This chapter examines how Web3 technologies like blockchain and the metaverse are transforming organizational functions and business models. The metaverse is enhancing human resource processes such as recruitment through immersive job previews, virtual interviews/job fairs, and innovative training via VR simulations, gamification, and AI assistants. In manufacturing, the industrial metaverse enables cost savings, quality improvements, flexibility, faster delivery, and sustainability by leveraging capabilities like digital twins and real-time facility reconfigurations. Web3 and the metaverse are reshaping business models by providing immersive digital marketing channels and virtual product testing grounds, especially appealing to Gen Z. Companies are generating new revenue streams through metaverse initiatives like Nike's Nikeland featuring virtual goods sold as NFTs. The blockchain's trustless verification can prevent opportunistic behavior in interorganizational relationships by transparently enforcing agreements. Examples include using NFTs to certify product data impacting resale value and incentivizing authorized after-sales service channels.
This paper explores the role of the agile approach in managing interorganizational relationships in innovation networks. Design/methodology/approach. Relevant literature related to agile team management, network theory, innovation theory and knowledge management was studied. Based on collaboration between different approaches, a conceptual model for agile management of an innovation network was generated. Conceptual modeling was supplemented with graphical notation (diagram) of the main elements of the model. At the stage of testing the conceptual model, the action research method was applied, which provides an opportunity for organizational innovations to be carried out with the participation of researchers. The object of the pilot implementation of the conceptual model is the Bulgarian division of a global non-governmental organization (NGO) dedicated to community service. The organizational innovation applied in the testing of the model is related to improving the communication environment between individual teams (clubs), which are autonomous, but in the conditions of a network can generate projects for common, large-scale initiatives for community service. Findings. The pilot testing of the model shows its applicability, insofar as a traditionally managed structure switches to an agile communication model, in which horizontal connections become more frequent and knowledge between individual participants is transferred more efficiently. The possibility of decentralized decision-making creates the potential for generating numerous new and larger-scale initiatives for the benefit of the final beneficiaries. The participants in the network have also outlined some shortcomings, such as the need for better preliminary preparation when introducing organizational innovations in order to adequately explain and accept them.
Jan 1, 2025ยทProceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Misalignment between individual preferences and organizational decisions can lead to demotivation, absence, and turnover. This is particularly challenging for decentralized organizations that rely on management tools based on hierarchical authority to limit these negative effects of misalignment. We theorize that (decentralized) organizations can use decision-making structures to moderate the negative impact of misalignment. Using a dataset of 140 decentralized autonomous organizations, we find that implementing weighted decision-making structures, where members can express preference intensity, significantly alleviates this negative impact. Likewise, quadratic decision-making structures, which limits the influence of members with high voting power, reduces the adverse effects of misalignment.
In recent years, the integration of blockchain technology into Corporate Social Responsibility (CSR) practices has gained significant attention due to its potential to address transparency, accountability, and sustainability challenges in business operations.Blockchain, with its decentralized nature, offers a secure and immutable platform that allows organizations to track, verify, and share data related to their CSR initiatives in real time.This level of transparency enhances trust among stakeholders and provides a reliable way to demonstrate a commitment to ethical and sustainable business practices.Blockchain technology is emerging as a transformative tool for enhancing Corporate Social Responsibility (CSR) practices, offering innovative solutions to foster transparency, accountability, and sustainability.By providing a decentralized, immutable ledger, blockchain ensures that CSR-related activities are traceable, verifiable, and free from manipulation, thereby building trust among stakeholders and mitigating issues such as fraud and resource misallocation.This study explores the potential of blockchain technology to transform Corporate Social Responsibility (CSR) practices, focusing on its role in promoting transparency, accountability, and sustainability.Blockchain's decentralized and immutable ledger enables organizations to track and verify transactions, enhancing trust among stakeholders and ensuring ethical business practices.The study identifies key blockchain innovations such as smart contracts, decentralized finance (DeFi), and energy-efficient consensus mechanisms that contribute to achieving the United Nations Sustainable Development Goals (SDGs).However, the adoption of blockchain in CSR initiatives faces challenges including regulatory uncertainty, integration complexities, scalability issues, and privacy concerns.To overcome these barriers, the research offers strategic recommendations, such as the adoption of energy-efficient blockchain solutions, the integration of smart contracts, and enhanced stakeholder education.This paper contributes to understanding how blockchain can be leveraged to create a sustainable and efficient CSR ecosystem, aligning business operations with global sustainability objectives.
