Blockchain technology has the potential to drive product innovation in various industries. This emerging technology is an important enabler of the next generation of new ventures. Our study examines the effects of the business model designs of blockchain-based entrepreneurial firms on the scope of product innovation, including disruptive innovation and adoptive innovation. To test this relationship, we conduct a survey to collect data from 159 blockchain-based ventures. The findings indicate that the novel business model strongly entices disruptive innovation but does not influence adoptive product innovation. The results also indicate that the efficient business model strongly encourages adoptive product innovation, but strongly discourages disruptive product innovation. Further, our analysis shows that the firm's disruptive technological capability strengthens the positive relationship between the novel business model and disruptive product innovation but weakens the positive relationship of design efficiency with adoptive innovation. Additionally, we found that the disruptive technological capability strongly entices blockchain-based entrepreneurial firms to favor disruptive product innovation over adoptive product innovation.
Recently, as a disruptive technology, blockchain technology has had a significant effect on the facilitation of business development and industry revolution (Abdel-Basset et al., 2020; Chang, 2018; Chang et al., 2020a; Choi et al., 2019; Dolgui et al., 2020; Frizzo-Barker et al., 2020; Kaur et al., 2018; Saberi et al., 2019; Zhu and Kouhizadeh, 2019). Blockchain technology is often defined as a platform that is used to execute smart contracts, cryptocurrencies, and other elements of supply chain management, marketing, and finance (Ahluwalia et al., 2020; Baym et al., 2019; Ma et al., 2020). Applications of blockchain technologies have the potential to revolutionize various industries through driving product transformations, such as disruptive and adoptive product innovations (Ahluwalia et al., 2020; de Soto, 2017; Chang et al, 2020b; Kimani et al., 2020; Larson and Chang, 2016).
5. Discussion and conclusion
We have examined the effects of business model design, namely, design novelty and design efficiency, on blockchain entrepreneurial firms’ blockchain-based disruptive product innovation and adoptive product innovation and we have made three significant theoretical contributions. First, we have advanced the literature on business model designs and firm innovation performance by specifically discussing the scope of product innovation newness. While the literature has previously discussed the contingent effects of design novelty and design efficiency on product development performance, such as the speed of new product development (e.g., Zhu et al., 2019), we have highlighted the importance of considering the heterogeneity of new product development (P´erez-Luno ˜ et al., 2011) by differentiating the effects of design novelty and design efficiency on disruptive product innovation and adoptive product innovation. This consideration of the dual nature of product innovation activities addresses the call from P´erez-Luno ˜ et al. (2011). We have linked the dual nature of product innovation (disruptive product innovation and adoptive product innovation) to the dual nature of business model designs (novelty and efficiency).