The Dual Impact of Blockchain Adoption: Enhancing Financial Performance and Microeconomic Stability with Emerging Challenges
DOI:
https://doi.org/10.18196/mb.v16i2.25617Keywords:
blockchain adoption, financial performance, access to financial, microeconomic stability, emerging challengesAbstract
Research aims: This study examines the impact of blockchain adoption on the microeconomic stability of micro, small, and medium enterprises (MSMEs), with financial performance and access to financial services as mediating variables.
Design/Methodology/Approach: The analysis employed Partial Least Squares Structural Equation Modeling (PLS-SEM) using data from 200 MSME owners in Indonesia who have integrated blockchain technology into their operations. The constructs, blockchain adoption, financial performance, access to financial services, and microeconomic stability, were measured through a structured questionnaire based on validated indicators from prior research.
Research findings: The findings reveal that blockchain adoption significantly enhances financial performance and microeconomic stability. Financial performance strengthens the direct effect of blockchain adoption on stability, while access to financial services positively mediates the relationship between blockchain use and economic stability. Interestingly, an adverse indirect effect through financial performance was observed, suggesting potential implementation-related or contextual risks that merit further investigation.
Theoretical Contribution/Originality: This research comprehensively explains MSMEs' blockchain adoption behavior and economic implications by integrating the Technology Acceptance Model (TAM) and the Resource-Based View (RBV) framework.
Practitioners/Policy Implications: To promote inclusive adoption, policymakers and MSME stakeholders should prioritize secure and user-friendly blockchain systems, expand access to digital financial services, and develop adaptive regulatory frameworks. Strategic adoption should weigh both efficiency gains and potential challenges, including systemic risks, technological volatility, and unequal benefit distribution.
Research Limitations/Implications: The study's scope is limited to MSMEs in Indonesia; future research should explore cross-regional and sectoral comparisons, long-term impacts, regulatory variations, and adoption dynamics across diverse contexts.
References
Al-Maskari, A., Al Riyami, T., & Ghnimi, S. (2024). Factors affecting students’ preparedness for the fourth industrial revolution in higher education institutions. Journal of Applied Research in Higher Education, 16(1), 246–264. https://doi.org/10.1108/JARHE-05-2022-0169
Alshehri, E. (2023). English as a Foreign Language Teachers’ Acceptance of Using Blackboard Collaborate Ultra in Higher Education. World Journal of English Language, 14(2), 90. https://doi.org/10.5430/wjel.v14n2p90
Al-Swidi, A. K., Al-Hakimi, M. A., Al Halbusi, H., Al Harbi, J. A., & Al-Hattami, H. M. (2024). Does blockchain technology matter for supply chain resilience in dynamic environments? The role of supply chain integration. PLoS ONE, 19(1 January), 1–22. https://doi.org/10.1371/journal.pone.0295452
Azadda, W. N., Koomson, S., & Klutse, S. K. (2024). Sustainable finance and business risk resilience: a conceptual perspective and suggestions for upcoming research. Vilakshan - XIMB Journal of Management, 21(1), 66–78. https://doi.org/10.1108/xjm-02-2023-0034
Carlson, K. (2018). The Nakamoto Blockchain.
Ciaian, P., Cupak, A., Fessler, P., & Kancs, d’Artis. (2024). Environmental and social attitudes and investments in crypto-assets. Applied Economics, 00(00), 1–21. https://doi.org/10.1080/00036846.2023.2297742
Cui, Z., Liu, X., Feng, Z., & Huang, Z. (2024). Blockchain Adoption for Generic Drugs in the Medicine Supply Chain with Consumers’ Risk-Aversion: A Game-Theoretic Model Within Chinese Legal Framework. Risk Management and Healthcare Policy, 17(January), 15–28. https://doi.org/10.2147/RMHP.S444026
Fantazzini, D. (2023). Assessing the Credit Risk of Crypto-Assets Using Daily Range Volatility Models. Information (Switzerland), 14(5), 1–30. https://doi.org/10.3390/info14050254
Garg, P., Gupta, B., Kapil, K. N., Sivarajah, U., & Gupta, S. (2023). Examining the relationship between blockchain capabilities and organizational performance in the Indian banking sector. Annals of Operations Research. https://doi.org/10.1007/s10479-023-05254-0
Haddad, C., & Hornuf, L. (2023). How do fintech start-ups affect financial institutions’ performance and default risk? European Journal of Finance, 29(15), 1761–1792. https://doi.org/10.1080/1351847X.2022.2151371
Hair, J. (2022). Partial Least Squares Structural Equation Modeling (PLS-SEM) in second language and education research: Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3), 100027. https://doi.org/https://doi.org/10.1016/j.rmal.2022.100027
Harvey, C. R., & Rabetti, D. (2024). International business and decentralized finance. Journal of International Business Studies, 55(7), 840–863. https://doi.org/10.1057/s41267-024-00705-7
Hasan, H. F., Bin Yusoff, M. N., & Abd Ali, S. M. (2024). Bitcoin Layer Two Scaling Solutions: Lightening Payment Channels Network Comprehensive Review, Mechanisms, Challenges, Open Issues and Future Research Directions. Iraqi Journal for Computer Science and Mathematics, 5(1), 25–59. https://doi.org/10.52866/ijcsm.2024.05.01.003
Khuzainey, I., Zulkifli, M. N., Sattar Rasul, M., & Pang, C. L. (2020). Technical competency among vocational teachers in malaysian public skills training institutions: Measurement model validation using PLS-SEM. Journal of Technical Education and Training, 12(1 Special Issue), 163–175.
