BLOCKCHAIN-ENABLED SUPPLY CHAIN GOVERNANCE FOR MSME MARKET INTEGRATION: A DIGITAL TRANSFORMATION MODEL FOR MODERN RETAIL DISTRIBUTION

Abstract

Micro, small, and medium enterprises (MSMEs) seeking access to modern retail channels face persistent distribution governance problems arising from fragmented records, limited shipment visibility, and weak product traceability. This study develops a blockchain-enabled digital supply chain governance model and implements it through SerangChain, a web-based prototype designed for MSME-to-retail distribution in Serang, Banten, Indonesia. A Design Science Research approach was employed, covering problem identification, requirement analysis, conceptual model design, prototype development, functional testing, and initial evaluation. The proposed model integrates three layers: supply chain management, a private blockchain-inspired ledger for transparent and verifiable transaction recording, and an analytics layer for monitoring distribution performance. The prototype supports MSME, modern-retail, and administrator roles and includes product management, retail requests, distribution transactions, blockchain ledger records, and analytical dashboards. Functional testing showed that all core modules operated according to the designed workflow, while the ledger simulation generated linked transaction records containing transaction IDs, block IDs, timestamps, previous hashes, and verification status. The findings indicate that a lightweight blockchain-inspired architecture can strengthen information transparency, traceability, and digital accountability without requiring a complex public blockchain infrastructure. Because field-based User Acceptance Testing and full impact measurement are still ongoing, claims regarding efficiency improvement remain preliminary. The study contributes a governance-oriented digital transformation model that can support MSME market integration with modern retail and provides a practical foundation for subsequent empirical validation.