The Effect of Blockchain Technology on the Business Performance of Selected Manufacturing Firms in Delta State, Nigeria

Abstract

This study critically examined the effect of blockchain technology on the business performance of selected manufacturing firms in Delta State, Nigeria. The research focused on four core dimensions of blockchain adoption Blockchain Transparency (BTC), Blockchain Traceability (BTB), Blockchain Security (BS), and Blockchain Data Integrity (BDI) to determine their collective and individual influence on organizational outcomes. Employing a survey research design, data were collected from a population of 150 respondents, with 109 as sampled size were  valid questionnaires retrieved, representing a robust 96.7% response rate. Analytical techniques including descriptive statistics, correlation, and regression analyses were applied to evaluate the relationships between blockchain dimensions and business performance. The findings revealed that all four dimensions significantly enhanced business performance. Blockchain Transparency fostered improved decision-making and strengthened stakeholder trust, while Blockchain Traceability facilitated effective supply chain monitoring and operational efficiency. Blockchain Security emerged as the most critical determinant, safeguarding sensitive data and transactional processes, whereas Blockchain Data Integrity ensured the reliability and consistency of information for strategic planning. Mean adoption scores across dimensions ranged between 4.05 and 4.20, with correlation coefficients (r = 0.613–0.688, p < 0.01) confirming strong positive associations. Regression analysis further demonstrated that blockchain collectively explained 57.4% of the variance in performance (R² = 0.574), with security (β = 0.301) exerting the strongest predictive influence. The study concludes that blockchain technology is not merely a technological innovation but a strategic enabler of competitiveness, efficiency, and stakeholder confidence in manufacturing firms. It contributes to scholarship by offering empirical evidence from a developing economy, underscoring blockchain’s transformative potential in the Nigerian manufacturing sector. Practical recommendations include holistic adoption of blockchain, prioritization of security measures, integration into supply chain management, employee training, and establishment of governance frameworks. These insights highlight transparency, traceability, security, and data integrity as pivotal drivers of organizational success.