Advertisement

Blockchain Adoption: Technological, Organisational and Environmental Considerations

  • Trevor Clohessy
  • Thomas Acton
  • Nichola Rogers
Chapter

Abstract

Information technology (IT) innovation is rapidly reshaping organisations, affecting fundamental aspects of their everyday business activities and processes. This development is accompanied by benefits as well as challenges. In this article, we focus on a specific distributed ledger IT called blockchain which has been heralded as possessing the capability to radically transform a multitude of industries. However, there is a dearth of research which has coalesced the important considerations that organisations should consider prior to adopting blockchain technologies. Consequently, using innovation theory, which has been extensively used to examine the adoption of IT in organisations, we identify salient technological, organisational and environmental (TOE) considerations which influence the adoption of blockchain by organisations. We anchor our discussion using the top three organisational considerations which emerged from our research: top management support, organisational readiness and organisational support. We also provide an overview of the blockchain concept and outline the advantages and potential use cases that organisations contemplating adopting the technology can leverage.

Keywords

Blockchain Organisational adoption Innovation theory Blockchain benefits Blockchain use cases TOE considerations 

References

  1. Ajzen, I., & Fishbein, M. (1980). A theory of reasoned action. Englewood Cliffs: Prentice-Hall.Google Scholar
  2. Armstrong, C. P., & Sambamurthy, V. (1999). Information technology assimilation in firms: The influence of senior leadership and IT infrastructures. Information Systems Research, 10(4), 304–327.Google Scholar
  3. Bajaj, A. (2000). A study of senior information systems managers decision models in adopting new computing architectures. Journal of the AIS, 1(1es), paper 4, 1–58.Google Scholar
  4. Barrett, M., Davidson, E., Prabhu, J., & Vargo, S. L. (2015). Service innovation in the digital age: Key contributions and future directions. MIS Quarterly, 39(1), 135–154.Google Scholar
  5. Bear, K., Drury, N., Korsten, P., Pureswaran, V., Wallis, J., & Wagle, L. (2016). Blockchain rewires financial markets: Trailblazers take the lead. IBM Institute for Business Value. Retrieved from: https://public.dhe.ibm.com/common/ssi/ecm/gb/en/gbp03469usen/GBP03469USEN.PDF. Accessed 26 July 2017
  6. Böhme, R., Christin, N., Edelman, B., & Moore, T. (2015). Bitcoin: Economics, technology, and governance. Journal of Economic Perspectives, 29(2), 213–238.Google Scholar
  7. Chen, G., Xu, B., Lu, M., & Chen, N. S. (2018). Exploring blockchain technology and its potential applications for education. Smart Learning Environments, 5(1), 1–10.Google Scholar
  8. Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). What is disruptive innovation. Harvard Business Review, 93(12), 44–53.Google Scholar
  9. Clohessy, T., Acton, T., & Morgan, L. (2017). The impact of cloud-based digital transformation on IT service providers: Evidence from focus groups. International Journal of Cloud Applications and Computing (IJCAC), 7(4), 1–25.Google Scholar
  10. Clohessy, T., Acton, T., Godfrey, R., & Houston, M. (2018, Forthcoming). The adoption of blockchain in Ireland: Examining the influence of organisational factors (A National University of Ireland Galway and Blockchain Association of Ireland Report).Google Scholar
  11. Crosby, M., Nachiappan, P., Verma, S., & Kalyanaraman, V. (2016). Blockchain technology: Beyond bitcoin. Applied Innovation Review, 1(2), 6–10.Google Scholar
  12. Damanpour, F. (1991). Organisational innovation: A meta-analysis of effects of determinants and moderators. Academy of Management Journal, 34(3), 555–590.Google Scholar
  13. Damanpour, F. (1992). Organisational size and innovation. Organisation studies, 13(3), 375–402.Google Scholar
  14. Dong, L., Neufeld, D., & Higgins, C. (2009). Top management support of enterprise systems implementations. Journal of Information Technology, 24(1), 55–80.Google Scholar
  15. Extance, A. (2015). Bitcoin and beyond. Nature, 526(1), 21–23.Google Scholar
  16. Eyal, I., & Sirer, E. G. (2013). Majority is not enough: Bitcoin mining is vulnerable. International Conference on Financial Cryptography and Data Security, pp. 436–454.Google Scholar
