Explaining the Non-adoption of Blockchain Technology in Global Value Chains: a Micro-foundational Perspective

Blockchain as a general-purpose technology (GPT) thus has the potential to increase the effectiveness and efficiency of value creation for firm specific advantages owned and/or controlled by multinational enterprises (MNE), yet adoption of blockchain is uneven.

This study adopts a microfoundational lens to explain the non-adoption of blockchain technology in multinational enterprises’ (MNE) global value chains (GVC), emphasizing the influence of the technology, organization and environment (TOE) influences on the technology acceptance (TAM) for blockchain, due to the impact on managers’ perception of blockchain’s usefulness and ease of use.

The empirical results are based on a multiple-case study research design, that collected interview data from supply chain managers in small, medium, and large-sized manufacturing MNEs that participate in global value chains that differ in their governance patterns. The results identified fifteen different drivers of the non-adoption of blockchain technology across the technological, organizational and external environments of the MNE. The results of the study allow a parsimonious model of blockchain technology non-adoption that is aligned with the digital technology adoption literature using a TOE–TAM approach.

While blockchain is considered highly secure and reliable, more proof of blockchain’s capabilities is required for MNEs to be willing to invest. Especially in relational GVCs, captive GVCs, and hierarchical GVCs, blockchain could improve relationships and collaboration, mitigate the risk of opportunistic behavior through the use of smart contracts, and improve security overall. Thus blockchain experts should do more to develop exemplary use cases to communicate the potential of blockchain technology to potential adopters.