sustainability

Review
Applications of Blockchain Technology in Sustainable
Manufacturing and Supply Chain Management:
A Systematic Review
Ahmad A. A. Khanfar 1 , Mohammad Iranmanesh 1, *, Morteza Ghobakhloo 2,3, *, Madugoda Gunaratnege Senali 4
and Masood Fathi 5,6

1 School of Business and Law, Edith Cowan University, Joondalup, WA 6027, Australia; a.khanfar@ecu.edu.au
2 School of Economics and Business, Kaunas University of Technology, LT-44249 Kaunas, Lithuania
3 Graduate School of Business, Universiti Sains Malaysia, Penang 11800, Malaysia
4 School of Arts and Humanities, Edith Cowan University, Joondalup, WA 6027, Australia;
smadugod@our.ecu.edu.au
5 School of Engineering Science, University of Skovde, P.O. Box 408, 54128 Skovde, Sweden;
masood.fathi@his.se
6 Division of Industrial Engineering and Management, Uppsala University, P.O. Box 534,
75121 Uppsala, Sweden
* Correspondence: m.iranmanesh@ecu.edu.au (M.I.); morteza.ghobakhloo@ktu.lt (M.G.)

Abstract: Developing sustainable products and processes is essential for the survival of manufactur-
ers in the current competitive market and the industry 4.0 era. The activities of manufacturers and



their supply chain partners should be aligned with sustainable development goals. Manufacturers


have faced many barriers and challenges in implementing sustainable practices along the entire
Citation: Khanfar, A.A.A.;
supply chain due to globalisation, outsourcing, and offshoring. Blockchain technology has the
Iranmanesh, M.; Ghobakhloo, M.;
potential to address the challenges of sustainability. This study aims to explain the applications of
Senali, M.G.; Fathi, M. Applications
blockchain technology to sustainable manufacturing. We conducted a systematic literature review
of Blockchain Technology in
Sustainable Manufacturing and
and explained the potential contributions of blockchain technology to the economic, environmental,
Supply Chain Management: and social performances of manufacturers and their supply chains. The findings of the study extend
A Systematic Review. Sustainability our understanding of the blockchain applications in sustainable manufacturing and sustainable
2021, 13, 7870. https://doi.org/ supply chains. Furthermore, the study explains how blockchain can influence the sustainable perfor-
10.3390/su13147870 mance of manufacturers by creating transparency, traceability, real-time information sharing, and
security of the data capabilities.
Academic Editor: Wen-Hsien Tsai

Keywords: blockchain technology; blockchain applications; sustainability practices; sustainable

Received: 13 June 2021
performance; sustainable manufacturing; smart contract; industry 4.0; supply chain management;
Accepted: 13 July 2021
digital transformation; systematic literature review
Published: 14 July 2021

Publisher’s Note: MDPI stays neutral

with regard to jurisdictional claims in
1. Introduction
published maps and institutional affil-
iations. Sustainability and effective balancing of environmental, social, and business out-
comes has become an essential requirement of the manufacturing sector [1]. Sustainability
strategies enable manufacturers to meet growing demands with minimal impacts on the
environment and society [2–4]. Considering the importance of sustainable practices, manu-
facturers have adopted various technologies and approaches such as big data analytics,
Copyright: © 2021 by the authors.
Licensee MDPI, Basel, Switzerland.
blockchain, artificial intelligence, lean manufacturing, six sigma, and reverse logistics to en-
This article is an open access article
hance their sustainability performance in the industry 4.0 era [5,6]. Blockchain is one of the
distributed under the terms and
emerging and fast-growing technologies that can contribute to sustainable manufacturing
conditions of the Creative Commons among digital technologies.
Attribution (CC BY) license (https:// Blockchain technology is a decentralised and distributed data structure. Data are
creativecommons.org/licenses/by/ shared on a peer-to-peer, open access network and transactions should be certified, verified,
4.0/). and accessed by members of the network community. Blockchain ensures the transparency

Sustainability 2021, 13, 7870. https://doi.org/10.3390/su13147870 https://www.mdpi.com/journal/sustainability

Sustainability 2021, 13, 7870 2 of 20

and security of the transactions [7,8]. Blockchain is initially introduced in the financial
industry for cryptocurrency to replace manual authentication of transactions with digital
authentications [9]. As blockchain could enhance traceability, transparency, trust, data
immutability, and data security, it has received attention from both academics and pro-
fessionals from various industries [10,11]. Investment in blockchain solutions is growing
fast and expected to reach USD 176 billion by 2025 [12]. Blockchain technology offers
promising capabilities that can improve economic, social, and environmental sustainability
practices of the supply chain and manufacturing industry [1,13]. Given the importance
of sustainability in the manufacturing sector, there is an increasing academic interest in
investigating the contributions of blockchain technology to the sustainable performance of
manufacturers [14,15]. However, to our best knowledge, there is a lack of review articles
that synthesise the current knowledge on the applications of blockchain technology in
sustainable manufacturing and provide future research directions. Thus, this article aimed
to explain the connection between blockchain technology and sustainable manufacturing.
The paper used the systematic review approach to answer the following research questions:
1. What are the applications of blockchain technology in sustainable manufacturing?
2. How can blockchain attributes enhance the sustainable performance of manufactur-
ers?
This study contributes to the literature on sustainable manufacturing by explaining
the contributions of blockchain technology to the economic, social, and environmental
performance of manufacturers and their supply chain based on blockchain attributes such
as traceability, transparency, security, and real-time information sharing. The study may
serve as the foundation for further discussion and research by both practitioners and
scholars. The study also proposes directions for future studies on blockchain technology in
sustainable manufacturing.

