage of chips has affected all manufacturing industries, and companies must take swift action to mitigate the impact of disruptions on their operations and increase their resilience. The study investigates the effect of the chip shortage on businesses, including semiconductor companies' strategies and ways to enhance stability to tackle the crisis. The auto-industry is mainly affected by the chip shortage since modern cars can only be produced with semiconductors. Therefore, the study [62] focuses on the effects of the chip shortage on the auto-industry, examining the competencies needed to improve automotive supply chain operations after COVID-19. The authors proposed a set of competencies required to enhance transparency in automotive supply chains and develop a sustainability framework using a cross-case study process, intervention-based research, and a design science approach for long-term sustainability.

Important skills for managing supply chains in the automotive industry include monitoring operations, mapping multi-level supply chains, leading risk management teams, ensuring the availability of necessary parts, and adapting facilities as needed. To address supply chain challenges and enhance business performance, experts have suggested new design concepts. One proposed solution is a consortium blockchain framework, which could improve transparency and traceability in electronics supply chains [63]. However, there are still challenges related to managing the database and synchronizing information among Certificate Authority (CA) nodes. Additionally, overproduced chips sold outside of the blockchain-enabled supply chain could create vulnerabilities.

The impact of the COVID-19 pandemic is felt across all manufacturing industries, from essential to luxury goods. Semiconductors play a crucial role in various products, including navigation systems, driver assistance, and infotainment setups, which enhance comfort and safety. The crisis in semiconductors needs to be studied scientifically to identify a solution. Although there are many studies on the causes and ripple effects of the semiconductor shortage, no research paper has proposed a framework to address the issue. There is also a lack of investigation into the incorporation of a public blockchain into semiconductor supply chain disruption, and no studies have presented various blockchain platforms that could be used. The automotive industry is one of the most affected sectors due to the shortage of semiconductors, which has led to a rise in fuel prices. While many solutions have been proposed, they have yet to be tested in real-world scenarios, and their long-term effectiveness remains unclear.

2 The proposed framework

2.1 Framework development

Our framework, depicted in Fig. 2, comprises of two components. The first part addresses three research questions (RQs), while the second part identifies eight critical success factors of public blockchains in supply chain management.

Fig. 2
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Proposed framework

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2.1.1 Research questions development

When considering implementing public blockchain in their supply chain to alleviate potential semiconductor shortages or other disruptions, organizations should carefully assess their reasoning behind this decision. This involves asking three key questions: why, when, and how.

Regarding the RQ1: An organization should consider adopting public blockchain in its supply chain for the following reasons:

  • Advantages: Public blockchain offers transparency, traceability, and efficiency advantages over traditional systems.

  • Benefits: It provides perceived benefits such as improved efficiency, cost reduction, stakeholder trust, and enhanced product traceability.

  • Security: Public blockchain ensures security through decentralization, cryptography, and tamper-proof data, reducing risks of fraud and data manipulation.

  • Provenance: It enables end-to-end traceability, verifying product origin and authenticity, fostering consumer trust and mitigating risks related to counterfeit goods.

Public blockchain can revolutionize your supply chain operations, delivering efficiency, security, trust, and improved traceability.

Regarding the RQ2: The timing of implementation will depend on how prepared your organization is to embrace blockchain technology, the willingness of stakeholders to participate and support the initiative, and the level of government backing or initiatives in place to promote blockchain adoption. Assessing the readiness of all these factors will help determine the optimal timing for adopting public blockchain in your organization's supply chain. Each organization will have its unique level of readiness, stakeholder engagement, and the extent of government support it receives. Therefore, the specific timeframe for adoption will be relative and dependent on these individual factors.

Regarding the RQ3: To prepare for implementing public blockchain in the supply chain, the organization needs to consider the following:

  • Infrastructure: Ensure a secure and robust network infrastructure.

  • Blockchain Platform: Choose a suitable platform such as Ethereum.

  • Smart Contracts: Utilize smart contracts to automate and enforce business logic.

  • Wallets and Key Management: Implement secure wallets and key management systems.

  • Integration: Integrate the blockchain solution with existing systems.

  • Data Interoperability: Ensure compatibility and exchange of data between different systems.

  • Security Measures: Implement strong security measures to protect against threats.

  • User Interface: Design user-friendly interfaces for easy interaction.

  • Analytics and Reporting: Utilize tools for data analysis and reporting.

It is important to note that the specific tools and technologies required may vary depending on the organization's unique needs, industry, and scale of the supply chain operations. Consulting with blockchain experts and considering the organization's specific requirements will help identify the most appropriate tools and technologies for implementation.

