Selected publications
Böhmecke-Schwafert, M. (2024): The role of blockchain for trade in global value chains: A systematic literature review and guidance for future research. Telecommunication Policy, 102835, https://doi.org/10.1016/j.telpol.2024.102835, Open Access
Abstract: Blockchain technology has received increasing attention from academia, practitioners, and policymakers alike for its potential to disrupt business processes and structures of trade in global value chains (GVC). Amidst the ongoing digitization of economies and societies, blockchain holds promise for addressing unresolved challenges. However, current research on this topic primarily consists of either abstract conceptual work or case studies. To bridge this gap, our study conducts a systematic literature review, aiming to comprehensively explore and structure the realm of blockchain and its impact on international trade. Key research questions explored include: What role do blockchain innovations play in facilitating trade within GVC? Additionally, what are the primary barriers hindering the adoption of blockchain innovations in trade within GVC? Our main contribution lies in categorizing these applications into five distinct categories: Trade Documents; Trade Finance; Trusted Real-Time Information Sharing; Provenance; and Sustainable GVC. Contrary to portraying blockchain innovations as a panacea or universal solution, our findings highlight the technologies’ potential rather as a core technological infrastructure when integrated with complementary technologies such as the Internet of Things. Moreover, we identify 11 significant barriers to blockchain adoption in international trade, underscoring the need for concerted efforts to address them. From these insights, we derive implications for policymakers and practitioners, and propose avenues for future interdisciplinary research. ***
Böhmecke-Schwafert, M., Dörries, C. (2023): Measuring Innovation in Mauritius’ ICT Sector Using Unsupervised Machine Learning: A Web Mining and Topic Modeling Approach. Journal of the Knowledge Economy, https://doi.org/10.1007/s13132-023-01587-0, Open Access
Abstract: Measuring innovation accurately and efficiently is crucial for policymakers to encourage innovation activity. However, the established indicator landscape lacks timeliness and accuracy. In this study, we focus on the country of Mauritius that is transforming its economy towards the information and communication technology (ICT) sector. We seek to extend the knowledge base on innovation activity and the status quo of innovation in Mauritius by applying an unsupervised machine learning approach. Building on previous work on new experimental innovation indicators, we combine recent advances in web mining and topic modeling and address the following research questions: What are potential areas of innovation activity in the ICT sector of Mauritius? Furthermore, do web mining and topic modeling provide sufficient indicators to understand innovation activities in emerging countries? To answer these questions, we apply the natural language processing (NLP) technique of Latent Dirichlet Allocation (LDA) to ICT companies’ website text data. We then generate topic models from the scraped text data. As a result, we derive seven categories that describe the innovation activities of ICT firms in Mauritius. Albeit the model approach fulfills the requirements for innovation indicators as suggested in the Oslo Manual, it needs to be combined with additional metrics for innovation, for example, with traditional indicators such as patents, to unfold its potential. Furthermore, our approach carries methodological implications and is intended to be reproduced in similar contexts of scarce or unavailable data or where traditional metrics have demonstrated insufficient explanatory power.
Böhmecke-Schwafert, M., Blind, K. (2023): The trade effects of product market regulation in global value chains: evidence from OECD and BRICS countries between 2000 and 2015. Empirica 50, pp. 441–479. https://doi.org/10.1007/s10663-023-09574-z, Open Access
Abstract: Global Value Chains (GVC) have reshaped the landscape of international trade. The quality and intensity of regulation significantly impacts firms’ competitiveness and their ability to engage in GVC. Economic literature suggests that regulation of product market competition has a detrimental effect on trade by decreasing productivity, innovation, and economic growth. This paper expands existing knowledge on this relationship by examining the influence of product market regulation (PMR) on value-added trade flows in an augmented gravity model. We constructed a data panel with trade data from 40 OECD and BRICS countries in the period from 2000 to 2015 and combined it with an extensive multi-level indicator set on PMR developed by the OECD. By disentangling the PMR indicators, we account for the heterogeneity of regulation and potential different trade effects. Overall, our evidence suggests that PMR has a negative impact on trade. Further, our results indicate that the negative impact stems largely from barriers to trade and investment. For the BRICS, our results suggest the contrary: We observed an overall positive trade effect of PMR, mainly driven by barriers to trade and investment. Our results support identifying policy areas in which regulatory reform can improve the integration in GVC and emphasize different approaches to economic policy, particularly in emerging economies such as the BRICS. Moreover, the results underline the detrimental effects of increasing protectionism and tariff hikes, a phenomenon that we increasingly observe in recent years from the world’s largest economies, such as the United States and China.
