Intermediary business models: using blockchain technology for intermediary businesses

PurposeThis study aims to complement the literature disparity regarding the practice of technology in intermediary business models, which is still limited. The discussions of this study comprise (1) the comprehension of intermediary business models through building block modification and (2) the crystallization of blockchain adoption for intermediary business models.Design/methodology/approachThis study encourages the development of a new canvas through the iteration between theories and empirical evidence of intermediary business models, including using blockchains in this model. The new canvas was developed referring to the system complexity of the intermediate business model and confirmed using a single case study. The case studied was ALKO, which drives its business value by adopting blockchain technology. A few data sources were used to produce robust findings in this study.FindingsThe new canvas can elucidate the intermediary business model with designated case studies. Blockchain technology significantly contributes to the intermediary business model, where this technology can influence the entire activity system. The technology is being adopted as a "creation" for the firm to realize the "proposition" offered and "capture" value. In this typical business model, this technology is applied to implement shared values such as traceability, authenticity and integrity of information. This business model shows firm activities as coherent and cohesive relationships between blocks.Research limitations/implicationsBlockchain technology strengthens intermediary business models through its unique features. This study also describes the role of this technology in a particular system through the development of an intermediary business model canvas using a descriptive study. The intensity of this technology on a typical business model is clearly explained in this study.Originality/valueThis research brings a novel value in developing a canvas for intermediary business models and confirms the role of blockchain technology in this business model. The canvas design was carried out systematically, including explaining the contributions of blockchains in detail.