1. Introduction
Recently, Blockchain is garnering a great deal of interest from businesses and academics. Blockchain is a decentralized datasets that keeps a records list validated by the majority active nodes, with committed blocks being immutable. In addition to offering transparency, Blockchain enables auditing of transactions. Firms utilize Blockchain because it helps them to reduce transaction fees by generating intrinsically safe, transparent, and, in certain cases such as immediate payments services, speedier transactions [
1]. The information associated with accepted transactions will be stored in a public chain [
2,
3]. Twenty years ago, couple of researchers at Bellcore presented computed feasible processes for time-stamping electronic documents [
4] this was the genesis of the Blockchain idea. The mechanism for timestamping was enhanced to append several files a single chain [
5].
With the launch of bitcoin, a digital money, Blockchain became a well-known idea. Satoshi Nakamoto published a paper proposing a payment system that transfers money from one participant to another without the need for a centralized authorization such as a bank [
6,
7]. Using tamper-resistant and some consensus protocols such as Proof-of-Work (PoW) and Proof-of-Stake (PoS) public ledger solves the double spending issue in electronic money by tying each transaction to the previous one. By evaluating the transaction history of a coin, this chain enables a network to verify that a coin provided by a user for payment has not yet been spent, hence mitigating the double spending issue [
8].
In addition to cryptocurrencies, Blockchain has different applications such as smart contract, electronic identities, educational records, and medical related applications. This is because Blockchain can establish automated and trusted process with any centralized party. A Blockchain network is classified based on its accessibility to public Blockchain, private Blockchain, and consortium Blockchain [
9]. The permissionless public network allows anybody to connect, execute, and mine data without any restrictions using consensus techniques such as proof of work and proof of stake. Each joiner possesses complete permission to see all the transactions, add new transactions, and initiate mining to collect rewards.
Permissioned private network enables people to share and exchange data privately between specific groups such as individuals belong to the same organization or organizations belong to the same interest, with mining controlled by the selected organization or individuals. Consortium network is an incompletely private Blockchains in which, rather than a single organization, a predetermined collection of nodes oversees consensus and validation. These nodes determine who may join the network and mine cryptocurrency. In contrast to the private network that is totally centralized for authentication, and the public, which is completely decentralized for authority, the consortium network is partially authority-centralized and governed by chosen nodes.
There are a few theories to investigate innovation adoption concept, including the technology acceptance model (TAM) [
10], the theory of planning behavior (TPB) [
11], the unified theory of acceptance and use of technology (UTAUT) [
12], the diffusion of innovation (DOI) [
13], and the technology-organizational-environment framework (TOE) [
14]. Most of these theories examine adoption of an innovation at the personal level except the DOI and TOE which focus on the organizational level. TOE was originally proposed in 1990 [
14]. This paradigm examines three components to explain the primary variables that affect the adoption of innovation at the organizational level: technological factors, organizational factors, and environmental factors [
15]. By taking into consideration technological, organizational, and environmental circumstances as shown in
Figure 1, the TOE can provide a unique viewpoint on IT adoption [
16]. Various researchers have used TOE to investigate a variety of IS and IT innovations [
17,
18,
19,
20]. The research demonstrates the useful perceptions provided by the TOE for comprehending the adoption of new technology in a range of sectors.
Despite the fact that Blockchain technology has been implemented in a number of domestic industries, the literature on the subject indicates that no sufficient attention was paid to adopt Blockchain the software development industry and to the behavioral intention of enterprises in this field to adopt Blockchain [
21,
22].
Consequently, this study makes a novel contribution to the existing body of research about Blockchain adoption. It discovered and categorized 12 constructs and their items for the effective and sustainable adoption of Blockchain. Innovative technology Adoption is a must for e-business organizations due to its impact on sustainable firm development. In current business models, innovation is heavily reliant on technology and information systems [
23,
24]. Small and medium-sized organizations (SME) typically perceive the need to employ new technology to aid them in pursuing their sustainability goals [
25], whereas large corporations typically recognize the need to implement innovative technology to improve their financial sustainability. Due to the COVID-19 pandemic in early 2020 [
26], the adoption of sustainable technologies, such as Blockchain technology, has grown popular, as reported by a few media outlets. To advise firms and governments on appropriate methods for ensuring financial and environmental sustainability, it is necessary to investigate the constructs that shape the sustainability of technology adoption [
27,
28].
