Thinking strategically about blockchain adoption and risk mitigation

Arvind Malhotra, O’Neill, Hugh and Porter Stowell

Business Horizons, 2022, vol. 65, issue 2, 159-171

Abstract: Blockchain technologies are quickly changing the competitive business landscape. Companies need to think strategically about how best to prepare for a future in which they might systematically enhance value and unleash new value using blockchain. In this article, we address how cooperating companies jointly create unique value with blockchain technology, the risks they face along the way, and how they can mitigate those risks. We briefly identify three different reasons a company might adopt blockchain: to enhance value creation, to strengthen existing value ecosystems, or to create new value ecosystems. Then, we identify three strategic risks of blockchain adoption as they relate to business issues, legal issues, and technological issues. Finally, we highlight four different strategic maneuvers for minimizing these risks. The strategic maneuvers include the all-industry approach, the walled-garden approach, the many-gardens approach, and the options approach. We provide prescriptive advice to managers on how to strategically think about blockchain adoptions, how to identify the underlying risks, and how to consider strategic approaches to mitigate their adoption risk.

Keywords: Blockchain adoption; Blockchain adoption risks; Blockchain risk mitigation; Value creation process (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0007681321000355
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:65:y:2022:i:2:p:159-171

DOI: 10.1016/j.bushor.2021.02.033

Access Statistics for this article

Business Horizons is currently edited by C. M. Dalton

More articles in Business Horizons from Elsevier
Bibliographic data for series maintained by Catherine Liu ().