Leadership competencies and blockchain implementation in public sector organizations: a sensemaking approach

Abstract

Purpose This study aims to explore the required leadership competencies for successful blockchain technology (BCT) implementation in public sector organizations from a sensemaking perspective.

Design/methodology/approach The study uses a multiple case study design. Primary data are collected by conducting semi-structured interviews with several representatives of Finnish public sector organizations. Written material from the selected organizations complements the primary data. NVivo14 is used to generate codes and analyze data.

Findings The analysis shows that through sensemaking, leaders identify cues for digitally transforming their organizations through blockchain by leveraging their curious and rational vision. After identifying the cues, leaders then interpret these cues through technological understanding and exploring different technological solutions. Once the cues are interpreted for blockchain implementation, the third step is enactment after interpreting the cues. Leaders can facilitate the enactment of blockchain by connecting the outcomes of blockchain with organizational processes and goals. Furthermore, a dark side of BCT is identified, consisting of overly optimistic expectations and creating technological dependencies in the public sector.

Research limitations/implications The study was conducted in 11 public organizations in Finland, which limits the generalizability of the findings. Leadership competencies that are required for blockchain implementation within organizations can be studied further by considering more use cases. The potential dark side of blockchain implementation can be explored further.

Originality/value The presented research model of leadership competencies for blockchain implementation is derived from sensemaking research and contributes to the literature on leadership competencies by applying sensemaking to the study of BCT.