2. Background of Blockchain Technology Concept

2.1. Overview of Blockchain Technology
Blockchain technology was first conceptualised and introduced by Satoshi Nakamoto
in 2008 [9]. Blockchain technology is a distributed data structure in which the data are
shared on a peer-to-peer network. Blockchain consists of a chain of blocks that record
transactions generated by contracting parties. Following a predefined protocol, transactions
must be approved and validated by the network members who belong to a peer-to-peer
network. The transaction details are recorded on a public ledger called the distributed
ledger [16]. The distributed ledger is a decentralised record of transactions in which
the transaction blocks are stored in all computers of the network members and can be
seen by anyone in the network. When a transaction/block is generated and validated by
certain members of the network, this block is added to the network and linked to previous
blocks [17,18]. Verification of transactions can be performed by individuals, machines,
algorithms, and organisations. Blockchain can eliminate intermediates from a network and
link different parties directly, which may reduce human errors and transaction costs [19].
Storing data in share databases instead of central ones reduces the risk of losing data and
increases transparency and security of information [19]. Smart contracts help to eliminate
the need for intermediaries and reduce transaction costs [20]. Smart contracts enhance
the privacy and security of information as all transactions should be complied with the
underlying legal agreements and should be approved and verified by the members based
on the transaction validation rules defined in the smart contracts [19,21].

2.2. Applications of Blockchain Technology

Blockchain is an emerging and fast-growing technology that has been adapted in
various industries such as finance, real estate, health care, and energy due to its capabilities
and benefits. Various industries can benefit from blockchain technology’s attributes and
features, such as traceability, transparency, data security, and real-time information shar-
ing [13,17,19]. For instance, in the agri-food industry, blockchain can be integrated with
Sustainability 2021, 13, 7870 3 of 20

other technologies such as RFID to track food supplies in real time, which may optimise
processes of food operations, enhance food safety and quality, and reduce unethical prac-
tices and social harms [22]. In the financial industry, blockchain technology can be applied
to decentralise and trace transactions and remove banks’ financial institutions [23]. In the
healthcare sector, blockchain can be used to enhance the confidentiality and accuracy of
patient information. Furthermore, blockchain can reduce healthcare costs and improve the
quality of services provided to patients. Using blockchain technology in healthcare can also
prevent healthcare fraud and increase transparency with patients [8]. In the automobile
industry, blockchain is utilised to secure and protect automated cars from being hacked
and is applied to develop driving technologies. Blockchain-based systems enhance the
performance of self-driving cars and contribute to fuel usage and emissions reduction [8].
Blockchain technology is one of the key technologies in developing a smart city due to its
benefits, such as data security, decentralisation, real-time information sharing, and trust,
which are essential for a successful smart city development [24]. Blockchain can also be
utilised as a middleware solution that integrates technological advancements with Industry
4.0 smart manufacturing. This integration can facilitate information sharing, increase
security, reduce costs, and increase organisational efficiency [25]. In the pharmaceutical
industry, the blockchain can be utilised to improve control over the medicines supply chain,
and it can facilitate detecting fake medicines [26].

2.3. Benefits of Blockchain in the Manufacturing Sector

Managing information in the supply chain is challenging as real-time and reliable data
are needed to avoid poor performance, fraud, and risks [1,21]. There is a need to improve
data reliability, traceability, and authenticity by using better verifiability and information
sharing systems [1]. Blockchain connects supply chain stakeholders using a distributed
data structure where data are shared on a peer-to-peer network. All stakeholders agree
on predefined protocols, and data are communicated and validated based on the proto-
cols [27,28]. The decentralised structure of blockchain supports transaction verification
directly between stakeholders and eliminates the need for intermediaries to verify transac-
tions [19]. Blockchain enables companies involved in the supply chain network to share,
access, and verify information securely as transactions and data are protected through
advanced cryptography [28]. Advanced cryptography reduces the risk of losing and al-
tering the information and prevents any human errors in transactions [19,21]. Blockchain
technology positively influences the reliability and trustworthiness of supply chain trans-
actions, supply chain operations, time of supply chain activities, and decision-making
efficiency [13,21].
Transparency is one of the attributes of blockchain and refers to the availability of
information among the supply chain stakeholders [29]. Blockchain technology supports
real-time information sharing among stakeholders involved in the supply chain network,
which increases transparency and trustworthiness among supply chain partners and cus-
tomers [1,11]. Blockchain enables customers to obtain valid and accurate information
about products and processes [1,21]. Traceability is another attribute of blockchain and
refers to identifying and verifying the components and chronology of events in all steps
of a chain. Tracking the information in the entire chain is essential to verify compliance
with specifications and trace failure events [30]. Traceability allows stakeholders to track
and monitor items and shipments across all over the chain [14,15]. The traceability at-
tribute of blockchain enhances the transparency of the supply chain activities, which in
turn positively influences the level of trust among supply chain stakeholders, including
suppliers and customers, reduces conflicts among them, reduces verification costs, and
enable stakeholders to identify unethical practices [11,13].
Sustainability 2021, 13, 7870 4 of 20

3. Manufacturing Process
The supply chain operations reference (SCOR) model provides an efficient way to
analyse and measure the supply chain operations and performance. The model analyses
supply chain activities across four business processes: plan, source, make, deliver, and
return. The SCOR model defines standard metrics and strategic objectives of supply chain
processes and ensures that supply chain activities are reliable, performed as planned, and
flexible and adaptive to changes which in turn lead to efficient management of the costs
associated with operations such as labour, material, and transportation costs and efficient
asset utilisation [31,32].
The planning process refers to planning and control activities that aim to balance the
demand and supply in meeting the requirements of purchasing, production, and distribu-
tion [33]. The business rules that improve the efficiency of supply chain operations and
enhance quality control activities are defined in the planning process [34]. Transparency
and sharing information among the supply chain are critical in the planning process in
order to facilitate the decision-making process and the accuracy of the plan for the fu-
ture [35]. The sourcing process refers to identifying and selecting the sources of supply,
procurement activities, and the alignment between the planned and actual orders [33].
The source process aims to build knowledge on raw materials and ensure suppliers are
registered and certified, and provide high-quality products [34,35]. The making process
refers to transforming raw materials into final products or services, including packaging,
product staging, releasing, and production activities [33]. The making process provides
guidelines on meeting production schedules with high standards and meeting the cus-
tomers’ requirements [34]. The delivery process refers to the activities associated with
the fulfilment and management of orders [33]. The delivery process includes creating
orders, order maintenance, order fulfilment, effective management of products, inventory,
warehousing, and transportation [34,36]. The delivery process ensures that the customers
receive the products on time [35]. Finally, the returning process refers to the activities asso-
ciated with reversing products and services from customers [33]. Blockchain technology
can contribute to the sustainability of manufacturers in various business processes, which
are discussed in this review.

