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

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