Applicability of Blockchain Technology in Cryptocurrency and Return on Investment for Online Companies Operating In Kenya
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Date
2025-06
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Kenyatta University
Abstract
When it comes to the use of blockchain technology and cryptocurrencies, Kenya is one
of the world's leading nations. Numerous businesses have integrated blockchain
technology as a result of the growing acceptance and awareness of cryptocurrencies.
However, it is unclear from the literature how blockchain technology in
cryptocurrencies and return on investment are related. Therefore, this study assessed
the impact of blockchain technology on cryptocurrencies and ROI for Kenyan internet
businesses. The independent variables of the study are blockchain digital ledger,
blockchain smart contracts, and permissioned block chains, while the return on
investment is the dependent variable. The study was premised on the resource-based
view theory, the disruptive innovation theory and the diffusion of innovation theory.
The study used a correlational design. The study include1664 online companies
operating in Kenya. The sampling frame was 322 companies which had used
blockchain technology for at least three years. The sample size was 178 online
companies, and the unit of analysis was the top managers of the companies. Stratified
sampling was employed to select the participants. Questionnaires were used to gather
data. The SPSS version 21 was applied for inferential and descriptive statistical
analysis. Regression and correlation analyses were done to exhume the relations
between variables. The researcher adhered to the necessary ethical guidelines. The
findings showed that blockchain technology adoption was positively and significantly
correlated with return on investment of online companies operating in Kenya. Each of
the three independent variables was discovered to have a statistically significant effect
on return on investment. Blockchain digital ledger was found to have the biggest impact
(0.065 units) on return on investment while permissioned block chains were found to
have the least impact (0.056 units). The outcomes were significant at p˂0.05. The
findings underscored the need to online companies to prioritize blockchain technology
adoption to maximize return on investment. The research concluded that blockchain
digital ledger, block chain smart contracts, and permissioned block chains significantly
influenced return on investment of online companies operating in Kenya. The study
exhorted future studies on the effects of blockchain adoption on return on investment
while considering the indirect mediating roles of blockchain project’s purpose and
company characteristics. The study recommends top leadership or proprietors of online
companies operating in Kenya to expedite the integration of blockchain digital ledger
in their systems. The study also recommends companies to integrate permissioned
block chains to strengthen data security and integrity levels, improve the levels of
transparency in transacting, detect and prevent vulnerabilities and fraud.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Master in Business Administration (Finance) of Kenyatta University June, 2025