Explaining the Non-adoption of Blockchain Technology in Global Value Chains of Multinational Enterprises
The business potential of blockchain technology in global value chains (GVCs) includes the creation of permanent records of information, to facilitate specifications regulation, to mitigate risk using smart contracts, and through full, transparent transaction traceability at reduced costs. A recent study however showed that the adoption of blockchain is uneven in multinational enterprises (MNE).
Blockchain as a general-purpose technology (GPT) has the potential to increase the effectiveness and efficiency of value creation for firm specific advantages owned and/or controlled by multinational enterprises (MNE), yet adoption of blockchain is uneven.
A study conducted by the FHNW School of Business as part of the MSc in International Management programme adopted a microfoundational lens to explain the non-adoption of blockchain technology in multinational enterprises’ (MNE) global value chains (GVC), emphasizing the influence of the technology, organization and environment (TOE) influences on the technology acceptance (TAM) for blockchain, due to the impact on managers’ perception of blockchain’s usefulness and ease of use.
While blockchain is considered highly secure and reliable, more proof of blockchain’s capabilities is required for MNEs to be willing to invest. Especially in relational GVCs, captive GVCs, and hierarchical GVCs, blockchain could improve relationships and collaboration, mitigate the risk of opportunistic behavior through the use of smart contracts, and improve security overall. Thus blockchain experts should do more to develop exemplary use cases to communicate the potential of blockchain technology to potential adopters.
Reference: Hubenova, Tsvetelina, Lindeque, Johan P. & Peter, Marc K. (2024): Explaining the non-adoption of blockchain technology in global value chains: a micro-foundational perspective. Journal of Industrial and Business Economics, doi.org/10.1007/s40812-023-00296-8.