Blockchain technology and its importance for the growth and prosperity of Indian small and medium-sized enterprises

Authors

  • Prof. Ravinder Rena Adjunct Professor, Department of Entrepreneurship and Business Management, Cape Peninsula University of Technology, District Six Campus, Cape Town, Republic of South Africa

Keywords:

Bitcoin, Blockchain as a service, Blockchain, Digitization, Ethereum, Infrastructure, Small and mediumsized enterprisess, Technology adoption

Abstract

Purpose: Blockchain technology (BT), since its invention, has revolutionized the business environment across the globe while the Indian small and medium-sized enterprises (SMEs) are yet to adopt this technology in a wide-spread level. In this background, the current review provides an overview of the technology and its features, successful adoption in other industries and SMEs and how Indian SMEs can gain benefits. Problem: Although the BT has been hailed as a boon for the future, there exist a few challenges as well such as energy consumption, environmental issues, and policy-level hindrances. The current study makes an attempt to identify the issues and provide possible solutions to overcome these challenges. Methodology: The current study is a narrative review that analyses the secondary data available from government reports, research articles, corporate research publications, UN and other international bodies’ reports, and so on. This narrative review article conducts an in-depth analysis of various perspectives of the variables considered for the study. Findings: The study found that the Indian SMEs, in spite of the challenges faced, can still gain a huge advantage by leveraging the technology for which the government ecosystem, political climate, global economic conditions, steady market situations, and the mindset among the SME owners and decision-makers must work cohesively. Recommendations: The
current study has provided a few policy-level recommendations for sustainable growth of the SMEs in the near future.

References

Ahmad, K., & Pandey, N. (2024). A mixed methods study to uncover the adoption potential of digital marketing in Indian SMEs. Asian Journal of Economics, Business and Accounting, 24, 168-181. doi: 10.9734/ajeba/2024/v24i41271

Albshaier, L., Almarri, S., & Hafizur Rahman, M. M. (2024). A review of blockchain’s role in E-Commerce transactions: Open challenges, and future research directions. Computers, 13, 27. doi: 10.3390/computers13010027

Alebaba, D. B., Hamzah, M., Ghazali, M. F., & Asli, M. F. (2022). Bringing Blockchain Technology in Innovating Industries: A Systematic Review. Cham: Springer. p391-416. doi: 10.1007/978-3-030-85990-9-33

Alshareef, N., & Tunio, M. N. (2022). Role of leadership in adoption of blockchain technology in small and medium enterprises in Saudi Arabia. Frontiers in Psychology, 13, 911432. doi: 10.3389/fpsyg.2022.911432

Alsmadi, A. A., Alrawashdeh, N., Al-Gasaymeh, A., Alhawamdeh, L. N., & Al-Hazimeh, A. M. (2023). Adoption of blockchain technology in supply chain. Sage Open, 13(1), doi: 10.1177/21582440231160143

Al-Sulami, Z. A., Ali, N., Ramli, R., & Lu, L. (2024). Towards a comprehensive understanding of blockchain technology adoption in various industries in developing and emerging economies: A systematic review. Cogent Business and Management, 11(1), 2294875. doi: 10.1080/23311975.2023.2294875

Arora, P., & Nagpal, R. (2022). Blockchain Technology and Its Applications: A Systematic Review of the Literature. In: Proceedings of the International Conference on Innovative Computing and Communication (ICICC). doi: 10.2139/ssrn.4121824

Batra, G., Olson, R., Pathak, S., Santhanam, N., & Soundararajan, H. (2019). Blockchain 2.0: What’s in Store for the two Ends-Semiconductors (Suppliers) and Industrials (consumers)? New York: McKinsey Digital. Retrieved April 10, 2024 from: https://www.mckinsey.com/industries/industrials-and-electronics/our-insights/blockchain-2-0-whats-in-store-for-the-two-ends-semiconductors-suppliers-and-industrials-consumers

Borkovcová, A., Černá, M., & Sokolová, M. (2022). Blockchain in the energy sector-systematic review. Sustainability, 14, 14793. doi: 10.3390/su142214793

Cai, T., & Hong, Z. (2024). Exploring the structure of the digital economy through blockchain technology and mitigating adverse environmental effects with the aid of artificial neural networks. Frontiers in Environmental Science, 12, 1315812. doi: 10.3389/fenvs.2024.1315812

Chen, H. (2023). Blockchain technology and small and medium enterprises access to finance. Advances in Economics, Management and Political Sciences, 8, 139-145. doi: 10.54254/2754-1169/8/20230297

Chen, W., Xu, Z., Shi, S., Zhao, Y., & Zhao, J. (2018). A Survey of Blockchain Applications in Different Domains. New York: Association for Computing Machinery. doi: 10.1145/3301403.3301407

Cheng, H. K., Hu, D., Puschmann, T., & Zhao, J. L. (2021). The landscape of Blockchain research: Impacts and opportunities. Information Systems and e-Business Management, 19(3), 749-755. doi: 10.1007/s10257-021-00544-1

