Investigating the Implementation and Application of Blockchain Technology in Tourism Supply Chain: A System Dynamics Approach

Document Type : Research Article

Authors

Department of Management, Faculty of Humanities and Social Sciences, Yazd University, Yazd, Iran.

Abstract

Presently, the tourism industry confronts a multitude of challenges, such as the mismatch between the quality of services provided and tourists' expectations and the management of tourist identity and security. These challenges can be addressed with the emergence of advanced technologies, including blockchain technology. This research uses the system dynamics approach to investigate the implementation and application of blockchain technology in the tourism supply chain of travel agencies in Isfahan. This research has a practical purpose, aiming to address real-world issues. Additionally, the nature and methodology of the study are descriptive-causal, and the data collection method employed in this research is a survey. At first, based on the existing research literature, the factors influencing the implementation and application of blockchain technology in the tourism supply chain of Isfahan travel agencies were identified. Subsequently, using a judgmental sampling method and gathering opinions from 45 experts, managers, and university tourism professionals, the relationships between the identified factors were determined, and a causal loop diagram was drawn. Then, employing a convenience sampling method and gathering information from 15 selected travel agencies in Isfahan, mathematical relationships between the identified factors were determined, and a stock and flow diagram was designed. The simulation results of this research indicated that the quality of using blockchain technology in the early years of its implementation was not favorable, but it would improve over time. Furthermore, the findings demonstrated a positive correlation between the quality of using blockchain technology with service quality and the level of tourist attraction. The scenarios designed in this research showed that by allocating more resources to employee training and enhancing information technology infrastructure, the quality of using blockchain technology and the quality of the services could significantly improve during the initial years of implementation of blockchain technology.

Keywords


Agarwal, A., Kapoor, K. and Walia, S., 2023. Modelling the barriers to blockchain implementation in human resource function. International Journal of Quality & Reliability Management. https://doi.org/10.1108/IJQRM-01-2023-0018.
Aghaei, H., Naderibeni, N. and Karimi, A., 2021. Designing a tourism business model on block chain platform. Tourism Management Perspectives, 39, p.100845. https://doi.org/10.1016/j.tmp.2021.100845.
Akbarian Ronizi, S.R., Mokarram, M. and Negahban, S., 2023. Investigation of Sustainable Rural Tourism Activities With Different Risk: A GIS‐MCDM Case in Isfahan, Iran. Earth and Space Science, 10(4), p.e2021EA002153. https://doi.org/10.1029/2021EA002153.
Alshahrani, W. and Alshahrani, R., 2021, March. Assessment of blockchain technology application in the improvement of pharmaceutical industry. In 2021 international conference of women in data science At Taif University (WiDSTaif) (pp. 1-5). IEEE. https://doi.org/10.1109/WiDSTaif52235.2021.9430210.
Annamalah, S., Paraman, P. and Ahmed, S., 2023. Unveiling the dynamics of open innovation and collaborative network tourism in ASEAN nations. Asia Pacific Journal of Tourism Research, 28(11), pp.1199-1225. https://doi.org/10.1080/10941665.2023.2293788.
Antoniadis, I., Spinthiropoulos, K. and Kontsas, S., 2020. Blockchain applications in tourism and tourism marketing: A short review. Strategic Innovative Marketing and Tourism: 8th ICSIMAT, Northern Aegean, Greece, 2019, pp.375-384. https://doi.org/10.1007/978-3-030-36126-6_41.
Balasubramanian, S., Sethi, J.S., Ajayan, S. and Paris, C.M., 2022. An enabling framework for blockchain in tourism. Information Technology & Tourism, 24(2), pp.165-179. https://doi.org/10.1007/s40558-022-00229-6.
Bamakan, S.M.H., Malekinejad, P. and Ziaeian, M., 2022. Towards blockchain-based hospital waste management systems; applications and future trends. Journal of Cleaner Production, 349, p.131440. https://doi.org/10.1016/j.jclepro.2022.131440
Banerji, D., Rashideh, W., Arora, B. and Pratihari, A.R., 2021. Application potential of Blockchain technologies in the travel and tourism industry. In Blockchain Applications in IoT Ecosystem (pp. 289-299). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-030-65691-1_19.