4. Systematic Review Protocol

The review was conducted based on the Preferred Reporting Items for Systematic
Reviews and Meta-Analyses (PRISMA) guideline [37] for conducting the systematic liter-
ature review. To answer the research question of this study regarding the contributions
of blockchain to the sustainability of manufacturers, the identified articles were analysed
using the content-centric analysis technique [38]. The search terms, inclusion and exclusion
criteria, and search results are elaborated in the following three sub-sections.

4.1. Database and Search Terms

To review the articles published on the contributions of blockchain to the sustainability
of manufacturing firms, search terms related to blockchain and sustainability were used
to extract articles from the Scopus database on 8 March 2021. Scopus was selected as it is
the largest database of peer-reviewed journals [39]. The search within the title, abstract,
and keywords of articles was conducted using (“Sustainab*” OR “environ*” OR Green OR
“eco*” OR “Social” OR “Societal” OR “CSR”) AND (“Blockchain” OR “Smart Contract” OR
“distributed ledger”) search terms.

4.2. Article Inclusion and Exclusion Criteria

To screen the articles and find the relevant works, four inclusion and exclusion criteria
were defined as follows: (1) articles should be in English, (2) articles should be published in
journals, (3) the application of blockchain technology in sustainable manufacturing should
be discussed in the articles, and (4) full text of the identified articles should be accessible
for further analysis.
 lished in journals, (3) the application of blockchain technology in sustainable manufactur-
ing should be discussed in the articles, and (4) full text of the identified articles should be
accessible for further analysis.
Sustainability 2021, 13, 7870 5 of 20
4.3. Search Results
The result of the search within the title, abstract, and keywords of documents indexed
by4.3.
theSearch
Scopus database was 883 works (Figure 1). Following the first and second inclusion
Results
criteria, the search was limited to journal, article, and English, which resulted in 295 arti-
The result of the search within the title, abstract, and keywords of documents indexed
cles.
by theTheScopus
titles and abstracts
database was 883 of works
295 identified
(Figure 1).articles were
Following thereviewed by twoinclusion
first and second authors using
the third inclusion criteria of the study. The disagreements between these
criteria, the search was limited to journal, article, and English, which resulted in 295 articles.two authors on
excluding or including
The titles and abstracts of some articles were
295 identified resolved
articles by consensus
were reviewed by twoafter discussion
authors using theamong
allthird
authors. The criteria
inclusion initial screen was performed
of the study. based onbetween
The disagreements titles and abstracts
these and resulted
two authors on in
41 articles. In the subsequent screen, five articles were excluded due to full-text unavaila-
excluding or including some articles were resolved by consensus after discussion among all
bility, andThe
authors. 21 initial
articles werewas
screen excluded
performed as they
baseddid not meet
on titles the inclusion
and abstracts criteria
and resulted in based
41 on
articles. In the subsequent screen, five articles were excluded due to full-text
the full-text screen. Finally, six articles were added by checking the references of included unavailability,
and 21 articles were excluded as they did not meet the inclusion criteria based on the
articles and 21 articles related to the contributions of blockchain to the sustainability of
full-text screen. Finally, six articles were added by checking the references of included
manufacturers
articles and 21 were
articlesfound
related(Appendix A). The authors
to the contributions reviewed
of blockchain thesustainability
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plications of blockchain to sustainable manufacturing described
manufacturers were found (Appendix A). The authors reviewed the articles, in the articles
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the frameworkproposed by Chardine-Baumann
for sustainable performance assessment and Botta-Genoulaz
of supply
[40].
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Figure
Figure1.1.Flow
Flow diagram ofthe
diagram of thearticle
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and selection
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process.
Sustainability 2021, 13, 7870 6 of 20

5. Applications of Blockchain in Sustainable Manufacturing

Manufacturers are facing various challenges and seeking to overcome these challenges
to achieve growth and development. Sustainability development empowers manufacturers
to respond to various challenges effectively and became a critical factor for manufacturers
to achieve their objectives of achieving economic and social benefits while maintaining
practices that minimise environmental impacts [41,42]. Sustainable development is defined
as “development that meets the needs of the present without compromising the ability of
future generations to meet their own needs” with ensuring the continuity of economic,
social, and environmental aspects [42]. The U.S. Department of Commerce defined manu-
facturing sustainability as “the creation of manufactured products that use processes that
minimise negative environmental impacts, conserve energy and natural resources, are safe
for employees, communities and consumers and are economically sound” [43].
In the conventional manufacturing supply chain, the information is managed using a
centralised approach and stored in a single location. Centralisation increases the risks of
losing data, and the whole system is vulnerable to error, hacking, corruption, or attack [1],
and consequently may reduce trust between supply chain parties. Furthermore, the cen-
tralised manufacturing supply chain does not provide the required level of reliability and
transparency in supply chain processes, products, and activities [44]. Thus, it is required
to improve the transparency, security of information, reliability, and traceability of the
current supply chain to enhance trust and sustain the supply chain [1]. Blockchain sup-
ports sustainable practices in the manufacturing sector by building a reliable, transparent,
traceable, and secured supply chain [19]. The contributions of blockchain technology to
three pillars of sustainability, namely economic, environmental, and social, are elaborated
in the following sections.

5.1. Economic Performance

Manufacturers face various challenges such as high labour cost, high business envi-
ronment complexity, and rapid customer needs and wants changes. To deal with these
challenges and achieve economic sustainability, manufacturers should manage operations
and supply chains effectively and efficiently [42]. According to Chardine-Baumann and
Botta-Genoulaz [40], the economic performance of the manufacturing supply chain should
be assessed in five fields, namely reliability, responsiveness, flexibility, financial perfor-
mance and quality. The contributions of blockchain technology to these five fields of
economic performance are elaborated in the following sub-sections. A summary of the
applications of blockchain technology is provided in Table 1.

