The factors influencing the adoption of bitcoin in e-commerce

Abstract

Cryptocurrency is a type of cryptographic e-currency generated by the computational result of mathematical techniques. It is one of the secure online integrated payment systems in B2B financial transactions. Bitcoin is the world's first decentralized digital currency that depends on a decentralized peer-to-peer network that anonymously allows online transactions without relying on third-party institutions or government. Though, its technology is considered as one of the secure online ledgers with strong cryptography integrated payment systems, it is still struggling for its adoption in E-commerce as mode of payment and people are reluctant to its. Substantial research studies on bitcoin's adoption have mainly focused on usability, security, and uncertainties toward its implementation. Such studies also cited its use for illegal transactions and its price volatility. This unwillingness of implementation might either be due to individuals' motivations, confidence, and belief in their knowledge or not. Typically, it is still unclear if bitcoins adoption in E-commerce might rely on people's decisions or the technology itself. To address this gap, this research, therefore, builds on theories of Technological Acceptance Model (TAM), Theory of Reasoned Action (TRA), Delone and McLean Information System Success Model and Self-determination Theory Model (SDT) to examine the factors influencing its adoption with bitcoin in an e-commerce. The study was conducted in Malaysia using both qualitative interviews and a quantitative survey. The study used a sample of 5-five informants (I) for the qualitative study and 402 participants for the quantitative study where nine main hypotheses were formulated and tested using the partial least squares (PLS) path modeling with SPSS. In contrast, thematic analysis was undertaking for the interview data generated. The result shows that the analysis of the quantitative data provided support for all the nine hypotheses and established the following findings: (i) positive relation between Self-Efficacy and Intention to Use bitcoin in e-payment; (ii) positive relation between Resource Appropriateness and Intention to Use bitcoin in e-payment; (iii) positive relation between Perceived Trust and Intention to Use bitcoin as e-payment; (iv) positive association between Perceived Risk and Intention to Use; (v) mediation effect of Perceived Usefulness, Perceived Ease of Use on the relationships between Self-Efficacy, Resource Appropriateness and Intention to Use bitcoin in e-payment. Simultaneously, the qualitative finding reveals that people are still skeptical about adopting bitcoin for e-payment in e-commerce. The thesis discussed several implications for theory within an e-commerce transaction considering the conclusions of the study. While some limitations face conducting the research, specifically related to the use of the single-informant method, and cross-sectional research design, future research may incorporate multiple approach. Results obtained in this study have both academic and practical worth in terms of Information Systems technology adoption for improving the understanding of factors influencing bitcoin adoption in e-transaction.