Hakkarainen, Tuuli 
ORCID: 0000-0002-3144-9236, Colicev, Anatoli ORCID: 0000-0002-3311-8334 and Pedersen, Torben ORCID: 0000-0001-7541-9365
(2024)
A perspective on three trade‐offs of blockchain technology for the global strategy of the MNC.
Global Strategy Journal, 14 (3).
pp. 635-654.
ISSN 2042-5791, 2042-5805
|
PDF
Hakkarainen 2024.pdf - Open Access published version Download (1MB) | Preview |
Abstract
<jats:title>Abstract</jats:title><jats:sec><jats:title>Research Summary</jats:title><jats:p>New technology plays a key role in shaping the global strategy of the MNC. We propose a perspective on how and why a novel technological development—blockchain technology—and its relevant applications affect the global strategy of the MNC. We focus on the trade‐offs associated with cryptocurrencies, smart contracts, and blockchain data, and provide several real‐world examples. While cryptocurrencies could lower financial costs and broaden consumers' payment options, they require new investments in cybersecurity and payment infrastructure. Smart contracts could increase trust in collaboration due to their automated, transparent, and inflexible rules, but their rigidity can harm collaboration. Finally, while blockchain data can enhance the MNC's analytics capabilities, it can also jeopardize consumer privacy.</jats:p></jats:sec><jats:sec><jats:title>Managerial Summary</jats:title><jats:p>Is blockchain technology all hype or a useful advancement for global firms? We propose that this technology has merits and drawbacks for financial transactions, collaboration, and data analytics. Cryptocurrencies have stolen the headlines and several leading organizations have already added them as payment methods. Their merits include lower transaction fees, better security, and higher speed, but they require expensive infrastructure and carry a stigma. Smart contracts can streamline agreements between parties but lack the flexibility that global firms need when interacting with suppliers and partners. Novel blockchain data can be plugged into marketing dashboards but can also threaten consumer privacy. Overall, the jury is still out on the role of blockchain technology for global firms.</jats:p></jats:sec>
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | 35 Commerce, Management, Tourism and Services, Bioengineering, 9 Industry, Innovation and Infrastructure |
| Divisions: | Faculty of Humanities and Social Sciences > School of Management |
| Depositing User: | Symplectic Admin |
| Date Deposited: | 12 Jun 2024 08:45 |
| Last Modified: | 18 Apr 2025 17:21 |
| DOI: | 10.1002/gsj.1509 |
| Related Websites: | |
| URI: | https://livrepository.liverpool.ac.uk/id/eprint/3182151 |
Altmetric
Altmetric