Outsourcing Vertical Integration: Distributed Ledgers and the V-Form Organisation
11 Pages Posted: 31 Dec 2018
Date Written: November 11, 2018
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
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