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How does blockchain technology enhance firm operation and cooperation?

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  • Huang, Lingyu
  • Zhou, Tingyuan

Abstract

As a new disruptive technology, blockchain is widely regarded as one of the most promising digital technologies. Existing research, however, offers limited empirical evidence of the impact of blockchain technology on corporate business processes. We conduct empirical analysis based on the panel data of A-Share listed firms in China. We find that blockchain investment significantly enhances operational business processes and supply chain management. This finding is robust to a battery of robustness checks. We also find that the impact of blockchain investment is more substantial when blockchain implementation enters a mature stage. Additional cross-sectional tests show that the impact of blockchain investment mainly concentrates on firms with higher operational complexity, better capability to adopt new technology, and larger innovation inputs. Overall, based on the results of the empirical analysis, this paper provides significant implications for firms to construct blockchain projects in the future.

Suggested Citation

  • Huang, Lingyu & Zhou, Tingyuan, 2024. "How does blockchain technology enhance firm operation and cooperation?," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 34-49.
    • Handle: RePEc:eee:reveco:v:92:y:2024:i:c:p:34-49
    DOI: 10.1016/j.iref.2024.01.049
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    More about this item

    Keywords

    Blockchain; Blockchain investment; Business operation; Organizational collaboration; Inventory management; Supply chain management;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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