On V-form Firms: Governance, Cryptocurrency, and Internalization on the Blockchain

Abstract

Although the V-form organization has received attention in light of the integration of blockchain with processes in supply chains, analysis of a V-form organization as a firm in terms of its identity as legal entity has not been considered. Building on the concept of internalization, I reflect upon the efficiency increases the V-form firm can offer to supply chain members. V-form firms can support robust, decentralized markets that use cryptocurrency native to the blockchain with which the supply chain is integrated. Likewise, the V-form firm can provide property within the firm and which the firm is incentivized to protect from predatory intervention. I follow by considering the impact of the V-form firm on institutions adjacent the supply chain. The V-form firm stands to increase the level of competition in the realms of governance and monetary systems, either directly providing alternatives or indirectly influencing existing systems for which it may serve as substitute.

Keywords: Blockchain, Firms, Cryptocurrency, Organization, Institutions, Internalization

JEL Classification: L22, L23, L25, L26, P4