Baralla, G., Pinna, A., Tonelli, R., Marchesi, M. and Ibba, S., 2021. Ensuring transparency and traceability of food local products: A blockchain application to a Smart Tourism Region. Concurrency and Computation: Practice and Experience, 33(1), p.e5857. https://doi.org/10.1002/cpe.5857.
Barreto, I., Urquizo Maggia, J.A. and Acevedo, S.I., 2019. Cryptocurrencies and blockchain in tourism as a strategy to reduce poverty. RETOS. Revista de Ciencias de la Administración y Economía, 9(18), pp.287-302. https://doi.org/10.17163/ret.n18.2019.07.
Bodkhe, U., Bhattacharya, P., Tanwar, S., Tyagi, S., Kumar, N. and Obaidat, M.S., 2019, August. BloHosT: Blockchain enabled smart tourism and hospitality management. In 2019 international conference on computer, information and telecommunication systems (CITS) (pp. 1-5). IEEE. https://doi.org/10.1109/CITS.2019.8862001.
Bottero, M., Datola, G. and De Angelis, E., 2020. A system dynamics model and analytic network process: an integrated approach to investigate urban resilience. Land, 9(8), p.242. https://doi.org/10.3390/land9080242.
Calvaresi, D., Leis, M., Dubovitskaya, A., Schegg, R. and Schumacher, M., 2019. Trust in tourism via blockchain technology: results from a systematic review. In Information and Communication Technologies in Tourism 2019: Proceedings of the International Conference in Nicosia, Cyprus, January 30–February 1, 2019 (pp. 304-317). Springer International Publishing. https://doi.org/10.1007/978-3-030-05940-8_24.
Chaudhuri, R., Chatterjee, S. and Vrontis, D., 2024. Adoption of blockchain technology in hospitality and tourism industry and sustainability performance: impact of technological turbulence and senior leadership support. EuroMed Journal of Business, 19(1), pp.62-83. https://doi.org/10.1108/EMJB-04-2023-0128.
Chunmian, G.E., Haoyue, S.H.I., Jiang, J. and Xiaoying, X.U., 2022. Investigating the demand for blockchain talents in the recruitment market: evidence from topic modeling analysis on job postings. Information & Management, 59(7), p.103513. https://doi.org/10.1016/j.im.2021.103513.
Coita, D.C. and Ban, O., 2020. Revolutionizing marketing in tourism industry through blockchain technology. In Strategic Innovative Marketing and Tourism: 8th ICSIMAT, Northern Aegean, Greece, 2019 (pp. 789-797). Springer International Publishing. https://doi.org/10.1007/978-3-030-36126-6_87.
Corne, A., Massot, V. and Merasli, S., 2023. The determinants of the adoption of blockchain technology in the tourism sector and metaverse perspectives. Information Technology & Tourism, 25(4), pp.605-633. https://doi.org/10.1007/s40558-023-00263-y.
Dadkhah, M., Rahimnia, F. and Filimonau, V., 2022. Evaluating the opportunities, challenges and risks of applying the blockchain technology in tourism: a Delphi study approach. Journal of hospitality and tourism technology, 13(5), pp.922-954. https://doi.org/10.1108/JHTT-04-2021-0115.
Erol, I., Neuhofer, I.O., Dogru, T., Oztel, A., Searcy, C. and Yorulmaz, A.C., 2022. Improving sustainability in the tourism industry through blockchain technology: Challenges and opportunities. Tourism Management, 93, p.104628. https://doi.org/10.1016/j.tourman.2022.104628.
Fohlin, E. and Ysberg, J., 2019. Utilization of Blockchain technologies for enhanced transparency and traceability in the Supply Chain. URL: https://hdl.handle.net/20.500.12380/300157.