This paper is structured as follows. In the
Section 2, the materials and methods are explained. The results are presented in the
Section 3 and discussed in the
Section 4. In
Section 5, the conclusion is presented, and limitation and recommendation of this study are given
Section 6.
2. Materials and Methods
This study’s data was gathered and validated through a literature review, an interview, and a questionnaire survey. These methods were used to assemble the knowledge of Blockchain adoption constructs and their items. The identification of the technological, organizational, and environmental constructs was carried out through the literature review. Data was collected from the peer-reviewed articles from the Web of Science and Scopus under the Blockchain adoption field; ‘(“BLOCKCHAIN ADOPTION” OR (BLOCKCHAIN AND (TOE OR “TECHNOLOGICAL FACTORS” OR “ORGANI?ATIONAL FACTORS” OR “ENVIRONMENTAL FACTORS”)))’ was chosen as the search string for this research. The time period considered was between 2015 and 2021. After the identification of the technological, organizational, and environmental constructs and their items was carried out, interviews had been carried out with experts to validate and investigate their opinions about these constructs and items.
50 experts from academic institutes and from industry were invited to participate in the interview and assessment questionnaire survey about effective Blockchain adoption in the software development industry and the variables influencing its success with relation to the technological, organizational, and environmental point views. A panel of 12 participants was suggested by a previous studies [
29,
30]. Another study about the evaluation of factors which affect the adoption of Blockchain in the freight logistics field using TOE, suggested 15 participants [
31]. The same number was suggested by another study [
32]. The saturation factor, in which new participants repeat the same information, is a crucial component in determining the sample size for qualitative investigations [
33]. Participants have replied positively to the invitation as 25 of them have chosen to take part in the validation questionnaire survey and 10 agreed to the online interview.
Online interviews with 10 participants were carried out and to analyze the manuscript of the interviews, the thematic analysis was used; the process of thematic analysis consists of the following steps [
34]:
Becoming familiar with the data by reading it several times helps structure and identify the important information.
Coding of data into distinct themes and cohesive categories to respond to the primary questions raised in the interviews. The data is then classified accordingly, from broad inquiries to specific questions. The data for each category is labelled and tabulated.
To openly address distinct themes based on the data collected, themes must be established. The subtheme contexts are used to establish the primary themes.
The data is turned into relevant sets of findings, and a comprehensive analysis of the issue emerges from all the categories.
A panel of 25 participants evaluated the content of the Blockchain constructs and their items based on their knowledge of this topic. An assessment questionnaire survey was used and sent to each expert on the panel. The survey included the construct and items extracted from the previous stages. Individually, each expert evaluated each item on the survey with one of the three options:
With each item in the survey open ended question is given as an option for each participant to express his/her opinion. Only items evaluated as essential are given one point while items evaluated as useful but not essential or not necessary are given zero point. A hypothesis was made and each which is consistent with the proven psychophysical principle. When more than half of the panel select an item to be essential, it has higher scale of content validity. With this hypothesis in mind, the following formula is calculating content validity Ratio of each item [
35]:
where
is the experts’ number in the panel who select the item as essential,
is the total of the experts in the panel. In addition,
CVR is a linear transformation from the percentage of the experts who selected the item as essential. The expert panel evaluated all the items and the
CVR was satisfied based on their content validation. As the panel were 25 experts, the
CVR value should be 0.37 at least to meet 5% degree of confidence.
The items whose
CVR values have met the threshold of 0.37 are maintained in the final construction and item form. This hypothesis is considered because the use of the
CVR to reject items does not prohibit the employment of a discrimination index or other typical item analysis approach to choose the remaining items for the final form [
36].
The Content validity index (CVI) indicates the amount whereby a recognized connection exists among the capabilities to perform in a given Blockchain adoption field and the constructs with their items for the investigation. Operationally, it is the mean percentage of commonality between the test constructs with their items and the Blockchain adoption field.