Kumar, D., Phani, B. V, Chilamkurti, N., Saurabh, S., & Ratten, V. (2023b). Filling the SME credit gap: a systematic review of blockchain-based SME finance literature. Journal of Trade Science, 11(2/3), 45–72. https://doi.org/10.1108/JTS-06-2023-0003
Leal Filho, W., Viera Trevisan, L., Paulino Pires Eustachio, J. H., Simon Rampasso, I., Anholon, R., Platje, J., Will, M., Doni, F., Mazhar, M., Borsatto, J. M. L. S., & Bonato Marcolin, C. (2024). Assessing ethics and sustainability standards in corporate practices. Social Responsibility Journal, 20(5), 880–897. https://doi.org/10.1108/SRJ-03-2023-0116
Li, C., Yang, T., & Shi, Y. (2023). Blockchain Adoption and Organic Subsidy in an Agricultural Supply Chain Considering Market Segmentation. Mathematics, 12(1), 106. https://doi.org/10.3390/math12010106
Mailani, D., Hulu, M. Z. T., Simamora, M. R., & Kesuma, S. A. (2024). Resource-Based View Theory to Achieve a Sustainable Competitive Advantage of the Firm : Systematic Literature Review. International Journal of Entrepreneurship and Sustainability Studies, 4(1), 1–15. https://doi.org/10.31098/ijeass.v4i1.2002
Mbaidin, H. O., Alomari, K. M., Almubydeen, I. O., & Sbaee, N. Q. (2024). The critical success factors (CSF) of blockchain technology effecting excel performance of banking sector: Case of UAE Islamic Banks. International Journal of Data and Network Science, 8(1), 289–306. https://doi.org/10.5267/j.ijdns.2023.9.024
Nagy, S., Molnár, L., & Papp, A. (2024). Customer Adoption of Neobank Services from a Technology Acceptance Perspective – Evidence from Hungary. Decision Making: Applications in Management and Engineering, 7(1), 187–208. https://doi.org/10.31181/dmame712024883
Nguyen, T. T. Le, Mac, Y. T. H., Nguyen, M. T. H., & Bui, V. T. H. (2024). Assessing determinants of tax officials’ intention to continue applying e-tax in Vietnam: Attitude toward the continued application of e-tax as a mediator. International Journal of Data and Network Science, 8(1), 569–584. https://doi.org/10.5267/j.ijdns.2023.8.027
Nikmah, F., Rahmawati, R., & Sukma, E. A. (2021). Resource-based view: implementation in Indonesia SMEs. European Journal of …, 9(1), 13–22. http://www.idpublications.org/wp-content/uploads/2021/03/Full-Paper-RESOURCE-BASED-VIEW-IMPLEMENTATION-IN-INDONESIA-SMEs-TO-ACHIEVE-COMPETITIVE-ADVANTAGE.pdf
Noor, B. D., Katheeth, Z. D., & Noor, A. D. (2024). Internet of things in public healthcare organizations: the mediating role of attitude. IAES International Journal of Artificial Intelligence, 13(1), 57–65. https://doi.org/10.11591/ijai.v13.i1.pp57-65
Ongore, V. O., & Kusa, G. B. (2013). International journal of economics and financial issues. International Journal of Economics and Financial Issues, 3(1), 237–252. http://www.econjournals.com/index.php/ijefi/article/view/334
Ozdurak, C., Umut, A., & Ozay, T. (2022). The Interaction of Major Crypto-assets, Clean Energy, and Technology Indices in Diversified Portfolios. International Journal of Energy Economics and Policy, 12(2), 480–490. https://doi.org/10.32479/ijeep.12888
Propy. (2021). The Commoditization of Real Property Propy Whitepaper 2.0.
