New Study Reveals Why Organizations Are Hesitant to Adopt Blockchain

Blockchain is a secure digital ledger that records and verifies transactions across many computers in a way that is difficult to modify. It’s a kind of digitally shared notebook where everyone can see what’s written, but once something is added, it can’t be changed. Initially, there was a lot of hype around Blockchain because it enables secure and transparent transactions without the need for an intermediary, such as a bank. Blockchain is the backbone of cryptocurrencies like Bitcoin, but it is also being explored for uses in other industries, such as finance, healthcare and supply chains.

A comprehensive review, led by Ph.D. candidate Ying Zhang, in collaboration with researchers from Surrey Business School and Cardiff Business School, analyzed 880 factors influencing the adoption of blockchain by organizations across various sectors.

Dr Mahdi Tavalaei, lecturer in strategy and digital transformation, PhD. supervisor and co-author of the study at the University of Surrey, said: “Organizations are naturally cautious. Although blockchain has been touted as a revolutionary technology, our research suggests that its adoption is hampered by over-promised benefits and under-estimated business outcomes. value and the complex interdependence between factors and barriers to adoption.

On the positive side, researchers have found that blockchain’s unique capabilities, such as improved transparency, security, and operational efficiency, serve as powerful motivators for its adoption. However, barriers often overshadow these factors, complicating adoption efforts. The analysis found that adoption barriers, such as regulatory uncertainty and scalability issues, are more definitive, while adoption benefits are conditional and long-term, creating a lag that slows organizational decision making regarding adoption.

For organizations, the study suggests that the technological benefits of blockchain are often not sufficient and are linked to factors internal and external to their organizations, such as senior management’s beliefs regarding the technology, collaboration between organizations and regulatory frameworks.

Dr. Mahdi Tavalaei added: “Blockchain technology is very promising, but the narrative needs to be confronted with reality. Our research shows that the interplay between the drivers and barriers to blockchain adoption across technological, organizational, and environmental dimensions highlights the complex and often conflicting dynamics of organizations. must navigate.

“Organizations aren’t just dragging their feet; they’re making informed decisions based on the current limitations and exaggerated promises of blockchain. We hope this study shifts the conversation toward more practical and achievable goals for blockchain technology. “

The results are published in the journal Technological forecasts and social change.