The Technology-Organization-Environment Framework of Blockchain Technology among Small and Medium Enterprises in the North of England

Abstract

Purpose: This study aims to explore and develop an adoption model for blockchain technology (BCT) in small and medium enterprises (SMEs) with a theoretical grounding in the Technology- Organization-Environment (TOE) framework, which has been extended with factors from upper echelons theory (UET) and theory of task-technology fit (TTF). This study will also explore the challenges that affect BCT adoption by considering the TOE framework. Additionally, this research explores the potential impact of BCT on SME performance.
Design/Methodology/approach This study follows an interpretivist philosophy and employs a qualitative research method, involving semi-structured interviews with twenty-six managing directors and senior executives from SMEs in the north of England to generate the data. The interview data was triangulated with complementary secondary data and analyzed using a qualitative thematic analysis technique.
Findings This study found that the adoption of BCT is influenced by a broader range of factors than previously studied. The new adoption framework includes 34 factors, comprising 16 determinants and 18 challenges that influence an SMEs' behavioral intention to adopt blockchain. This research has identified several key and new TOE challenges and factors impacting blockchain adoption. The technological challenges and barriers include technological maturity and other emerging technologies like artificial intelligence. Organizational challenges include awareness, time to adopt, and agency conflict. Environmental challenges and barriers include regulatory hurdles and sustainability concerns. The technological factors and determinants affecting blockchain adoption include cost efficiency, trust, and automation. Organizational factors and determinants include strategic orientation and training. Environmental factors and determinants include the role of external consultants and technology providers. Additionally, this research has highlighted upper echelon factors such as strategic networking, director knowledge, experience, mindset, and age. This study has also identified specific factors for blockchain adoption by SMEs based on task-technology fit theory, including performance, regulation, cost, industry, data privacy, time, and ethics. Finally, this research has 3 demonstrated that BCT adoption positively impacts SME performance by improving productivity, customer satisfaction and experience, speed, and reducing errors.
Originality/Value This study integrates perspectives from the TOE framework, UET, and TTF theory to provide a comprehensive understanding of blockchain adoption in SMEs. It is the first model to combine these three theoretical perspectives to examine BCT adoption. This integration advances theoretical knowledge by highlighting the complementary nature of these frameworks and offers practical value by providing a detailed and multifaceted view of the adoption process. This, in turn, contributes to more effective and informed decision-making in SMEs.

Date of Award	19 Dec 2024
Original language	English
Awarding Institution	Northumbria University
Supervisor	Ellis Osabutey (Supervisor) & Chinedu Ochie (Supervisor)