  17. Folkinshteyn, D., & Lennon, M. (2016). Braving bitcoin: A technology acceptance model (TAM) analysis. Journal of Information Technology Case and Application Research, 18(4), 220–249.Google Scholar
  18. Gangwar, H., Date, H., & Ramaswamy, R. (2015). Understanding determinants of cloud computing adoption using an integrated TAM-TOE model. Journal of Enterprise Information Management, 28(1), 107–130.Google Scholar
  19. Garrod, J. Z. (2016). The real world of the decentralised autonomous society. tripleC; Communication, Capitalism & Critique. Open Access Journal for a Global Sustainable Information Society, 14(1), 62–77.Google Scholar
  20. Google. (2018). Blockchain, Google trends. Retrieved from https://trends.google.com/trends/explore?date=2011-03-27%202018-03-27&q=blockchain. Accessed 27 Mar 2018.
  21. Grandon, E. E., & Pearson, J. M. (2004). Electronic commerce adoption: An empirical study of small and medium US businesses. Information Management, 42(1), 197–216.Google Scholar
  22. Grinberg, R. (2011). Bitcoin: An innovative alternative digital currency. Hastings Science & Technology Law Journal, 4(1), 159–208.Google Scholar
  23. Guo, Y., & Liang, C. (2016). Blockchain application and outlook in the banking industry. Financial Innovation, 2(1), 1–12.Google Scholar
  24. Hernandez, K. (2017). Blockchain for development-hope or hype? Institute for Development Studies, Rapid Response Briefing, 17, 1–4.Google Scholar
  25. Iansiti, M., & Lakhani, K. R. (2017). The truth about Blockchain. Harvard Business Review. Retrieved from https://hbr.org/2017/01/the-truth-about-blockchain. Accessed 5 July 2017.
  26. Ito, J., Narula, N., & Ali, R. (2017). The blockchain will do to the financial system what the internet did to media. Harvard Business Review. Retrieved from https://hbr.org/2017 /03/the-blockchain-will-do-to-banks-and-law-firms-what-the-internet-did-to-media?re ferral=03758&cm_vc=rr_item_page.top_right. Accessed 5 July 2017.
  27. Jarvenpaa, S. L., & Ives, B. (1991). Executive involvement and participation in the management of information technology. MIS Quarterly, 15, 205–227.Google Scholar
  28. Kazeem, Y. (2018). The world’s first blockchain-supported elections just happened in Sierra Leone. Retrieved from https://qz.com/1227050/sierra-leone-elections-powered-by-blockchain/. Accessed 29 Mar 2018.
  29. Kiayias, A., & Panagiotakos, G. (2016). On trees, chains and fast transactions in the blockchain. IACR Cryptology, ePrint Archive, 1–30.Google Scholar
  30. Kimberly, J. R., & Evanisko, M. J. (1981). Organisational innovation: The influence of individual, organisational, and contextual factors on hospital adoption of technological and administrative innovations. Academy of Management Journal, 24(4), 689–713.Google Scholar
  31. King, S., & Nadal, S. (2012, August 1–19). PPCoin: Peer-to-peer crypto-currency with proof-of-stake (Self-published paper).Google Scholar
  32. Kitchenham, B., & Brereton, P. (2013). A systematic review of systematic review process research in software engineering. Information and Software Technology, 55(12), 2049–2075.Google Scholar
  33. Kiviat, T. I. (2015). Beyond bitcoin: Issues in regulating blockchain transactions. Duke LJ, 23(November), 569–608.Google Scholar
  34. Kosba, A., Miller, A., Shi, E., Wen, Z., & Papamanthou, C. (2016). Hawk: The blockchain model of cryptography and privacy-preserving smart contracts. In M. Locasto & K. Butler (Chairs), 2016 IEEE Symposium on Security and Privacy (pp. 839–858), The Fairmont, San Jose, California, 23–25 May, IEEE Computer Society, Washington, DC. Retrieved from  https://doi.org/10.1109/SP.2016.55. Accessed 4 July 2017.
  35. Kulkarni, U. R., Robles-Flores, J. A., & Popovič, A. (2017). Business intelligence capability: The effect of top management and the mediating roles of user participation and analytical decision-making orientation. Journal of the Association for Information Systems, 18(7), 516–541.Google Scholar
  36. Lacovou, C. L., Benbasat, I., & Dexter, A. S. (1995). Electronic data interchange and small organisations: Adoption and impact of technology. MIS Quarterly, 19(14), 465–485.Google Scholar
  37. Lansiti, M., & Lakhani, K. R. (2017). The truth about blockchain. Harvard Business Review, 95(1), 118–127.Google Scholar
