Behavioural and Organisational Factors Determining Blockchain Adoption

Abstract

Aims: To explore and describe behavioural and organisational factors playing a role in the adoption of blockchain technology in the supply network, next to technical aspects. Research Questions: (1) “Why would companies use it and insert information considered as strategic?” (2) “Why would customers use it and consumers trust it?” (3) “Is it suitable for every firm?”. Study Design/Methodology: A literature review combined with mind mapping describes potentially promising strong aspects and vulnerabilities. Limitations in present blockchain use are considered before moving towards a research method that observes, explains and predicts relevant human decision behaviour. A mixed methods approach of qualitative research applying Atlas.ti uses participative observations next to narratives and interviews with selected interviewees. This Step Wise Two Stage MiniDelphi approach was used, resulting in the opinions of experts in Supply Chain Management, fashion, food, HRM and IT. Theoretical Framework: A Grounded Theory based methodology is used; various types of Institutional Isomorphism form the main theoretical framework, next to the Resource Based View and Resource Dependence Theory. The behavioural and organisational factors relevant in actual decision making are captured in a hypothetical LISREL model. Findings: Blockchain technology has the potential to facilitate secure information transfer, meeting demands of transparency, traceability, confidentiality, security, integrity and availability. However, it expires that adoption not so much is determined by technical aspects. The willingness to insert strategic information satisfying downstream actors, is balancing the trust downstream actors have in upstream actors. Factors that make upstream actors decide to adopt are (1) price and total costs versus perceived additional revenue, reputation and competitiveness; (2) coercion, mimetic behaviour, following the industry norms, regulation or other external drivers. Using block chain as marketing tool for only part of the total volume of goods occurs. Volatile and momentary supply networks are less suitable; so are situations where the supplier has no choice but to use the buyer’s supply network, controlled by the buyer.