Purwaningsih, E., Muslikh, Suhaeri, & Basrowi. (2024). Utilizing blockchain technology in enhancing supply chain efficiency and export performance, and its implications on the financial performance of SMEs. Uncertain Supply Chain Management, 12(1), 449–460. https://doi.org/10.5267/j.uscm.2023.9.007
Ramadhan, H. A., & Putri, D. A. (2018). Big Data, Kecerdasan Buatan, Blockchain, dan Teknologi Finansial di Indonesia. Direktorat Jenderal Aplikasi Informatika Kementerian Komunikasi Dan Informatika, 1–66. https://aptika.kominfo.go.id/wp-content/uploads/2018/12/Kajian-Kominfo-CIPG-compressed.pdf
Sahoo, P. S. B. B., & Thakur, V. (2023). Blockchainembedded supply chain finance solutions for Indian MSMEs: a TISM and MICMAC approach. Journal of Business & Industrial Marketing, 38(11), 2390–2402. https://doi.org/10.1108/JBIM-06-2022-0264
Sedana Putra, K. ., & Lasmi, N. . (2024). Financial Synergy for Sustainable Success : Op6mizing Management, Investment, AI, and Risk SMEs in Bali. 14(2), 204–219. https://doi.org/10.26714/mki.14.2.2024.204-219
Sedana Putra, K. ., Wulandari Laksmi, K., & Oka Ariwangsa, I. (2024). The Role of AI, IOT, and E-Marketing in Enhancing the Sustainability and Competitiveness of MSMES. Ournal The Winners, 25(2), 25(2), 8–9. https://doi.org/https://doi.org/10.21512/tw.v25i2.12395
Shahzad, M. F., Xu, S., Lim, W. M., Hasnain, M. F., & Nusrat, S. (2024). Cryptocurrency awareness, acceptance, and adoption: the role of trust as a cornerstone. Humanities & Social Sciences Communications. https://doi.org/10.1057/s41599-023-02528-7
Sham, R., Aw, E. C.-X., Abdamia, N., & Chuah, S. H.-W. (2023). Cryptocurrencies have arrived, but are we ready? Unveiling cryptocurrency adoption recipes through an SEM-fsQCA approach. The Bottom Line, 36(2), 209–233. https://doi.org/10.1108/BL-01-2022-0010
Shwedeh, F. (2024). Harnessing digital issue in adopting metaverse technology in higher education institutions: Evidence from the United Arab Emirates. International Journal of Data and Network Science, 8(1), 489–504. https://doi.org/10.5267/j.ijdns.2023.9.007
Sila, J., Kocenda, E., Kristoufek, L., & Kukacka, J. (2024). Good vs. bad volatility in major cryptocurrencies: The dichotomy and drivers of connectedness. Journal of International Financial Markets, Institutions and Money, 96, 102062. https://doi.org/https://doi.org/10.1016/j.intfin.2024.102062
Swan, M. (2017). Anticipating the Economic Benefits of Blockchain. Technology Innovation Management Review, 7(10), 6–13. https://doi.org/10.22215/timreview/1109
VeChain Whitepaper 1.0. (2018). Development Plan and Whitepaper. 1–114.
Verbeek, A., & Lundqvist, M. (2021). Artificial intelligence, blockchain and the future of Europe.
Xie, P., Md Kassim, A. A., Wei, M., & Abbas Helmi, R. A. (2023). The Impact of Blockchain Adoption on Financial Performance in Fintech Firms: A Review of The Literature. Frontiers in Business, Economics and Management, 11(2), 302–305. https://doi.org/10.54097/fbem.v11i2.12627
Yang, K., Choi, J. G., & Chung, J. (2021). Extending the technology acceptance model (Tam) to explore customer’s behavioral intention to use self-service technologies (ssts) in chinese budget hotels. Global Business and Finance Review, 26(1), 79–94. https://doi.org/10.17549/gbfr.2021.26.1.79
Zamani, S. Z. (2024). Adoption Process of Blockchain Technology in Small and Medium- sized Enterprises Adoption Process of Blockchain Technology in Small and Medium- sized Enterprises (Issue 125).
Zhang, Mengxi. (2023). Older people’s attitudes towards emerging technologies: A systematic literature review. Public Understanding of Science, 32(8), 948–968. https://doi.org/10.1177/09636625231171677
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Komang Widhya Sedana Putra P, Ni Wayan Lasmi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
License
You are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
Under the following terms:
- Attribution — You must give appropriate credit, provide a link to the license, and indicate the changes made. This should be done in any reasonable manner, but not in any way that suggests the licensor endorses you or your usage.
- ShareAlike — When you remix, transform, or build upon the material, the contributions must be distributed under the same license as the original.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
