Blockchain-Enabled Sustainability Transparency in Omani SMEs: Empirical Evidence on Drivers, Green Trust, and Competitive Advantage

Abstract

Oman's VISION 2040 strategy for economic diversification relies on Small and Medium Enterprises (SMEs), but the adoption of technology-based systems to enhance transparency in sustainability processes remains exceedingly low. This study examines the motives for Omani SMEs' adoption of blockchain-based systems to improve sustainability transparency. The study employs a model combining the Resource-Based View (RBV), Technology-Organization Environment (TOE), and Green Trust Theory. The research team surveyed 420 SME owner-managers of the six main governorates of Oman, using a multi-item instrument that they translated into Arabic and English. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test seven hypotheses, including a moderated mediation hypothesis, in SmartPLS 4.0, employing a bootstrap resampling technique with 5,000 subsamples. The empirical results indicate that sustainability orientation (β = 0.378, T = 11.686, p < 0.001), digital transparency readiness (β = 0.384, T = 10.477, p < 0.001), and government policy support (β = 0.168, T = 5.023, p < 0.001) are significant positive drivers of BETA. The impact of process blockchain adoption on green trust is significant (β = 0.663, T = 17.355, p < 0.001), and in turn, green trust enhances competitive advantage (β = 0.697, T = 28.987, p < 0.001). For the first time, a new moderated mediation effect shows that firm size strengthens the case for digital readiness and adoption (indirect β = 0.024, T = 3.416, p = 0.001). Conversely, the direct link from sustainability orientation to green trust (β = 0.004, p = 0.928) indicates that blockchain adoption fully blocks the mediation, a more rigorous theoretical result. PLSpredict indicates that BETA is highly predictive (Q² = 0.524), whereas green trust is medium to large (Q² = 0).