Prof. Runhui Lin
Nankai University, China
From Technology to Infrastructure: Impact of Blockchain on Organization Governance
With the emergence and prevalence of blockchain, its importance on organization governance has been progressively coming into a head. Blockchain is a technical solution integrating multiple technologies such as distributed storage, encryption algorithm and consensus mechanism, which has the potential to provide a professional solution for overcoming the drawbacks in organizational governance. Thus blockchain shows it influence on organization and collaboration from a technological tool to a governance infrastructure. The core question addressed in this paper is how blockchain does revolutionize aspects of organization governance. To address this question, we systematically summarize the theoretical research and typical blockchain applications in the field of organization governance (enterprise governance, inter-firm governance, government governance and social governance). With the analysis of theory and practice, this paper sums up the four mechanisms of blockchain's effect on organization governance (security mechanism, consensus mechanism, trust mechanism, coordination mechanism), further sketches out the model of transaction upgrading of organization governance based on blockchain. Finally, the application challenges of blockchain in organization governance are analyzed from perspectives of organization, technology and context. The paper discusses the isomorphism of mechanism and consistency of goals between the functional structure of blockchain and process analysis of organization governance to demonstrate the potential for realizing “good governance” of organizations.
Keywords: Blockchain; Technological trust; Organization governance; Governance mechanism; Governance infrastructure; Transaction upgrading
Network Organizations and Governance, MultinationalCorporate Governance,Technologyand Innovation Management, IT Project Management, Analysis of ComplexOrganization Systems
Dr. Runhui Lin,Professor in organization andmanagementatNankai University, China；Deputy dean of BusinessSchool, Nankai University.Dr. Runhui Lin, is a Professor in organization and management ofBusiness School, Nankai University,andthe director of NetworkGovernance Center of China Academy of CorporateGovernance(CACG), theassociate director of Selten Laboratory ofNankai University(Named after and supported by Nobel prizewinner Reinhard Selten and devoted in the researches onexperimental economics and management). He is also a visitingscholar atHarvardUniversity(2004-2005), member of severalacademic associations both domestic and abroad, like Academy ofManagement(AOM), Association for Information Systems(AIS),researcher of several academic institutes and adviser of severalcorporations including UFIDA (UFsoft) Software Co. Ltd. He serves asthe peer reviewer of National Natural Science Foundation of China(NSFC), AOM annual meetingsand some top management journals inChina. He received his Ph.D. in Management Sciences. His researchfocuses onnetwork organizations and governance, corporategovernance of Chinese MNCs,technology(ICT)and innovationmanagement, system analysis of complexorganization systems andmanagement systems,andnetwork analysis methodology.