5.1.1. Reliability
Reliability refers to the reliability of customer service, reliability of suppliers’ ser-
vice, reliability of forecasts, and reliability of stocks [40] which depend on the accuracy
of provided information [45] and efficiency of the production process [2]. Obtaining and
accessing accurate and timely information may enhance inventory and warehouse man-
agement efficiency, reduce inventory inaccuracy, enhance predictive analysis accuracy, and
reduce production mistakes [2].
Transparency and traceability are two attributes of blockchain technology that enhance
the accuracy of information. Information and any modifications are shared and validated in
the distributed ledger among different stakeholders in real time, protecting data from any
wrong entries on the network. Sharing and validating information by different stakeholders
make information processing in the supply chain more accurate and minimise any potential
errors or mistakes [1,15,46]. Blockchain can speed up the automation of manufacturing
and increase the efficiency of operations by enhancing the accuracy and velocity of the
information. It increases the efficiency of activities related to the product life cycle, such as
designing, planning, inventory, and recycling [15,46]. Blockchain can enhance the accuracy
of predictions by providing quality data for trend prediction analysis [15]. The accuracy of
prediction is greatly influenced by the quality of the data (e.g., timely and accurate).
Sustainability 2021, 13, 7870 7 of 20

5.1.2. Responsiveness
Responsiveness describes manufacturers’ response agility and flexibility in response
to growing pressures on firms in terms of time, cost, and organisational disruptions [47].
Manufacturers should respond efficiently to the changes and new requirements and re-
spond to products/services development, raw materials purchasing, production, sales,
delivery, return, and supply chain [40].
The supply chain is a network that includes agents and stakeholders. Blockchain
connects all stakeholders directly without the need for a centralised entity in which it
reduces network tiers [1]. Blockchain enables stakeholders to communicate directly, and
this may result in reducing transaction costs and time [1,8] and the amounts of business
waste in the supply chain [1,15]. The decentralisation and information and resources
sharing capabilities of blockchain facilitate distributed operations in which product and
design information and machine parameters are shared and thus optimise manufacturing
processes and minimise production times. Moreover, the blockchain’s real-time information
sharing capability helps manufacturers optimise their operations and minimise production
time, response time to customers, and maintenance time [15].

5.1.3. Flexibility
Manufacturers are required to meet new changes and to be agile and flexible in
responding to the changes. As such, manufacturers should adopt approaches that enhance
flexibility such as flexible organisational structure, flexible management and leadership
approaches, or innovative technologies [48] in order to respond effectively to market
changes, customer demand changes, product individualisation demands, and product and
customer diversification [42]. Blockchain, as an innovative technology, is able to enhance
the flexibility of manufacturers.
Using smart contracts in blockchain technology enables supply chain partners to
develop a consensus on a set of terms and conditions. The agreements among supply
chain partners can facilitate the resource and machine sharing and alliance among partners,
innovative processes development, operation decentralisation, agile decision-making,
and partnership optimisation, which in turn enhance the flexibility of manufacturers in
improving the production process, meeting customer requirements, producing customised
products, and responding to the market changes [15]. Blockchain can also enhance the
agility of the manufacturers in responding to the changes by minimising the need for
intermediaries [13].

5.1.4. Financial Performance

Financial performance refers to the measures of manufacturers’ financial efficiencies
such as profitability, liquidity, and investment potential [49]. The financial performance of
manufacturers is affected significantly by costs associated with the production of goods
and/or services before, during, and after production processes such as design and supply
chain costs [40], material, energy, labour, equipment costs [49,50], and delivery and return
costs [40]. Manufacturers should improve their financial performance by reducing costs as-
sociated with product development, use resources such as energy, inventory, raw materials,
waste treatment, and manufacturing costs [51].
Blockchain technology ensures the safety and authenticity of data, which reduces
the costs associated with the risks of alteration. Blockchain technology also enhances the
transparency of information and transactions, which increases the transparency and trust
amongst stakeholders. Lack of transparency and trust leads to higher risks and requires
stakeholders to increase their efforts to mitigate the risks, which increases transaction
costs. Thus, blockchain technology ensures transparency of data which in turn enhances
the trust between stakeholders and consequently reduces transaction costs and creates
financial benefits for businesses [1,52]. Moreover, the ability of blockchain technology in
sharing and validating information in real time among supply chain stakeholders reduces
the cost of information monitoring and verification [13,52]. Blockchain technology also
Sustainability 2021, 13, 7870 8 of 20

enables manufacturers to monitor the markets and competitors’ prices and performance of
management, which can enhance their financial performance [13].

5.1.5. Quality
Quality refers to the product quality, quality performance of suppliers, and production
quality [40]. Quality reduces the rate of customer complaints [48]. Blockchain can signifi-
cantly improve quality management and assurance practices and enhance product design
quality by enhancing the availability of the data and enabling stakeholders to share infor-
mation [15]. The ability to trace information along the supply chain enables stakeholders to
access information related to raw materials, products, suppliers, retailers, manufacturing,
and supply chain activities. Thus, blockchain technology enables customers to verify the
quality of products and ensures that products comply with standards, are legally sourced,
and manufactured under quality assurance standards [13,46]. Furthermore, blockchain
can enhance the ability of other technologies and techniques such as big data analytics,
artificial intelligence, and IoT in-process monitoring, fault diagnosis, trend prediction, and
decision-making by enhancing the quality, transparency, traceability, and security of the
data [24].

Table 1. Contributions of blockchain to economic performance of manufacturers.

Fields Subfields Blockchain Contributions

• Enhancing the accuracy of information

• Customer service • Minimising errors and mistakes
• Suppliers’ service • Facilitating automation of manufacturing
Reliability • Reliability of stocks • Enhancing the efficiency of manufacturing processes
• Reliability of forecasts • Enhancing the efficiency of supply chain activities
• Improving the accuracy of predictions

• Eliminating intermediaries and connecting stakeholders

directly
• Design responsiveness • Facilitating communication and collaboration among
• Purchase responsiveness stakeholders
• Source responsiveness • Facilitating information and resource sharing among
• Production responsiveness stakeholders
Responsiveness • Delivery responsiveness • Reducing transaction costs and time
• Sell responsiveness • Optimising manufacturing processes
• Return responsiveness • Optimising operations
• Supply chain responsiveness • Minimising production time
• Minimising response time to customers
• Minimising maintenance time

• Eliminating intermediaries and connecting stakeholders

directly
• Facilitating communication and collaboration among
stakeholders
• Facilitating information and resource sharing among
• Suppliers’ flexibility
stakeholders
• Supply flexibility
Flexibility • Facilitating innovative process development
• Production flexibility
• Facilitating operation decentralisation
• Delivery flexibility
• Facilitating agile decision making
• Optimising partnership
• Enhancing flexibility in the production process
• Enhancing flexibility in producing customised products
• Enhancing agility in responding to the changes
Sustainability 2021, 13, 7870 9 of 20

Table 1. Cont.