Fragnière, E., Sahut, J.M., Hikkerova, L., Schegg, R., Schumacher, M., Grèzes, S. and Ramseyer, R., 2022. Blockchain technology in the tourism industry: New perspectives in Switzerland. Journal of Innovation Economics Management, 37(1), pp.65-90. https://doi.org/10.3917/jie.pr1.0111.
Ghaderi, Z., Hatamifar, P. and Henderson, J.C., 2018. Destination selection by smart tourists: the case of Isfahan, Iran. Asia Pacific Journal of Tourism Research, 23(4), pp.385-394. https://doi.org/10.1080/10941665.2018.1444650.
Ghorbani, A., Mousazadeh, H., Akbarzadeh Almani, F., Lajevardi, M., Hamidizadeh, M.R., Orouei, M., Zhu, K. and Dávid, L.D., 2023. Reconceptualizing customer perceived value in hotel management in turbulent times: A case study of Isfahan metropolis five-star hotels during the COVID-19 Pandemic. Sustainability, 15(8), p.7022. https://doi.org/10.3390/su15087022.
Gorji, A.S., Garcia, F.A. and Mercadé-Melé, P., 2023. Tourists' perceived destination image and behavioral intentions towards a sanctioned destination: Comparing visitors and non-visitors. Tourism Management Perspectives, 45, p.101062. https://doi.org/10.1016/j.tmp.2022.101062.
Ioannidis, S.A., 2023. A Blockchain-Based Tourism Industry: How Promising Can It Be?. In Glocal Policy and Strategies for Blockchain: Building Ecosystems and Sustainability (pp. 27-50). IGI Global. https://doi.org/10.4018/978-1-6684-4153-4.ch002.
Jain, P., Singh, R.K., Mishra, R. and Rana, N.P., 2023. Emerging dimensions of blockchain application in tourism and hospitality sector: a systematic literature review. Journal of Hospitality Marketing & Management, 32(4), pp.454-476. https://doi.org/10.1080/19368623.2023.2184440.
Jang, H.W., Yoo, J.J.E. and Cho, M., 2024. Resistance to blockchain adoption in the foodservice industry: moderating roles of public pressures and climate change awareness. International Journal of Contemporary Hospitality Management, 36(5), pp.1467-1489. https://doi.org/10.1108/IJCHM-09-2022-1127.
Kathuria, S. and Tandon, U., 2023. Conceptualizing blockchain in tourism consumer experience: implications for tourism marketing. Global Knowledge, Memory and Communication. https://doi.org/10.1108/GKMC-01-2023-0012.
Khajehpoura, H., Ebtekara, K. and Malekia, A., 2024. Estimating the Potential of Changes in Oil Price in IPCC Climate Scenarios: A System Dynamics Approach. Journal of Systems Thinking in Practice. https://doi.org/10.22067/jstinp.2024.85841.1085.
Khodadadi, M., 2016. Challenges and opportunities for tourism development in Iran: Perspectives of Iranian tourism suppliers. Tourism Management Perspectives, 19, pp.90-92. https://doi.org/10.1016/j.tmp.2016.05.001.
Khoshkam, M. and Rahimi, R., 2023. COVID-19 effects, challenges and recovery of rural tourism in Iran. In Tourism and Hospitality in Asia: Crisis, Resilience and Recovery (pp. 179-200). Singapore: Springer Nature Singapore. https://doi.org/10.1007/978-981-19-5763-5_12.
Khoshkhoo, M.H., Alizadeh, V. and Pratt, S., 2017. The economic contribution of tourism in Iran: An input–output approach. Tourism analysis, 22(3), pp.435-441. https://doi.org/10.3727/108354217X14955605216168.
Komalavalli, C., Saxena, D. and Laroiya, C., 2020. Overview of blockchain technology concepts. In Handbook of research on blockchain technology (pp. 349-371). Academic Press. https://doi.org/10.1016/B978-0-12-819816-2.00014-9.
Kwok, A.O. and Koh, S.G., 2019. Is blockchain technology a watershed for tourism development?. Current Issues in Tourism, 22(20), pp.2447-2452. https://doi.org/10.1080/13683500.2018.1513460.
