Unlocking the potential: exploring the drivers behind blockchain and its influence on SMEs performance within TOE framework

Purpose This study aims to identify the factors influencing blockchain adoption and assess its impact on the financial and market performance of small and medium-sized enterprises (SMEs) in Oman, utilizing the Technology–Organization–Environment (TOE) framework. Design/methodology/approach The nature of the study is explanatory based on data gathered from 282 SME owners and managers/employees using a convenience sampling method. After examining construct validity and reliability, Partial Least Squares with Structural Equation Modelling was used to examine the proposed model of the study. Findings The results indicate that all the determinants, including Cost Concerns, Top Management Support, Relative Advantage, Technology Compatibility, Security Concerns and Technological Readiness are significant load-on drivers for blockchain adoption. However, Government Policy and Vendor Support were deemed insignificant contributors to blockchain adoption. Moreover, the adoption of blockchain has a favourable effect on both financial as well as market performance. Practical implications The study finds that there is a great possibility of blockchain technology transforming SMEs in Oman by boosting data security, transparency and efficiency of processes. This supports Vision 2040 for Oman towards advancing technology, economic development and job creation. Managers and policy makers should, therefore, encourage the adoption of this innovation. Originality/value The study highlights the importance of blockchain technology in small and medium-sized firms (SMEs) in Oman, in line with the national authorities' economic development plans in Vision 2040. The findings of the study will add significantly to the existing body of knowledge by providing a holistic understanding of the determinants of blockchain adoption in SMEs from the perspective of the TOE framework and its influence on performance.