This study examines the relationship between major customer concentration and supplier firms’ adoption of blockchain. Using a sample of 9,745 Chinese firm-year observations spanning 2018–2021, we find that the likelihood of suppliers’ blockchain technology adoption in supply chain management is negatively associated with major customer concentration. The negative relation is reduced when supplier firms possess greater bargaining power and demonstrate governance mechanisms against information leakage, and when major customers have less incentive to engage in opportunistic behaviors, and have fewer concerns regarding information leakage by suppliers. Our findings suggest that major customers tend to discourage supplier firms from adopting blockchain due to the concerns regarding competitive advantages and information leakage risk.
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