Decoding Blockchain Adoption: A UTAUT and PLS-SEM Analysis of IT Practitioners' Behavioral Intention in Nepal's Emerging Digital Economy

Abstract

Background: Blockchain’s secure, decentralized design extends beyond cryptocurrencies, but integration and trust issues limit adoption. IT practitioners play a key role in its implementation. This study examines factors influencing blockchain adoption in Kathmandu Valley using the UTAUT framework.

Purpose: The purpose of this study is to examine IT practitioners’ behavioral intention toward blockchain adoption in Kathmandu Valley.

Design/methodology/approach: A Causal-Comparative design with a sample size of 407 IT Practitioners drawn from the purposive random sampling of Kathmandu Valley is undertaken. Data was analyzed by employing descriptive and inferential statistics along with SEM.

Findings: The findings reveal that Performance Expectancy (β = 0.177, p = 0.011), Effort Expectancy (β = 0.283, p < 0.001), Social Influence (β = 0.170, p = 0.041), and Facilitating Conditions (β = 0.184, p = 0.001) significantly influence IT practitioners’ behavioral intention (BI) toward blockchain adoption, with BI strongly predicting Use Behavior (β = 0.699, p < 0.001). Mediation analysis further shows that BI significantly mediates the effects of these factors on Use Behavior, highlighting its central role in translating perceptions and enabling conditions into actual blockchain usage.

Conclusion: IT practitioners perceive the potential of blockchain, but technical knowledge gaps and security as well as scalability issues create an impediment in its adoption. Therefore, for its broader usage, it requires training, better infrastructure, and security measures.