Journal
INFORMATION & MANAGEMENT
Volume 59, Issue 7, Pages -Publisher
ELSEVIER
DOI: 10.1016/j.im.2022.103628
Keywords
Blockchain; Risk management; Opportunistic risk; Trust-evoking technology
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This study examines six successful cases of blockchain adoption in China and finds that applying blockchain technology can enhance risk management by controlling opportunistic risk. The study identifies credibility, predatory, and compliance risk as three distinct types of opportunistic risk in the unique socio-economic environment of China, and illustrates how blockchain can be leveraged to mitigate these risks.
The complexity and diversity of socio-economic environments call for a more nuanced consideration of contextualized risks confronting enterprises operating in these environments. By dissecting six cases that successfully adopted blockchain technology in China, we present findings of a grounded theory study into the deployment of blockchain for managing contextualized risks and opportunistic risks. Findings reveal that applying blockchain can augment risk management by controlling opportunistic risk, the latter of which denotes the variability arising from opportunistic practices of internal agents or external parties afforded by their immediate socio-economic environment. Particularly, we not only identify credibility, predatory, and compliance risk as three distinct types of opportunistic risk stemming from the unique socio-economic environment of China, but we also illustrate how blockchain could be leveraged to deal with such opportunistic risks through truste-voking mechanisms. We discovered that blockchain could evoke trust between individuals-to-organization, organization-to-organization, and organization-to-individuals by bolstering competency, fostering benevolence, and gauging integrity in individual, inter-organizational and intra-organizational contexts, respectively.
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