Blockchain technology readiness in the financial services industry in Tanzania: Perceptions from stakeholders

Abstract

This research examines the determinants of stakeholders’ intention to adopt blockchain technology in Tanzania’s financial services industry. Based on a theoretical framework that includes Technology-Organization-Environmen [TOE] and Diffusion of Innovation [DOI] theories, the study uses binary logistic regression to analyze the independent variables of adoption, alongside descriptive statistics. This study employed a descriptive quantitative survey approach, combining the use of a descriptive design to collect perceptions about blockchain technology, and an inferential design to analyze perceptions and identify the predictors of adoption intention based on perceptions and demographics and institutions. The current study utilized online survey with non-probability sampling method. The sample of 135 respondents was drawn from stakeholders in Tanzania. Binary logistic regression models the probability of adoption or intention of blockchain technology based on demographics, perception of the participants, technology-related factors and institutional factors. The significant determinants of blockchain technology adoption were found in positive outlook about the future (OR = 3.875, p = .010) and experience of taking part in training (OR = 2.830, p = .010), while the benefit was found to be a marginally significant determinant of adoption (OR = 2.659, p = .064). The predictive model predicts correctly 71.1% of all cases (AUC = 0.757) and fits the data reasonably well (Hosmer-Lemeshow p = .061). The descriptive analysis shows high degree of stakeholders’ awareness (84.4%) but low level of expertise (5.2% of advanced level), while 63.7% of the respondents did not adopt blockchain technology in their organization. Problems with infrastructure were the major barriers to blockchain adoption (28.5%), followed by the lack of expertise (23.8%) and regulatory uncertainty (17.8%). Thus, the findings indicate that optimism and training affect blockchain adoption more than demographics and infrastructure problems. Therefore, policy intervention efforts should be focused on training and fostering realistic optimism through sandbox experiments. The current research offers the logistic regression contribution to the literature on blockchain adoption in Sub-Saharan Africa. Based on these findings, the research recommends that the financial organizations pay attention to training of employees and piloting use cases of blockchain technology with the help of the Fintech Regulatory Sandbox of Bank of Tanzania; regulators focus on promoting sandbox and structured training programs; educational institutions incorporate blockchain curriculum in finance, IT and business courses.