Blockchain is a secure digital ledger that records and verifies transactions across many computers in a way that’s hard to alter. It’s a type 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 as it allows for secure and transparent transactions without needing a middleman, like a bank. Blockchain is the backbone of cryptocurrencies like Bitcoin, but it’s also being explored for uses in other sectors, such as finance, health care, 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 blockchain adoption by organizations across various industries.
Dr. Mahdi Tavalaei, Senior Lecturer in Strategy and Digital Transformation, the Ph.D. supervisor and co-author of the study at the University of Surrey, said, “Organizations are understandably cautious. While blockchain has been touted as a revolutionary technology, our research suggests that its adoption is hampered by over-promised benefits, under-delivered business value, and the complex interdependence between adoption drivers and barriers.”
On the positive side, researchers found that blockchain’s unique capabilities, such as enhanced transparency, security, and operational efficiency, act as strong motivators for adoption. However, barriers often overshadow these drivers, which complicate adoption efforts. The analysis found that adoption barriers, such as regulatory uncertainty and scalability issues, are more definitive, while the benefits of adoption are conditional and long-term, creating a mismatch that slows organizational decision-making for adoption.
For organizations, the study suggests that the technological benefits of blockchain are often not sufficient and are linked to factors within and outside their organizations, such as top management beliefs about the technology, collaboration across organizations, and regulatory frameworks.
Dr. Mahdi Tavalaei added, “Blockchain technology holds great promise, but the narrative needs a reality check. Our research shows that the interplay between drivers and barriers of blockchain adoption across technological, organizational, and environmental dimensions highlights the complex and often conflicting dynamics organizations must navigate.
“Organizations are not just dragging their feet; they are making informed decisions based on the current limitations and overhyped promises of blockchain. We hope this study will shift the conversation towards more practical and achievable goals for blockchain technology.”
The findings are published in the journal Technological Forecasting and Social Change.
