Decentralized governance in action: A governance framework of digital responsibility in startups

Abstract

The rise of digital technologies has fueled the emergence of decentralized governance among startups. However, this trend imposes new challenges in digitally responsible governance, such as technology usage, business accountability, and many other issues, particularly in the absence of clear guidelines. This paper explores two types of digital startups with decentralized governance: digitally transformed (e.g., DAO) and IT-enabled decentralized startups. We adapt the previously described Corporate Digital Responsibility model into a streamlined seven-cluster governance framework that is more directly applicable to these novel organizations. Through a case study, we illustrate the practical value of the conceptual framework and find key points vital for digitally responsible governance by decentralized startups. Our findings lay a conceptual and empirical groundwork for in-depth and cross-disciplinary future inquiries into digital responsibility issues in decentralized settings.