Blockchain and Open Innovation for SMEs: Analytical framework and decision model
Keywords:
SMEs, blockchain, open innovation, transaction costsAbstract
Due to their lack of internal resources, SMEs are the companies that have the most to gain from engaging in an open innovation (OI) process. However, and in particular because of their vulnerability to opportunistic behaviors, these companies also experience the largest difficulties in implementing OI. In this regard, Blockchain technology presents interesting properties that could help SMEs to protect themselves from opportunism and costs arising from OI. This article aims to analyze the possible impact of Blockchain on SMEs in the context of OI. We conduct a theoretical analysis that shows that Blockchain has a positive impact on market-based OI processes and in collaborative OI involving well-defined sets of tasks and codified knowledge. However, Blockchain appears to be less suited for OI processes implying tacit knowledge and uncertain research outcomes. We also derive results concerning trust and the potential role of intermediaries. Finally, we propose a decision model for SMEs which considers the implementation of Blockchain in an OI setting.
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