Why do Distributed Ledger Platforms Fail? Analyzing the Challenges of Distributed Ledger Technologies in Supply Chain Processes

Abstract

As globalization and networking requirements increase, the digitalization of value-creation processes, particularly in supply chain (SC) activities, becomes crucial. While Distributed Ledger Technologies (DLT) offer potential solutions by enhancing transparency and immutability, concerns arise from recent failures and insolvencies of companies providing DLT solutions for SC processes. Due to companies' hesitation to communicate negative business outcomes and selective reporting in practical journals, there is a lack of comprehensive data for critical reflection on the use of DLT in SCs for research and practice. This research aims to identify challenges in adopting DLT in SCs by integrating scientific insights and failed companies' experiences. We provide an overview of failed platforms in SC processes, offering a first entry into this research perspective. Additionally, we analyse these failed DLT companies and discuss the results afterwards. Furthermore, we derive recommendations for action in research and practice concerning a critical reflection of DLT adoption.