Ken Huang, Youwei Yang, Fan Zhang, Xi Chen ยท 5 authors
Chapter 9 offers a comprehensive exploration of decentralized autonomous organizations (DAOs) and their role in the formation of Web3 organizations. It begins by defining DAOs, tracing their history, and outlining the benefits they bring to the digital world. The chapter then delves into the various types of DAOs, including protocol DAOs such as MakerDAO and Lido, charity DAOs such as GitcoinDAO and Ukraine DAO, and investment DAOs, represented by The LAO and MetaCartel Ventures. The chapter also examines Art Collection, Social, Fans, Sports, Media, Tool, and multipurpose DAOs, with examples such as Aragon DAO and Coordinape DAO. However, it is not without noting the disadvantages of DAOs, such as slow decision-making, low active participation rates, legal and tax issues, centralization risk, and vulnerability to flash loan attacks. The future of DAOs is also a topic of discussion, with speculations on how they could be combined with artificial intelligence (AI), attract large institutional investments, or be endorsed by big brands. Furthermore, the chapter considers the possibility of DAOs functioning as virtual countries and their potential role in inclusive finance. The chapter provides a summary, followed by a series of thought-provoking questions for further reflection.
K. S. Chandrasekaran, V. Mahalakshmi, M. R. Anantha Padmanaban
Over the past ten years, blockchain technology has significantly captured interest in various application fields. Originally devised for the Bitcoin peer-to-peer cryptocurrency network, extensive research now explores integrating blockchain with various other service domains. The technology is celebrated for its decentralized structure, robust security, immutability, and transparency. In blockchain systems, consensus algorithms play a crucial role in establishing unanimous agreement among participants within a distributed computing environment, facilitating the addition of new blocks to the blockchain network. The effectiveness and security of the network largely hinge on the performance of these consensus algorithms. However, existing consensus algorithms face challenges with throughput, latency, and communication complexity. To address these issues, an enhanced consensus algorithm known as Intuitive Random Selection based Byzantine Fault Tolerant (BFTIRS) is introduced. This algorithm optimizes the consensus process by selecting a subset of nodes, thereby reducing network complexity and enhancing efficiency without sacrificing security. To tackle scalability issues in blockchains, a hierarchical BFTIRS algorithm that incorporates sharding is developed. This approach segments network participants into local and global consensus groups, each conducting the consensus process independently. Performance evaluations of this algorithm show improvements in both efficiency and security over existing solutions.
Decentralized Autonomous Organizations (DAOs), based on block-chain systems such as Ethereum, are emerging governance protocols that enable decentralized community management without a central authority. For instance, UniswapDAO allows members to vote on policy changes for the Uniswap exchange. However, DAOs face challenges regarding scalability, governance, and compliance. Hybrid-DAOs, which combine the decentralized nature of DAOs with traditional legal frameworks, provide solutions to these issues. This research explores various aspects of DAOs, including their voting mechanisms, which, while ensuring fairness, are susceptible to Sybil attacks, where a user can create multiple accounts to exploit the system. Hybrid-DAOs offer robust solutions to these attacks, enabling more equitable voting methods. Moreover, decentralization can be understood through four properties: anonymity, transparency, accountability, and fairness, each with distinct implications for DAOs. Lastly, this work discusses legal challenges Hybrid-DAOs face and their promising applications across sectors such as nonprofit management, corporate governance, and startup funding. Overall, we argue that Hybrid-DAOs are the future of DAOs: the additional legal structure enhances the feasibility of many applications, and they offer innovative solutions to technical problems that plague DAOs.
The advent of blockchain technology has precipitated a monumental transformation in the financial landscape, ushering in a paradigm characterized by transparency, accuracy, and immutability. This research paper delves into the imperative of enhancing organizational decision-making accountability by actively engaging users as stakeholders in a public consensus framework, thereby fostering a more equitable resource distribution. The vehicle for this transformative endeavor is the application of decentralized autonomous organizations (DAOs), which represent autonomous, immutable code entities decentralized in nature. Unlike conventional structures, DAOs operate beyond the control of a singular entity or individual, deriving governance from a network of participants with vested interests in the organization. At the core of this research lies the introduction of a versatile DAO smart contract algorithm, seamlessly implemented within a decentralized application (dApp). This innovation constitutes a software solution adaptable for any organization seeking to infuse decentralization and transparency into its operational framework. The integration of decentralization not only introduces an additional layer of incentivization for both stakeholders and organizations but also fosters a trustless environment. The paper presents a pioneering approach to organizational governance, offering a blueprint for entities aspiring to embrace the principles of decentralization, transparency, and accountability in their ecosystems.
