How Blockchain Affects the Technological Strategy of the Financial Industry: An Analysis Based on Knowledge Discovery in Text
DOI:
https://doi.org/10.24023/FutureJournal/2175-5825/2020.v12i2.498Keywords:
Technology Strategy, Blockchain, Financial Industry, Knowledge Discovery in Text, Text MiningAbstract
Purpose – The main objective of this article is to investigate how blockchain is affecting the technological strategy of the financial industry.
Theoretical framework – Our theoretical framework is structured based on four approaches: Blockchain; Blockchain Advantages; Technology Strategy; Blockchain Technology Strategy.
Design/methodology/approach – We conducted an exploratory study using knowledge discovery in texts (KDT), with the support of text mining tools. We collected and analyzed contents of a set of news published on the Web about Blockchain. A total of 2,605 blockchain web news items were extracted from the business media worldwide, such as Forbes, Fortune, Financial Post and Business World. We explored the text dataset using sentiment analysis, opinion mining, text association analysis, and correspondence analysis.
Findings – The results showed that blockchain technology has the potential to affect the transactions through a common platform. Additionally, the results demonstrated the advantages of blockchain technology for cross-border payment systems.
Research, Practical & Social implications – We elaborate four theoretical propositions that may guide research and help practitioners to identify challenges and opportunities for blockchain technology.
Originality/value – Our study revealed how blockchain has been affecting the technology strategy of the financial industry and highlighted two starting trajectories: the establishment of private blockchain and its application in the cross-border payment services.
Downloads
References
Ali, R., Barrdear, J., Clews, R., & Southgate, J. (2014). Innovations in payment technologies and the emergence of digital currencies. Bank of England Quarterly Bulletin, Q3(3), 262–276.
Au, Y. A., & Kauffman, R. J. (2008). The economics of mobile payments: Understanding stakeholder issues for an emerging financial technology application. Electronic Commerce Research and Applications, 7(2), 141-164. doi:10.1016/j.elerap.2006.12.004
Barber S., Boyen X., Shi E., Uzun E. (2012). Bitter to Better — How to Make Bitcoin a Better Currency. In: Keromytis A. D. (eds) Financial Cryptography and Data Security. (pp. 399-414). Lecture Notes in Computer Science, vol 7397.
Carrick, J. (2016). Bitcoin as a complement to emerging market currencies. Emerging Markets Finance and Trade, 52(10), 2321-2334. doi: 10.1080/1540496X.2016.1193002
Clarke, K., Ford, D., Saren, M., & Thomas, R. (1995). Technology strategy in UK firms. Technology Analysis & Strategic Management, 7(2), 169–191. doi:10.1080/09537329508524203
Costanzo, L. A. (2004). Strategic foresight in a high-speed environment. Futures, 36(2), 219-235. doi:10.1016/S0016-3287(03)00145-9
de Meijer, C. R. (2016). The UK and Blockchain technology: A balanced approach. Journal of Payments Strategy & Systems, 9(4), 220-229.
Dhar, V. & Stein, R. M. (2017). FinTech platforms and strategy. Communications of the ACM, 60 (10), 32-35. doi: 10.1145/3132726
Feldman, R., & Dagan, I. (1995). Knowledge Discovery in Textual Databases (KDT). Proceedings of the First International Conference on Knowledge Discovery from Databases. KDD (Vol. 95, pp. 112-117).
Feldman, R., & Sanger, J. (2007). The Text Mining Handbook: advanced approaches in analyzing unstructured data. Cambridge, UK: Cambridge University Press.
Felin, T., & Lakhani, K. (2018). What problems will you solve with blockchain?. MIT Sloan Management Review, 60(1), 32-38.
Fellows, I. (2012). Wordcloud: Word clouds. R package version, 2, 109.
Ford, D. (1988). Develop your technology strategy. Long Range Planning, 21(5), 85-95. doi: 10.1016/0024-6301(88)90109-4
Gabor, D., & Brooks, S. (2017). The digital revolution in financial inclusion: international development in the fintech era. New Political Economy, 22(4), 423-436. doi: 10.1080/13563467.2017.1259298
Guo, Y., & Liang, C. (2016). Blockchain application and outlook in the banking industry. Financial Innovation, 2(1), 24. doi:10.1186/s40854-016-0034-9
Hair Jr., J.F., Black, W.C., Babin, B.J. & Anderson, R.E. (2010). Multivariate Data Analysis: A Global Perspective. 7th Edition. Upper Saddle River, NJ: Pearson Prentice Hall.
Halaburda, H. (2018). Economic and Business Dimensions Blockchain Revolution without the Blockchain? Communications of the ACM, 61 (7), 27-29. doi: 10.1145/3225619
Husain, Z. (2016). Technology strategy framework for firms in growing economies. Journal for Global Business Advancement, 9(3), 248-274. doi:10.1504/JGBA.2016.076723
Iansiti, M., & Lakhani, K. R. (2017). The truth about blockchain. Harvard Business Review, 95(1), 118-127.