Our suggested framework follows this order, and we evaluate the responses to these questions based on eight critical success factors for public blockchain implementation in supply chains. These factors were selected from a pool of 71 options, which were identified in 61 research papers on blockchain success factors in supply chains. We developed a flowchart based on the relationships and observations made between the success factors while studying these papers. To determine the significance of these factors, we created a questionnaire (Table 6 in Appendix) that includes various measurements and a rating scale of 1 to 5 for each factor.

2.1.2 Public blockchain critical success factors in SCs development

To identify the critical success factors for public blockchain in supply chains that are considered the answer to the previous three RQs, we created a flowchart as shown in Fig. 3 based on the relationships described in the flowchart observed from the definitions of the factors as shown in Table 7 in Appendix. We compiled seventy-one factors from sixty-one literature papers, which were selected based on specific criteria like sources, publication years, and search keywords. These papers were gathered from various databases like Scopus, Google Scholar, ProQuest, and Web of Science, published between 2017 and 2022, and focused on keywords such as “Blockchain (Critical/Key) Success Factors in Supply Chains” or “Blockchain Adoption/Implementation in Supply Chains.” The eight factors are security, technology readiness, organization readiness, relative advantage, perceived benefits, provenance, stakeholders’ readiness, and government support. We will provide a detailed explanation of where each factor was obtained, and Table 2 summarizes the derivation process.

Fig. 3
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Blockchain CSF selection flowchart

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Table 2 Public BC CSF in SCs
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2.1.2.1 i. Security

Security is a fundamental concern. It includes several factors: privacy, transparency, authenticity, immutability, auditability, and trust. Blockchain networks offer implicit privacy protection to users by allowing them to participate in using new addresses without disclosing their real identities. The distributed ledger's immutability ensures that all nodes have identical copies of the ledger, with anyone able to view the transactions recorded in blocks. Conducting audits to verify the accuracy of reported transactions can help identify and eliminate system flaws. These safeguards inspire user confidence in the network's integrity. While security and durability are synonymous, we prioritize security due to its wider usage.

2.1.2.2 ii. Technology readiness

If you are considering implementing blockchain technology in your organization, it is essential to evaluate compatibility, interoperability, integration, and standardization.

Also, the existence of compatibility and integration implicitly ensures consistency.

Technology readiness is now a crucial factor for achieving success, which includes the importance of these key considerations.

2.1.2.3 iii. Organizational readiness

An organization’s readiness plays a crucial role in successfully adopting and implementing blockchain technology. It encompasses factors such as top management support, adoption intention, financial resources, organizational culture, knowledge, expertise, business model readiness, facilitating conditions, policy and regulations, and visibility.

2.1.2.4 iv. Relative advantage

Rather than relying on traditional success factors such as decentralization, disintermediation, immutability, transparency, usability, flexibility, automation, trustless environments, effort expectancy, and innovation, the relative advantage factor embodies all these factors. Tokenization and smart contracts can be utilized to achieve automation, though they are not always necessary. The complexity of the consensus mechanism is influenced by the level of decentralization, which is a component of the relative advantage factor. The necessity for a consensus mechanism and its associated complexity can be eliminated by removing decentralization.

The selected relative advantage already incorporates scalability, meaning it is no longer a concern. Integration and compatibility are built into the preferred relative advantage, ensuring consistency. Reliability is provided by decentralization, which is part of the chosen relative advantage and therefore does not require separate consideration. Compatibility, which is embedded within the preferred relative advantage, ensures that inconsistency never arises. Decentralization, which is part of the chosen relative advantage factor, guarantees reliability, so it has been removed.

2.1.2.5 v. Perceived benefits

Since blockchain is seen to reduce costs, manage and reduce risks, improve quality, sustainability, and efficiency, it is a technology that should be adopted and used. Therefore, perceived benefits have replaced these considerations. Blockchain technology offers numerous benefits, such as cost reduction, risk management, improved quality, sustainability, and efficiency. These advantages make it an essential technology to be adopted and utilized. Efficiency encompasses various aspects such as task-technology fit, performance, and speed. To achieve efficiency elimination, all-inclusive factors need to be excluded. The perceived benefit of a product or service is directly related to its quality, and this can greatly impact user or customer acceptance.

2.1.2.6 vi. Provenance

The process of tracking and sharing information in real-time, data availability, distributed ledger, and information intensity is all impacted by provenance, making them easier to handle. Provenance was chosen as the deciding factor after assessing all other potential influences. Since information availability across the network plays an important role in making things accessible, it has been considered significant. By excluding traceability, transparency that is also affected is ultimately excluded.