Figure 2 illustrates the research method in a flow diagram.
4. Discussion
The goal of this study was to pinpoint crucial constructs and their items that affect the Blockchain adoption in Malaysia software development industry based on the technological, organizational, and environmental contexts. A few previous studies about Blockchain adoption have used TOE in 10 studies [
19,
31,
39,
44,
47,
48,
53,
54,
55,
56,
57] out of the 30 studies as shown in
Table 9.
TOE deals not only with technology acceptance, but also other dynamics related to organization and environment [
69]. According to TOE, three aspects are likely to influence an organization’s process of adopting and implementing technological innovations: technological, organizational, and environmental. The other adoption frameworks are not as comprehensive as the TOE due to the additional organizational and environmental factors included in the TOE. TOE was adopted to identify the organization’s technology, and external environment as quite useful elements in adoption [
70]. Similarly, the usefulness of this framework in small enterprises when a perception-based electronic data interchange adoption model with some determinants was proposed [
71]. In addition, all the experts in the interview sessions approved that TOE is the most suitable way to classify these constructs based on their relations to the technological, organizational, and environmental contexts. Therefore, TOE was favorable to studying the Blockchain adoption in the software development industry.
This study covers discussion for a new Blockchain adoption framework based on integrating the TOE and used to determine the factors of Blockchain adoption by software development companies in Malaysia. Moreover, this includes factors for the technological readiness trialability, security, and complexity; factors for the organizational readiness cost, innovativeness, and facilitating conditions, and factors for the environmental readiness market dynamics, regulatory support; and partner readiness based on the experts’ recommendations. Additionally, it is categorized into the broad theoretical field of technology adoption, and based on the technology adoption research, factors which may affect the adoption of a technology are organizational factors, technological factors, and environmental factors. Previous research has shown that these characteristics show a solid connection with technology adoption.
From this study’s results, organizational context is found to be the most significant one. The organizational constructs cost CVI, innovativeness CVI, and facilitating conditions CVI scored 0.720, 0.840, and 0.600, respectively, as shown in
Figure 3.
The organizational construct cost here refers to the saving would be made by adopting Blockchain technology. Blockchain has potentially disrupted the financial services sector by making it cost-effective and in banking by reducing the processing costs [
19]. Blockchain deployment in the supply chain management provides encouraging benefits in enhancing reducing costs and risks [
54]. Additionally, Blockchain is expected to influence management goals such as cost [
31].
Innovativeness is a personal characteristic that prompts individuals to attempt new IT and acts optimistic role in adoption behavior [
72]. Innovativeness is a trustworthy predictor of person’s attitude and IT approval [
42]. Moreover, innovativeness explains the degree of innovations that is being adopted by organization to upon IT technology adoption [
73]. It is an ambition to lead technology and be a visionary [
74]. Innovativeness is measured as the incentives of technology [
75].
The technological construct that enables system utilization within a company is referred to as “facilitating conditions” by employees. Furthermore, facilitating conditions refers to an awareness of the resources available to organizations to support the implementation of blockchain technology. In other words, customers are more likely to have a simple and delightful experience with the technology and, as a result, be more engaged with it, if they perceive a sufficient degree of technological, organizational, network, and people support when using Blockchain. In fact, the Blockchain keeps a record of every transaction, strengthening the system and simplifying transaction monitoring for all parties. The average of these three organizational constructs, cost, innovativeness, and facilitating conditions CVIs was 0.720 as the highest one as shown in
Figure 4.
The average of these three environmental constructs, market dynamics, regulatory support, partner readiness CVIs, was 0.687. Market dynamics refers to the constant transformation of a highly competitive and intricate market [
76,
77] employs a Blockchain maturity model for Blockchain adoption that considers market dynamics based on a 5-stage taxonomy model, advising enterprises to do comprehensive feasibility studies before deployment. It also refers to the internal pressure and the desire to obtain a competitive edge that motivates organizations to embrace innovative technology while facing pressure from upstream and downstream players as well as new advancements in business models and industry standards [
78,
79] noted that challenges associated with legislation and practical implementations of decentralized systems remain unresolved and urged the creation of industry standards without delay. The market dynamics was an important determinant of Blockchain adoption, according to researches [
80,
81] and the experts in the interview sessions.
