Reconceptualizing Blockchain-Based Reputation Systems: Applying Systems Theory with Basic Concepts

In marketplaces, reputation is built upon observable qualities, such as evidence of customer satisfaction, which signal trustworthiness. Reputation systems, here conceptualized as abstract social systems, leverage systems-theoretical concepts to facilitate trust formation. However, current scholarly discourse on reputation systems is predominantly technical, often neglecting integrated incentive mechanisms of social and technical layers. Addressing this gap, our study employs a systems-theoretical perspective to harmonize social and technical design layers at a unified level of abstraction, offering a novel framework for blockchain-based reputation systems. By applying key concepts from social systems theory—observation, selection, communication, system trust, and elements/relations— we propose a reconceptualization of reputation system design that aligns social and technical layers. Our findings show that systems thinking provides a cohesive abstraction level, making it valuable for crafting new IS artifacts. We contribute to cumulative knowledge of conceptualizing and designing information systems by illustrating how systems concepts can scaffold more integrative IS design.