2.1.2.7 vii. Stakeholders’ readiness

Effective preparation and open communication are crucial for achieving an organization’s goals. This requires cooperation among all involved parties, making suppliers' and Stakeholders' Readiness essential for success. Instead of using collaboration and communication, readiness is now the most comprehensive.

2.1.2.8 viii. Government support

The government support includes legal frameworks and institutional rules, which were substituted.

Accountability and Inter-Organizational Trust have been overlooked as they are essential in private blockchains. Market dynamics, competitive pressure, and social influence have been ignored.

2.2 Framework validation

Our aim with the framework we created is to showcase how public blockchain can be a viable solution to the Bullwhip effect problem in supply chain management. This issue is evident in various scenarios, such as the scarcity of semiconductors utilized across numerous sectors, including electronics. To validate our framework, we tested it by implementing it in the context of the current semiconductors shortage in the laptop supply chain industry.

The supply chain for electronic devices has four stages: retailers, distributors, manufacturers, and suppliers. To begin, we will discuss the disruption identified in the laptop supply chain as a case study. After that, we will explain the validity of the framework, which involves three steps. The first step consists in creating a questionnaire that includes research questions, success factors for public blockchain in the supply chain, and specific measurements for each factor, as presented in Table 4 of the appendix. In the second step, this questionnaire will be sent to representatives from various electronic device supply chain stages. Since the decision to adopt and use blockchain technology is reserved for top positions in organizations, we surveyed four chief executives from major companies at each stage in Egypt and some Middle Eastern countries. Secondly, we analyzed the questionnaire results, which were presented in detail in the following section and finally proposed a blockchain network for that laptop supply chain. The benefits in terms of saving time and cost were explained.

2.2.1 Laptop supply chain disruption

As shown in Fig. 4, a customer attempting to purchase a new laptop from various retail stores that face a shortage due to disruptions in the laptop supply chain. In response to rising customer demand, stores have placed larger orders with different distributors, leading to a need at the wholesale level. Manufacturers need help to keep up with distributor orders, resulting in a delay in producing the required number of devices. Manufacturers are now placing large orders with suppliers for the necessary components, which will take time to process. As a result of these delays, there will be an excess of supplies for distributors and retailers compared to customer demand once the devices are manufactured.

Fig. 4
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Laptop SC disruption

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Due to manufacturing and shipping delays, customers are given more time to contemplate whether to make a purchase. Despite other stores having the same number of laptops in stock, customers will only purchase from a specific store. Retailers may encounter challenges if they cannot accurately predict the amount of a particular product required to fulfill orders, the current stock levels, or the time needed to place an order. This may result in retailers having to lower the prices of stocked devices and experience losses.

2.3 Methodology

The questionnaire is divided into three parts. The first section includes questions about the reasons for adopting public BCT in your SC. It covers four factors: Relative Advantage (5 questions), Perceived benefits (11 questions), Provenance (6 questions), and Security (4 questions). The second section asks about when you plan to adopt and use BCT and covers three factors: Organization Readiness (9 questions), Stakeholders Readiness (5 questions), and Government Support (4 questions). The third section asks how to implement BCT and focuses on Technology Readiness (7 questions). Each question is rated on a five-point Likert scale, ranging from “strongly disagree = 1” to “strongly agree = 5.” The higher the total score, the stronger the agreement to the questions.

2.4 Scoring of the questionnaire

To determine the agreement score of each executive, we calculated the sum of their responses to the questions related to each factor. This score was then converted into a percentage by dividing it by five times the number of questions related to that factor. The formula used was Agreement Score Percentage = (Sum of Scores / (5 * Number of Questions Related to the Factor)) * 100. Finally, to determine the average score for each section, we calculated the mean agreement score percentage for all related factors and took their average.

2.5 Statistical analysis

For the statistical analysis, version 26 of IBM SPSS Statistics (Statistical Package for the Social Sciences) was utilized. Descriptive analysis involves the use of mean, standard deviation, and percentages. To compare the mean responses among the four executives, the ANOVA test was employed.

Agreement score percentage for all related factors.

The degrees of agreement were categorized into three levels:

High agreement (≥ 75%), Moderate agreement (50–75%), and Disagreement (< 50%).

