PulseExploreJournal ClubDebatesTrendingResearchersJournals
Instagram
HomeExploreJournal ClubTrending
Synapse
⌘+K
Synapse
March 29, 2026Information Systems1 citationsOpen Access

Designing a blockchain-based information system for procurement processes—Balancing decentralization, scalability, and security while maintaining privacy

View Full Paper
VAValeriya ArnoldTGTobias GuggenbergerJSJan Stramm

Key Points

  • The goal is to design a blockchain system that effectively balances decentralization, scalability, security, and privacy in procurement processes.
  • Conducted a structured literature review to identify design challenges.
  • Performed expert interviews to gather insights on blockchain implementation in procurement.
  • Derived five design objectives to guide the development of a blockchain prototype.
  • Developed and iteratively refined a prototype based on the established objectives and principles.
  • Evaluated the prototype through quantitative assessments and semi-structured expert interviews.
  • Identified two key design principles for blockchain in procurement: using a public chain as a trust anchor and employing a Layer 2 for scalability.
  • Demonstrated that integrating efficient cryptography can safeguard privacy while maintaining network balance.
  • Established a framework that links business needs to technical blockchain choices, enhancing procurement processes.

Abstract

The inter-organizational processes in procurement remain burdened by media discontinuity, inefficiencies, and a lack of trust among trading partners. Blockchain-based information systems are frequently proposed as a remedy because they enable shared, tamper-evident records. However, existing instantiations rarely scale beyond small consortia because they fail to address the extended blockchain trilemma, which requires simultaneously achieving decentralization, scalability, security, and strict privacy requirements for sensitive commercial information. In contrast to prior blockchain procurement prototypes that manage the extended blockchain trilemma primarily through permissioned architectures, this study investigates how a blockchain-based information system can be designed to reconcile the trade-offs inherent in the extended trilemma, achieving a viable balance through architectural allocation and cryptographic enforcement. Following the design-science research paradigm, an empirically validated problem statement is synthesized from a structured literature review and expert interviews. Five design objectives are derived, evaluated, and used to guide a prototype design, which is then iteratively refined and evaluated through quantitative and formative assessments and sixteen semi-structured expert interviews. Reflection on the build–evaluate cycles yields two design principles: (1) Balancing decentralization, scalability, and security by using a public chain as a trust anchor, a Layer 2 for scaling, and decentralized communication between layers. (2) Maintaining that balance when privacy is required by integrating efficient, resilient cryptography and minimizing control points. These principles extend existing procurement research, linking business requirements to infrastructural choices, providing a transferable foundation for scholars and practitioners aiming to deploy secure, scalable, and privacy-preserving blockchain solutions in inter-organizational contexts. • Procurement processes suffer from media discontinuity, inefficiencies, and low trust. • DSR study derives five design objectives via literature review and expert interviews. • Prototype designed, tested, evaluated using public trust anchor and second-layer roll-up. • Two design principles guide blockchain design for inter-organizational settings.

Ask AI
Helpful
Bookmark
Share
View Full Paper

Cite This Study

Arnold et al. (2026) studied this question.

synapsesocial.com/papers/69c8c2b8de0f0f753b39d32bhttps://doi.org/10.1016/j.is.2026.102723
Ask AI
Helpful
Bookmark
Share
View Full Paper