Unlocking the Business Model Innovation Potential on a Public Blockchain Ecosystem: A Critical Realism Approach

Main Article Content

Ambara Purusottama
Yohanes Berenika Kadarusman

Keywords

Blockchain technology, Business model innovation, Public ecosystem, Value-added

Abstract

This study aims to explain the phenomenon of blockchain technology in business model innovation in the public ecosystem since it offers huge potential benefits for business activities to overcome existing problems, such as data ownership, security, and accessibility. This study uses the realism perspective for understanding the phenomenon. The multiple-case study strategy presents five blockchain experts who use the value system framework to find potential for public blockchain applications. The study finds that in the public blockchain ecosystem: (i) value capture is oriented to enlarge new potential income; (ii) value creation is carried out through partnerships with other entities; (iii) value delivery is delivered through decentralized application and smart contracts; and (iv) value propositions help to solve public problems. From the findings, this study proposes three types of added value. First, low value-added, i.e., blockchain exchange data/information exchange and security; second, medium value-added, wherein technology initiates collaboration performance among entities in the public ecosystem; and finally, high value-added, i.e., a blockchain encourages new market innovation. This study focuses on the literature on blockchain and business models as well as potential future research.

Downloads

Download data is not yet available.
Abstract 395 | pdf Downloads 335

References

Adams, W. C. (2015). Conducting Semi-Structured Interviews, in Handbook of Practical Program Evaluation. Fourth, pp. 492–505.
Afuah, A. (2003). Business Models: A Strategic Management Approach. Irwin: McGraw-Hill. Baden-Fuller, C. and Haefliger, S. (2013). Business Models and Technological Innovation. Long Range Planning, 46(6), 419–426. doi: 10.1016/j.lrp.2013.08.023
Bashkar, R. (2008) A Realist Theory of Science, Noûs. Oxon: Routledge.
Bocken, N. M. P., Rana, P. and Short, S. W. (2015). Value mapping for sustainable business thinking’. Journal of Industrial and Production Engineering, 32(1), 88–102. doi: 10.1080/21681015.2014.1000399
Boons, F. and Lüdeke-Freund, F. (2013). Business models for sustainable innovation: State-of-the-art
and steps towards a research agenda. Journal of Cleaner Production, 45, 9–19. doi: 10.1016/j.jclepro.2012.07.007
Casino, F., Dasaklis, T. K. and Patsakis, C. (2019). A systematic literature review of blockchain-based applications: Current status, classification and open issues. Telematics and Informatics, 36, 55–81. doi: 10.1016/j.tele.2018.11.006
Chalmers, D., Matthews, R. and Hyslop, A. (2019). Blockchain as an external enabler of new venture ideas: Digital entrepreneurs and the disintermediation of the global music industry. Journal of Business Research, 1–15. doi: 10.1016/j.jbusres.2019.09.002
Chen, Y. (2018). Blockchain tokens and the potential democratization of entrepreneurship and innovation. Business Horizons. doi: 10.1016/j.bushor.2018.03.006
Chen, Y. and Bellavitis, C. (2020). Blockchain disruption and decentralized finance: The rise of decentralized business models. Journal of Business Venturing Insights, 13. doi: 10.1016/j.jbvi.2019.e00151
Chesbrough, H. (2010). Business model innovation: Opportunities and barriers. Long Range Planning, 43(2–3), 354–363. doi: 10.1016/j.lrp.2009.07.010
Demil, B. and Lecocq, X. (2010). Business model evolution: In search of dynamic consistency. Long Range Planning, 43, 227–246. doi: 10.1016/j.lrp.2010.02.004
Eisenhardt, K. M. (1989). Building Theories from Case Study Research. Academy of Management Review, 14(4), 532–550. doi: 10.5465/amr.1989.4308385
Fisch, C. (2019). Initial coin offerings (ICOs) to finance new ventures. Journal of Business Venturing, 34(1), 1–22. doi: 10.1016/j.jbusvent.2018.09.007
