Blockchain and the transformation of customer co-creation

Abstract

PurposeThe blockchain represents a seminal paradigm shift, likely to radically transform business in the future. While the paradigm associated with the World Wide Web and Big Data is focused on the “sharing of information,” the paradigm associated with blockchain is focused on the “sharing of assets.” Intellectual assets are among the most valuable of assets, and customer co-creation is a key approach for creating new value for firms. This paper aims to draw on blockchain-centric logic to develop an initial theoretical framework, with managerial recommendations, for the use of blockchain in customer co-creation.Design/methodology/approachBuilding upon established indigenous theory development and inductive realist approaches, the authors develop an original two-step methodology to create the initial theoretical framework. This methodology, involving foundational premises and propositions, is ideal for relatively new areas of research and is well suited to serve as a relatively faster catalyst for future research.FindingsDespite the substantial potential impact of blockchain in innovation, no theoretical foundation for blockchain in customer co-creation exists. To fill this gap, the authors present an initial theoretical framework, using blockchain-centric logic in customer co-creation. The proposed theoretical framework highlights how key prerequisites in customer co-creation, including trust, security, transparency, identity and immutability, can be enhanced with blockchain-centric logic.Originality/valueIt is hoped that the initial theoretical framework, based on blockchain-centric logic, can contribute to future academic research on blockchain in customer co-creation and help practitioners better exploit the blockchain in co-creation. Directions for future research, the larger agenda for this paper, are presented in the conclusion.