Blockchain Technology Adoption in Malaysian Manufacturing Companies: An Empirical Study Using SEM and FSQCA

This paper focuses on examining the factors influencing blockchain technology adoption (BTA) in medium and large manufacturing companies. The research framework adopts the technology-organization-environment (TOE) framework to investigate these determinants. A survey questionnaire was distributed to manufacturing companies, resulting in 186 usable responses out of 450 questionnaires distributed, representing a response rate of 41%. The collected data were analyzed using SmartPLS, a tool for variance-based structural equation modeling, and fuzzy-set qualitative comparative analysis (fsQCA). The findings from partial least squares structural equation modeling (PLS-SEM) indicate that all environmental factors (partner pressure, perceived outside support, and trust of supply chain stakeholders) significantly and positively influence BTA. Among the technological factors, only blockchain transparency has an insignificant effect on BTA. Regarding organizational factors, only absorptive capacity demonstrates a significant and positive effect on BTA, while organizational readiness and financial readiness do not show significant effects. Additionally, the results of fsQCA reveal several combinations of dimensions that are sufficient to drive BTA. This research enhances the practical understanding of blockchain technology, its potential benefits, and the associated challenges in the context of adoption. It offers valuable insights to organizations considering blockchain adoption and provides guidance for managers to leverage the advantages of this technology in their decision-making processes, ultimately enhancing business performance.