Leveraging blockchain technology benefits to enhance maize value chain performance in Kenya

Abstract

The maize value chain as other agricultural value chain experiences problems of mistrust among its multiple actors, limited access to information to actors, manipulation of data, and lack of traceability of products. The advance of blockchain technology in other industries has already shown its significance in alleviating these issues thereby enhancing its performance; yet, its application in the agricultural sector lags behind other sectors. The maize value chain has been marred by fraud, corruption, health and safety concerns which can be addressed by adoption of blockchain technology. Using the Diffusion of Innovation theory, this research explored how blockchain technology components: traceability, transparency, transaction costs, and immutability while maize value chain performance is the dependent. A positivist research philosophy was adopted under which 14 state and non-state agencies were included into the sample size using purposive sampling method. In each organisation, snowball sampling was used to select 3 staff engaged in market research and development in maize production. A structured questionnaire based on 5-Likert scale item was developed and found valid and reliable for administration. Descriptive analysis was done followed by diagnostic tests performed before undertaking correlation and multiple regression analysis. The 4 BCT dimensions explained 88.6 % of change in performance of the maize value chain and this was significant at the 95 % confidence interval. Out of the 4 determinants, transparency had a positive and significant effect on maize value chain performance while the other determinants had an insignificant effect. Study concludes that adoption of BCT would enhance the transparency in the maize value chain while it would not have any effects on maize value chain by immutability, transaction costs, and traceability.