Factors Governing Blockchain Technology Applications and Financial Service Efficiency in the Public Sector. A case-study in Saudi Arabian Healthcare and Education

Abstract

<p>Blockchain is a highly comprehensive and complex software system that is designed to integrate business processes and functions. Blockchain technology is described as a game changer, and some believe it will lead all business processes in the near future. In the past, general information technology adoptions have encountered numerous practical difficulties, resulting in the partial or even complete failure of adopted systems to deliver their expected benefits. In the ongoing research, the main aim is to overcome bureaucracy in the public sector by successfully adopting new technology such as blockchain systems. This research provides a conceptual framework for public sector adoption of blockchain systems.</p> <p>This research aims to determine some factors that govern blockchain adoption in the public sector as substantial financial services efficacy. Four factors contributing to successful adoption were investigated through the research: executive management, culture, user training, and system quality. While the factors of executive management, culture and user training examine human attitude toward new technology, system quality focuses on technological features and specifications that are beneficial for public organizations. </p> <p>Numerous studies have examined the factors shaping blockchain adoption. The present study critically investigated factors governing blockchain adoption to help improve financial service efficiency in public organizations. The study has developed and assessed a conceptual framework based on Technology Acceptance Model (TAM) theory to apply the adoption model. The model aims to evaluate and clarify the relationship among the selected variables and the output of the blockchain technology adoption, and the applicability of the financial service efficiency through adoption. </p> <p>To contextualise the model and hypothesis, this study has taken place in Saudi Arabia with data collection on a subset of public organizations (Education, Health). The population sample of the study were chosen from the following cities: Taif, Makkah, Jeddah, and Riyadh. The study followed a mixed methods approach and used both qualitative and quantitative instruments. The qualitative part used semi-structured interviews to validate the key concepts identified in the existing research body and to evaluate the relationship among the independent variables. The quantitative part used a survey instrument to verify the conceptual model and test the research hypotheses. Partial least square analysis structural equation modelling (PLS-SEM) was used to examine the hypotheses. </p> <p>The data collection period was during the COVID-19 pandemic, meaning it was during the lockdown of Saudi cities, meaning that many organisations cancelled their previous data collection agreement due to this crisis. Only the seven organisations listed below allowed interviews and were approached for the questionnaire. As a result, six prominent hospitals and one university in Saudi Arabia's Western Region provided data for the study. </p> <p>For the quantitative part, total of 198 self-administered surveys were eventually received. Eleven surveys were eliminated after a thorough data screening procedure because they were lacking information for a variety of reasons, such as incomplete schedules or irrelevant respondents. Hence, 187 was the final survey count. The qualitative part, 11 interviews were conducted online, 4 females and 7 males.</p> <p>The majority of the interview respondents showed a positive perception around blockchain adoption. They claim that by using this technology organizations can efficiently work together. Proper implementation of blockchain technology could give them a competitive advantage in the market. Also, the survey shows a significant relation among the model construct, all external variables executive management, culture factor, user training and education, except for system quality as its significant with PU but insignificant with PEOU. </p> <p>The contribution of the research described in this thesis can be viewed from three perspectives: methodological, theoretical and managerial. First, the mixed methods approach used to examine blockchain adoption key factors is a methodological contribution. Second, this study applied TAM theory and illuminated the current perspective of end users in public organizations about blockchain technology. Third, the research provides practical recommendations for executive management regarding end-user attitudes, training, management and culture, as well as awareness, and perspectives about blockchain technology capabilities.</p>