Chiaraluce, G., Bentivoglio, D., Finco, A., Fiore, M., Contò, F., & Galati, A. (2024). Exploring the role of blockchain technology in modern high-value food supply chains: Global trends and future research directions. Agricultural and Food Economics, 12(1), 6. doi: 10.1186/s40100-024-00301-1

Deloitte. (2018). Blockchain in Public Sector Transforming Government Services through Exponential Technologies. Retrieved from: https://www2.deloitte.com/in/en/pages/public-sector/articles/blockchain-in-public-sector.html

Dhiman, P., Henge, S. K., Singh, S., Kaur, A., Singh, P., & Hadabou, M. (2023). Blockchain merkle-tree ethereum approach in enterprise multitenant cloud environment. Computers, Materials and Continua, 74, 3297-3313. doi: 10.32604/cmc.2023.030558

Duan, K., Pang, G., & Lin, Y. (2023). Exploring the current status and future opportunities of blockchain technology adoption and application in supply chain management. Journal of Digital Economy, 2, 244-288. doi: 10.1016/j.jdec.2024.01.005

GlobalData. (2024). Blockchain Market Size, Share, Trends and Analysis by Application, Vertical, Region, and Segment Forecast to 2030. Retrieved from: https://www.globaldata.com/store/report/blockchain/market/analysis/#:~:text=key/highlights/the/global/blockchain/market/size/was/valued/at/2412.3/billion,57%25/during/2023-2030

Habib, G., Sharma, S., Ibrahim, S., Ahmad, I., & Qureshi, S. (2022). Blockchain technology: Benefits, challenges, applications, and integration of blockchain technology with cloud computing. Future Internet, 14, 341. doi: 10.3390/fi14110341

Irannezhad, E. (2020). Is blockchain a solution for logistics and freight transportation problems? Transportation Research Procedia, 48, 290-306. doi: 10.1016/j.trpro.2020.08.023

Kaur, J., Kumar, S., Narkhede, B. E., Dabić, M., Rathore, A. P. S., & Joshi, R. (2024). Barriers to blockchain adoption for supply chain finance: The case of Indian SMEs. Electronic Commerce Research, 24(1), 303-340. doi: 10.1007/s10660-022-09566-4

Khan, A. A., Ali Laghari, A., Li, P., Ali Dootio, M., & Karim, S. (2023). The collaborative role of blockchain, artificial intelligence, and industrial internet of things in digitalization of small and medium-size enterprises. Scientific Reports, 13(1), 1656. doi: 10.1038/s41598-023-28707-9

Khanna, A., Sah, A., Bolshev, V., Burgio, A., Burgio, V., & Jasiński, M. (2022). Blockchain-cloud integration: A survey. Sensors, 22(14), 5238. doi: 10.3390/s22145238

Kumar Bhardwaj, A., Garg, A., & Gajpal, Y. (2021). Determinants of blockchain technology adoption in supply chains by small and medium enterprises (SMEs) in India. Mathematical Problems in Engineering, 2021, 5537395. doi: 10.1155/2021/5537395

Kumar, D., Phani, B. V., Chilamkurti, N., Saurabh, S., & Ratten, V. (2023). Filling the SME credit gap: A systematic review of blockchain-based SME finance literature. Journal of Trade Science, 11(2/3), 45-72. doi: 10.1108/JTS-06-2023-0003

Kumari, A. (2024). India’s MSME sector: A comprehensive review of challenges and opportunities. International Journal for Multidisciplinary Research, 6(1),1-9. doi: 10.36948/ijfmr.2024.v06i01.14045

Mahjoub, Y. I., Hassoun, M., & Trentesaux, D. (2022). Blockchain adoption for SMEs: Opportunities and challenges. IFAC-PapersOnLine, 55(10), 1834-1839. doi: 10.1016/j.ifacol.2022.09.665

Majumdar, R. (2024). India Economic Outlook. Pune: Deloitte India. Retrieved from: https://www2.deloitte.com/us/en/insights/economy/asia-pacific/india-economic-outlook html?id=us:2el:3dp: wsjspon

:awa: wsjcfo:2023:wsjfy23

MeitY. (2021). National Strategy on Blockchain. Retrieved from: https://www.meity.gov.in/writereaddata/files/national_BCT_strategy.pdf

MeitY. (2024). Centre for Excellence in Blockchain, Centre for Excellence in Blockchain. Retrieved April 10, 2024 from: https://blockchain.gov.in/home/home

Ministry of finance India. (2023). Digital Payments Transactions Reach 11,660 Crore in Current Financial Year as on 11.12.2023. Retrieved from: https://pib.gov.in/pressreleasepage.aspx?prid=1988370#:~:text=’digital/payments/transactios/reach/11%2C660,2023’&text=digital/payments/have/significantly/increased/of/state/for/finance/dr

Mishra, R., Singh, R. K., Kumar, S., Mangla, S. K., & Kumar, V. (2023). Critical success factors of Blockchain technology adoption for sustainable and resilient operations in the banking industry during an uncertain business environment. Electronic Commerce Research, Vol. 23, 1-35. doi: 10.1007/s10660-023-09707-3

