Toward a new Theory of the Firm: Warrant, Design and Proposal

• In this paper, we posit that blockchain technology and its application challenge the foundations of existing theories of the firm. Utilizing transaction cost economics as a point of reference, we explore how said theory grows obsolete with increasing blockchain adoption and how new theory is needed. At the core of our argument lies the diminution of transaction costs and its effect on the principles of scarcity, boundaries, motivation, size and returns. The paper identifies propositions where blockchain challenges the prevailing theory of the firm. These propositions are used as design criteria for future research agenda intended to contribute toward a new theory of the firm. Four design experiments utilizing application of blockchain are presented as a suggestion for future research.

Subject headings

SAMHÄLLSVETENSKAP  -- Medie- och kommunikationsvetenskap -- Systemvetenskap, informationssystem och informatik med samhällsvetenskaplig inriktning (hsv//swe)

SOCIAL SCIENCES  -- Media and Communications -- Information Systems, Social aspects (hsv//eng)

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

TEKNIK OCH TEKNOLOGIER  -- Elektroteknik och elektronik -- Datorsystem (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Electrical Engineering, Electronic Engineering, Information Engineering -- Computer Systems (hsv//eng)

NATURVETENSKAP  -- Data- och informationsvetenskap -- Systemvetenskap, informationssystem och informatik (hsv//swe)

NATURAL SCIENCES  -- Computer and Information Sciences -- Information Systems (hsv//eng)

Keyword

Blockchain

theory of the firm

transaction cost economics

Publication and Content Type

vet (subject category)

kon (subject category)