Data-Driven Readiness Analytics for Blockchain Adoption in Public-Sector Organizations: Evidence from a TOE–SEM Modeling Approach

DOI:

https://doi.org/10.63646/BUDX6461

Versions

Keywords:

Blockchain adoption; public-sector organizations; data-driven readiness analytics; TOE framework; structural equation modeling; digital government; institutional readiness

Abstract

Public-sector organizations increasingly view blockchain as a candidate infrastructure for trusted records, auditable workflows, and secure inter-agency information exchange. However, adoption decisions in government rarely depend on technological attractiveness alone. They are shaped by legacy-system compatibility, managerial authorization, financial readiness, regulatory legitimacy, data sensitivity, and perceived institutional risk. This study develops a data-driven readiness analytics framework for evaluating blockchain adoption in public-sector organizations through an integrated Technology-Organization-Environment (TOE) and structural equation modeling (SEM) approach. Unlike studies that treat adoption intentions as a single behavioral outcome, the proposed framework combines measurement validation, construct-level SEM, and readiness scoring to distinguish statistically supported drivers from weak or unsupported assumptions. A calibrated public-sector readiness dataset is used to demonstrate the analytical workflow across technology, organization, and environment dimensions. Results show that compatibility, trust, security, higher authority support, monetary resources, regulatory support, and inter-agency modernization pressure are the strongest predictors of blockchain readiness, while relative advantage, general IT resources, and partner pressure have weaker effects. The optimized SEM model reports acceptable fit and explains 64.7% of the variance in readiness intention. Readiness index results further reveal uneven preparedness across agency types, with regulatory and data-intensive agencies scoring higher than provincial service agencies. The findings provide a cautious but actionable basis for blockchain policy planning: government leaders should prioritize institutional fit, legal clarity, budget commitment, and cross-agency governance before moving from pilot design to implementation. The study contributes to business and data analytics research by transforming blockchain adoption analysis from descriptive perception assessment into a decision-oriented readiness analytics model.

How to Cite

Xu, Y., Xu, C., & Hu, Y. (2026). Data-Driven Readiness Analytics for Blockchain Adoption in Public-Sector Organizations: Evidence from a TOE–SEM Modeling Approach. Journal of Business and Data Analytics, 3(4), 81-105. https://doi.org/10.63646/BUDX6461 (Original work published 2025)

References

AL-Ashmori, A., Thangarasu, V., Sangodiah, A., & Al-Khaleefa, A. S. (2023). A readiness model and factors influencing blockchain adoption in Malaysia's software sector: A survey study. Sustainability, 15(16), 12139. https://doi.org/10.3390/su151612139

Al-Jaroodi, J., & Mohamed, N. (2019). Blockchain in industries: A survey. IEEE Access, 7, 36500–36515. https://doi.org/10.1109/ACCESS.2019.2903554

Alshamaila, Y., Papagiannidis, S., & Li, F. (2013). Cloud computing adoption by SMEs in the north east of England: A multi-perspective framework. Journal of Enterprise Information Management, 26(3), 250–275. https://doi.org/10.1108/17410391311325225

Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423. https://doi.org/10.1037/0033-2909.103.3.411

Awa, H. O., Ojiabo, O. U., & Emecheta, B. C. (2015). Integrating TAM, TPB and TOE frameworks and expanding their characteristic constructs for e-commerce adoption by SMEs. Journal of Science & Technology Policy Management, 6(1), 76–94. https://doi.org/10.1108/JSTPM-04-2014-0012

Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74–94. https://doi.org/10.1007/BF02723327

Baker, J. (2012). The technology–organization–environment framework. In Y. K. Dwivedi, M. R. Wade, & S. L. Schneberger (Eds.), Information Systems Theory: Explaining and Predicting Our Digital Society (Vol. 1, pp. 231–245). Springer. https://doi.org/10.1007/978-1-4419-6108-2_12

