A Blockchain-based Inter-organisational Relationships: Social and Innovation Implications

This thesis addresses the need for empirical research into the social implications of algorithmic technologies, the lack of which stands in contrast to the increasing adoption of these technologies by contemporary businesses. One example of this trend is a blockchain-based autonomous contracting, also known as smart contracting, which autonomously executes actions when encoded conditions are satisfied. Not only do we know little about how inter-organisational relationships can change due to smart contracting, we also lack knowledge about the concrete factors that drive this transformation. While an emerging body of literature provides some evidence of positive associations between smart contracting and operational performance reflected in the reduction of transaction costs and improvement of transaction efficiency, research has yet to explore how these novel, technology-based governance mechanisms can affect relational resources, mainly social capital, often required to produce innovation performance. Therefore, by adopting the three-dimensional social capital perspective,

this thesis investigated the social and performance implications of smart contracting. Data collection first included gathering insights from field experts, using the Delphi method, followed by semi-structured interviews with executives of firms that either use this technology or facilitate its implementation. The findings revealed that smart contracting directly influences the formation dynamics and structure of inter-organisational social capital, which can subsequently contribute to innovation performance. It was however found that in the smart contracting settings, firms can possibly build external social capital comparatively quicker with positive outcomes without relying much on relational trust as traditionally assumed. Interestingly, system trust, as trust in technology, is found to be the key contextual factor, driving most aspects of inter-organisational collaborations. The main outcome of this research is an evidence-based process model that critically integrates factors influencing the relationship between inter-organisational social capital and innovation performance. This thesis therefore provides an empirical basis for grounding conceptual claims that shed light on the evolution of inter-organisational

relationships in the smart contracting settings. In this way, this thesis has made a step towards a better understanding of the social implications of algorithmic technologies in practice and contributed to the academic knowledge by proposing a viable theoretical model, which can inform effective inter organisational management in the modern, technology-dependent business environment.