The essential benefits of an enterprise blockchain in business model innovation
Blockchain brings changes and disruptions to the existing business models and therefore deserves further analysis. Accordingly, this study aims to explain the phenomenon of blockchain technology in the business model innovation in the enterprise ecosystem. Empirically, numerous studies have shown that blockchain technology improves organizational performance. This study uses a value system framework to explain the enterprise blockchain phenomenon. Through abductive reasoning, this study uses a multiple-case study to answer the research questions. In sum, this study finds that blockchain technology delivers benefits to organizations in: (i) value capture through increased profitability; (ii) value creation through private partnership; (iii) value delivery through smart contracts; and (iv) value proposition that encourages improving the existing value proposition through operational improvements. Besides, the study also proposes the different types of enterprise blockchain ecosystems: private and consortium. The private ecosystem focuses on improving organizational performance through competition. In contrast, the consortium ecosystem focuses on business value collaboration.
Angelis, J., & Ribeiro, E. (2019). Blockchain adoption: A value driver perspective. Business Horizons, 62(3), 307–314. https://doi.org/10.1016/j.bushor.2018.12.001
Baden-Fuller, C., & Haefliger, S. (2013). Business models and technological innovation. Long Range Planning, 46(6), 419–426. https://doi.org/10.1016/j.lrp.2013.08.023
Beck, R., & Müller-bloch, C. (2017). Blockchain as radical innovation: A framework for engaging with distributed ledgers. Proceedings of the 50th Hawaii International Conference on System Sciences, 5390–5399.
Berg, C., Davidson, S., & Potts, J. (2019). Blockchain technology as economic infrastructure: Revisiting the electronic markets hypothesis. Frontiers in Blockchain, 2(December), 1–6. https://doi.org/10.3389/fbloc.2019.00022
Bocken, N. M. P., Rana, P., & Short, S. W. (2015). Value mapping for sustainable business thinking. Journal of Industrial and Production Engineering, 32(1), 88–102. https://doi.org/10.1080/21681015.2014.1000399
Böhme, R., Christin, N., Edelman, B., & Moore, T. (2015). Bitcoin: Economics, technology, and governance. Journal of Economic Perspectives, 29(2), 213–238.
Chang, S. E., Chen, Y., & Lu, M. (2019). Supply chain re-engineering using blockchain technology: A case of smart contract based tracking process. Technological Forecasting & Social Change, 144(C), 1–11. https://doi.org/10.1016/j.techfore.2019.03.015
Chen, Y., & Bellavitis, C. (2020). Blockchain disruption and decentralized finance: The rise of decentralized business models. Journal of Business Venturing Insights, 13(June), 1–22. https://doi.org/10.1016/j.jbvi.2019.e00151
Chesbrough, H. (2003). Open innovation: The new imperative for creating and profiting from technology. Harvard Business School Press.
Chesbrough, H. (2007). Business model innovation: It’s not just about technology anymore. Strategy and Leadership, 35(6), 12–17. https://doi.org/10.1108/10878570710833714
Chesbrough, H., & Rosenbloom, R. S. (2002). The role of the business model in capturing value from innovation: Evidence from Xerox Corporation’s technology spin‐off companies. Industrial and Corporate Change, 11(3), 529–555.
Choi, Y. J., Choi, H. B., & O’Donnell, M. (2018). Disaster reintegration model: A qualitative analysis on developing korean disaster mental health support model. International Journal of Environmental Research and Public Health, 15(2), 1–12. https://doi.org/10.3390/ijerph15020362
Corbin, J., & Strauss, A. (1990). Grounded theory research: Procedures, canons, and evaluative criteria. Qualitative Sociology, 13(1), 3–21.
Crosby, M., Nachiappan, Pattanayak, P., Verma, S., & Kalyanaraman, V. (2016). Blockchain technology: Beyond bitcoin. In Applied Innovation Review (Issue 2).
DaSilva, C. M., & Trkman, P. (2014). Business model: What it is and what it is not. Long Range Planning, 47(6), 379–389. https://doi.org/10.1016/j.lrp.2013.08.004
Deloitte. (2019). Deloitte’s 2019 global blockchain survey blockchain gets down to business. In Delloite.
