Blockchain technology applications in HRM
Creators: name: Iglesias, Patricia
Publisher: name: Torrens University Australia
Year: 2024
Subjects: classificationCode: 350503
subject: Human resources management

description: Blockchain technology is a disruptive technology that has been deployed mostly within the financial services sector, supply chain applications and is well known for its crypto currency use. However, when it comes to human resource management (HRM), it is still relatively unknown given the lack of successful examples and the uncertainty around its benefits for HRM applications. The objectives of this research are to explore the current and possible future use of blockchain technology in HRM applications, to investigate the enablers and the barriers of blockchain technology adoption and to develop a framework for blockchain technology applications in HRM functions. To achieve these objectives, a review of the impacts of the Fourth Industrial Revolution (4IR) on the changing nature of work and associated digital transformations provides context to the study and is followed by a thorough literature review on blockchain technology and HRM. As asserted by Lustenberger et al., (2021) available literature regarding blockchain adoption is still at an early stage. Likewise, Semenova (2020, p.26) concluded in her research on blockchain that there is “a shortage of empirical research investigations and the need for greater theory elaboration to accelerate the adoption process within organisations”. This research occurs within the context of the 4IR, which is heavily impacting the way in which businesses manage their activities (Fachrunnisa &amp; Hussain, 2020; Oswal et al., 2020; Bawany, 2016). Within this context, the concept of Smart Technology, Artificial Intelligence, Robotics and Algorithms (STARA) becomes important as it represents the technological advancements that arrived with the 4IR to disrupt and transform the way in which organisations operate (Brougham &amp; Haar, 2018; Lustenberger et al., 2021; Verina &amp; Titko state, 2019). The review of literature evidences a dearth of literature regarding blockchain technology applications in HRM, despite the emergence of algorithmic HRM. This research utilises a conceptual framework based on a model introduced by Lustenberger et al., (2021), the Blockchain Adoption Model (BAM) to guide the research. BAM is based on the Technology-Organisation-Environment (TOE) model and consists of these three contexts which are used to describe the different factors that affect blockchain’s adoption rates. Amongst these three contexts, some of the factors used to evaluate blockchain´s adoption rate are as follows: relative advantage, complexity, organisational readiness, senior management support, competition intensity and regulatory uncertainty. 6 This research was conducted using an interpretivist paradigm, as it enabled the researcher to subjectively analyse the human intentions and decisions (Babones, 2016; Saunders et al., 2019). The inductive approach was used to collect the data and later build a framework for blockchain technology adoptions in HRM. The research design utilised was a comparative case study along with a multi-method qualitative approach which employed semi-structured interviews and documentary analysis. Thematic analysis followed the ‘six-phase approach to coding and theme development’ conceived by Clarke et al., (2015). The key research findings point towards a general lack of awareness and understanding of blockchain technology and its potential applications in HRM, along with strong concerns related to digital trust, data protection and the risk of cyber security threats. In addition to this, participants wanted the assurance of a regulatory authority, and all felt they needed to see strong cases of the use of blockchain technology applications in HRM before they would consider any such deployment. The findings of this study have informed the development of a framework for organisations by providing valuable insights around key decision making in relation to blockchain technology adoptions in organisational settings and specifically in relation to HRM. This cutting-edge research emphasises the opportunity for the future use of blockchain technology for organisations in terms of strategic HRM decisions relating to workforce planning and the operational functions of HRM area with regards to improving their processes, and increasing efficiencies and productivity. Furthermore, it encourages future research into blockchain technology with regards to HRM from a longitudinal perspective that enables research to evaluate the evolution of blockchain technology applications in HRM over the time.