The spectrum of blockchain adoption for developing business model innovation

A blockchain (BC) is a breakthrough technological invention that comprises entirely different mental models than conventional technology. This fundamental difference can potentially change the systems of many organizations since the current systems are built upon a centralized paradigm. The adoption of BC brings various benefits to an organization which can initiate changes to a business model (BM). However, the contribution of BC for business model innovation (BMI) is challenging to identify. Therefore, this study aims to understand and describe the adoption of BC for developing BMI.

This study presents a model that describes the adoption of BC for developing BMI. To justify the model, this study used an empirical approach based on multiple case study through a rigorous process. The case study selection process referred to the products or services that adopt BC to deliver to their customers and monetize their businesses, which resulted in six cases in different areas. Meanwhile, the data collection applied semi-structured interviews and adequate secondary data. The data/information was analyzed using a value proposition, creation, and capture framework.

The findings identify the adoption of BC in BMIs generated through value creation as a new technological sub-element. This technological adoption evidently affects value proposition and value capture in a different mode. Furthermore, through the model, this study classifies the adoption of BC in BMI based on two dimensions: (1) the level of complexity of BC adoption and (2) the intensity of BMI. The findings show that the cases in this study are dispersed among all quadrants of the conceptual model.

This study can serve as an antecedent for stakeholders in the innovation of BC-based BMs and their implementation patterns. Simultaneously, this study sheds light on the body of knowledge about BC adoption for developing BMI through a validated model from selected cases and technical experts. This study also describes the BC-based activity systems that provide the contributions and benefits from the technology.