With the penetration and wide application of IT technology in the financial field, the financial information system has developed from the computerized accounting information system based on the accounting department to the ERP information system based on the enterprise's "business-finance Integration", and then to the cloud financial information system based on the enterprise group's resource allocation. At present, the financial information system is mainly faced with the problems of single data collection, fixed data summary standards, and obvious lack of data authenticity, timeliness and relevance. Therefore, it is necessary to build a cross-enterprise collaborative information system based on the new generation of information technology (NGIT). Specifically, the real semantics of business can be stored as much as possible based on the REA model; the distributed ledger based on the blockchain technology can enhance the credit of the capital market; the information sharing of enterprises and stakeholders can be realized based on cloud computing; the decision support system based on the big data algorithm model is more conducive to value creation.
Eleunthia Wong Ellinger, Robert Wayne Gregory, Tobias Mini, Thomas Widjaja ยท 5 authors
Decentralized autonomous organizations (DAOs)โcollectively owned human-machine systems deployed on a blockchain that self-govern through smart contracts and the voluntary contributions of autonomous community membersโexhibit the potential to facilitate collective action in managing digital commons. Yet the promise of decentralization and collective action is difficult to sustain. To this end, this paper critically examines the transformational potential of DAOs in the case of decentralized finance. Using a polycentric governance lens, we contribute to the literature on technology-enabled forms of organizing with a model explaining the transformational potential of DAOs to facilitate collective action in digital commons. Our study highlights that (1) DAOs are a new form of organizing enabled by blockchain technology in which individuals are free to pursue their objectives within a general system of rules enforced by smart contracts, (2) collective action for managing digital commons can be sustained through a set of three mechanismsโsustained participation, collective direction, and scaled organizing, and (3) DAOs tend to strike a balance between centralized and fully decentralized or community-based governance by implementing a polycentric governance system involving a combination of human and machine agency that creates skin in the game.
Decentralized autonomous organizations (DAOs) are not a novel social phenomenon; rather, they draw inspiration from self-organizing systems and are often regarded as digital counterparts of cooperatives (Co-ops), wherein members fully own and govern the organization. The advancement of digital solutions for decentralization, such as Distributed Ledger Technology (DLT), along with the emergence of the third generation of websites (Web3) and platforms, has propelled DAOs to a new echelon. As such, DAOs represent the next generation of organizations, aptly referred to as Organization 5.0 in the context of Society 5.0. The objective of this paper is to provide a comprehensive overview of the evolutionary trajectory of decentralized autonomous organizations and their classification. The advent of Ethereum in 2015 enabled the realization of DAOs, with "The DAO" being the first large-scale example established in 2016 as a decentralized venture fund within the Ethereum ecosystem. Over time, DAOs have expanded their scope beyond fundraising and have evolved to serve various purposes. To provide a comprehensive context, the paper presents background information on the evolution of blockchain applications and discusses ethical considerations related to DAOs. In order to identify the most common categories of DAOs, this paper consults various DAO explorers and include, for each identified category, a descriptive example of a DAO. Finally, the paper concludes by offering an outlook on the future of DAOs.
This teaching case describes, based on publicly available material, the transition of the A. P. Moller Maersk shipping company from a logistics-based organization to an information and technology-based organization. Multiple digital technologies, including distributed ledger, robotic automation, digital platforms, and big-data analytics offered opportunities for Maersk. Although the company was a relatively late starter in digital transformation, its journey so far has been successful. The challenge is how to enact sustained digital transformation in an environment of rapid technology change. Some theoretical lenses are offered to assist with analyzing and framing Maerskโs digital strategy, including business models, organizational ambidexterity, and dynamic capabilities.
Blockchain technology and BPMN (Business Process Model and Notation) hold great promise for revolutionizing a wide range of industries by improving transparency, security, and efficiency. In this paper, we propose an integration model for the systematic translation of any BPMN process into a Blockchain with smart contracts. Essentially, our approach aims to support smart contract practitioners working on complex business cases or those new to Solidity by simplifying the language and providing a clear, user-friendly path to translate business processes into effective Solidity code. Our model was applied in a real-world case study to streamline multiple-choice question (MCQ) creation and management in education. Finally, this paper discusses the potential impact of this integrated approach on educational assessment practices and suggests avenues for future research and development.