Balasubramanian, S., Shukla, V., Sethi, J. S., Islam, N., & Saloum, R. (2021). A readiness assessment framework for blockchain adoption: A healthcare case study. Technological Forecasting and Social Change, 165, 120536. https://doi.org/10.1016/j.techfore.2020.120536

Batubara, F. R., Ubacht, J., & Janssen, M. (2018). Challenges of blockchain technology adoption for e-government: A systematic literature review. Proceedings of the 19th Annual International Conference on Digital Government Research, 1–9. https://doi.org/10.1145/3209281.3209317

Benchiș, M. P., Shahzad, K., & Dan, S. (2025). Comparative analysis of blockchain adoption in the public and private sectors: A technology–organization–environment framework approach. Journal of Innovation & Knowledge, 10(4), 100746. https://doi.org/10.1016/j.jik.2025.100746

Bentler, P. M. (1990). Comparative fit indexes in structural models. Psychological Bulletin, 107(2), 238–246. https://doi.org/10.1037/0033-2909.107.2.238

Bertot, J. C., Jaeger, P. T., & Grimes, J. M. (2010). Using ICTs to create a culture of transparency: E-government and social media as openness and anti-corruption tools for societies. Government Information Quarterly, 27(3), 264–271. https://doi.org/10.1016/j.giq.2010.03.001

Casino, F., Dasaklis, T. K., & Patsakis, C. (2019). A systematic literature review of blockchain-based applications: Current status, classification, and open issues. Telematics and Informatics, 36, 55–81. https://doi.org/10.1016/j.tele.2018.11.006

Chwelos, P., Benbasat, I., & Dexter, A. S. (2001). Research report: Empirical test of an EDI adoption model. Information Systems Research, 12(3), 304–321. https://doi.org/10.1287/isre.12.3.304.9708

Cordella, A., & Bonina, C. M. (2012). A public value perspective for ICT enabled public sector reforms: A theoretical reflection. Government Information Quarterly, 29(4), 512–520. https://doi.org/10.1016/j.giq.2012.03.004

Dawes, S. S. (2008). The evolution and continuing challenges of e-governance. Public Administration Review, 68(S1), S86–S102. https://doi.org/10.1111/j.1540-6210.2008.00981.x

Dinh, T. T. A., Wang, J., Chen, G., Liu, R., Ooi, B. C., & Tan, K. L. (2017). BLOCKBENCH: A framework for analyzing private blockchains. Proceedings of the 2017 ACM International Conference on Management of Data, 1085–1100. https://doi.org/10.1145/3035918.3064033

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312

Gangwar, H., Date, H., & Ramaswamy, R. (2015). Understanding determinants of cloud computing adoption using an integrated TAM–TOE model. Journal of Enterprise Information Management, 28(1), 107–130. https://doi.org/10.1108/JEIM-08-2013-0065

Gefen, D., Straub, D. W., & Boudreau, M. C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information Systems, 4(1), 7. https://doi.org/10.17705/1CAIS.00407

Ghobakhloo, M., Arias-Aranda, D., & Benitez-Amado, J. (2011). Adoption of e-commerce applications in SMEs. Industrial Management & Data Systems, 111(8), 1238–1269. https://doi.org/10.1108/02635571111170785

Gil-Garcia, J. R., & Pardo, T. A. (2005). E-government success factors: Mapping practical tools to theoretical foundations. Government Information Quarterly, 22(2), 187–216. https://doi.org/10.1016/j.giq.2005.02.001

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS–SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202

Hameed, M. A., Counsell, S., & Swift, S. (2012). A conceptual model for the process of IT innovation adoption in organizations. Journal of Engineering and Technology Management, 29(3), 358–390. https://doi.org/10.1016/j.jengtecman.2012.03.007

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8

Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6(1), 1–55. https://doi.org/10.1080/10705519909540118

Iacovou, C. L., Benbasat, I., & Dexter, A. S. (1995). Electronic data interchange and small organizations: Adoption and impact of technology. MIS Quarterly, 19(4), 465–485. https://doi.org/10.2307/249629

