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Exploring the Sustainability of the Intermediary Role in Blockchain

Author

Listed:
  • Cheng-Te Tseng

    (Department of Management Information Systems, National Chengchi University, Taipei 11605, Taiwan)

  • Shari S. C. Shang

    (Department of Management Information Systems, National Chengchi University, Taipei 11605, Taiwan)

Abstract

Traditional business models involve cost, market development, distribution channels, business partnerships, and supply chain management. The development of the digital economy and digital network technology has engendered a shift away from the traditional model of operation. Intermediaries have long played an essential role in promoting the benefits of economic activities, but new technology is increasingly replacing intermediaries in their roles of connecting players, such as, involving, committing, and mobilizing players. Potential conflicts of interest must therefore be further resolved, avoided, or mitigated. Blockchain technology, as a tool for keeping immutable and digital records, can address increasingly complex issues in global value chains to pursue sustainable development. It attempts to realize the trust mechanism and has been redefining the function of intermediaries. This study used a multiple-case study approach to examine how blockchain technology affects intermediate functionality. We evaluated the industry’s use of blockchains to assess how the processes were reshaped and how the intermediary roles were refined. On the basis of the findings, we propose three potential changes for the roles of intermediaries to improve operational efficiency.

Suggested Citation

  • Cheng-Te Tseng & Shari S. C. Shang, 2021. "Exploring the Sustainability of the Intermediary Role in Blockchain," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:4:p:1936-:d:497820
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    References listed on IDEAS

    as
    1. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    2. Augusto Hasman & Margarita Samartin & Jos van Bommel, 2010. "Financial Intermediaries and Transaction Costs," Documents de Travail de l'OFCE 2010-02, Observatoire Francais des Conjonctures Economiques (OFCE).
    3. Karine Perset, 2010. "The Economic and Social Role of Internet Intermediaries," OECD Digital Economy Papers 171, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Simon Wong & John-Kun-Woon Yeung & Yui-Yip Lau & Joseph So, 2021. "Technical Sustainability of Cloud-Based Blockchain Integrated with Machine Learning for Supply Chain Management," Sustainability, MDPI, vol. 13(15), pages 1-20, July.
    2. Büşra Ayan & Elif Güner & Semen Son-Turan, 2022. "Blockchain Technology and Sustainability in Supply Chains and a Closer Look at Different Industries: A Mixed Method Approach," Logistics, MDPI, vol. 6(4), pages 1-39, December.
    3. Shekhar Rathor & Mingyu Zhang & Taehoon Im, 2023. "Web 3.0 and Sustainability: Challenges and Research Opportunities," Sustainability, MDPI, vol. 15(20), pages 1-17, October.
    4. Zhen Liu & Tzuhui Wu & Fenghong Wang & Mohamed Osmani & Peter Demian, 2022. "Blockchain Enhanced Construction Waste Information Management: A Conceptual Framework," Sustainability, MDPI, vol. 14(19), pages 1-35, September.
    5. Albérico Travassos Rosário & Joana Carmo Dias, 2023. "The New Digital Economy and Sustainability: Challenges and Opportunities," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    6. Kongmanas Yavaprabhas & Mehrdokht Pournader & Stefan Seuring, 2023. "Blockchain as the “trust-building machine” for supply chain management," Annals of Operations Research, Springer, vol. 327(1), pages 49-88, August.
    7. Zhen Liu & Zulan Yang & Mingjie Liang & Yi Liu & Mohamed Osmani & Peter Demian, 2022. "A Conceptual Framework for Blockchain Enhanced Information Modeling for Healing and Therapeutic Design," IJERPH, MDPI, vol. 19(13), pages 1-27, July.

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