Applicability of Blockchain Technology in Cryptocurrency and Return on Investment for Online Companies Operating in Kenya

Kenya is a global leader in blockchain technology and cryptocurrency adoption, with many businesses implementing blockchain solutions. However, the relationship between blockchain technology in cryptocurrencies and return on investment (ROI) is unclear in the literature. This study looked at the impact of blockchain technology on cryptocurrencies and ROI for Kenyan internet businesses. The independent variables were blockchain digital ledgers, blockchain smart contracts, and permissioned blockchains, with ROI as the dependent variable. The study was founded on the resource-based view theory, disruptive innovation theory, and diffusion of innovation theory. A correlational research design was used to target 1,664 online companies in Kenya. A sample of 178 firms was selected from a group of 322 companies that had used blockchain for at least three years. Top managers were selected as respondents using stratified sampling. Questionnaires were used to collect data, which was then analyzed with SPSS version 21 for inferential and descriptive statistics. Regression and correlation analyses revealed that implementing blockchain technology had a positive and significant impact on ROI. Among the independent variables, blockchain digital ledger had the highest impact (0.065 units), while permissioned blockchains had the least (0.056 units). All findings were significant at p < 0.05. The study emphasized the importance of online companies prioritizing blockchain adoption in order to maximize ROI. It concluded that blockchain digital ledgers, smart contracts, and permissioned blockchains had a significant impact on ROI. Future research should investigate the indirect mediating effects of blockchain project goals and company characteristics. The study recommended that Kenyan online business leaders accelerate blockchain integration, particularly the use of blockchain digital ledgers, to improve transparency, security, and fraud prevention. In addition, permissioned blockchains should be implemented to strengthen data integrity and mitigate risks. Keywords: Applicability, Blockchain Technology, Cryptocurrency, Return on Investment, Online Companies