Blockchain Technology Adoption in the Context of Saudi Arabia: An Empirical Analysis for a Future Outlook

Abstract

Cutting-edge technologies are leveraging businesses value chain in order to advance their competitive advantage, from this standpoint blockchain technology (BCT) gained a relative pace over the recent years demanding for more research cases. The present study aims to contribute in understanding the customers' acceptance of BCT in Saudi Arabia and tested through Technology Acceptance Model (TAM). Although empirical support for TAM varies depending on the context, it remains a popular and effective conceptual framework for analysing aspects that contribute to technological adoption or rejection. This study was validated with the response from 740 respondents involved with BCT adoption in companies listed in Tadawul (The Saudi Stock Market) in Saudi Arabia through the Structural Equation Modelling (SEM) regression technique using AMOS software. The path analysis results revealed that a reasonable fit for the model: chi2 (2476.851), chi2 / DF (3.057), RMSEA (0.054), CFI (0.829), and TLI (0.904). Four main factors (Perceived Ease of Use, Perceived Usefulness, Attitude Towards Use, and Intention to Use) were identified as a determinant of Actual use of BCT. All factors show average variance explained greater than 45%. The research findings help understanding User’s adoption of BCT for researchers, regulators and developers and providing supported evidence on factors contributing to the adoption of BCT in Saudi Arabia. The study is restricted to firms based in Saudi Arabia. Future study will concentrate on various countries’ BCT adoption to assess for the multi-group analysis impact on the model.