Demil, B., & Lecocq, X. (2010). Business model evolution : In search of dynamic consistency. Long Range Planning, 43(2–3), 227–246. https://doi.org/10.1016/j.lrp.2010.02.004
Di Vaio, A., & Varriale, L. (2019). Blockchain technology in supply chain management for sustainable performance: Evidence from the airport industry. International Journal of Information Management, 52(June), 102–104. https://doi.org/10.1016/j.ijinfomgt.2019.09.010
Dwyer, G. P. (2015). The economics of bitcoin and similar private digital currencies. Journal of Financial Stability, 17(April), 81–91. https://doi.org/10.1016/j.jfs.2014.11.006
Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550. https://doi.org/10.5465/amr.1989.4308385
Halilbegovic, S., Kadic, Z., Celebic, N., Arapovic, A., & Kulovic, D. (2019). Impact of blockchain technology on the payment management systems – What future holds? European Journal of Economic Studies, 8(1), 43–51. https://doi.org/10.13187/es.2019.1.43
Hamida, E. Ben, Brousmiche, K. L., Levard, H., & Thea, E. (2017). Blockchain for enterprise: Overview, opportunities and challenges. The Thirteenth International Conference on Wireless and Mobile Communications (ICWMC 2017).
Hughes, A., Park, A., Kietzmann, J., & Archer-Brown, C. (2019). Beyond bitcoin: What blockchain and distributed ledger technologies mean for firms. Business Horizons, 62(3), 273–281. https://doi.org/10.1016/j.bushor.2019.01.002
Kshetri, N. (2017). Blockchain’ s roles in strengthening cybersecurity and protecting privacy. Telecommunications Policy, 41(10), 1027–1038. https://doi.org/10.1016/j.telpol.2017.09.003
Mendling, J., Weber, I., Van Der Aalst, W., Brocke, J. Vom, Cabanillas, C., Daniel, F., Debois, S., Di Ciccio, C., Dumas, M., Dustdar, S., Gal, A., García-Bañuelos, L., Governatori, G., Hull, R., La Rosa, M., Leopold, H., Leymann, F., Recker, J., Reichert, M., … Zhu, L. (2018). Blockchains for business process management - Challenges and opportunities. ACM Transactions on Management Information Systems, 9(1), 1–16. https://doi.org/10.1145/3183367
Morkunas, V. J., Paschen, J., & Boon, E. (2019). How blockchain technologies impact your business model. Business Horizons, 62(3), 295–306. https://doi.org/10.1016/j.bushor.2019.01.009
Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system.
Nowiński, W., & Kozma, M. (2017). How can blockchain technology disrupt the existing business models? Entrepreneurial Business and Economics Review, 5(3), 173–188. https://doi.org/10.15678/EBER.2017.050309
Osterwalder, A., & Pigneur, Y. (2010). Business model generation (T. Clark (ed.)). John Willey & Sons.
Queiroz, M. M., & Wamba, S. F. (2019). Blockchain adoption challenges in supply chain: An empirical investigation of the main drivers in India and the USA. International Journal of Information Management, 46(November 2018), 70–82. https://doi.org/10.1016/j.ijinfomgt.2018.11.021
Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2012). Business cases for sustainability: The role of business model innovation for corporate sustainability. International Journal of Innovation and Sustainable Development, 6(2), 95–119. https://doi.org/10.1504/IJISD.2012.046944
Schmidt, C. G., & Wagner, S. M. (2019). Blockchain and supply chain relations: A transaction cost theory perspective. Journal of Purchasing and Supply Management, 25(4), 100552. https://doi.org/10.1016/j.pursup.2019.100552
Shin, D. D. H. (2019). Blockchain : The emerging technology of digital trust. Telematics and Informatics, 45(1), 101278. https://doi.org/10.1016/j.tele.2019.101278
Sobh, R., & Perry, C. (2006). Research design and data analysis in realism research. European Journal of Marketing, 40(11–12), 1194–1209. https://doi.org/10.1108/03090560610702777
Swan, M. (2015). Blueprints for a new economy (T. McGovern (ed.); First Edit, Vol. 293, Issue 11). O’Reilly Media Inc.
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2–3), 172–194. https://doi.org/10.1016/j.lrp.2009.07.003
Wang, H., Chen, K., & Xu, D. (2016). A maturity model for blockchain adoption. Financial Innovation, 2(1), 1–11. https://doi.org/10.1186/s40854-016-0031-z
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001
Weking, J., Hein, A., & Hermes, S. (2019). The impact of blockchain technology on business models – a taxonomy and archetypal patterns. Electronic Markets, 30(2), 285–305.
Yin, R. K. (2014). Case study research: Design and methods (5th ed.). SAGE Publication, Inc.
Yip, G. S. (2004). Using strategy to change your business model. Business Strategy Review, 15(2), 17–24.
Zhao, J. L., Fan, S., & Yan, J. (2016). Overview of business innovations and research opportunities in blockchain and introduction to the special issue. Financial Innovation, 2(28), 1–7. https://doi.org/10.1186/s40854-016-0049-2
Zott, C., & Amit, R. (2010). Business model design: An activity system perspective. Long Range Planning, 43(2–3), 216–226. https://doi.org/10.1016/j.lrp.2009.07.004
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Jurnal Ekonomi dan Bisnis is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License