Value Creation in Cryptocurrency Networks: Towards a Taxonomy of Digital Business Models for Bitcoin Companies

Erol Kazan, Chee-Wee Tan, Eric T. K. Lim

    Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

    Abstract

    Cryptocurrency networks have given birth to a diversity of start-ups and attracted a huge influx of venture capital to invest in these start-ups for creating and capturing value within and between such networks. Synthesizing strategic management and information systems (IS) literature, this study advances a unified theoretical framework for identifying and investigating how cryptocurrency companies configure value through digital business models. This framework is then employed, via multiple case studies, to examine digital business models of companies within the bitcoin network. Findings suggest that companies within the bitcoin network exhibits six generic digital business models. These six digital business models are in turn driven by three modes of value configurations with their own distinct logic for value creation and mechanisms for value capturing. A key finding of this study is that value-chain and value-network driven business models commercialize their products and services for each value unit transfer, whereas commercialization for value-shop driven business models is realized through the subsidization of direct users by revenue generating entities. This study contributes to extant literature on value configurations and digital businesses models within the emerging and increasingly pervasive domain of cryptocurrency networks.
    Cryptocurrency networks have given birth to a diversity of start-ups and attracted a huge influx of venture capital to invest in these start-ups for creating and capturing value within and between such networks. Synthesizing strategic management and information systems (IS) literature, this study advances a unified theoretical framework for identifying and investigating how cryptocurrency companies configure value through digital business models. This framework is then employed, via multiple case studies, to examine digital business models of companies within the bitcoin network. Findings suggest that companies within the bitcoin network exhibits six generic digital business models. These six digital business models are in turn driven by three modes of value configurations with their own distinct logic for value creation and mechanisms for value capturing. A key finding of this study is that value-chain and value-network driven business models commercialize their products and services for each value unit transfer, whereas commercialization for value-shop driven business models is realized through the subsidization of direct users by revenue generating entities. This study contributes to extant literature on value configurations and digital businesses models within the emerging and increasingly pervasive domain of cryptocurrency networks.
    LanguageEnglish
    Title of host publicationPACIS 2015 Proceedings
    EditorsAtreyi Kankanhalli, Andrew Burton Jones, Teo Thompson
    Number of pages15
    Place of PublicationAtlanta, GA
    PublisherAssociation for Information Systems. AIS Electronic Library (AISeL)
    Date2015
    Article number34
    StatePublished - 2015
    EventThe 19th Pacific Asia Conference on Information Systems. PACIS 2015 - Marine Bay Sands, Singapore
    Duration: 5 Jul 20159 Jul 2015
    Conference number: 19
    http://pacis2015.comp.nus.edu.sg/

    Conference

    ConferenceThe 19th Pacific Asia Conference on Information Systems. PACIS 2015
    Number19
    LocationMarine Bay Sands
    CountrySingapore
    Period05/07/201509/07/2015
    Internet address

    Keywords

    • Digital business models
    • Value configuration
    • Cryptocurrency
    • Bitcoin
    • Value networks

