An experimental design of the blockchain business model using a soft system dynamics modeling approach

Abstract

PurposeThe growing discussion on blockchain and business models often falls short of demonstrating and evaluating systems consistently exposed to settings of dynamic complexity. Therefore, in practicing systems thinking, this study aims to provide a depiction of dynamic complexity in blockchain business models and develop policy-based scenarios to enhance blockchain-based systems behavior.Design/methodology/approachThis study integrated the soft system dynamic (SD) methodology approach, which focuses on a situation analysis and SDs in policy design. This single case study chose a firm engaged in the content industry, where the adoption of blockchains is a solution to tackle the industry’s significant challenges. Data were collected using a qualitative approach and then adapted into a simulation model.FindingsThe study pinpointed key parameters significantly affecting the system through a sensitivity analysis. Then, this experimental study found that all improvement initiatives delivered better system performance. At the same time, the study also identified counterintuitive findings, where the interventions using multiple value subsystems had insignificant effects on the system compared to a single advent.Originality/valueThis study illuminates the growing field of blockchain and business models through system modeling and experimentation, using an integrative approach like soft system dynamics methodology. It also identifies and demonstrates value distribution and the dynamic complexity inherent in the blockchain business model.