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

11 Pages Posted: 31 Dec 2018

See all articles by Chris Berg

Chris Berg

RMIT University - School of Economics, Finance and Marketing

Sinclair Davidson

RMIT University

Jason Potts

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)

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

Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

Sinclair Davidson

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Jason Potts

RMIT University ( email )

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