Applying innovation diffusion theory to blockchain adoption in Indian private sector banks

The adoption of blockchain technology in the banking sector has gained significant attention due to its potential to improve operational efficiency, transparency, and security. The study aims to investigate how the relative advantage, compatibility, complexity, observability, and trialability of blockchain, as proposed by Rogers' diffusion of innovation theory, impact the adoption behavior of private sector banks in India. The study employed a quantitative approach, using a quantitative survey to collect data from 250 employees in the banking industry. The collected data was analyzed using the PLS-SEM technique with the help of SmartPLS software. According to the findings of the study, relative advantage, compatibility, and trialability have a major impact on blockchain behavioral intention, which further impacts actual usage behavior. Blockchain behavioral intention partially mediates between relative advantage, compatibility, trialability and usage behavior. The study also discovered that complexity and observability do not influence blockchain adoption among private banks in India. As per the study, private sector banks in India should focus on promoting the relative advantages, compatibility, and trialability of blockchain technology to enhance adoption. Hence, efforts should prioritize demonstrating blockchain’s benefits and ease of integration while offering trial opportunities, as complexity and observability do not significantly impact adoption decisions.