From novelty to efficiency: how business model designs shape blockchain adoption in SMEs based on the TOE framework

Abstract Blockchain technology (BCT) offers various benefits to small and medium-sized business enterprises (SMEs), but their adoption rates remain low. Previous research has examined only a limited set of barriers and drivers of BCT adoption within specific geographical areas. Further research is recommended to explore more factors, particularly through the application of the Technology-Organization-Environment (TOE) framework and the investigation of business model designs (BMD), specifically novelty-centered (NBMD) and efficiency-centered (EBMD). This study employed a qualitative methodology to conduct 20 in-depth interviews with SME representatives in Hong Kong. They were first categorized into either NBMD or EBMD, and their responses were analyzed using the TOE framework with NVivo software. The result indicates that BMD significantly influences BCT adoption. NBMD SMEs, prioritizing technological innovation, are distinct from efficiency-based EBMD SMEs, who emphasize proven, cost-saving solutions. NBMD SMEs are attracted to BCT’s innovative potential and adopt it earlier. EBMD SMEs, conversely, require demonstrable returns on investment before committing. To promote adoption, government strategies should showcase success stories, tackle integration hurdles, and provide experimentation platforms. Comprehensive support is essential, including targeted funding, adaptive regulations, and a centralized service offering technical, legal, and training assistance. Aligning policies with the specific SME business model is crucial for maximizing BCT uptake, which in turn improves operational efficiency, reduces risk, and drives digital transformation.