Moosavi, N., & Taherdoost, H. (2023). Blockchain technology application in security: A systematic review. Blockchains, 1, 58-72. doi: 10.3390/blockchains1020005

OECD. (2020a). Blockchain for SMEs and Entrepreneurs in Israel. Retrieved from: https://www.oecd.org/cfe/smes/blockchain/in/israel.pdf

OECD. (2020b). Blockchain for SMEs and Entrepreneurs in Italy. Retrieved from: https://www.oecd.org/cfe/smes/blockchain/for/smes/in/Italy.pdf

Onifade, M., Adebisi, J. A., & Zvarivadza, T. (2024). Recent advances in blockchain technology: Prospects, applications and constraints in the minerals industry. International Journal of Mining, Reclamation and Environment, Vol. 38, 1-37. doi: 10.1080/17480930.2024.2319453

Pelletier, C., & Cloutier, L. (2019). Challenges of Digital Transformation in SMEs: Exploration of IT-Related Perceptions in a Service Ecosystem. In: Hawaii International Conference on System Sciences (HICSS), Maui, Hawaii, USA. doi: 10.24251/HICSS.2019.597

Peng, C., Liu, Z., Wen, F., Lee, J. Y., & Cui, F. (2022). Research on blockchain technology and media industry applications in the context of big data. Wireless Communications and Mobile Computing, 2022, 3038436. doi: 10.1155/2022/3038436

Rakshit, S., Islam, N., Mondal, S., & Paul, T. (2022). Influence of blockchain technology in SME internationalization: Evidence from high-tech SMEs in India. Technovation, 115, 102518. doi: 10.1016/j.technovation.2022.102518

Rakshit, S., Jeyaraj, A., & Paul, T. (2024). SME performance through blockchain technologies. Journal of Computer Information Systems, 64(2), 204-218. doi: 10.1080/08874417.2023.2187482

Ramageri, B., & Arjunwadkar, M. (2020). Applications of blockchain technology in various sectors: A review. International Journal of Future Generation Communication and Networking, 13, 94-99.

Ramayah, T., Mohamad, O., Omar, A., Marimuthu, M., & Ai Leen, J. Y. (2022). The influence of SME owners’ characteristics on technology adoption. Indian Journal of Commerce and Management Studies, 3, 10-16.

RedSeer. (2023). India Digital SME Credit Report 2023: The $500 Bn Opportunity. Retrieved from: https://www.iamai.in/sites/default/files/research/India SME/credit/report/2023/getvantage-redseer-compressed.pdf

Shaikh, M. Z., Dixit, N., Manjunatha, D., Chaudhary, A., & Khubalkar, D. (2023). Applications of blockchain technology and crypto currencies: Current practice and future trends. International Journal of Intelligent Systems and Applications in Engineering, 12, 30-40.

Sunny, F. A., Hajek, P., Munk, M., Abedin, M. Z., Satu, M. S. Efat, M. I., & Islam, M. J. (2022). A systematic review of blockchain applications. IEEE Access, 10, 59155-59177. doi: 10.1109/ACCESS.2022.3179690

Syed, A., Kumar, A., Shaikh, A. A., & Shaikh, M. Z. (2021). A two-decade literature review on challenges faced by smes in technology adoption. Academy of Marketing Studies Journal, 25, 1-16.

Telukdarie, A., Dube, T., Matjuta, P., & Philbin, S. (2023). The opportunities and challenges of digitalization for SME’s. Procedia Computer Science, 217, 689-698. doi: 10.1016/j.procs.2022.12.265

Tripathi, P. (2023). The Growing Role of Blockchain in Indian Governance. Retrieved from: https://www.orfonline.org/expert-speak/the-growing-role-of-blockchain-in-indian-governance#:~:text=the/tamilnadu/blockchain/backbone/into/a/single/digital/wallet

Wang, G., Zhang, S., Yu, T., & Ning, Y. (2021). A systematic overview of blockchain research. Journal of Systems Science and Information, 9(3), 205-238. doi: 10.21078/JSSI-2021-205-34

World Economic Forum. (2024). How Universities can Use Blockchain to Transform Research. Retrieved from: https://www.weforum.org/agenda/2024/03/higher-education-universities-blockchain-transform-research

Zamani, S. Z. (2022). Small and medium enterprises (SMEs) facing an evolving technological era: A systematic literature review on the adoption of technologies in SMEs. European Journal of Innovation Management, 25(6), 735-757. doi: 10.1108/EJIM-07-2021-036

Downloads

Published

23-05-2024

How to Cite

Prof. Ravinder Rena. (2024). Blockchain technology and its importance for the growth and prosperity of Indian small and medium-sized enterprises. Indian Journal of Commerce and Management Studies, 15(2), 01–09. Retrieved from https://www.ijcms.in/index.php/ijcms/article/view/666

Issue

Section

Articles