Shahid, Tehmina (2025) Examining the maturity of Blockchain technology in the supply chain of textile and apparel brands. Research Master thesis, Victoria University.

Abstract

In today's business environment, companies are increasingly adopting innovative technologies to enhance supply chain efficiency. Recent studies highlight persistent issues of information asymmetry and lack of transparency among manufacturers, suppliers, and sub-suppliers, making it challenging for the textile and apparel industry to implement a unified traceability system. This lack of transparency, particularly in cost and defect tracking, has created an urgent need for blockchain technology. As a result, stakeholders across the global supply chain—ranging from the least developed to the most advanced nations—face a common set of challenges. To address these challenges, this study focuses on three primary objectives, each directly linked to the research questions. First, it identifies the key barriers to blockchain technology diffusion in supply chain systems in large textile and apparel brands in Australia (RQ1). Second, it examines the enablers that facilitate blockchain technology diffusion in these supply chains (RQ2). Lastly, it develops a Blockchain Adoption Maturity Model derived from the identified barriers and enablers, providing a structured framework that can be used to improve blockchain adoption in the supply chains of textile and apparel brands in Australia (RQ3). This model offers industry stakeholders a clear roadmap for assessing their progress and readiness in blockchain implementation, enabling more strategic and informed adoption decisions. To ground the research within a structured theoretical framework, the Technology-Organization-Environment (TOE) framework is adapted. This framework offers a comprehensive lens to examine technological, organisational, and environmental factors that influence blockchain adoption. Further, by employing the TOE framework, the study provides a comprehensive understanding of blockchain adoption, addressing the interplay between technology, organisational capabilities, and environmental factors, thus ensuring a well-rounded perspective on its implementation and impact. This study investigates the barriers and enablers of blockchain adoption in the textile and apparel supply chains of Australia, with the aim of developing a structured framework to enhance supply chain traceability. Adopting a qualitative approach, the research employs semi-structured interviews with managers from five leading textile and apparel brands. This method allows for an in-depth exploration of the complex dynamics of supply chain management, capturing detailed insights, experiences, and perspectives on the challenges and opportunities associated with implementing blockchain-based traceability systems. The findings reveal that technological barriers, particularly scalability, interoperability, and lack of standardization, pose the greatest challenges, while organizational factors such as leadership support and employee training serve as key enablers. Environmental influences, including regulatory uncertainty and consumer demand for ethical sourcing, also shape adoption decisions. A novel Blockchain Adoption Maturity Model is proposed, offering a practical roadmap for integrating blockchain into supply chains. This study makes both theoretical and practical contributions. Theoretically, it extends the TOE framework by demonstrating the interdependence of technological, organizational, and environmental factors in blockchain adoption. Practically, it provides industry practitioners with a tailored framework to enhance visibility and control from raw material sourcing to manufacturing and distribution. Improved traceability can protect consumers from substandard products, strengthen trust among stakeholders, and enable transparent tracking of product origins and processes.

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