As decentralization and the use of distributed ledger technology spread through more businesses and sectors, the world is going through a huge change. This change is being made because of a desire for more openness, safety, and efficiency in operations, as well as to give people and groups more autonomy.
Jan 1, 2024ยทProceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Distributed autonomous organizations (DAOs) are a new organization form that resides entirely on a blockchain. In a DAO, organizational governance rules are hardcoded in an immutable smart contract. This paper examines whether DAOs are able to adapt their governance structures when shocks in the external environment occur. If the DAO is truly decentralized and governance is hardcoded in a smart contract, then effective adaptation may be a challenge. Using case examples, we illustrate approaches to governance adaptation including orderly voting by DAO members, contentious voting with exit by some participants as the DAO evolve, hard forks in the event of negotiation failure, off-chain resolution mechanisms, and the role of a โbenevolent dictatorโ. We provide justification for why DAOs may not be as decentralized as conceptualized if they are to be effective. Our research contributes to the theoretical development of DAO management strategies as this new organizational form evolves.
This article explores the concept of autopoiesis and its application to Decentralized Autonomous Organizations (DAOs). Autopoiesis describes the self-producing and self-maintaining characteristics of living systems, a concept that has been applied in various fields beyond biology. DAOs, operating on blockchain technology, exhibit a level of autonomy, transparency, and democratic governance. They are self-governing and self-sustaining systems that operate based on coded rules and protocols. The article suggests that DAOs align with the concept of autopoiesis, making them a specific type of complex system. Diverse case studies demonstrate the resilience and autopoietic features of these organizations. All things considered, the concept of autopoiesis could provide a valuable lens for understanding DAOs.
Michael Lustenberger, Florian Spychiger, Lukas Kรผng, Pedro Cuadra
This guidebook summarizes the insights and outcomes from the Innosuisse Project 103.141 IP-ICT Designing and Implementing a Decentralized Autonomous Organization. Running from November 2022 to May 2024, the project was conducted as a collaborative effort between the ZHAW Institute for Organizational Viability and DecentAge AG with support from Innosuisse and Infinity Economics, Stefan Kneller. The projectโs primary objective was to develop a robust DAO Design Framework and deploy it on the Infinity Economics Platform (IEP). DecentAge AG successfully executed this model on the IEP, giving users an easy way to create and manage DAOs directly on the blockchain. This implementation allows organizations to operate without centralized management, streamlining governance and enhancing accessibility. This guide will provide you with the essential practical and scientific understanding of DAOs and how to effectively structure the initiation process in accordance with a DAO Design Canvas.
A big industry secret often swept under the rug by the crypto industry is the notion of โwartimeโ vs. โpeacetimeโ companies coupled with the ability to adapt swiftly. Once employed in the crypto industry, this takes on a distinct and stark reality that you need to be prepared for. Unlike the traditional corporate world where tech giants like Google epitomize the stability and growth of โpeacetimeโ companies, their crypto counterparts inherently operate in a constant โwartimeโ state. This unique environment shapes every aspect of working in Web3, from leadership styles to daily operations and employee experiences. In the crypto sector, โwartimeโ isn't just a phase; it's the norm. Companies are perpetually navigating through a landscape rife with volatility, regulatory uncertainty, technological disruptions, and fierce competition. This environment necessitates a continual state of vigilance, quick decision-making, and adaptability.
Juanjuan Li, Xiaolong Liang, Rui Qin, FeiโYue Wang
As the key component of the emerging Web3, Decentralized Autonomous Organizations and Operations (DAOs) enables decentralized decision-making and governance mainly driven by blockchain and smart contracts. This paper first provides a comprehensive examination of DAOsโ evolution, tracing their historical development and the progression of their definitions and underlying concepts. Then, it presents their classical governance models founded on token economics and analyzes typical practical cases, subsequently identifying the current dilemmas faced by DAO governance. To address these dilemmas, TRUE Autonomous Organizations and Operations (TAOs) are proposed, which underscores the trustable, reliable, usable, efficient and effective essence of decentralization. Besides, the distinctions between TAOs and DAOs are discussed from perspective of the value systems, governance structures, incentive allocation, decision-making model. Furthermore, it highlights the research issues that need to be addressed to realize the full potential of TAOs.