Seizing technological advancement; determinants of blockchain supply chain finance adoption in Ghanaian SMEs

ABSTRACT

Blockchain has attracted attention within business circles because it promotes secure and cost-saving transactions between anonymous parties without human mediation. This study examines the Technological Organizational and Environmental (TOE) drivers of blockchain supply chain finance adoption in Ghanaian SMEs. Specifically, this study differs from prior studies employing the United Theory of Acceptance and Use of Technology (UTAUT) and the Technology Acceptance Model (TAM) which ignores the TOE elements. Utilising the Partial Least Squares Structural Equation Modelling method (PLS-SEM) and nonlinear non-compensatory PLS-ANN approach, we provide empirical evidence using data from 214 registered SME members of the Association of Ghana Industries (AGI). Our findings suggest that relative advantage, cost, and complexity significantly influence the adoption of blockchain supply chain finance in SMEs. However, competitive pressure, market dynamics, and SME owner/manager support had no statistically significant influence on the intention of SMEs to adopt blockchain supply chain finance. This is because of the relatively low adoption rate of blockchain applications in SMEs in the country. Therefore, extensive education on the applications of blockchain technology is required to stimulate diffusion amongst SMEs.

KEYWORDS:

• Blockchain technology
• supply chain finance
• TOE
• SMEs

Acknowledgments

We are very grateful to the editors Prof. James Fleck, Lyrez Lopez, and all reviewers. We also thank Mrs. Millicent Adu-Damoah for her support.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This research is supported by The Science & Technology Department of Sichuan Province Technology Cooperation Project & Technology Department of Sichuan Province Technology Cooperation Project [grant number 2019YFH0004].

Notes on contributors

Elijah Asante Boakye

Elijah Asante Boakye is a Ph.D. candidate at the School of Management and Economics (University of Electronic Science and Technology of China). His current research is on blockchain technology, fintech, entrepreneurial finance and small business development.

Hongjiang Zhao

Zhao Hongjiang is an Associate Professor at the School of Management and Economics (University of Electronic Science and Technology of China). His specialty is generalised virtual economies, entrepreneurial financial systems, and fintech.

Cephas Paa Kwasi Coffie

Cephas Paa Kwasi Coffie is a lecturer at the Melbourne Polytechnic - Fuzhou. His research interest focuses on fintech, econometric modelling, and small business finance.

Lydia Asare-Kyire

Lydia Asare-Kyire is a Lecturer at the Kumasi Technical University, Ghana. Her current research is focused on entrepreneurship and small business development.