Exploring the Suitability of Blockchain Technology in Improving Inter-Organizational Collaboration Workflows in E-Payment Processes at the Transport License Department of Malaysia

This paper examines persistent inter-organisational collaboration (IOC) challenges affecting electronic payment workflows in Malaysia’s public sector, focusing on the Transport License Department (TLD). It explores the suitability of Blockchain Technology (BCT) in addressing issues such as fragmented systems, manual reconciliation, and communication bottlenecks. Adopting a Design Science Research (DSR) methodology within a qualitative paradigm, empirical data were collected through focus group discussions with seven frontline officers directly involved in daily e-payment processes. Thematic analysis identified four major challenges: absence of a shared platform, operational inefficiencies and mistrust, inconsistent SLA compliance, and fragmented communication. Participants highlighted BCT’s decentralised, tamper-resistant features as promising for real-time data exchange, automated reconciliation, and smart contract-enforced compliance. Nonetheless, socio-cultural resistance, including scepticism toward BCT and reliance on traditional communication practices, was seen as a barrier. The study developed the Blockchain-Integrated Collaborative E-Payment Framework (BICEF), validated by domain experts for technical and operational feasibility. While BICEF demonstrates potential to enhance transparency, accountability, and efficiency in public sector financial workflows, longitudinal studies are needed to evaluate its real-world implementation and address cultural and organisational resistance. This research contributes a novel application of BCT in Malaysia’s public sector e-payments by integrating blockchain functionalities such as smart contracts and decentralised communication into a validated IOC framework. It advances theoretical understanding and provides practical design insights for strengthening digital governance in high-volume public agencies.