Exploring the Business Model Innovation of Blockchain Technology

Blockchain is a technological innovation that performs a different paradigm (decentralized protocol) to change the way organizations or societies interact with others. Blockchain adoption evolves into different ecosystems (network of actors adopting BC) along with its development, namely public and private ecosystems. Although previous research has examined the role of BC on the business model, there is little explanation for how BC applies business model innovation (BMI) in different ecosystems. Using a multiple-case study approach, this study seeks to explain the innovation of the business model in different BC ecosystems. The study finds different formulas of BMI among the ecosystems. The potential BMI in the private/consortium BC emphasizes improving the existing business values. In the public BC, BMI potentially disrupts the current business model. The study also proposes a new theoretical model to identify the potential of BMI within an ecosystem. This study contributes to the technology management literature, particularly BC and BMI. Furthermore, the practical implications of this study are presented in this investigation.