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Blockchain Technology and Trust Relationships in Trade Finance

Michał Kowalski, Zach W. Y. Lee*, Kam Ho Chan

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    136 Citations (Scopus)
    352 Downloads (Pure)

    Abstract

    Blockchain technology has been advocated as a possible solution to enduring trust issues among trading partners in trade finance. We conducted in-depth interviews with industry experts to examine how blockchain technology influences the trust relationships among trading partners. Our results show that the technology enhances trust relationships by (1) improving the security of transactions and data exchanges, (2) facilitating the expression of benevolence, (3) enhancing the efficiency and the quality of communication, and (4) increasing the predictability of trading partners. The paper concludes with implications for both research and practice.
    Original languageEnglish
    Article number120641
    Number of pages9
    JournalTechnological Forecasting and Social Change
    Volume166
    Early online date10 Feb 2021
    DOIs
    Publication statusPublished - 1 May 2021

    UN SDGs

    This output contributes to the following UN Sustainable Development Goals (SDGs)

    1. SDG 8 - Decent Work and Economic Growth
      SDG 8 Decent Work and Economic Growth

    Keywords

    • Blockchain technology
    • Distributed ledger
    • FinTech
    • Trade finance
    • Trust relationship

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