Analysis of challenges for blockchain adoption within the Indian public sector: an interpretive structural modelling approach

Abstract

PurposeBlockchain is one of the most significant emerging technologies that is set to transform many aspects of industry and society. However, it has several major technical, social, legal, environmental and ethical complexities that offer significant challenges for mainstream use within the public sector. The coronavirus disease 2019 (COVID-19) pandemic has compelled many public sector employees to work remotely, highlighting a number of challenges to blockchain adoption within the Indian context signifying the pertinence of this research topic in the post-pandemic era. This study offers insight to researchers and policymakers alike on how such challenges are interdependent within this important subject.Design/methodology/approachWe explored 16 unique sets of challenges selected from the literature and gathered data from nine experts from government settings, healthcare and education sectors and academia who have significant knowledge and experience of blockchain implementation and use in their respective organisations. The implementation of Interpretive Structural Modelling (ISM) and Matriced' Impacts Croise's Multiplication Appliquée a UN Classement (MICMAC) provided a precise set of driving, linkage and dependent challenges that were used to formulate the framework.FindingsThe developed ISM framework is split into six different levels. The results suggest that the bottom level consists of challenges such as “Lack of standards (C9)” and “Lack of validation (C10)” form the foundation of the hierarchical structure of blockchain adoption. However, the topmost level consists of a highly dependent challenge termed “adoption of blockchain in the public sector (C16)”. The research filters the selected set of five challenges to develop a parsimonious model and formulated six propositions to examine the impact of “lack of standard (C9)”, “lack of validation (C10)” on “security issues (C3)” and “privacy concerns (C2)”, which eventually determine individuals' “reluctance to use blockchain technology (C12)”.Originality/valueThis research fills a key gap in exiting research by exploring the key challenges in blockchain adoption within the public sector by developing a valuable framework to model this important topic. To the best of our knowledge, this is the first paper to address these challenges and develop a parsimonious model for challenges of blockchain adoption in the public sector settings.