Abstract
This qualitative multiple case study explores the influence of blockchain technology on the chief financial officer (CFO) of an industrial company. Due to the advancing digitalization of business sectors and increasing competitive pressures, industrial companies are forced to promote their own digital transformation to sustain on the market. Here, the literature regards the CFO as a key corporate function to induce digitization initiatives within organizations. The blockchain technology, due to its features of transparency, immutability and cryptography combined with its ability to coordinate data flows of e.g., the Internet of Things (IoT) or Artificial Intelligence (AI), constitutes a suitable instrument for the CFO to meet the requirements of Industry 4.0. This paper provides a contribution to address existing research gaps regarding the application side of blockchain technology. Thus, the objective of this work is to provide corporate financial functions, such as the CFO of an industrial company, with an understanding of the extent to which blockchain technology can be used for the role-specific responsibilities. Therefore, the underlying qualitative study explores the influence of blockchain technology on the CFO-function of an industrial company. Thus, intending to address a research gap on the application side, it asks (1) What is the impact of blockchain technology on the financial as well strategic role of the CFO? (2) What is the impact of blockchain technology in convergence with the Machine Economy on the key performance indicators (KPIs) of the CFO? (3) What is the impact of blockchain-enabled integrated business ecosystems on the role of the CFO? Based on a review of literature, semi-structured expert interviews were conducted with 23 participants. Analysis of the responses demonstrated a considerable impact of blockchain technology on the CFO-function. The results indicate improvements of business processes in regard to efficiency and automation, a relocation of the CFO’s strategic role, improvements of CFO-relevant KPIs through integrating machines into payment networks as well as the emergence of integrated business ecosystems facilitating new forms of inter-organizational collaboration. Necessary prerequisites for adoption include digital competences of the CFO, appropriate organizational structures, digital currencies and identities on the blockchain, a change of the competitive mindset as well as standardized platforms with a neutral governance.
Highlights
The role of the chief financial officer (CFO) is not considered to be innovative
Research should primarily focus on corporate functions, such as the CFO, that can advance and facilitate a meaningful application of the blockchain technology
In addition to the considerable automation potential of business processes, the blockchain offers the CFO the opportunity to significantly enhance many of his role-specific key performance indicators
Summary
The role of the CFO is not considered to be innovative. His daily work is associated with balance sheets, cash flow analyses and Excel spreadsheets. With the advent of the blockchain technology, this perception could change and shift this financial corporate function towards a strategically operating innovation manager. This applies, in particular, to CFOs who operate in an industrial environment and are influenced by the Machine Economy. The blockchain technology serves as a key technology to facilitate the complete integration of data flow of all functions involved in the economic process of the future industrial period. The blockchain allows the automation of a firm’s accounting and payment processes through an integration of machines into payment networks, prospectively, by using digital representations of conventional currencies
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