Fields Subfields Blockchain Contributions

• Design cost
• Purchase cost • Reducing risks
• Source cost • Reducing costs associate with risks
Financial • Production cost • Enhancing trust among stakeholders
Performance • Delivery cost • Reducing transaction costs
• Return cost • Reducing costs of information monitoring and verification
• Supply chain cost

• Facilitating information sharing among stakeholders

• Facilitating access to information related to raw materials,
products, suppliers, retailers, manufacturing, and supply
chain activities
• Facilitating process monitoring
• Product/service quality
• Facilitating fault diagnosis
Quality • Quality performance of suppliers
• Enabling customers to verify the quality of products
• Production quality
• Assuring products do comply with quality assurance
standards
• Assuring products do comply with laws and legally
sourced
• Improving quality controls and monitoring

5.2. Environmental Performance

Manufacturers are required to optimise their operations and processes and reduce
their negative impacts on the environment. Manufacturers implement sustainable practices
to improve energy consumption, increase resource efficiency, reduce wastes, and produce
recyclable products [53]. Following Chardine-Baumann and Botta-Genoulaz [40], we
categorised the environmental performance of manufacturing firms to environmental
management, use of resources, pollution, dangerous, and natural environment. The
contributions of blockchain technology to these five fields of environmental performance
are elaborated in the following sub-sections. The summary of the blockchain applications
is provided in Table 2.

5.2.1. Environmental Management

Environmental management is related to the management and control of the produc-
tion process and product life cycle, starting from development to delivery and disposal
of the product. Environmental management practices contribute significantly to environ-
mental protection and impact positively on businesses and society. Manufacturers should
implement proper environmental management practices and audits such as applying en-
vironmental management and controlling systems (e.g., ISO 14001), assigning budgets to
reduce the impact of manufacturing on the environment, measuring environmental impacts
of activities, and educating and communicating the causes of environmental accidents with
employees [48,54].
Blockchain technology can play a significant role in developing environmental man-
agement practices [1,55]. Traceability, accuracy, and reliability of data and access to real-
time information facilitate the process of reproducing and recalling products. This can
result in saving resources and reducing emissions. Transparency and traceability created
by blockchain technology empower customers to identify whether the products produced
by manufacturers are environmentally friendly or not, which in turn enforce manufacturers
to practice environmentally friendly manners and reduce emissions. The customers can
Sustainability 2021, 13, 7870 10 of 20

track the manufacturing planning, sourcing, making, delivery, and returning processes and
identify and identify the potential environmental unfriendly practices [1].

5.2.2. Use of Resources

Use of resources refers to the use of materials, water, energy, and products in an
efficient way [56]. Sustainability practices ensure an optimised usage of materials before,
during, and after manufacturing and cause a reduction in the production of emissions
associated with the manufacturing process [50,53]. Sustainability practices minimise the
impact of resources on the environment, and such practices include using renewable energy
in production, using resources such as water and energy in an efficient way, reducing the
produced waste [57], and recycling and re-using resources [41,48].
Blockchain technology enables manufacturers to optimise the use of energy and
resources by creating decentralisation capabilities and enhancing the traceability and
transparency of resource and energy-related information [1,8]. Furthermore, traceability
and transparency motivate manufacturers to use renewable energy. Blockchain technology
can be applied in recycling by tracing recyclables and motivating people to contribute to
depositing recyclable items [1]. Blockchain can also be adopted to improve the sustainability
of the clean energy industry. It provides decentralised solutions for promoting the use of
clean/renewal energy [17].

5.2.3. Pollution
The pollution dimension of environmental performance refers to reducing harmful
substances, toxic materials, and emissions released to the environment caused by manufac-
turing processes [41,49]. Pollution refers to the influence of wastages on the environment,
such as increasing acidification levels of water and soil [50]. Manufacturers should con-
trol emissions and reduce the impact of wastages on the environment by identifying and
controlling emissions and pollution created in the manufacturing process [57].
Blockchain technology enables manufacturers to reduce the waste and pollution in
the entire manufacturing supply chain by facilitating the usage of renewal sources of
energy and reducing fuel usage [8]. Manufacturers can optimise resource consumption,
reduce gas emissions, and trace and measure the carbon footprint of each product by
sharing accurate and authentic information and enhancing traceability capability through
blockchain adoption [1,8,55]. Traceability and transparency attributes of blockchain also
fulfil customer needs of having transparent information about carbon emissions [1,8]. In
addition, the traceability of data related to energy and resource usage helps manufacturers
optimise their production process and reduce energy and production wastes [1,8].

5.2.4. Dangerousness
The dangerousness dimension of environmental performance refers to the dangerous
impact of manufacturing materials on the environment. Dangerousness can be measured
by monitoring the raw materials used in the production, the products or output of the
production process, and the production of dangerous wastes [40]. Measuring and tracking
the amounts of dangerous inputs and outputs in the manufacturing supply chain are
crucial in managing and reducing dangerousness [48].
The traceability, authentic verification, and security of information capabilities created
by using blockchain help supply chain stakeholders to trace and remove the dangerous
inputs and outputs in the entire manufacturing supply chain, including planning, sourcing,
making, delivering, and returning. Tracing the manufacturing supply chain process assures
the customers that they purchase and consume safe, legitimate, undamaged, and unaltered
products [58].
Sustainability 2021, 13, 7870 11 of 20

5.2.5. Natural Environment

The natural environment dimension of environmental performance refers to the im-
pact of manufacturing processes and industrialisation on the ecosystem and environment.
The natural environment dimension aims to measure and reduce the impacts of manu-
facturing practices on ecosystem services, all forms and combinations of life, land use,
urban and rural development [40,48]. The decentralisation and real-time information
sharing about supply chain activities in blockchain technology helps organisations trace,
control, monitor, and measure the impacts of their activities on ecosystem diversity and
sustainability of natural resources, which enable manufacturers to make better decisions
and minimise their harmful influences on the natural environment [55,59].