Böhmecke-Schwafert, M., García Moreno E. (2023): Exploring blockchain-based innovations for economic and sustainable development in the global south: A mixed-method approach based on web mining and topic modeling, Technological Forecasting and Social Change, vol. 191, June 2023, 122446 https://doi.org/10.1016/j.techfore.2023.122446
Abstract: Information and Communication Technologies such as blockchain can significantly contribute to achieving the Sustainable Development Goals (SDGs) in the Global South (GS). Grounded in the innovation forecasting literature, this paper explores blockchain-based innovations and research in the context of economic and sustainable development to answer the following research questions: what is the status quo of blockchain innovations and research in the Global South?; and further, how can blockchain innovations contribute to economic and sustainable development? We follow a mixed-method approach based on web mining and topic modeling with unstructured empirical data on blockchain innovators from Crunchbase, their websites, and academic publications to address these research questions. Our results indicate that blockchain innovators already engage in various application areas beyond the financial sector, addressing critical development issues. However, the empirical data on blockchain research and innovations suggests a largely untapped potential in various promising application areas relevant for the SDGs, such as sustainable energy or integrity verification. The major contributions of this paper are an overview and status quo of entrepreneurial innovation activities and research on blockchain technology in the GS, an analysis of these areas in the context of the SDGs, and a lean methodological approach for innovation forecasting.
Böhmecke-Schwafert, M., Wehinger, M., & Teigland, R. (2022): Blockchain for the circular economy: Theorizing blockchain’s role in the transition to a circular economy through an empirical investigation. Business Strategy and the Environment, 1– 16. https://doi.org/10.1002/bse.3032, Open Access.
Abstract: Blockchain is increasingly lauded as an enabler of the transition to a circular economy. While there is considerable conceptual research and some empirical studies on this phenomenon, scholars have yet to develop a theoretical model of blockchain’s role in this transition. Grounded in the sustainability transition literature, this paper addresses this gap through the following research question: What role does blockchain play in the transition to a circular economy? Following an abductive approach, we conducted interviews with ground-level experts implementing blockchain innovations for the circular economy across Europe and the United States. Through a thematic analysis, we derived a theoretical model of the relationships among (1) drivers and barriers of the transition to a circular economy, (2) blockchain innovation for the circular economy, (3) technical challenges of blockchain, and (4) the circular economy. While blockchain plays a moderating role, interviewees considered it only an infrastructural resource rather than a panacea.
Preikschat, K., Böhmecke-Schwafert, M., Buchwald, J.-P., Stickel, C. (2020): Trusted systems of records based on Blockchain technology - a prototype for mileage storing in the automotive industry. Concurrency Computat Pract Exper. 2020;e5630. doi.org/10.1002/cpe.5630, Open Access.
Abstract: Blockchain technology has the potential to bring transparency and trust to a multitude of use cases. Our research demonstrates that the technology can reduce asymmetric information in markets by bridging trust gaps. The combination of blockchain and Internet of Things technology that automatically collects sensor data, provides a feasible, decentralized technological solution for such an inefficient “Market of Lemons” coined by nobel laureate Georg Akerlof. In this paper, we develop a system prototype to reduce mileage fraud on the used car markets. Our work demonstrates the feasibility of a trusted system of records for (vehicle) data such as mileage data using a distributed database based on the public Ethereum network and smart contracts. We have identified eight requirements that are fulfilled by the prototype and the functional logic and design of thesolution can be reproduced to any other application area characterized by a lack of trust between actors or by the absence of a trusted central authority. However, the developed prototype suffers from similar limitations and challenges as the technology itself. Low throughput causes limitations in scalability and transaction costs are unpredictable. Further development of the blockchain technology and considering more cost-efficient consensus mechanisms will address these issues.
Böhmecke-Schwafert, M., Niebel, C. (2018): The General Data Protection’s (GDPR) impact on data-driven business models: The case of the right to data portability and Facebook, ITU Journal: ICT Discoveries, Vol. 1, Issue 2. Open Access.
Abstract: The General Data Protection Regulation (GDPR) has recently come into force and will have wide implications for the digital economy and the business models of various tech firms, as well as providing new opportunities for innovation. The GDPR aims to provide consumers with the control of their personal data, provide trust in the digital economy and harmonize data protection throughout the EU pursuant to the Digital Single Market strategy. This paper attempts to analyze and outline how the GDPR might change the data-driven business models (DDBMs) of firms, yet nonetheless they may lead to a variety of positive effects. Indeed, the principles and individual rights in the GDPR tackle monopolistic structures (and lock-ins), and they can increase the quality of data and digital provisions as a result of competitive pressures, as well as promoting consumer trust in the digital market. One of the individual rights and newer features introduced by the GDPR, namely the right to ‘data portability’, will be considered with regard to the case of its impact on Facebook’s DDBM.
Selected ongoing projects (under review):
Böhmecke-Schwafert, M. (2022): The Phenomenon of Blockchain Innovation for International Trade in Global Value Chains: A Systematic Literature Review. Under Review
