International Journal of Supply Chain Management
Vol 14, No 2 (2025): International Journal of Supply Chain Management (IJSCM)

Blockchain Integration in Sustainable Letters of Credit Supply Chain

Majumder, Mohammad Ismail (Unknown)
Habib, Professor Md Mamun (Unknown)



Article Info

Publish Date
27 Apr 2025

Abstract

Letters of Credit (LC) are pivotal in global trade finance, providing secure payment assurance to exporters and importers. However, the traditional LC process is laden with inefficiencies, risks of forgery, and delays, particularly in developing countries like Bangladesh. In response to these challenges, Blockchain Database Integration (BDI) is gaining traction as a secure, transparent, and efficient alternative. This study investigates how BDI influences Sustainable Letters of Credit Supply Chains (SLCSC), mediated by the adoption of Technology-based Letters of Credit Supply Chains (LCSC). Drawing on a sample of 400 respondents from LC-related sectors in Bangladesh, the study employed Exploratory Factor Analysis (EFA) and Structural Equation Modeling (SEM) to assess the validity and reliability of the proposed reflective measurement model. Two key hypotheses were tested, and the results supported both the direct impact of BDI on LCSC and the mediated relationship between BDI and SLCSC through LCSC. The findings confirm that blockchain, when effectively integrated into LC operations via technological platforms and smart contracts, enables a transformative path toward eco-efficient and transparent supply chain practices. The study contributes both theoretically and practically to the discourse on digital trade finance and sustainable development.

Copyrights © 2025






Journal Info

Abbrev

IJSCM

Publisher

Subject

Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

Description

International Journal of Supply Chain Management (IJSCM) is a peer-reviewed indexed journal, ISSN: 2050-7399 (Online), 2051-3771 (Print), that publishes original, high quality, supply chain management empirical research that will have a significant impact on SCM theory and practice. Manuscripts ...