Table 2. Contributions of blockchain to environmental performance of manufacturers.

Fields Subfields Blockchain Contributions

• Reducing reproducing and recalling processes

• Environmental certification
• Saving resources
Environmental • Environmental compliance
• Decreasing the consumption of resources
Management • Worker implications
• Tracking the sources of raw material
• Environmental budget
• Reducing emission

• Optimising the use of energy

• Renewable energy
• Optimising the use of resources
• Recycled water
• Promoting the use of renewable energy
Use of Resources • Inputs stemming from the recycling
• Facilitating reverse logistics
• Recyclable outputs
• Motivating people to contribute in depositing
• Recyclable wastes
recyclable items

• Facilitating the usage of renewal sources of energy

• Reducing fossil fuel usage
• Reducing resource consumption
• Air pollution
• Reducing the energy usage in production
• water pollution
Pollution • Reducing gas emissions
• land pollution
• Tracing and measuring the carbon footprint product
• Other pollution
• Providing transparent carbon footprint information
• Reducing production waste
• Reducing energy waste

• Monitoring the raw material used in the production

• Tracing and removing dangerous inputs (raw
• Dangerous inputs
materials)
Dangerousness • dangerous outputs
• Tracing and removing dangerous outputs (products)
• dangerous wastes
• Ensuring product safety
• Monitoring the production of dangerous wastes

• Making better decisions on using natural resources.

• Making better decisions related to waste management
• Eco-systemic services • Improving resource management
Natural Environment • respect of biodiversity • Tracing and measuring the impacts of manufacturers’
• land use activities on ecosystem diversity
• Reducing harmful influences of manufacturers’
activities on the sustainability of natural resources
Sustainability 2021, 13, 7870 12 of 20

5.3. Social Performance

Social performance is another pillar of sustainability that plays a critical role in creating
and maintaining relationships with stakeholders [60] and creating a favourable image and
reputation [61]. Social issues can impact the financial performance and reputation of
manufacturers [61]. Manufacturers face various social challenges and should develop a
sustainable business model and adopt proper activities and technologies to overcome these
challenges. Following Chardine-Baumann and Botta-Genoulaz [40], we categorised the
social performance of manufacturing firms into five fields: work conditions, human rights,
societal commitment, consumers issues, and business practices. Blockchain technology can
contribute significantly to sustainable manufacturing and help manufacturers face social
challenges related to manufacturing supply chain processes [15,62]. The contributions of
blockchain technology to the five fields of social performance are argued in the following
sub-sections. The summary of the blockchain applications is provided in Table 3.

5.3.1. Work Conditions

Work conditions refer to the employees’ health and safety issues associated with the
workplace. Work conditions include the practices related to safety, health, productivity,
and development of employees [50]. Manufacturers should adopt practices that reduce
health and safety risks and assure workplace safety [60]. Furthermore, firms should
pay attention to social communications among employees at the workplace, resulting
in better working conditions, higher productivity, better health and security, and higher
working environment quality [48]. Work condition-related practices involve providing
training to develop employees’ knowledge and skills on various aspects of their jobs,
potential workplace challenges, employability skills, and health and safety measures
at the workplace. Such developments increase employees’ awareness and knowledge
of sustainability practices and may facilitate efficient implementation of sustainability
practices at the workplace [41,60].
Blockchain technology empowers stakeholders to track the work conditions of sell-
ers and suppliers and identify whether they respect human resource development, and
implement health and safety practices at the workplace. Blockchain provides a secure
and unchangeable platform for recording information related to working hours, wages,
and overtime limits which can be accessed by stakeholders such as customers, retailers,
and governments in order to check whether a manufacturer and its chain partners apply
fairness and justice principles in the workplace. Furthermore, the health and safety infor-
mation, such as whether the supplier obtained health and safety required certifications
and approvals (e.g., fire and building safety), can be safely recorded and tracked through
blockchain [18]. Traceability and the ability to share and store information safely make
it possible for buyers and supply chain stakeholders to track the sources of materials all
over the chain and make sure that the materials were purchased from ethical and certified
sources [18,62].

5.3.2. Human Rights

The human rights dimension of social performance refers to any possible violations
of human rights such as child labour [61], discrimination, forced labour, extortion, or
bribery [63]. Manufacturers should not only respect human rights in their internal activ-
ities but also ensure that the activities of their supply chain partners are consistent with
human rights. Blockchain technology provides the required infrastructure for monitoring
activities of firms which in turn reduce workplace exploitation [18,62]. The transparency,
visibility, and authenticity of data and the instant traceability capability facilitate tracking
of supply chain activities and identifying unethical practices from corrupted individuals or
organisations [1,62]. Blockchain enables manufacturers to monitor the practices of their
suppliers and ensure that human rights and fairness are not violated in their activities and
consequently prevent any potential unethical practices such as social harm, abuse [8,62],
child labour, or corruption [62,64].
Sustainability 2021, 13, 7870 13 of 20

5.3.3. Societal Commitment

Societal commitment refers to the practices aiming to provide benefits for the society
and community. Benefits can be in the form of involvement in local communities, job
creation, healthcare and societal investment, education, culture, and technological develop-
ment [41,48,63]. To meet social commitments, manufacturers should develop rules, policies,
and strategies to positively impact society and communities.
Blockchain technology enhances the authenticity and reliability of information and
prevents fraudulent transactions. Such information contributes to the welfare of societies
by creating new opportunities, improving business models, attracting investments into
various aspects of social welfare and society, improving social services (e.g., healthcare
and education), and reducing service costs [8,62]. Furthermore, blockchain can create
trust between donors, non-profit organisations, and governments, which in turn enhance
the success of fundraising activities. The non-profit organisation and government also
can control the flow of donations and financial aids in a more effective manner. Storing
accurate information and real-time information sharing may reduce the time of receiving
donations and delivering service to beneficiaries. Blockchain attributes also enhance trust
in emergency times and promote solidarity among people [64,65].