Friedlmaier, M., Tumasjan, A. and Welpe, I. M. (2017). Disrupting Industries with Blockchain: The Industry, Venture Capital Funding, and Regional Distribution of Blockchain Ventures. SSRN Electronic Journal. doi: 10.2139/ssrn.2854756
Glaser, B. G. and Strauss, A. L. (1967) The Discovery of Grounded Theory: Strategies for Qualitative Research. Aldine Transaction.
Hughes, A. et al. (2019). Beyond Bitcoin: What blockchain and distributed ledger technologies mean for firms. Business Horizons, 62(3), 273–281. doi: 10.1016/j.bushor.2019.01.002
Johnson, M. W., Christensen, C. M. and Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, 86(12), 50-59
Kshetri, N. (2017). Blockchain’ s roles in strengthening cybersecurity and protecting privacy. Telecommunications Policy, 41(10), 1027–1038. doi: 10.1016/j.telpol.2017.09.003
Martino, P. and Bellavitis, C. (2019). Blockchain and Initial Coin Offerings (ICOs): a new way of crowdfunding. 1–17.
Mettler, M. (2016). Blockchain Technology in Healthcare: The Revolution Starts Here. 2016 IEEE 18th International Conference on e-Health Networking, Applications and Services (Healthcom), 1–3. doi: 10.1109/HealthCom.2016.7749510
Morkunas, V. J., Paschen, J. and Boon, E. (2019). How blockchain technologies impact your business model. Business Horizons, 62(3), 295–306. doi: 10.1016/j.bushor.2019.01.009
Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system.
Nowiński, W. and Kozma, M. (2017). How can blockchain technology disrupt the existing business models?. Entrepreneurial Business and Economics Review, 5(3), 173–188. doi: 10.15678/EBER.2017.050309
Oh, J. and Shong, I. (2017). A case study on business model innovations using Blockchain: focusing on financial institutions. Asia Pacific Journal of Innovation and Entrepreneurship, 11(3), 335–344. doi: 10.1108/apjie-12-2017-038
Poszler, F., Ritter, A. and Welpe, I. (2018). Blockchain startups in the logistics industry: The technology´s potential to disrupt business models and supply chains. Logistic I. Springer Fachmedien Wiesbaden. doi: 10.1007/978-3-658-25412-4
Rahmadika, S. and Rhee, K. H. (2018). Blockchain technology for providing an architecture model of decentralized personal health information. International Journal of Engineering Business Management, 10. doi: 10.1177/1847979018790589
Roehrs, A. et al. (2019). Analyzing the performance of a blockchain-based personal health record implementation. Journal of Biomedical Informatics, 92, 103140. doi: 10.1016/j.jbi.2019.103140
Saunders, M., Lewis, P. and Thornhill, A. (2019). Research Methods for Business Students’ Chapter 4: Understanding research philosophy and approaches to theory development. Eight. Harlow: Pearson Education Limited.
Schaltegger, S., Lüdeke-Freund, F., and 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. doi: 10.1504/IJISD.2012.046944
Shin, D. D. H. (2019). Blockchain: The emerging technology of digital trust. Telematics and Informatics, 45. doi: 10.1016/j.tele.2019.101278
Smentyna, N. et al. (2019). Entrepreneurship and risks: Blockchain-based management. International Journal of Civil Engineering and Technology, 10(04), 635–643
Spens, K. M. and Kovács, G. (2006). A content analysis of research approaches in logistics research. International Journal of Physical Distribution and Logistics Management, 36(5), 374–390. doi: 10.1108/09600030610676259
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2–3), 172–194. doi: 10.1016/j.lrp.2009.07.003
Tönnissen, S., Beinke, J. H. and Teuteberg, F. (2020). Understanding token-based ecosystems – a taxonomy of blockchain-based business models of start-ups. Electronic Markets, 30, 307-323. doi: 10.1007/s12525-020-00396-6
Yin, R. K. (2014). Case Study Research Design and Methods (5th ed). California: Sage.
Zott, C. and Amit, R. (2010). Business model design: An activity system perspective. Long Range Planning, 43(2–3), 216–226. doi: 10.1016/j.lrp.2009.07.004