Regulatory support refers to legal frameworks put in place by the state to monitor, ensure that users and technology service providers uphold their promises, and stop violations. For e-commerce and service quality monitoring, as well as for authorizing and deploying new technologies within a country’s rule of law, government regulation and legislation are essential [
82]. These laws are used as a safety net to ensure that all procedures are fair and efficient. The same is true for customer behavior when it comes to Blockchain technology and cryptocurrency. To reduce or lessen any emerging uncertainty, regulation is necessary. Customers’ willingness to trust technology and secure its use may be impacted by governmental regulations and directions. However, there are also other barriers to the global adoption of cryptocurrencies, such as insufficient governmental oversight [
83]. During the interviews, all the experts agreed that the regulatory support is very important, and it will have a big impact to accelerate the adoption of Blockchain. Most of them are concerned about the legal protection while using Blockchain as there is a lack of government laws supporting the implementation of Blockchain. These results indicate that substantial effort must be expended to further elucidate these challenges. While there is some progress towards tighter government regulation in Malaysia, further effort is required to clarify the legal elements of Blockchain.
Partner readiness refers to the effectiveness of Blockchain deployment is contingent on the degree of organization integration with current organization partners [
49]. The partners’ desire and collaboration to participate in the Blockchain project is a crucial aspect of its execution, which is impossible if their connections are wrong [
84]. Literature suggests that an organization that adopts an innovation would expect its partners to have a comparable innovation process in order to fully exploit the innovation on an inter-organizational level [
85]. The partner readiness was discussed with the experts. While most of them believe that international partner readiness, they were worried about local partners’ readiness to collaborate and participate in developing Blockchain oriented software.
The average of trialability, security, and complexity, the three technological CVIs was 0.647. Trialability is described as “the degree to which an innovation is amenable to limited testing” [
13]. According to [
86], the chance of successful adoption rises when individuals and organizations are given the opportunity to sample an innovation prior to its actual implementation. According to a research by [
87].
Trialability is a significant element that impacts business application adoption. In their research of e-commerce adoption, [
88] discovered that trialability is a crucial factor that influences the adoption of technologies. In a separate research, [
89] emphasized the necessity for a testing phase prior to the actual deployment of Blockchain smart contracts. As organizations transition from traditional contracts to smart contracts based on Blockchain, these new contractual systems and technologies will need to be evaluated to promote the growth of user confidence in such technologies. Trials will aid in avoiding failure and bugs [
89]. Since previous researchers, such as [
87,
88] have demonstrated that trialability is relevant to technological innovation acceptance, it is obvious that trialability will also affect Blockchain adoption in the Software development business. This study’s respondents expect to test Blockchain in a restricted scope before choosing whether to implement it in practice, and they also believe a trial period before adopting Blockchain will lower perceived risks.
Security is defined as “the capacity to protect the information and transaction data of stakeholders throughout transmission” [
90]. Blockchain technology offers a high level of IS [
91] and lets users conduct transactions anonymously by virtue of special properties such as a protected database [
92] and a privacy-preserving design. Threats to information security are identified in the literature as a factor that influences technology adoption [
93,
94]. The advantage of Blockchain with relation to security was highlighted by the experts; they believe Blockchain will foster a sense of security and confidence among project participants due to the inherent noncentralized systems that safeguard all the transactions.
Complexity is defined as “the perceived difficulty of learning to utilize and comprehend a new system or technology” [
95]. Scalability [
96,
97], and a shortage of computational capacity are the primary drivers of complexity in Blockchain applications [
98]. Scalability refers to the phenomenon in which a corporation that adopts an invention expects its affiliates to have a comparable innovation process in order to implement the innovation on an inter-organizational level. Another concern was the difficulty to learn Blockchain technology, which experts believe it would affect the adoption of Blockchain, on the other hand, the experts believe that Blockchain tools are easy to be implemented and used.