Li, D., Wang, H., Zheng, Y. and Li, K., 2021, November. Prospects for the Impact of Blockchain on the Innovation and development of the tourism industry. In International Symposium on Intelligence Computation and Applications (pp. 468-478). Singapore: Springer Nature Singapore. https://doi.org/10.1007/978-981-19-4109-2_45.
Luo, L. and Zhou, J., 2021. BlockTour: A blockchain-based smart tourism platform. Computer Communications, 175, pp.186-192. https://doi.org/10.1016/j.comcom.2021.05.011.
Masoud, H., Mortazavi, M. and Farsani, N.T., 2019. A study on tourists' tendency towards intangible cultural heritage as an attraction (case study: Isfahan, Iran). City, Culture and Society, 17, pp.54-60. https://doi.org/10.1016/j.ccs.2018.11.001.
Morovati Sharifabadi, A. and Ziaeian, M., 2023. Analysis of urban waste management using system dynamics approach. Journal of Systems Thinking in Practice. https://doi.org/10.22067/jstinp.2023.84193.1073.
Nuryyev, G., Wang, Y.P., Achyldurdyyeva, J., Jaw, B.S., Yeh, Y.S., Lin, H.T. and Wu, L.F., 2020. Blockchain technology adoption behavior and sustainability of the business in tourism and hospitality SMEs: An empirical study. Sustainability, 12(3), p.1256. https://doi.org/10.3390/su12031256.
Ølnes, S. and Jansen, A., 2017. Blockchain technology as s support infrastructure in e-government. In Electronic Government: 16th IFIP WG 8.5 International Conference, EGOV 2017, St. Petersburg, Russia, September 4-7, 2017, Proceedings 16 (pp. 215-227). Springer International Publishing. https://doi.org/10.1007/978-3-319-64677-0_18.
Önder, I. and Treiblmaier, H., 2018. Blockchain and tourism: Three research propositions. Annals of Tourism Research, 72(C), pp.180-182. https://doi.org/10.1016/j.annals.2018.03.005 .
Ozdemir, A.I., Ar, I.M. and Erol, I., 2020. Assessment of blockchain applications in travel and tourism industry. Quality & Quantity, 54, pp.1549-1563. https://doi.org/10.1007/s11135-019-00901-w.
Ozdemir, O., Dogru, T., Kizildag, M. and Erkmen, E., 2023. A critical reflection on digitalization for the hospitality and tourism industry: value implications for stakeholders. International Journal of Contemporary Hospitality Management, 35(9), pp.3305-3321. https://doi.org/10.1108/IJCHM-04-2022-0535.
Pereira, A.C. and Romero, F., 2017. A review of the meanings and the implications of the Industry 4.0 concept. Procedia manufacturing, 13, pp.1206-1214. https://doi.org/10.1016/j.promfg.2017.09.032.
Pérez-Sánchez, M.D.L.Á., Tian, Z., Barrientos-Báez, A., Gómez-Galán, J. and Li, H., 2021. Blockchain technology for winning consumer loyalty: Social norm analysis using structural equation modeling. Mathematics, 9(5), p.532. https://doi.org/10.3390/math9050532.
Polukhina, A., Arnaberdiyev, A. and Tarasova, A., 2019, May. Leading technologies in tourism: using blockchain in TravelChain project. In 3rd International Conference on social, economic, and academic leadership (ICSEAL 2019) (pp. 383-387). Atlantis Press. https://doi.org/10.2991/icseal-19.2019.60.
Pradhan, B., Roy, M. and Bhatia, S., 2023. Enhancing Tourists’ Satisfaction Through Blockchain Technology. PUSA Journal of Hospitality and Applied Sciences, 9(2), pp.37-47. https://doi.org/10.48165/pjhas.2023.9.2.5 .
Prados-Castillo, J.F., Guaita Martínez, J.M., Zielińska, A. and Gorgues Comas, D., 2023a. A review of blockchain technology adoption in the tourism industry from a sustainability perspective. Journal of Theoretical and Applied Electronic Commerce Research, 18(2), pp.814-830. https://doi.org/10.3390/jtaer18020042.