2.6 Results

Table 3 shows the different responses of the other raters regarding adopting public BCT in their SC. It was observed that the manufacturing rater reported the highest agreement for the relative advantage of the BCT (96%), followed by the distributor (88%), supply (80%), and retail (80%). Regarding the perceived benefit of the BCT, retail reported the highest degree of agreement (75%), followed by distributor (73%), supply (71%), and manufacturing (69%). The provenance of the BCT was reported to be an important cause of BCT adoption by all raters. The distributor reported a strong agreement that BCT is provenance (100%). Besides, retail reported high agreement for the provenance of BCT (90%). Following that, manufacturing reported higher agreement than supply (87% and 80%, respectively). Concerning the security of BCT, distribution reported the highest agreement rate for that cause (95%), followed by retail and supply (90%), followed by manufacturing (80%).

Table 3 Responses of the raters regarding the adoption of the BCT
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All the raters showed high agreement for adopting public BCT in their SC, and there is no statistical difference between their opinions. (H = 1.17, p = 0.76) as shown in Fig. 5.

Fig. 5
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Distribution of the responses of the different raters toward reasons for adopting BCT

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On the other hand, raters agreed differently on when to adopt and use BCT. Supply reported the highest agreement on the organization readiness of their SC (76%), followed by manufacturing (62%) and retail (60%). The distribution reported moderate disagreement regarding his organization's readiness to adopt and use BCT of his SC.

Regarding stakeholder readiness, manufacturing reported the highest agreement of stakeholder readiness (80%), followed by distribution and supply both are (68%), and retail showed reasonable disagreement on stakeholder readiness for the adoption and use of BCT (48%).

Regarding government support, it was observed that manufacturing reported the highest agreement toward government support to adopt BCT (75%), followed by supply which reported the moderate agreement (65%). In contrast, distributors reported moderate disagreement toward the government support (45%), and the retailer reported strong disagreement toward government support for the adoption and use of BCT in their SC (25%). As shown in Fig. 6, there is a significant difference between the raters reporting the readiness of their SC to adopt and use BCT (H = 12.4, p = 0.006).

Fig. 6
figure 6

Distribution of the responses of the different raters toward the readiness of their SC to adopt and use of BCT in their SC

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Regarding the technology readiness of the different SC to implement the BCT, the supply reported the highest agreement of the technology readiness of his SC (80%), followed by both retail and manufacturing (69%). Finally, the distribution reported the lowest agreement (63%).

There was no statistical difference between the technology readiness among the four raters (H = 3.73, p = 0.29), as illustrated in Fig. 7.

Fig. 7
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Distribution of the responses of the different raters toward the technology readiness of their SC to adopt and use of BCT in their SC

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Generally, Table 4 shows that retail, distributors, manufacturing, and the supply reported high agreement toward the importance of BCT use in their SC due to its useful characteristics (84%). And they reported a moderate agreement toward the general readiness of their SC to adopt and use BCT (60%). Finally, as shown in Fig. 8, they reported high agreement toward the technology readiness of their SC (70%).

Table 4 Average score percent of the raters’ responses to adoption of BCT in the SC
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Fig. 8
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Average responses of the raters toward the adoption and use of BCT in their SC

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Based on the perspectives shared by the four executives, the analysis results showed that:

  • Recognition of Blockchain Benefits: The executives acknowledged the advantages and benefits associated with adopting blockchain technology in their supply chains. This recognition implies an understanding of how blockchain can enhance transparency, traceability, and efficiency within their respective stages of the SC.

  • Concerns about Timing: Despite recognizing the benefits, the executives expressed reservations about the timing of blockchain adoption. This suggests that they were cautious and wanted to ensure the technology was sufficiently mature and ready for integration into their specific supply chain operations.

  • Perceptions of Technology Readiness: The executives believed that the technology still needed to be fully prepared for implementation in their supply chains. This perception might be influenced by factors such as the complexity of their operations, the need for interoperability with existing systems, or a desire for more evidence of successful blockchain implementations in similar industries.

  • Decision-Making Process: The executives' hesitation about the timing and readiness of blockchain indicates that they are taking a thoughtful and strategic approach to decision-making. They likely consider factors such as potential risks, costs, integration challenges, and overall organizational readiness before adopting blockchain technology.

3 The proposed PBCN (public blockchain network)

There are currently companies that act as intermediaries for data aggregation, such as GFK (Growth from Knowledge) and IDC (International Data Corporation). According to Fig. 9, IDC collects sell-out data from distributors and sells it to retailers, while GFK gathers sell-out data specifically for retailers. However, there is often a notable difference between the two sets of data.

Fig. 9
figure 9

GFK and IDC roles in market

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The proposed architecture for the public blockchain network is shown in Fig. 10.

