Contextualizing the impact of blockchain technology on the performance of new firms: The role of corporate governance as an intermediate outcome

Abstract

The modern digitalization trends have totally transformed business practices and business models. Blockchain as a distributed technology makes possible the basic structure of a database with a combination of data blocks and hash chains. Using distributed software architecture and advanced computation, blockchain might change the method of data exchange among chain actors. Blockchain causes administration of a network in peer-to-peer and decentralized form; and influences the way of data exchange and interactions in organizations; hence, this study looks for evaluation of the impact of blockchain technology on corporate performance and governance of new firms. In the first section of the study, the research conceptual model was extracted by means of the previous studies and the hypotheses were formulated. In the second section, the relationships between the variables of the model among newly-established active business were assessed. The statistical population of the study was managers of SMEs in Iran and 397 completed questionnaires were received. Structural equation model and Smart PLS software have been used for data analysis. The research findings showed that the more the blockchain adoption in a new firm; the more direct effect it would have on the firm's performance. Similarly, corporate governance has an effect on the relationship of blockchain technology on corporate performance. Thus, managers of new firms by means of blockchain, can prepare the grounds for good corporate governance as well as the achievement of better performance.