Connecting Innovation and Sustainability in the Wine Industry through Blockchain Technology

Blockchain technology is set to revolutionize the agrifood industry, combining sustainability and economic performance. Blockchain based tracking systems can be developed to ensure security, accountability and reduce waste and inefficiencies in the supply chain. Despite the potential benefits, blockchain applications in the agrifood industry remain limited. Furthermore, most studies address the issue from a purely theoretical perspective, and thus it remains unclear how blockchain can help agrifood companies reconcile sustainability and innovation. In this study we help bridge this gap, adopting a multiple case study methodology to investigate how blockchain can help SMEs in the wine industry address key sustainability issues. Results suggest that blockchain can play a major role in ensuring security and transparency in the wine supply chain. This allows companies to combat fraud and counterfeiting, comply with regulations, and build trust relationships with consumers. In contrast, blockchain does not offer a significant contribution to companies' environmental sustainability. From this perspective, high investment costs and the need to combine different technologies remain key challenges. Overall, this study contributes to the literature by providing empirical evidence of how blockchain technology might improve agrifood companies’ sustainability. Furthermore, it provides useful practical suggestions to managers of agrifood companies to assess the impact that blockchain adoption can have on the business, in terms of sustainability and economic performance.