Blockchain and network governance: learning from applications in the supply chain sector

Abstract

Blockchain applications have the potential to greatly improve operational efficiency and effectiveness along the supply chain. Although we know what the barriers to the adoption of blockchain are, we know little about how firms overcome these barriers to reap the benefits of the technology. A particular challenge in adopting blockchain applications is the need to build and implement them among a network of users, requiring firms to collaborate. To manage and advance such collaborative efforts, blockchain projects install a centralised leadership. There is thus a tension between the need for centralised leadership and decentralised control to justify the use of blockchain technology. In this study, we investigate how blockchain projects navigate this tension. We employ a multiple case study methodology to compare five collaborative blockchain applications that are live today. Our findings indicate that the case applications all combine centralised management with decentralised oversight in a similar manner. We argue that this combination of centralised and decentralised control is a great benefit for the successful development and implementation of blockchain applications. The results underline that to benefit from blockchain technology in supply chain applications, an important collaborative organisational effort is necessary.