The application of blockchain in changing market environments: Blockchain technology as a dynamic capability

Absztrakt (kivonat)

This thesis work provides an insight behind the hype that surrounds blockchain technology and examines its application in real life. It discovers how it can contribute to the value creation of companies and how it can reconfigure their business processes. To do so, an exploratory approach is used, and the application of the technology is observed in different industries as this topic is relatively new and quite broad. The study finds that the dynamic capability theory is the most applicable framework to understand the value creation potential of disruptive technologies like this one, because it accounts for changes in the environment of an organizations (Teece et.al., 1997). As technologies create new opportunities and innovations, their management can be considered a dynamic capability. (Centindamar et.al., 2009) After establishing the theoretical framework blockchain technology is in the spotlight. The essay presents the literature review to show how it is built, its characteristics, the different types and what makes it unique, that leads to the identification of the main benefits that blockchains are able to provide, including disintermediation, non-repudiation, automation, streamlined processes processing speed, cost reduction, trust and increased technology awareness (Hughes, et.al, 2019). The application of blockchain technology aims to capture value from business opportunities through the realignment of the organizations resources and by introducing new business processes. The correct implementation and management of blockchain technology can be considered a dynamic capability. The practical part of the thesis work searches for answers regarding the research question: How does the management of blockchain technology help organizations react to changing market environments? To explore the real potential of the technology, cases where a blockchain based solution was implemented was analyzed. To show that the technology can be applied in many industries and it can have an affect on every aspect of our lives a sample of three companies from different industries - from the crypto asset management industry, from the insurance industry and from the agricultural sector – is chosen. The diversity of the sample shows that the technology can be applied in many ways for different problems. Interviews were conducted with the (co- )founders of these blockchain startups from the Hungarian market. These interviews enabled the exploration of the application of blockchain. In the above presented cases the choice to implement a blockchain based solution was the result of the sensing activity of companies. They identified opportunities and created products, services or new business processes to react to them. In each case the application and the effective management of blockchain technology was found to be key to providing a competitive advantage for the organization. I was part of a research team at the university lead by professor Szabolcs Szilárd Sebrek, PhD. Our objective was to conduct a research about the emergence of the Hungarian blockchain ecosystem and to examine the adoption process of the technology. The data collection for that study included in-depth interviews with the founders/co-founders of several blockchain startups and other actors in the blockchain ecosystem. Semi-structured interviews were used to give the interviews a general flow but to allow the interviewers to ask the most appropriate questions based on the answers of the interviewee. These interviews were used for the purpose of this study as well. The correct application and more importantly the effective management of blockchain technology is indeed a dynamic capability. It helps organizations to reconfigure their business processes in a way that creates value and affects their performance positively, therefore its application should be considered in cases where opportunities are sensed that can be exploited by decentralization, creating trust or automation of business processes.