From Bit Valley to Bitcoin: The NASDAQ Odyssey

Global Journal of Business Research Vol. 11, No. 1, 2017, pp. 85-103

19 Pages Posted: 15 Nov 2017

See all articles by Mark M. Lennon

Mark M. Lennon

Pennsylvania State University

Daniel Folkinshteyn

Rowan University - Accounting & Finance

Date Written: 2017

Abstract

Over the past 15 years, NASDAQ, the world’s first all-electronic stock exchange, has actively engaged in efforts to serve the global digital economy by expanding its reach beyond its original domestic U.S. market. They have attempted to create a global 24/7 trading platform, to serve customers in the U.S., Japan, and Europe. These efforts have met with varying degrees of success. More recently, the renamed NASDAQ OMX Group has been experimenting with the disruptive fintech (financial technology) Bitcoin and its underlying technology blockchain to develop robust trading solutions, which drastically reduce transaction and record keeping costs. In this paper we analyze the various approaches taken by NASDAQ in its expansion ventures. We describe the similarities and differences in these undertakings, in order to identify successful strategies for firms who desire to increase the quality of their products while increasing efficiency and reducing the costs of their services. Drawing upon the strategy literature, we also develop theoretical models on how markets operate, and derive a series of propositions about the interplay between technology and markets.

Keywords: Bitcoin, Blockchain, NASDAQ, Stock Exchanges, Markets, Disruption

JEL Classification: M16, F23

Suggested Citation

Lennon, Mark M. and Folkinshteyn, Daniel, From Bit Valley to Bitcoin: The NASDAQ Odyssey (2017). Global Journal of Business Research Vol. 11, No. 1, 2017, pp. 85-103. Available at SSRN: https://ssrn.com/abstract=3025751

Mark M. Lennon (Contact Author)

Pennsylvania State University ( email )

1431 12th Ave
211 Aaron Building
Altoona, PA 16601-3760
United States

HOME PAGE: http://www.markphd.com

Daniel Folkinshteyn

Rowan University - Accounting & Finance ( email )

Glassboro, NJ 08028
United States

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