Kabashkin I. (2017) Risk Modelling of Blockchain Ecosystem. In: Yan Z., Molva R., Mazurczyk W. & Kantola R. (eds) Network and System Security. (pp. 59-70). Lecture Notes in Computer Science, vol 10394. Basel, CH: Springer.
Lamport, L., Shostak, R., & Pease, M. (1982). The Byzantine Generals Problem. ACM Transactions on Programming Languages and Systems, 4(3), 382–401.
Lewis, R., McPartland, J., & Ranjan, R. (2017). Blockchain and financial market innovation. Economic Perspectives, 41(7), 2-12.
Li, Y., Spigt, R., & Swinkels, L. (2017). The impact of FinTech start-ups on incumbent retail banks’ share prices. Financial Innovation, 3(1), 26. doi: 10.1186/s40854-017-0076-7
Lindman, J., Rossi, M., & Tuunainen, V. K. (2017). Opportunities and risks of Blockchain Technologies – a research agenda. 50th Hawaii International Conference on System Sciences (HICSS 2017), 1533–1542.
Liu, B. (2010). Sentiment Analysis and Subjectivity. Handbook of Natural Nanguage Processing, 2(2010), 627-666.
Mainelli, M., & Smith, M. (2015). Sharing ledgers for sharing economies: an exploration of mutual distributed ledgers (aka blockchain technology). Journal of Financial Perspectives, 3(3), 38–58.
Mougayar, W. (2016). The business blockchain: promise, practice, and application of the next Internet technology. Hoboken, New Jersey: John Wiley & Sons.
Nakamoto S. (2008), Bitcoin: a peer-to-peer electronic cash system, Retrieved from http://bitcoin.org/bitcoin.pdf
Neyer, G., & Geva, B. (2017). Blockchain and payment systems: What are the benefits and costs? Journal of Payments Strategy & Systems, 11(3), 215-225.
Ondrus, J., & Pigneur, Y. (2009). Near field communication: an assessment for future payment systems. Information Systems and E-Business Management, 7(3), 347-361. doi:10.1007/s10257-008-0093-1
Rohrbeck, R., & Schwarz, J. O. (2013). The value contribution of strategic foresight: Insights from an empirical study of large European companies. Technological Forecasting and Social Change, 80(8), 1593-1606. doi:10.1016/j.techfore.2013.01.004
Rohrbeck, R., Battistella, C., & Huizingh, E. (2015). Corporate foresight: An emerging field with a rich tradition. Technological Forecasting and Social Change, 101, 1-9. doi:10.1016/j.techfore.2015.11.002
Sarpong, D., Maclean, M., & Alexander, E. (2013). Organizing strategic foresight: A contextual practice of ‘way finding’. Futures, 53, 33-41. doi: 10.1016/j.futures.2013.09.001
Shaw, N. (2014). The mediating influence of trust in the adoption of the mobile wallet. Journal of Retailing and Consumer Services, 21(4), 449–459. doi:10.1016/j.jretconser.2014.03.008
Slaughter, R. A. (1995). The Foresight Principle: Cultural Recovery in the 21st Century. Westport: Praeger.
Tan, A. H. (1999). Text mining: The state of the art and the challenges. Proceedings of the PAKDD - Workshop on Knowledge Discovery from Advanced Databases 8(sn) 65-70.
Tan, P. N., Steinbach, M., & Kumar, V. (2005). Association analysis: basic concepts and algorithms. In: Introduction to Data mining (Vol. 321321367). Boston, MA: Addison-Wesley.
Treiblmaier, H. (2018). The impact of the blockchain on the supply chain: a theory-based research framework and a call for action. Supply Chain Management: An International Journal, 23(6), 545-559. doi:10.1108/SCM-01-2018-0029
von der Gracht, H., Vennemann, C. R., & Darkow, I. L. (2010). Corporate foresight and innovation management: A portfolio-approach in evaluating organizational development. Futures, 42(4), 380-393. doi:10.1016/j.futures.2009.11.023
Xu, M., Chen, X., & Kou, G. (2019). A systematic review of blockchain. Financial Innovation, 5(1), 27. doi:10.1186/s40854-019-0147-z
Yermack, D. (2017). Corporate Governance and Blockchains. Review of Finance, 21(1), 7-31. doi:10.1093/rof/rfw074
Yli-Huumo, J., Ko, D., Choi, S., Park, S., & Smolander, K. (2016). Where is current research on blockchain technology? – a systematic review. PloS one, 11(10), e0163477. doi:10.1371/journal.pone.0163477
Yoo, S. (2017). Blockchain based financial case analysis and its implications. Asia Pacific Journal of Innovation and Entrepreneurship, 11(3), 312-321. doi:10.1108/APJIE-12-2017-036
Downloads
Published
How to Cite
Issue
Section
License
Authors who publish with this journal agree to the following terms:
1. Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
2. The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
3. The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
4. The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
5. Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 internacional, which allows the work to be shared with recognized authorship and initial publication in this journal.
6. Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
7. Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html
• 8. Authors are able to use ORCID is a system of identification for authors. An ORCID identifier is unique to an individual and acts as a persistent digital identifier to ensure that authors (particularly those with relatively common names) can be distinguished and their work properly attributed.