  38. Lee, G., & Xia, W. (2006). Organisational size and IT innovation adoption: A meta-analysis. Information Management, 43(8), 975–985.Google Scholar
  39. Lindman, J., Tuunainen, V. K., & Rossi, M. (2017). Opportunities and risks of blockchain technologies–A research agenda. Proceedings of the 50th Hawaii International Conference on System Sciences, Hawaii.Google Scholar
  40. Lippert, S. K., & Govindarajulu, C. (2006). Technological, organisational, and environmental antecedents to web services adoption. Communications of the IIMA, 6(1), 147–160.Google Scholar
  41. McKinsey. (2017). Blockchain technology in the insurance industry. Retrieved from https://www.treasury.gov/initiatives/fio/Documents/McKinsey_FACI_Blockchain_in_Insurance.pdf. Accessed 10 Aug 2017.
  42. Mehta, D., & Striapunia, K. (2017). FinTech 2017, market size, business models, blockchain and company profiles (Statista report). Retrieved from https://www.statista.com/study/45600/statista-report-fintech/. Accessed 5 Aug 2017.
  43. Mendling, J., Weber, I., van der Aalst, W., Brocke, J. V., Cabanillas, C., Daniel, F., et al. (2017). Blockchains for business process management-challenges and opportunities. arXiv preprint arXiv:1704.03610.Google Scholar
  44. Molla, A., & Licker, P. S. (2005). Perceived e-readiness factors in e-commerce adoption: An empirical investigation in a developing country. International Journal of Electronic Commerce, 10(1), 83–110.Google Scholar
  45. Morabito, V. (2017). Blockchain value system. In Business innovation through Blockchain. Cham: Springer International Publishing.Google Scholar
  46. Nakamoto, S. (2008). Bitcoin; a peer-to-peer electronic cash system (Self-published paper), pp. 1–9.Google Scholar
  47. Nofer, M., Gomber, P., Hinz, O., & Schiereck, D. (2017). Blockchain. Business and Information Systems Engineering, 59(3), 183–187.Google Scholar
  48. O’Dair, M., Beaven, Z., Neilson, D., Osborne, R., & Pacifico, P. (2016). Music on the blockchain (Blockchain for creative industries research cluster report, pp. 1–29). Middlesex University.Google Scholar
  49. Önder, I., & Treiblmaier, H. (2018). Blockchain and tourism: Three research propositions. Annals of Tourism Research, 72(C), 180–182.Google Scholar
  50. Piazza, F. S. (2017). Bitcoin and the blockchain as possible corporate governance tools: Strengths and weaknesses. Penn State Journal of Law & International Affairs, 5(2), 262–301.Google Scholar
  51. Pilkington, M. (2015). Blockchain technology: Principles and applications. Research Handbook on Digital Transformations (pp. 225–253). Retrieved from  https://doi.org/10.4337/9781784717766.00019. Accessed 5 July 2017.
  52. Pilkington, M. (2016). Chapter 11. Blockchain technology: Principles and applications. In Research handbook on digital transformations (p. 225). Cheltenham: Edward Elgar Publishing.Google Scholar
  53. Reid, F., & Harrigan, M. (2012). An analysis of anonymity in the bitcoin system. In A. Pentland, J. Clippinger, & L. Sweeney (Chairs), 2011 IEEE Third International Conference on Privacy, Security, Risk & Trust/2011 IEEE Third International Conference on Social Computing, MIT Media Lab, Boston, Massachusetts, 9–11 October, IEEE, Washington DC, 1318–1236.Google Scholar
  54. Richter, C., Kraus, S., & Bouncken, R. B. (2015). Virtual currencies like bitcoin as a paradigm shift in the field of transactions. International Business & Economics Research Journal, 14(4), 575–586.Google Scholar
  55. Rogers, E. (1995). Diffusion of innovations (4th ed.). New York: Free Press.Google Scholar
  56. Ron, D., & Shamir, A. (2012, February 27–March 2). Quantitative analysis of the full bitcoin transaction graph. In A. D. Keromytis & R. Hirschfeld (Chairs), International Conference on Financial Cryptography and Data Security (pp. 6–24), Springer, Bonaire/Heidelberg/. Retrieved from: https://www.researchgate.net/publication/235976346_Quantitative_Analysis_of_the_Full_Bitcoin_Transaction_Graph. Accessed 12 July 2017.
  57. Ross, E. S. (2017). Nobody puts blockchain in a corner: The disruptive role of blockchain technology in the financial services industry and current regulatory issues. Catholic University Journal of Law and Technology, 25(2), 353–386.Google Scholar
  58. Sabherwal, R., Jeyaraj, A., & Chowa, C. (2006). Information system success: Individual and organisational determinants. Management Science, 52(12), 1849–1864.Google Scholar
