When organizations exchange information, there are risks for both sides: The organization providing the information could change it in order to gain advantages for itself (information manipulation). Conversely, there is a risk that the receiving organization could misuse confidential data by using it for purposes other than those agreed - to the detriment of the providing organization (information poaching).
Researchers' approach takes into account the needs of both parties
Under the title “And No One Gets the Short End of the Stick: A Blockchain-Based Approach to Solving the Two-Sided Opportunism Problem in Inter-Organizational Information Sharing”, Prof. Dr. Arne Buchwald and his colleagues present a solution to this dilemma. What is special about their approach is that while information manipulation and information theft have previously been treated separately, the researchers see both cases as two sides of the same coin and take the needs of both parties into account in their information system. This is because if possible measures only take effect on one side, this increases the opportunism of the other party, who will then, for example, no longer pass on sensitive data or no longer rely on information received. This undermines the potential for cooperation and may prevent value creation.
Less risk, greater willingness to cooperate
The researchers therefore designed and implemented an information system that is able to prevent both information manipulation and poaching. This is made possible by using information derived from sensitive data - without revealing the underlying data. In this way, organizations can also share data that they would otherwise consider too sensitive. Overall, this can increase the willingness of both organizations to rely on shared information and exchange confidential data.
Many other sectors beyond mechanical and plant engineering affected
Other potential areas of application for the solution include supply chain management, IT outsourcing and cooperation and competitive relationships (coopetition) between suppliers. For example, customers in supply networks are increasingly demanding certifications from suppliers along the entire supply chain. However, suppliers may be reluctant to provide detailed information because they fear that the customer is encroaching on their business area. In such cases, the information system developed can help to provide reliable proof of quality and compliance without disclosing more information than is absolutely necessary.
The study is rooted in the “Pay-per-Stress” research project funded by the Federal Ministry of Economics and Climate Protection (BMWK) (funding line: “Smart Data Economy”; funding reference: 01MD19011), which dealt with stress-oriented, data-based payment models in mechanical engineering. As part of the proof of concept, a system was developed and implemented in the manufacturing sector that facilitates leasing contracts for machine tools based on wear data. Several evaluations with technology and business experts confirmed the effectiveness of the solution. In addition, a large-scale industry survey in the manufacturing sector in Germany, Austria and Switzerland with 85 organizations that use machine tools and 77 lessors demonstrated the benefits of the solution (proof of value) even beyond the original application context.
Read the article
Lukas Florian Bossler; Arne Buchwald; Kai Spohrer (2024): And No One Gets the Short End of the Stick: A Blockchain-Based Approach to Solving the Two-Sided Opportunism Problem in Interorganizational Information Sharing. Information Systems Research 0(0).
Online: https://pubsonline.informs.org/doi/full/10.1287/isre.2022.0065
Contact
Prof. Dr. Arne Buchwald
