The Status of Technology Use in Supply Chain Management in the Tea Sector in Kenya

Abstract

The tea industry in Kenya is a critical component of the national economy, yet traditional supply chain management faces significant challenges, including inefficiencies, lack of transparency, and limited stakeholder trust. These issues lead to problems such as fraud, counterfeiting, and payment delays, adversely affecting the efficiency and profitability of the tea supply chain. This study investigates the potential of blockchain-based smart contract technology to enhance transparency, data management, and security within the Kenyan tea supply chain. The research aimed to develop and validate a blockchain-based smart contract model tailored for the tea sector. The objectives included: (1) assessing the current state of supply chain management in the tea industry, (2) exploring blockchain's unique features that can improve supply chain management, and (3) identifying key factors influencing the adoption of blockchain technology in this context. Employing a pragmatist research philosophy and a cross-sectional survey design, the study focused on both multinational and KTDA-owned tea companies. A mixed-method approach was used, collecting data from 754 employees, with a sample size of 156. Quantitative data were analysed using descriptive and inferential statistics, while qualitative data were examined through thematic analysis. Findings indicated significant relationships between various constructs and blockchain smart contracts: ICT infrastructure (β = .488, p = .040), data integration and automation (β = .970, p = .047), collaboration (β = .843, p = .036), and security/privacy (β = .105, p = .022). The developed blockchain smart contract model serves as a foundation for implementing this technology in Kenya's tea supply chain, guiding future research on blockchain adoption across different industries.