5.3.4. Customer Issues

Customer issues include the ability of manufacturers to fulfil the needs and require-
ments of various customer groups [63]. Manufacturers should redesign their strategies and
practices and reconfigure their manufacturing processes in order to develop personalised
products and services. Personalised products may enhance customer satisfaction [48] and
consequently increase profits and support the position of manufacturers in the market [3].
The smart contracts, decentralisation, and information sharing attributes of blockchain
technology facilitate direct relations between customers, manufacturers, suppliers, and
retailers [15,46]. Customers can directly communicate with manufacturers to request
customised products. On the other hand, retailers, suppliers, and manufacturers can com-
municate directly and share their resources and capabilities to fulfil customers’ needs more
effectively and efficiently. The real-time and secure information sharing and transparency
attributes of blockchain facilitate collaboration and resource sharing among supply chain
partners, which in turn optimise manufacturing planning, sourcing, making, delivery,
and returning. Blockchain improves manufacturing productivity and quality, facilitates
products personalisation, and extends the innovation practices of manufacturers [15,46].

5.3.5. Business Practices

Business practices refer to the firms’ practices aiming to fight against corruption and
promote fair trading and social responsibility [40]. Manufacturers should understand
foreign cultures to operate in line with fair trading principles regarding markets and com-
petitions and to fight against corruption [48]. Dealing with corruption and fair-trading
issues improves the social sustainability performance of manufacturers [40,48]. Trans-
parency, traceability, and decentralisation attributes of blockchain enforce manufacturers
to give more attention to corruption and fair-trading concepts. As customers and gov-
ernments can track the firms’ and their partners’ activities, a potential shortfall in social
responsibilities may harm the brand and reputation of a manufacturer for a long time.
Accordingly, blockchain technology can promote the fight against corruption and unfair
trading practices [58,66].
Sustainability 2021, 13, 7870 14 of 20

Table 3. Contributions of blockchain to social performance of manufacturers.

Fields Subfields Blockchain Contributions

• Promoting human resource development

• Work conditions • Extending health and safety practices
• Health and security • Reduction of safety incidents
Work Conditions • Human resource development • Tracking health and safety certifications
• Respect to social dialogues • Improving working conditions
• Tracking working hours, wages, and overtime limits

• Monitoring violations of human rights

• Child and forced labour • Preventing unethical sourcing such as child or forced
Human Rights • Freedom of association labour
• Discrimination • Preventing social harm and abuse
• Reducing workplace exploitation

• Creating new opportunities

• Involvement in the local community • Improving business models
• Education, culture and • Attracting investments into social welfare
Societal Commitment technological development • Improving social services
• Job creation • Reducing service costs
• Healthcare and societal investment • Boosting donations
• Improving humanitarian service efficiency

• Facilitating product personalisation

• Extending innovative practices
• Product and service personalisation
Customer Issues • Optimising production and delivery processes
• Meeting customer needs
• Facilitating collaboration among stakeholders
• Enabling direct relations between stakeholders

• Tracking firm activities

• Fight against corruption
Business Practices • Reducing corruptions
• Promote fair trading
• Promoting fair trading activities

6. Conclusions and Future Research

The primary purpose of this systematic review was to give a structure to the liter-
ature on the applications of blockchain in sustainable manufacturing. The study aims
to answer two research questions: (1) “what are the applications of blockchain technol-
ogy in sustainable manufacturing?” and (2) “how can blockchain attributes enhance the
sustainable performance of manufacturers?” To answer the first research question, the 21
identified articles were reviewed, and the applications of blockchain technology in sus-
tainable manufacturing were identified. The model of sustainable performance developed
by Chardine-Baumann and Botta-Genoulaz [40] was used to categorise the contributions
of blockchain to the sustainable performance of the manufacturing supply chain. This
model categorised economic performance according to reliability, responsiveness, flexi-
bility, financial performance, and quality; environmental performance to environmental
management, use of resources, pollution, dangerousness, and natural environment; and
social performance to work conditions, human rights, societal commitment, customers
issues, and business practices. The applications of blockchain technology in sustainable
manufacturing are summarised in Tables 1–3. To answer the second research question,
attributes of blockchain technology and the SCOR model were explained to create a foun-
dation for explaining how blockchain may facilitate sustainable manufacturing. Later, the
Sustainability 2021, 13, 7870 15 of 20

ways that blockchain contributes to the sustainable performance of manufacturers were

explained based on the features and attributes of blockchain technology such as smart
contracts, traceability, transparency, security, and real-time information sharing.
The study proposes a model on the applications of blockchain technologies in sus-
tainable manufacturing (Figure 2). The model provides a reference for the contributions of
blockchain technology to sustainability. This model illustrates that blockchain contributes
to economic, environmental performance by creating transparency, traceability, real-time
information sharing, and information security capabilities. The applications of blockchain
technology in sustainable manufacturing are illustrated on the right side of the model. The
details of applications are provided in Section 5 and Tables 1–3.
In terms of practical implications, the greater awareness of manufacturing managers
about the contributions of blockchain technology to sustainable performance may motivate
managers to support the adoption of blockchain. This study enables manufacturing
managers to understand the benefits of investing in blockchain technology and how this
emerging technology can address the challenges of implementing sustainable practices,
which the manufacturers have struggled with for many years. This paper can also be
Sustainability 2021, 13, x FOR PEER used
REVIEWfor educational purposes, and it provides structured and updated information 16 of
on20the
potential contributions of blockchain technology to suitable manufacturing.

Figure 2. Contributions of blockchain to sustainable performance of manufacturers.

Figure 2. Contributions of blockchain to sustainable performance of manufacturers.