Janssen, M., & Estevez, E. (2013). Lean government and platform-based governance: Doing more with less. Government Information Quarterly, 30(Suppl. 1), S1–S8. https://doi.org/10.1016/j.giq.2012.11.003

Janssen, M., Charalabidis, Y., & Zuiderwijk, A. (2012). Benefits, adoption barriers and myths of open data and open government. Information Systems Management, 29(4), 258–268. https://doi.org/10.1080/10580530.2012.716740

Kshetri, N. (2018). Blockchain's roles in meeting key supply chain management objectives. International Journal of Information Management, 39, 80–89. https://doi.org/10.1016/j.ijinfomgt.2017.12.005

Kuan, K. K. Y., & Chau, P. Y. K. (2001). A perception-based model for EDI adoption in small businesses using a technology–organization–environment framework. Information & Management, 38(8), 507–521. https://doi.org/10.1016/S0378-7206(01)00073-8

Li, X., Jiang, P., Chen, T., Luo, X., & Wen, Q. (2020). A survey on the security of blockchain systems. Future Generation Computer Systems, 107, 841–853. https://doi.org/10.1016/j.future.2017.08.020

Lin, H. F., & Lin, S. M. (2008). Determinants of e-business diffusion: A test of the technology diffusion perspective. Technovation, 28(3), 135–145. https://doi.org/10.1016/j.technovation.2007.10.003

Low, C., Chen, Y., & Wu, M. (2011). Understanding the determinants of cloud computing adoption. Industrial Management & Data Systems, 111(7), 1006–1023. https://doi.org/10.1108/02635571111161262

Lustenberger, M., Malešević, S., & Spychiger, F. (2021). Ecosystem readiness: Blockchain adoption is driven externally. Frontiers in Blockchain, 4, 720454. https://doi.org/10.3389/fbloc.2021.720454

MacKenzie, S. B., Podsakoff, P. M., & Podsakoff, N. P. (2011). Construct measurement and validation procedures in MIS and behavioral research: Integrating new and existing techniques. MIS Quarterly, 35(2), 293–334. https://doi.org/10.2307/23044045

Meijer, A., & Bolívar, M. P. R. (2016). Governing the smart city: A review of the literature on smart urban governance. International Review of Administrative Sciences, 82(2), 392–408. https://doi.org/10.1177/0020852314564308

Mendling, J., Weber, I., Van Der Aalst, W., vom Brocke, J., Cabanillas, C., Daniel, F., Debois, S., Di Ciccio, C., Dumas, M., Dustdar, S., Gal, A., Garcia-Banuelos, L., Governatori, G., Hull, R., La Rosa, M., Leopold, H., Leymann, F., Recker, J., Reichert, M., Reijers, H. A., Rinderle-Ma, S., Solti, A., Rosemann, M., Schulte, S., Singh, M. P., Slaats, T., Staples, M., Weber, B., Weidlich, M., Weske, M., Xu, X., & Zhu, L. (2018). Blockchains for business process management: Challenges and opportunities. ACM Transactions on Management Information Systems, 9(1), 1–16. https://doi.org/10.1145/3183367

Mergel, I., Edelmann, N., & Haug, N. (2019). Defining digital transformation: Results from expert interviews. Government Information Quarterly, 36(4), 101385. https://doi.org/10.1016/j.giq.2019.06.002

Oliveira, T., Thomas, M., & Espadanal, M. (2014). Assessing the determinants of cloud computing adoption: An analysis of the manufacturing and services sectors. Information & Management, 51(5), 497–510. https://doi.org/10.1016/j.im.2014.03.006

Ølnes, S., Ubacht, J., & Janssen, M. (2017). Blockchain in government: Benefits and implications of distributed ledger technology for information sharing. Government Information Quarterly, 34(3), 355–364. https://doi.org/10.1016/j.giq.2017.09.007

Pan, M. J., & Jang, W. Y. (2008). Determinants of the adoption of enterprise resource planning within the technology–organization–environment framework: Taiwan's communications industry. Journal of Computer Information Systems, 48(3), 94–102. https://doi.org/10.1080/08874417.2008.11646025

Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879

Queiroz, M. M., & Wamba, S. F. (2019). Blockchain adoption challenges in supply chain: An empirical investigation of the main drivers in India and the USA. International Journal of Information Management, 46, 70–82. https://doi.org/10.1016/j.ijinfomgt.2018.11.021

Ramdani, B., Kawalek, P., & Lorenzo, O. (2009). Predicting SMEs' adoption of enterprise systems. Journal of Enterprise Information Management, 22(1/2), 10–24. https://doi.org/10.1108/17410390910922796

Ringle, C. M., Sarstedt, M., & Straub, D. W. (2012). Editor's comments: A critical look at the use of PLS–SEM in MIS Quarterly. MIS Quarterly, 36(1), iii–xiv. https://doi.org/10.2307/41410402

Risius, M., & Spohrer, K. (2017). A blockchain research framework: What we already know, where we go from here, and how we will get there. Business & Information Systems Engineering, 59(6), 385–409. https://doi.org/10.1007/s12599-017-0506-0

Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2019). Blockchain technology and its relationships to sustainable supply chain management. International Journal of Production Research, 57(7), 2117–2135. https://doi.org/10.1080/00207543.2018.1533261

Salim, T. A., El Barachi, M., Mohamed, A. A. D., Halstead, S., & Babreak, N. (2022). The mediator and moderator roles of perceived cost on the relationship between organizational readiness and the intention to adopt blockchain technology. Technology in Society, 71, 102108. https://doi.org/10.1016/j.techsoc.2022.102108

Shareef, M. A., Kumar, V., Kumar, U., & Dwivedi, Y. K. (2011). E-government adoption model (GAM): Differing service maturity levels. Government Information Quarterly, 28(1), 17–35. https://doi.org/10.1016/j.giq.2010.05.006

Sharma, S. K., Dwivedi, Y. K., Misra, S. K., & Rana, N. P. (2024). Conjoint analysis of blockchain adoption challenges in government services. Journal of Computer Information Systems, 64(2), 205–219. https://doi.org/10.1080/08874417.2023.2185552

Shunmugam, S. V., Kiah, M. L. M., Azzuhri, S. R., & Lau, S. L. (2024). A data-driven framework for assessing government readiness for private blockchain adoption. Malaysian Journal of Computer Science, 37(4), 327–345. https://doi.org/10.22452/mjcs.vol37no4.3

Treiblmaier, H. (2018). The impact of the blockchain on the supply chain: A theory-based research framework and a call for action. Supply Chain Management: An International Journal, 23(6), 545–559. https://doi.org/10.1108/SCM-01-2018-0029

Wang, Y. M., Wang, Y. S., & Yang, Y. F. (2010). Understanding the determinants of RFID adoption in the manufacturing industry. Technological Forecasting and Social Change, 77(5), 803–815. https://doi.org/10.1016/j.techfore.2010.03.006

Yli-Huumo, J., Ko, D., Choi, S., Park, S., & Smolander, K. (2016). Where is current research on blockchain technology? A systematic review. PLOS ONE, 11(10), e0163477. https://doi.org/10.1371/journal.pone.0163477

Zheng, Z., Xie, S., Dai, H. N., Chen, X., & Wang, H. (2017). An overview of blockchain technology: Architecture, consensus, and future trends. Proceedings of the 2017 IEEE International Congress on Big Data, 557–564. https://doi.org/10.1109/BigDataCongress.2017.85

Zhu, K., Kraemer, K. L., & Xu, S. (2006). The process of innovation assimilation by firms in different countries: A technology diffusion perspective on e-business. Management Science, 52(10), 1557–1576. https://doi.org/10.1287/mnsc.1050.0487

Zuiderwijk, A., Janssen, M., & Dwivedi, Y. K. (2015). Acceptance and use predictors of open data technologies: Drawing upon the unified theory of acceptance and use of technology. Government Information Quarterly, 32(4), 429–440. https://doi.org/10.1016/j.giq.2015.09.005