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Outsourcing Vertical Integration: Distributed Ledgers and the V-Form Organisation

2018; RELX Group (Netherlands); Linguagem: Inglês

10.2139/ssrn.3300506

1556-5068

Chris Berg, Sinclair Davidson, Jason Potts,

Digital Platforms and Economics

This paper introduces the V-form organisation, a new form of firm organisation where vertical integration is outsourced to a decentralized distributed ledger (a blockchain). V-form organisations rely on the coordination of a (trusted) third party. It looks specifically at two instances of V-form organisation being established on the IBM-Linux Foundation Hyperledger permissioned blockchain. The paper concludes with four recommendations for strategic management about how to adjust to a V-form world, and four recommendations for policymakers.