Blockchain : digitally revamping small and medium enterprises

Abstract

Blockchain has surpassed its cryptocurrency affiliated genesis to unveil itself as an array of revolutionary technologies that hold the capacity to revamp businesses, industries, and societies alike. Thus, an inevitable situation has manifested within the business arena. With companies openly adopting blockchain to reap its benefits, others must follow suit, or the technology might be their downfall. Thanks to Malta’s bold stance as the “Blockchain Island” for promoting blockchain inclusion, this assertion can be transferred over to small and medium enterprises (SMEs) in the local context as the pillars our economy is built on. Use of technologies that aid business operations within SMEs in Malta has been gradually increasing year after year. However, it has been identified that traditional business technologies will eventually reach a saturation point whereby the plateau can only be surpassed by a technology such as blockchain. This research study investigates blockchain utilization and perceptions from the point of view of SMEs. It assesses the effect of blockchain on SMEs, the expected challenges, the debate of its incorporation, and the drivers for its adoption. Furthermore, it discusses the requirements and critical success factors for adoption to occur from a national and authoritative perspective. A qualitative semi-structured interview design was adopted. Sixteen interviews were selectively conducted: twelve interviews with SMEs in the local context from nine distinct industries and four interviews with blockchain experts. The responses allowed for new and foundational insights to be gathered on the local context regarding blockchain. The indisputable answer was that SMEs lack fundamental understanding and knowledge pertaining to blockchain, which limits their ability to adopt it. However, it was expressed that the nature of the challenges faced would begin to diminish as time goes by. Furthermore, all SMEs unanimously agreed that a technology like blockchain would bring about drastic, transformative, and positive changes but could also lead some companies that resist it to face obsolescence. The conclusive message was established that the foundations of blockchain should not be a question of whether it will survive but how SMEs will adapt to it to survive.