    Cite this

    Kazan, E., Tan, C-W., & Lim, E. T. K. (2015). Value Creation in Cryptocurrency Networks: Towards a Taxonomy of Digital Business Models for Bitcoin Companies . In A. Kankanhalli, A. Burton Jones, & T. Thompson (Eds.), PACIS 2015 Proceedings [34] Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL).
    Kazan, Erol ; Tan, Chee-Wee ; Lim, Eric T. K./ Value Creation in Cryptocurrency Networks : Towards a Taxonomy of Digital Business Models for Bitcoin Companies . PACIS 2015 Proceedings. editor / Atreyi Kankanhalli ; Andrew Burton Jones ; Teo Thompson. Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2015.
    @inproceedings{792446f39e534aeaa177a6a17e22952f,
    title = "Value Creation in Cryptocurrency Networks: Towards a Taxonomy of Digital Business Models for Bitcoin Companies",
    abstract = "Cryptocurrency networks have given birth to a diversity of start-ups and attracted a huge influx of venture capital to invest in these start-ups for creating and capturing value within and between such networks. Synthesizing strategic management and information systems (IS) literature, this study advances a unified theoretical framework for identifying and investigating how cryptocurrency companies configure value through digital business models. This framework is then employed, via multiple case studies, to examine digital business models of companies within the bitcoin network. Findings suggest that companies within the bitcoin network exhibits six generic digital business models. These six digital business models are in turn driven by three modes of value configurations with their own distinct logic for value creation and mechanisms for value capturing. A key finding of this study is that value-chain and value-network driven business models commercialize their products and services for each value unit transfer, whereas commercialization for value-shop driven business models is realized through the subsidization of direct users by revenue generating entities. This study contributes to extant literature on value configurations and digital businesses models within the emerging and increasingly pervasive domain of cryptocurrency networks.",
    keywords = "Digital business models, Value configuration , Cryptocurrency, Bitcoin , Value networks , Digital business models, Value configuration , Cryptocurrency, Bitcoin , Value networks",
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    booktitle = "PACIS 2015 Proceedings",
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    Kazan, E, Tan, C-W & Lim, ETK 2015, Value Creation in Cryptocurrency Networks: Towards a Taxonomy of Digital Business Models for Bitcoin Companies . in A Kankanhalli, A Burton Jones & T Thompson (eds), PACIS 2015 Proceedings., 34, Association for Information Systems. AIS Electronic Library (AISeL), Atlanta, GA , Singapore, 05/07/2015.

    Value Creation in Cryptocurrency Networks : Towards a Taxonomy of Digital Business Models for Bitcoin Companies . / Kazan, Erol; Tan, Chee-Wee; Lim, Eric T. K.

    PACIS 2015 Proceedings. ed. / Atreyi Kankanhalli; Andrew Burton Jones; Teo Thompson. Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2015. 34.

    Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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    N2 - Cryptocurrency networks have given birth to a diversity of start-ups and attracted a huge influx of venture capital to invest in these start-ups for creating and capturing value within and between such networks. Synthesizing strategic management and information systems (IS) literature, this study advances a unified theoretical framework for identifying and investigating how cryptocurrency companies configure value through digital business models. This framework is then employed, via multiple case studies, to examine digital business models of companies within the bitcoin network. Findings suggest that companies within the bitcoin network exhibits six generic digital business models. These six digital business models are in turn driven by three modes of value configurations with their own distinct logic for value creation and mechanisms for value capturing. A key finding of this study is that value-chain and value-network driven business models commercialize their products and services for each value unit transfer, whereas commercialization for value-shop driven business models is realized through the subsidization of direct users by revenue generating entities. This study contributes to extant literature on value configurations and digital businesses models within the emerging and increasingly pervasive domain of cryptocurrency networks.

    AB - Cryptocurrency networks have given birth to a diversity of start-ups and attracted a huge influx of venture capital to invest in these start-ups for creating and capturing value within and between such networks. Synthesizing strategic management and information systems (IS) literature, this study advances a unified theoretical framework for identifying and investigating how cryptocurrency companies configure value through digital business models. This framework is then employed, via multiple case studies, to examine digital business models of companies within the bitcoin network. Findings suggest that companies within the bitcoin network exhibits six generic digital business models. These six digital business models are in turn driven by three modes of value configurations with their own distinct logic for value creation and mechanisms for value capturing. A key finding of this study is that value-chain and value-network driven business models commercialize their products and services for each value unit transfer, whereas commercialization for value-shop driven business models is realized through the subsidization of direct users by revenue generating entities. This study contributes to extant literature on value configurations and digital businesses models within the emerging and increasingly pervasive domain of cryptocurrency networks.

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    Kazan E, Tan C-W, Lim ETK. Value Creation in Cryptocurrency Networks: Towards a Taxonomy of Digital Business Models for Bitcoin Companies . In Kankanhalli A, Burton Jones A, Thompson T, editors, PACIS 2015 Proceedings. Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL). 2015. 34.