The impact of blockchain technology on supply chain trust formation and development: The case of the pharmaceutical network

This study explores the role of blockchain technology’s (BCT) in trust formation and development within the U.S. pharmaceutical supply chain (PSC), using the MediLedger network as a case study. Grounded in socio-technical systems (STS) theory, we develop a conceptual model, which serves as the analytical framework to examine how supply chain trust evolves within a BCT-based ecosystem. We triangulate data from seven in-depth elite interviews with senior executives, alongside secondary data from company reports, case studies and white papers. The findings indicate that BCT significantly influences trust within the PSC, particularly by redistributing and reconfiguring trust across socio-technical boundaries and fostering a new dimension of trust: trust in network. This is facilitated through BCT-enabled mechanisms that accelerate trust formation processes, which is particularly important in the contingent PSC environment. Finally, we propose a BCT-based hierarchical supply chain trust framework that articulates and conceptualises the different mechanisms and dimensions of trust.