This paper aims to investigate whether blockchain technology and corporate governance complement or substitute each other in improving corporate social responsibility performance.
This study is based on a sample of 306 European firms listed on the STOXX Europe 600 over the period 2014–2021.
The present study provides empirical evidence that both blockchain adoption and corporate governance mechanisms positively influence corporate social responsibility performance. The obtained findings suggest that blockchain technology and conventional corporate governance mechanisms tend to serve as substitutes rather than as complementary tools within organizational structures. These results also show that board independence, gender diversity, board size and frequency of board meetings are substituted with blockchain technology in their effect on corporate social responsibility.
The current study may also be useful for investors and other stakeholders as it highlights the importance of adopting governance mechanisms and implementing blockchain technology. The findings of this study support firms’ efforts to apply blockchain.
This study harmonizes the conflicting results obtained in previous studies by pointing out that blockchain technology might serve as an alternative to corporate governance mechanisms in improving corporate social responsibility performance.