  59. Schwandt, T. A., Lincoln, Y. S., & Guba, E. G. (2007). Judging interpretations: But is it rigorous? Trustworthiness and authenticity in naturalistic evaluation. New directions for evaluation, 2007(114), 11–25.Google Scholar
  60. Seebacher, S., & Schüritz, R. (2017, May). Blockchain technology as an enabler of service systems: A structured literature review. In International Conference on Exploring Services Science (pp. 12–23). Cham: Springer.Google Scholar
  61. Shrier, D., Sharma, D., & Pentland, A. (2016). Blockchain & financial services: The fifth horizon of networked innovation. MIT Science Connection, 1–10.Google Scholar
  62. Surujnath, R. (2017). Off the chain! A guide to blockchain derivatives markets and the implications on systemic risk. Fordham Journal of Corporate & Financial Law, 22(2), 256–304.Google Scholar
  63. Swan, M. (2015). Blockchain: Blueprint for a new economy. O’Reilly Media, Inc. Californa, US.Google Scholar
  64. Tapscott, D., Tapscott, A., & Kirkland, R. (2016). How blockchains could change the world. McKinsey&Company. Retrieved from http://www.mckinsey.com/industries/high-tech/our-insights/how-blockchains-could-change-the-world. Accessed 5 July 2017.
  65. Thong, J. Y., & Yap, C. S. (1995). CEO characteristics, organisational characteristics and information technology adoption in small businesses. Omega, 23(4), 429–442.Google Scholar
  66. Tornatzky, L. G., & Fleischer, M. (1990). The processes of technological innovation. Lexington: Lexington Books.Google Scholar
  67. Treat, D., McGraw, L., Helbing, C., & Brodersen, C. (2017). Blockchain technology: Preparing for change. Retrieved from https://www.accenture.com/t20160608T052656Z__w__/us-en/_acnmedia/PDF-5/Accenture-2016-Top-10-Challenges-04-Blockchain-Technology.pdf. Accessed 5 July 2017.
  68. Treiblmaier, H., & Pollach, I. (2011). The influence of privacy concerns on perceptions of web personalisation. International Journal of Web Science, 1(1/2), 3–20.Google Scholar
  69. Treiblmaier, H., Pinterits, A., & Floh, A. (2006). The adoption of public E-payment services. Journal of e-Government, 3(2), 33–51.Google Scholar
  70. Underwood, S. (2016). Blockchain beyond bitcoin. Communications of the ACM, 59(11), 15–17.Google Scholar
  71. Van de Weerd, I., Mangula, I. S., & Brinkkemper, S. (2016). Adoption of software as a service in Indonesia: Examining the influence of organisational factors. Information Management, 53(7), 915–928.Google Scholar
  72. Venkatesh, V., & Davis, F. D. (2000). A theoretical extension of the technology acceptance model: Four longitudinal field studies. Management Science, 46(2), 186–204.Google Scholar
  73. Vlasov, A. V. (2017). The evolution of E-money. European Research Studies, 20(1), 215–224.Google Scholar
  74. Wang, Y. M., Wang, Y. S., & Yang, Y. F. (2010). Understanding the determinants of RFID adoption in the manufacturing industry. Technological Forecasting and Social Change, 77(5), 803–815.Google Scholar
  75. Wang, H., Chen, K., & Xu, D. (2016). A maturity model for blockchain adoption. Financial Innovation, 2(1), 1–5.Google Scholar
  76. Webster, J., & Watson, T. (2002). Analyzing the past to prepare for the future: Writing a literature review. MIS Quarterly, 26(2), xiii–xxiii.Google Scholar
  77. Weiner, B. J. (2009). A theory of organisational readiness for change. Implementation science, 4(1), 1–9.Google Scholar
  78. Wright, A., & De Filippi, P. (2015). Decentralised blockchain technology and the rise of lex cryptographia. Retrieved from http://ssrn.com/abstract=2580664. Accessed 9 July 2017.
  79. Yu, D., & Hang, C. C. (2010). A reflective review of disruptive innovation theory. International Journal of Management Reviews, 12(4), 435–452.Google Scholar
  80. Zyskind, G., Nathan, O., & Pentland, A. (2015). Decentralising privacy: Using blockchain to protect personal data. In C. Irvine, & Z. Peterson (Chairs), 2015 IEEE Computer Society Security and Privacy Workshops, The Fairmont, San Jose, 21 May, IEEE, Washington DC, 180–184.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Business Information SystemsGalway-Mayo Institute of TechnologyGalwayIreland
  2. 2.Business Information Systems Department, J.E. Cairnes School of Business & EconomicsNational University of Ireland GalwayGalwayIreland

Personalised recommendations