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

• Date: 15 November 2024
• Pages: 139-158
• DOI: https://doi.org/10.1108/IJPSM-12-2023-0347
• Published date: 15 November 2024
• Subject Matter: Public policy & environmental management,Politics,Public adminstration & management
• Author: Syed Hammad Ul Haq,Sorin Dan,Khuram Shahzad

Leadership competencies and

blockchain implementation in public

sector organizations:

a sensemaking approach

Syed Hammad Ul Haq and Sorin Dan

School of Management, University of Vaasa, Vaasa, Finland, and

Khuram Shahzad

School of Technology and Innovations, University of Vaasa, Vaasa, Finland

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 BCTis 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.

Keywords Sensemaking, Leadership competencies, Blockchain technology, Public sector organizations

Paper type Research paper

1. Introduction

The contemporary age of digitalization is exerting significant pressure on organizations in the

private and public sectors alike to commence and advance a digital transformation agenda

International

Journal of Public

Sector

Management

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© Syed Hammad Ul Haq, Sorin Dan and Khuram Shahzad. Published by Emerald Publishing Limited.

This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may

reproduce, distribute, translate and create derivative works of this article (for both commercial and non-

commercial purposes), subject to full attribution to the original publication and authors. The full terms of

this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

We would like to thank the participantsof the Emerging Technologies and the Transformation of the

Public Sector panel at the International Research Society for Public Management 2023 conference and the

University of Vaasa’s2023 Summer School for their feedback on an earlier version of this article. Two

anonymous reviewers provided additional useful feedback during the review process.

Generative AI tool/LLM was used for copy-editing to improve the language and readability of the

article.

Funding: This research is funded by Liikesivistysrahasto – The Foundation for Economic Education

in Finland, grant no. 200264 and 210257 – for the project BizPub.

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/0951-3558.htm

Received 1 December 2023

Revised 2 April 2024

17 June 2024

30 September 2024

11 October 2024

Accepted 14 October 2024

InternationalJournal of Public Sector

Management

Vol.38 No. 1, 2025

pp.139-158

EmeraldPublishing Limited

0951-3558

DOI10.1108/IJPSM-12-2023-0347

(Imran et al., 2021). Government 3.0 personifies the latest phase of digitalization within the

public sector, characterized by the broad integration of emerging technologies including

artificial intelligence, blockchain, cloud services and big data. Blockchain technology (BCT)

holds promise for governmental organizations as it can offer potential cost reduction, process

simplification, reinforced trust and transparency, and reliable recordkeeping (Ølnes et al.,

2017;Haug et al., 2023;Shahzad and Imran, 2021). However, its transformative potential

hinges on effective leadership and the capacity of leaders to make sense of the novelty and

complexity of the technology (Pittaway and Montazemi, 2020). Leadership competencies

refer to the specific skills, traits and behaviors that leaders possess and develop (Alshareef and

Tunio, 2022;Imran et al., 2021;Van Wart, 2011). Leaders with the right competencies may be

in a better position to navigate the complexities of blockchain adoption and manage the

underlying change management process for blockchain implementation (Alshareef and

Tunio, 2022).

Given their varying backgrounds and knowledge and the characteristics of blockchain,

leaders need to possess sensemaking competencies to navigate and make sense of the potential

benefits and suitability of the technology within their organizational settings. Therefore, the

underlying starting point of this article is that sensemaking is a critical component for effective

decision-making, particularly when it comes to the implementation of novel and emerging

technology such as blockchain. Sensemaking, as defined by Weick (1995), is the process

through which individuals give meaning to their collective experiences. It has been widely

used in organizational studies to understand the cognitive processes that underlie decision-

making and leadership (Weick et al., 2005).

Despite being a growing multidisciplinary approach, the application of sensemaking to

blockchain implementation has been limited. The process of sensemaking that leaders go

through as they consider adopting blockchain is practically and theoretically important due to

the novelty and complexity of the technology. Leaders need to navigate the uncertainties

associated with the technology, interpret its relevance within their organizational context and

make strategic decisions on its implementation (Moqaddamerad and Tapinos, 2023).

Therefore, this article aims to explore the leadership competencies that could facilitate

blockchain implementation in public organizations. The article uses sensemaking as a

theoretical lens to interpret how public sector leaders in selected organizations make sense of

their competencies as they consider implementing blockchain. Based on qualitative data, we

provide a framework for public sector leaders to use as they consider adopting the technology.

We ask the following research question: How do public sector leaders ’make sense’ of their

competencies as they consider implementing blockchain technology within their

organizations?

To address this research question, we analyzed multiple case studies of selected public

sector organizations in Finland and conducted semi-structured interviews with their middle

and higher-level leaders. Through our analysis by using sensemaking, we identified key

leadership competencies required for successful blockchain adoption and consequently

enriching the body of knowledge on leadership competencies (Bass, 1990;Imran et al., 2021;

Getha-Taylor and Morse, 2013;Van Wart, 2011). It does so by proposing a framework for

leaders, accompanied by a set of competencies required at each stage of the process (Brown

et al., 2015;Weick, 1995). This process includes the identification and interpretation of cues,

followed by appropriate enactment, all the while considering the dark side of the technology.

2. Theory

2.1 Leadership competencies and blockchain technology

Leadership is crucial in public administration for transforming organizations. It involves

influencing, creating vision, driving change, building consensus, and using emotional

intelligence and common sense. Leadership is defined by traits, behaviors and skills, leading to

styles such as transformational, transactional, collaborative, empowering and laissez-faire

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