The adoption of blockchain technology in the financial sector during the era of fourth industrial revolution: a moderated mediated model

Blockchain technology is considered a core technology in the financial sector with promising prospects like economic development, financial innovation, and internet development. The financial sector needs digital transformation and the deployment of strategies that make Blockchain technology adoption successful. Hence, the current research investigates the mediating role of Blockchain adoption between digital business strategy and process innovation, financial performance, and the moderating role of information technology alignment. The data was collected from the 300 employees of banks located in Islamabad/Rawalpindi, Pakistan. Statistical techniques: Pearson’s correlation analysis, confirmatory factor analysis, Hayes process technique for mediation, and moderation analysis were used for data analysis. The results illustrate that digital business strategy is positively related to business process innovation and firm financial performance. Blockchain adoption mediates the relationship between digital business strategy, business process innovation, and financial performance. Information technology alignment acts as a moderator between Blockchain adoption and process innovation. The current study provides theoretical contribution by extending the literature on key variables: digital strategy, Blockchain technology, and bank's performance. The study also offers various managerial implications for top management and executives in the banking industry that are responsible for strategic decision making and better firm performance.