Financial innovation: predicting determinants of blockchain technology adoption and its impact on financial firms performance
Aws Al-Okaily
Abstract
Purpose This study aims to empirically examine and analyze the technological factors that influence the adoption of blockchain technology, particularly within the financial industry. It also predicts how adopting blockchain technology may affect financial firms’ performance from a multiple-measure perspective. Design/methodology/approach The research model was validated using quantitative data collected from 144 decision-makers working in Jordanian financial firms. The data was obtained through a cross-sectional survey approach and analyzed using partial least squares structural equation modeling. Findings The research results demonstrated that technological factors such as data security, technology compatibility, technology readiness and relative advantage significantly influenced blockchain technology adoption. The findings also provide evidence that blockchain technology adoption positively impacts innovation, operational, market and financial performance. Research limitations/implications This research was focused solely on technological factors that affected blockchain technology adoption in the financial industry in the Jordanian context. Further research can investigate organizational, environmental or economic factors that affect blockchain adoption to better generalize the findings. Practical implications The study offers valuable insights into the determinants and benefits of blockchain technology adoption in the financial industry. The results of this research can be used to guide practitioners and policymakers toward promoting and facilitating the use of blockchain technology in financial firms. Originality/value The study fills a significant gap in the academic literature since only a few studies have endeavored to ascertain the determinants of blockchain technology adoption and its impact on the performance of financial firms in the context of a developing country like Jordan.