Prados-Castillo, J.F., Torrecilla-García, J.A., Andraz, G. and Guaita Martínez, J.M., 2023b. Blockchain in Peer-to-Peer Platforms: Enhancing Sustainability and Customer Experience in Tourism. Sustainability, 15(22), p.15968. https://doi.org/10.3390/su152215968.
Puri, V., Mondal, S., Das, S. and Vrana, V.G., 2023, January. Blockchain propels tourism industry—an attempt to explore topics and information in smart tourism management through text mining and machine learning. In Informatics (Vol. 10, No. 1, p. 9). MDPI. https://doi.org/10.3390/informatics10010009.
Raluca-Florentina, T., 2022. The utility of blockchain technology in the electronic commerce of tourism services: An exploratory study on Romanian consumers. Sustainability, 14(2), p.943. https://doi.org/10.3390/su14020943.
Rana, R.L., Adamashvili, N. and Tricase, C., 2022. The impact of blockchain technology adoption on tourism industry: a systematic literature review. Sustainability, 14(12), p.7383. https://doi.org/10.3390/su14127383.
Rashideh, W., 2020. Blockchain technology framework: Current and future perspectives for the tourism industry. Tourism Management, 80, p.104125. https://doi.org/10.1016/j.tourman.2020.104125.
Ratna, S., Saide, S., Putri, A.M., Indrajit, R.E. and Muwardi, D., 2024. Digital transformation in tourism and hospitality industry: a literature review of blockchain, financial technology, and knowledge management. EuroMed Journal of Business, 19(1), pp.84-112. https://doi.org/10.1108/EMJB-04-2023-0118.
Rebs, T., Brandenburg, M. and Seuring, S., 2019. System dynamics modeling for sustainable supply chain management: A literature review and systems thinking approach. Journal of cleaner production, 208, pp.1265-1280. https://doi.org/10.1016/j.jclepro.2018.10.100.
Roodbari, H. and Olya, H., 2024. An integrative framework to evaluate impacts of complex tourism change initiatives. Tourism Management, 100, p.104829. https://doi.org/10.1016/j.tourman.2023.104829.
Safaie, N., Chakmehchi Khiavi, F. and Shahsavar, M.S., 2023. Examining the Emigration of Elites from Iran: A System Dynamics Approach. Journal of Systems Thinking in Practice. https://doi.org/10.22067/jstinp.2023.85830.1083.
Saghafi, F., Jalilvand, M.R., Ahmadiyeh, E. and Nasrolahi Vosta, L., 2023. Analysis of an industrial tourism business network using social network approach: the case of Isfahan, Iran. Journal of Islamic Marketing, 14(12), pp.3113-3132. https://doi.org/10.1108/JIMA-06-2022-0164.
Salunkhe, U., Kumar, C. and Khare, S.J., 2024. Block Chain Intervention in the Tourism Industry: A Systematic Review. Academy of Marketing Studies Journal, 28(2).
Sarfraz, M., Khawaja, K.F., Han, H., Ariza-Montes, A. and Arjona-Fuentes, J.M., 2023. Sustainable supply chain, digital transformation, and blockchain technology adoption in the tourism sector. Humanities and Social Sciences Communications, 10(1), pp.1-13. https://doi.org/10.1057/s41599-023-02051-9.
Sarhadi, A., Akbarnia, M., Bagh Shirin, L., Daronkola, H.K., Shabankareh, M. and Aznab, E., 2023. Blockchain revolutionizes entrepreneurial and marketing capabilities in health tourism. Anatolia, pp.1-14. https://doi.org/10.1080/13032917.2023.2295326.
Seyfi, S., Hall, C.M. and Kuhzady, S., 2021. Tourism and hospitality research on Iran: Current state and perspectives. Tourism Places in Asia, pp.143-162.