Fig. 10
figure 10

Proposed public BC network architecture

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Here is a detailed description of the network:

  • Stakeholder participation: The network involves various stakeholders, including manufacturers, distributors, retailers, suppliers, and possibly other relevant entities in the supply chain. Each participant plays a role in transmitting sell-in, sell-out, and stock data at their respective stages.

  • Data transmission: At each stage of the supply chain, stakeholders contribute their sell-in, sell-out, and stock data to the blockchain network. This data can include information about product quantities, sales volumes, pricing, and other relevant metrics. The data transmission can occur through secure channels, ensuring the integrity and privacy of the information.

  • Public blockchain infrastructure: The network utilizes a public blockchain, a decentralized ledger accessible to all participants. This type of blockchain ensures transparency and immutability of the data. Miners validate and verify the transactions and data entries to maintain the integrity of the network.

  • Data validation and consensus: Miners in the network validate the sell-in, sell-out, and stock data provided by the stakeholders. This validation process ensures the accuracy and reliability of the information stored in the blockchain. Consensus mechanisms, such as proof-of-work or proof-of-stake, may be employed to achieve agreement among miners on the validity of the data.

  • Continuously updated data: The blockchain acts as a continuously updated data repository, reflecting the latest sell-in, sell-out, and stock information at each supply chain stage. This enables all participating companies to access real-time and synchronized data, eliminating discrepancies and enabling accurate decision-making.

  • Enhanced decision-making: With access to comprehensive and up-to-date information, companies can make informed decisions about their current and future situations. This includes optimizing inventory management, forecasting demand, identifying market trends, and improving supply chain efficiency. The shared data on the blockchain facilitates collaboration and coordination among stakeholders.

  • Cost and time savings: The use of the public blockchain network streamlines data sharing and eliminates the need for intermediaries like GFK and IDC. This reduces costs associated with data aggregation and improves the efficiency of information flow. Additionally, the real-time availability of data saves time in decision-making processes and enables proactive responses to market dynamics.

Overall, the public blockchain network provides a secure, transparent, and decentralized platform for stakeholders to share and access accurate and synchronized data throughout the supply chain. It empowers companies to make data-driven decisions, optimize operations, and ultimately enhance their competitiveness in the market.

4 Public blockchain platforms in supply chains

To assist businesses seeking to utilize blockchain technology, Table 5 provides a comparison of various public blockchain platforms that can be implemented within the supply chain industry. The chart highlights which supply chain domains each platform is suited for, as well as the advantages and drawbacks of each individual platform. This valuable information can aid businesses in determining which public platform is most suitable for their specific business model. Regarding Laptop SC as our case study, all platforms can be implemented by all supply chain domains and used specifically Ethereum as it is more successful and popular.

Table 5 Public blockchain platforms in supply chains
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5 Conclusion

In this paper, we propose a framework for utilizing public BCT to address the semiconductors shortage in electronic devices SC Making a questionnaire containing RQs, public blockchain success factors in SC as answers, and measurements under each factor are the three stages of framework development. We interviewed four large companies CEOs (Chief Executive Officers) in Egypt and some other Middle Eastern countries specialized in four SC stages and they are Retail, Distribution, Manufacturing and Supply to get a sense of how blockchain is being used at the top levels of business. The findings revealed that while CEOs recognized the benefits of blockchain adoption, they were still deciding if it was the correct moment for adoption and needed to see the technology ready for their supply chains. Finally, we detailed the electronic devices industry's semiconductor shortage in SC, outlined a proposal for the public BC network's infrastructure, and recommended different public blockchain platforms for using in SCs.

5.1 Limitations and future research avenues

This research has some limitations. The number of companies that answered the questionnaire is four, which is few. Therefore, the results can be analyzed better, verified, and tested on a larger number of companies. Many companies use different manufacturing strategies to produce goods according to customer demand and customization needs. These strategies are widely used across industries to enhance production processes and meet customer expectations. The three primary types of strategy are: Make to Order (MTO), Make to Stock (MTS), and Engineer to Order (ETO). Our framework is specifically designed for MTS manufacturing strategy.

The following are some future directions our work could go in:

Our proposed BCT success factors selection flowchart can be applied to other domains and possibly other technologies. A new framework not necessarily ours with RQs can be constructed to validate these eight CSFs. Analysis and evaluation of causal relationships among critical success factors. Ranking the public blockchain success factors in SC with the help of appropriate MCDM (multi-criteria decision-making) techniques. When deciding whether to implement public BC in their own SC, other domains can refer to the RQs we have proposed for this framework. Using a real suitable public blockchain platform to lessen the impact of disruptions caused by current and future crises, and to reap the benefits of blockchain technology.