Outsourcing Vertical Integration: Distributed Ledgers and the V-Form Organisation

11 Pages Posted: 31 Dec 2018

See all articles by Chris Berg

Chris Berg

Royal Melbourne Institute of Technolog (RMIT University)

Sinclair Davidson

RMIT University

Jason Potts

Royal Melbourne Institute of Technolog (RMIT University)

Date Written: November 11, 2018

Abstract

This paper introduces the V-form organisation, a new form of firm organisation where vertical integration is outsourced to a decentralized distributed ledger (a blockchain). V-form organisations rely on the coordination of a (trusted) third party. It looks specifically at two instances of V-form organisation being established on the IBM-Linux Foundation Hyperledger permissioned blockchain. The paper concludes with four recommendations for strategic management about how to adjust to a V-form world, and four recommendations for policymakers.

Keywords: blockchain, supply chains, organisation theory

JEL Classification: D02, D23, D4, F1, F42, F6, L1, O3

Suggested Citation

Berg, Chris and Davidson, Sinclair and Potts, Jason, Outsourcing Vertical Integration: Distributed Ledgers and the V-Form Organisation (November 11, 2018). Available at SSRN: https://ssrn.com/abstract=3300506 or http://dx.doi.org/10.2139/ssrn.3300506

Chris Berg (Contact Author)

Royal Melbourne Institute of Technolog (RMIT University) ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Sinclair Davidson

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Jason Potts

Royal Melbourne Institute of Technolog (RMIT University) ( email )

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