Shabankareh, M., Nazarian, A., Golestaneh, M.H. and Dalouchi, F., 2023. Health tourism and government supports. International Journal of Emerging Markets. https://doi.org/10.1108/IJOEM-03-2022-0391.
Shen, Q., Chen, Q., Tang, B.S., Yeung, S., Hu, Y. and Cheung, G., 2009. A system dynamics model for the sustainable land use planning and development. Habitat international, 33(1), pp.15-25. https://doi.org/10.1016/j.habitatint.2008.02.004.
Silva, T.B.D., Morais, E.S.D., Almeida, L.F.F.D., Rosa Righi, R.D. and Alberti, A.M., 2020. Blockchain and industry 4.0: overview, convergence, and analysis. Blockchain Technology for Industry 4.0: Secure, Decentralized, Distributed and Trusted Industry Environment, pp.27-58. https://doi.org/10.1007/978-981-15-1137-0_2.
Stankov, U. and Filimonau, V., 2020. Technology-assisted mindfulness in the co-creation of tourist experiences. Handbook of e-Tourism, pp.1-26. https://doi.org/10.1007/978-3-030-05324-6_128-1.
Sterman, J., 2002. System Dynamics: systems thinking and modeling for a complex world.
Tan, T.M. and Saraniemi, S., 2023. Trust in blockchain-enabled exchanges: Future directions in blockchain marketing. Journal of the Academy of marketing Science, 51(4), pp.914-939. https://doi.org/10.1007/s11747-022-00889-0.
Tang, Y., Lin, H., Zhong, H. and Mo, M., 2019, July. Research on the Architecture of Advanced Intelligent Tourism System in a Hyper-Connected Era. In 2019 International Conference on Communications, Information System and Computer Engineering (CISCE) (pp. 124-129). IEEE. 10.1109/CISCE.2019.00036.
Tham, A. and Sigala, M., 2020. Road block (chain): bit (coin) s for tourism sustainable development goals?. Journal of Hospitality and Tourism Technology, 11(2), pp.203-222. https://doi.org/10.1108/JHTT-05-2019-0069.
Treiblmaier, H., 2022. Blockchain and tourism. In Handbook of e-Tourism (pp. 475-495). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-030-48652-5_28.
Valeri, M., 2020. Blockchain technology: Adoption perspectives in tourism. Entrepreneurship and organizational change: Managing innovation and creative capabilities, pp.27-35. https://doi.org/10.1007/978-3-030-35415-2_3.
Veloso, B., Leal, F., Malheiro, B. and Moreira, F., 2019. Distributed trust & reputation models using blockchain technologies for tourism crowdsourcing platforms. Procedia computer science, 160, pp.457-460. https://doi.org/10.1016/j.procs.2019.11.065.
Wolstenholme, E.F., 1990. System enquiry: a system dynamics approach. John Wiley & Sons, Inc.URL: https://dl.acm.org/doi/abs/10.5555/101059.
Wong, L.W., Tan, G.W.H., Ooi, K.B. and Chan, H.K., 2024. Blockchains for SMEs: A Fit-Viability perspective moderated by organizational innovation diffusion for supply chain performance. Transportation Research Part E: Logistics and Transportation Review, 182, p.103396. https://doi.org/10.1016/j.tre.2023.103396.
Xu, M., Chen, X. and Kou, G., 2019. A systematic review of blockchain. Financial innovation, 5(1), pp.1-14. https://doi.org/10.1186/s40854-019-0147-z.
Zhu, Q. and Kouhizadeh, M., 2019. Blockchain technology, supply chain information, and strategic product deletion management. IEEE Engineering Management Review, 47(1), pp.36-44. https://doi.org/10.1109/EMR.2019.2898178.
Živanović, V. and Živanović, M., 2022. Blockchain as a Methodology in the Implementation of Sustainable Tourism. PaKSoM 2022, p.57.
Zutshi, A., Grilo, A. and Nodehi, T., 2021. The value proposition of blockchain technologies and its impact on Digital Platforms. Computers & industrial engineering, 155, p.107187.
CAPTCHA Image