Blockchain Technology and Organizational Performance In Emerging Economy: Evidence From the Nigeria Banking Sector

Abstract

The internet landscape is still changing. While the Internet enables data connectivity, it does not guarantee data reliability. Hence, this study examines the effect of blockchain technology on organizational performance in Nigeria's banking sector. This study examines the effect of (i) value proposition on organizational innovation, (ii) eNaira on business expansion, and (iii) payment system on competitive advantage. A descriptive research approach was adopted, and the staff of Guaranty Trust Bank served as the population. The sample size 142, calculated through Taro Yamane's (1967) method, was used with simple random sampling to collect primary data from the respondents. A partial Least Square structural equation model (PLS-SEM) was adopted to examine the causal relationship through SmartPLS 3.0. The results showed that all blockchain technology factors substantially predict organizational performance: 0.773 (0.770), 0.756 (0.754), and 0.810 (0.808), respectively. The study concluded that blockchain technology significantly contributes to high performance in emerging economies. Banking sector managers in emerging economies should always support the suggestion of original values that may boost the bank's innovativeness, particularly those that facilitate the creation of new services and enable consumers to transact quickly and affordably. In addition, they ought to allow cryptocurrency purchases using online payment methods. In order to facilitate cryptocurrency transactions, mobile banking apps, online banking pages, alongside other platforms must be redesigned.