219. Supply Chain Finance Technology: Blockchain versus AI
Invited abstract in session TA-8: Technology, Trust, and Tensions: Strategic Behavior in Supply Chains, stream Game Theory and Behavioral Management Science.
Thursday, 8:45-10:15Room: H8
Authors (first author is the speaker)
| 1. | Sairam Sriraman
|
| TUM Campus Heilbronn, Technical University of Munich | |
| 2. | David Wuttke
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| TUM Campus Heilbronn, Technical University of Munich, TUM School of Management, TUM Campus Heilbronn |
Abstract
Fintechs are seeking to enhance supply-chain finance (SCF) solutions by implementing two distinct technological solutions: blockchain-enabled supply chain finance solutions (BCF) and AI-driven supply chain finance (AIF) solutions. Choosing between these two solutions is non-trivial as they differ fundamentally, and neither can be deemed superior. Additionally, there is considerable uncertainty surrounding their future development. We use two frameworks to propose the technology choice, grounded in financing frictions and innovation adoption. We identify two key frictions: opportunism and bounded rationality. Further, efficiency gains and trends are two key motives driving innovation adoption. We propose that opportunism favors BCF, whereas bounded rationality favors AIF. Further, we suggest that the presence of technological uncertainty uniformly shifts the preference towards AIF, where firms follow the current AI trend. We provide insight into our hypotheses through experiments with human subjects.
Keywords
- Supply Chain Management
- Finance and Banking
- Decision Theory and Analysis
Status: accepted
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