By synthesising the literature on applications of blockchain to sustainable manufac-

turing, this article makes contributions to the literature in three aspects. First, the study
provides an overview of the current scholarly knowledge on the application of blockchain
technology in sustainable manufacturing. Second, the paper categorised the contributions
of blockchain technology to the sustainable performance of the manufacturing supply
chain based on the model of Chardine-Baumann and Botta-Genoulaz [40]. Third, the gaps
in the literature were identified, and future research directions were proposed. Specifi-
cally, the following future studies are needed:
1. The identified contributions of blockchain to sustainability are interrelated. Future
studies are needed to use mind mapping or interpretive structural modelling to map
Sustainability 2021, 13, 7870 16 of 20

By synthesising the literature on applications of blockchain to sustainable manufac-

turing, this article makes contributions to the literature in three aspects. First, the study
provides an overview of the current scholarly knowledge on the application of blockchain
technology in sustainable manufacturing. Second, the paper categorised the contributions
of blockchain technology to the sustainable performance of the manufacturing supply
chain based on the model of Chardine-Baumann and Botta-Genoulaz [40]. Third, the gaps
in the literature were identified, and future research directions were proposed. Specifically,
the following future studies are needed:
1. The identified contributions of blockchain to sustainability are interrelated. Future
studies are needed to use mind mapping or interpretive structural modelling to map
the interrelationships among sustainable applications of blockchain technology.
2. The focus of most of the reviewed studies was not sustainability, and they mentioned
the contributions of blockchain technology to sustainable manufacturing as a part
of the article. It is essential to promote research on the implications of blockchain
technology on sustainable performance.
3. In comparison to economic and environmental dimensions of sustainability, the social
dimension has appeared in less studies in the blockchain literature. Future studies
are recommended to explore the contributions of blockchain technology to the social
performance of manufacturing firms.
4. There is a lack of empirical study on the real influence of blockchain technology adop-
tion on the sustainable performance of firms. Future studies are required to test the
association between blockchain adoption and sustainable performance empirically.
5. The challenges and determinants of adopting blockchain technology for sustainability
purposes have received less attention in the literature, and future studies are needed
to address the gap.
6. The applications of blockchain technology to sustainable performance may vary
in different sectors. Future studies are recommended to investigate the potential
contributions of blockchain technologies to the sustainable performance of firms in
different sectors.
Although the study answered the two research questions of the study, there are some
limitations that should be considered. Firstly, the reviewed documents were limited to the
articles published in Scopus indexed journals. Although Scopus is the largest database,
future studies can also include Web of Science, EBSCO, and ProQuest databases. Secondly,
conference papers and book chapters were excluded in this study but can be included in
future reviews. Finally, the inclusion and exclusion of articles were based on subjective
judgments. To reduce the errors, two authors independently screened the articles and the
disagreements were addressed by consensus among all authors.

Author Contributions: All authors have contributed equally. All authors have read and agreed to
the published version of the manuscript.
Funding: This research received no external funding.
Acknowledgments: There are no specific acknowledgments.
Conflicts of Interest: The authors declare no conflict of interest.
Sustainability 2021, 13, 7870 17 of 20

Appendix A

Table A1. List of reviewed articles.

Source Year Description

The study described how blockchain could help various stakeholders address many
Kshetri et al. [14] 2021
challenges in promoting sustainable supply chains in developing countries.
The study elaborated on the implications of blockchain technology in sustainable
Park and Li [62] 2021 performance in the areas of environmental protection, social equity, and governance
efficiency.
The study discussed the use of blockchain technology and distributed ledgers to
Katsikouli et al. [66] 2021 manage supply chains in the food sector. The role of blockchain technology in
addressing the challenges of typical food management systems was elaborated.
The study discussed the contributions of blockchain technology to the circular
Upadhyay et al. [8] 2021
economy through the lens of sustainability and social responsibility.
The benefits of blockchain technology in agri-food supply chains that promote the
Saurabh and Dey [22] 2021
adoption of blockchain in this sector were discussed.
The study investigated the benefits and challenges of integrating blockchain into
Badhotiya et al. [26] 2021
pharmaceutical supply chains.
The study investigated a blockchain-based traceability framework for traceability in
Agrawal et al. [46] 2021 multi-tier textiles and discussed the opportunities blockchain technology creates for a
sustainable supply chain.
The contributions of blockchain technology to halal sustainable production were
Ali et al. [27] 2021
discussed.
The article gave an overview of the current applications of digital technologies,
Ebinger and Omondi [29] 2020 including blockchain technology, artificial intelligence, and cloud computing, in
sustainable supply chain management.
The study unfolded the capabilities that blockchain offers for increasing sustainability
under four main areas: (1) design of incentive mechanisms and tokenisation to
promote consumers’ green behaviour; (2) enhance visibility across the entire product
Esmaeilian et al. [19] 2020
lifecycle; (3) increase systems efficiency while decreasing development and
operational costs; and (4) foster sustainability monitoring and reporting performance
across supply chain networks.
The study investigated how blockchain can overcome potential barriers to achieving
Leng et al. [15] 2020 sustainability from two perspectives: the manufacturing system perspective and the
product lifecycle management perspective.
The study proposed a blockchain approach for monitoring supply chain performance
Manupati et al. [55] 2020 and optimising both emission levels and operational costs in a synchronised fashion,
producing a better outcome for the supply chains.
The study discussed the economic, social, and environmental value of blockchain for
Rejeb and Rejeb [64] 2020
all stakeholders involved in supply chains.
The study provided an exploratory assessment of how blockchain technology may
Schulz et al. [65] 2020 support, hinder and/or re-shape sustainability transformations in selected areas of
sustainable development.
The study developed a system architecture that integrates the use of blockchain,
Venkatesh et al. [18] 2020 internet-of-things (IoT) and big data analytics to allow sellers to monitor their supply
chain social sustainability efficiently and effectively.
The paper discussed the possible applications of blockchain technology for
Vujičić et al. [59] 2020
environmental sustainability in the shipping industry.
The study elaborated on the implications of blockchain technology to the transaction
Roeck et al. [52] 2020
costs of supply chains.
Sustainability 2021, 13, 7870 18 of 20

Table A1. Cont.

Source Year Description

The study modelled the business process within which blockchain applications
Alles and Gray [58] 2020
operate in order to extract an endogenous demand for auditing in that environment.
The paper critically examined blockchain technology and explained the potential
Saberi et al. [1] 2019
application of blockchain to sustainable supply chain management.
The study explained how firms could employ distributed ledger technology by
adopting blockchain technology to achieve real-time transparency and cost savings.
Ko et al. [13] 2018
The blockchain’s mechanism for enabling real-time transparency and cost savings in
the manufacturing industry was elaborated.
The study proposed a blockchain supported environmentally sustainable solution for
Fu et al. [17] 2018
the fashion apparel manufacturing industry.

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