Factors Influencing Blockchain Adoption in Operations and Supply Chain Management Among Small and Medium Enterprises

Blockchain technology has developed as a revolutionary tool in the area of improving transparency, efficiency, and security of supply chain management (SCM). Nonetheless, its use is low among small and medium enterprises (SMEs). This research investigates the factors influencing blockchain adoption in SMEs and its effect on five independent variables: top management support (TMS) as the central independent variable, technological readiness (TR), cost of implementation (COI), regulatory environment (RE), and supply chain partner pressure (SCPP). The research employs a structured survey sampling of 324 SMEs across various industries, and it applies Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) using IBM SPSS 25 to test the hypotheses. It also helps mitigate perceived cost barriers, though cost remains a notable challenge for many SMEs. Furthermore, while top management support fosters alignment with the regulatory environment, the strength of this relationship is weaker than expected. SCPP emerges as a substantial influence, often reinforced by leadership engagement. The research highlights that top management plays a pivotal role in shaping organizational readiness and external responsiveness to blockchain technologies. The CFA confirmed this with strong results, including a factor loading of 0.91 for TSM. Similarly, the SEM analysis revealed a standardized path coefficient of 0.68 from TMS to BO-SCM-SME, indicating a significant and positive influence. The results offer actionable insights for SMEs and policymakers, emphasizing the need for strong leadership commitment, affordable blockchain solutions, and clearer regulatory frameworks.