What is it about?

This article aims to provide a conceptual framework for small and medium-sized enterprises (SMEs) to evaluate the appropriation of blockchain technology for their business needs and challenges. The present paper conceptualizes an appropriation framework within nine factors namely, reduction of costs, internalization, digital representation of assets, unalterable data recording, network size, transparent and synchronized ledger, scalability, fair trade, and financing.

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Why is it important?

This conceptual framework aims to respond to the problem of increasing speculations surrounding the blockchain that is considered to be an absolute and innovative solution to many business-related problems. However, this argument might not be realistic for SMEs despite this assumption. The main argument of the article is that SMEs should be sceptical while evaluating the appropriation of this technology for their business needs and they should follow a tailored approach whilst adopting it. Otherwise, the likelihood is high that a short-term and unstructured knowledge management process to adopt blockchain will end up with a waste of resources.

Perspectives

Despite growing interest in adopting the blockchain technology, the lack of a clear roadmap in the adaptation of this technology raises significant confusion whether the Distributed Ledger Technologies (DLT’s) are an appropriate technology for businesses that have an intention to use it. Even though this technology is considered applicable to bigger firms, i.e. those having strong knowledge management capabilities and relying on both their financial and human resources; appropriateness of this technology to SMEs that often suffer from resource constraints is a significant question that needs to be answered considering their impact on the prosperity of countries. In this respect, this study aims to develop a conceptual roadmap for SMEs whether DLTs are an appropriate technology to respond to their needs. This comprehensive conceptual framework to make it easier for owners or owner-managers of SMEs to evaluate the suitability of DLTs for their present and future business challenges.

Dr Ethem Ilbiz
University of South Wales

Read the Original

This page is a summary of: The Appropriation of Blockchain for Small and Medium-sized Enterprises, Journal of Innovation Management, May 2019, Faculdade de Engenharia - Universidade do Port,
DOI: 10.24840/2183-0606_007.001_0004.
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