Blockchain and Supply Chains: V-Form Organisations, Value Redistributions, De-Commoditisation and Quality Proxies

Allen, DWE, Berg A and Markey-Towler, B (2019) ‘Blockchain and Supply Chains: V-form Organisations, Value Redistributions, De-commoditisation and Quality Proxies’, The Journal of the British Blockchain Association, vol. 2, No. 1, pp. 57-65.

28 Pages Posted: 28 Dec 2018 Last revised: 3 Aug 2019

See all articles by Darcy W E Allen

Darcy W E Allen

RMIT University

Alastair Berg

RMIT University - School of Economics, Finance and Marketing

Brendan Markey‐Towler

University of Queensland - School of Economics

Date Written: December 12, 2018

Abstract

In this paper we apply institutional cryptoeconomics to the information problems in global trade networks, model the incentives under which blockchain-based supply chain infrastructure will be built, and make predictions about the future of supply chain governance. We propose that blockchain will not simply make supply chains more efficient, but might fundamentally change the patterns and dynamics of how, where and what we trade by: (1) facilitating new forms of economic organisation governing supply chain coordination (e.g. the V-form organisation); (2) shifting economic power towards the ends of supply chains (e.g. primary producers) by decreasing information asymmetries; (3) de-commoditising goods and disaggregating price signals by changing the dimensions along which goods may be reliably differentiated; and (4) lowering reliance on proxies (e.g. production within national borders) for the quality of goods. We also discuss the policy implications of blockchain-based supply chain infrastructure.

Keywords: Blockchain, Institutional Cryptoeconomics, Supply Chain, Blockchain Trade, V-form Organisation

Suggested Citation

Allen, Darcy and Berg, Alastair and Markey‐Towler, Brendan, Blockchain and Supply Chains: V-Form Organisations, Value Redistributions, De-Commoditisation and Quality Proxies (December 12, 2018). Allen, DWE, Berg A and Markey-Towler, B (2019) ‘Blockchain and Supply Chains: V-form Organisations, Value Redistributions, De-commoditisation and Quality Proxies’, The Journal of the British Blockchain Association, vol. 2, No. 1, pp. 57-65.. Available at SSRN: https://ssrn.com/abstract=3299725 or http://dx.doi.org/10.2139/ssrn.3299725

Darcy Allen (Contact Author)

RMIT University ( email )

440 Elizabeth Street
Melbourne, 3000
Australia

Alastair Berg

RMIT University - School of Economics, Finance and Marketing ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

Brendan Markey‐Towler

University of Queensland - School of Economics ( email )

Brisbane, QLD 4072
Australia

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