Technology Analysis & Strategic Management

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Identifying the barriers and enablers of blockchain

adoption in Saudi Arabian last-mile logistics using
principal component analysis

Awsan Mohammed, Nokhaiz Tariq Khan, Omar Alkerishan & Ahmed

Ghaithan

To cite this article: Awsan Mohammed, Nokhaiz Tariq Khan, Omar Alkerishan & Ahmed
Ghaithan (03 Jan 2025): Identifying the barriers and enablers of blockchain adoption in Saudi
Arabian last-mile logistics using principal component analysis, Technology Analysis & Strategic
Management, DOI: 10.1080/09537325.2024.2448155

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TECHNOLOGY ANALYSIS & STRATEGIC MANAGEMENT
https://doi.org/10.1080/09537325.2024.2448155

Identifying the barriers and enablers of blockchain adoption in

Saudi Arabian last-mile logistics using principal component
analysis
Awsan Mohammeda,b, Nokhaiz Tariq Khanb, Omar Alkerishana and Ahmed Ghaithana,b
a
Architectural Engineering & Construction Management Department, King Fahd University of Petroleum and
Minerals, Dhahran, Saudi Arabia; bInterdisciplinary Research Center for Smart Mobility and Logistics, King Fahd
University of Petroleum and Minerals, Dhahran, Saudi Arabia

ABSTRACT ARTICLE HISTORY

Last-mile logistics has emerged as a tool for responsiveness, however, Received 22 May 2024
requires dynamic business models and technology to integrate all Revised 20 November 2024
the stakeholders. Blockchain is emerging as a platform for logistics Accepted 23 December 2024
and supply chain problems due to its prospective features, however,
KEYWORDS
the adoption is slow due to unclear benefits and diverse challenges it Last-mile logistics practices;
brings. This study explores the relationship between last-mile logistics blockchain; supply chain;
practices (LMLPs), blockchain adoption challenges, blockchain features principal component analysis
and blockchain adoption benefits. Data are collected and principal
component analysis is used to rank the practices. Finally, we measure
the impact of blockchain benefits on LMLPs using regression analysis.
The findings revealed that the most important practice is close
partnership with customers, followed by a state-of-the-art cybersecurity
system. Blockchain features such as transparency, real-time tracking,
data-driven decision-making and secure information exchange offer key
benefits, including lead-time reduction and enhanced flexibility in
supply chains. However, policy uncertainty remains a major challenge
to blockchain adoption.

1. Introduction
The last mile is the final leg of the supply chain, delivering to the customers. This part is extremely
complex (Raj, Singh, Kumar, De, et al. 2024) and requires high levels of integration, timely communi­
cation, tracking of the object and live status. Last-mile logistics is very complex as it involves deliver­
ing in a complex urban environment (Khayyat et al. 2024). Transportation costs are very high due to
disaggregation at the end as the products are supposed to be delivered to different locations.
Despite these challenges, customer expectations are very high due to increased global competition
and e-commerce. This all adds to traffic congestion, increasing costs and delays in deliveries. Con­
cludingly, the competitive strategy in the last mile becomes responsiveness, however, to balance
the efficiency-responsiveness dynamics technological advancements are required (Bentalha,
Hmioui, and Alla 2023), which start from data, with the purpose of real-time tracking, route optim­
isation, delivery innovations (Alessa 2023) and customer communication. Literature shows that
various technologies have been proposed for last-mile solutions (Ahmad et al. 2024; Ali et al.
2024), similarly, blockchain technology (BT) has the potential (Bhatt, Kumar, and Lu 2021) to
improve supply chain performance for a variety of industries; oil and gas (Aslam et al. 2021), and

CONTACT Nokhaiz Tariq Khan [email protected]

© 2025 Informa UK Limited, trading as Taylor & Francis Group
2 A. MOHAMMED ET AL.

Figure 1. Simple blockchain process.

logistics (Noor 2022). However, BT adoption is critical due to challenges associated with it. It is critical
to determine if BT adoption is necessary for a specific supply chain.
BT process at its basic level consists of blocks that contain information, and the chains are links
between the blocks as shown in Figure 1. BT is not a one-size-fits-all solution and its value comes
from specific design choices which implies that for last-mile logistics its design will be different
and depends on the last-mile logistics practices (LMLPs), the BT adoption benefits for last-mile logis­
tics and challenges associated with the adoption.
This study first identifies LMLPs, discovers the alignment of LMLPs with BT features, the generic
challenges in BT adoption, the expected benefits of BT adoption and the impact of the benefits of BT
adoption on LMLPs. The study further attempts to address the following research questions (1) What
are the Saudi Arabian LMLPs? (2) Are these practices aligned with BT features? (3) What are the most
critical BT adoption challenges from the perspective of last-mile logistics? (4) What are the most
important BT adoption benefits from the perspective of last-mile logistics? And (5) The impact of
the BT adoption benefits on LMLPs?
The study aims to identify blockchain adoption within the context of last-mile logistics and
explore how the specific practices can be enhanced by BT adoption in Saudi Arabia which is unex­
plored area in literature. BT adoption seems to be established in some domains its application and
potential improvements within the context of last-mile logistics have not been thoroughly exam­
ined. By conducting principal component analysis (PCA) and subsequent regression analysis, we
offer empirical evidence on how blockchain adoption impacts logistics practices, focusing on the
operational and strategic implications that have not been sufficiently addressed in prior literature.
This paper moves beyond theoretical discussions and provides data-driven insights into how block­
chain adoption affects the logistics process, improving transparency, efficiency and trust in the last-
mile logistics. We believe that this focus provides meaningful, novel insights for practitioners and
researchers alike.

2. Literature review
The literature covers three main parts: first, it summarises different LMLPs, BT adoption benefits and
challenges associated with BT adoption. Gevaers, de Voorde, and Vanelslander (2011) suggested that
all the last-mile logistic companies adopt IT-based systems to provide shipment tracking and visi­
bility to the customers, so IT infrastructure becomes one of the basic practices of last-mile coordi­
nation. Aslam et al. (2021) concluded that IT infrastructure is necessary for building close
partnerships with suppliers and customers. However, Wang et al. (2021) explained that building
close partnerships with customers is not only about information sharing but empowering the cus­
tomers. As the customers are the primary stakeholders in last-mile delivery, close partnership with
customers is the second-best practice. Similarly, Ali, Kaur, and Khan (2023) highlighted the need
to build partnerships with customers and continuously update the IT infrastructure. Melkonyan
 TECHNOLOGY ANALYSIS & STRATEGIC MANAGEMENT 3

Table 1. Generic LMLPs.

Item Practice Resources
B1 IT Infrastructure Gevaers, de Voorde, and Vanelslander (2011)
B2 Strategic planning and leadership Lyons and McDonald (2022)
B3 Close partnership with suppliers Aslam et al. (2021)
B4 Close partnership with customers Wang et al. (2021)
B5 Advanced e-procurement system Neef (2001)
B6 State-of-the-art cyber security Srivastava and Gupta (2022)
B7 Advanced information management system Srivastava and Gupta (2022)

et al. (2020) recommended that the development of sustainable last-mile logistics depends a lot on
developing efficient and effective strategic plans. Lyons and McDonald (2022) also emphasised on
strategic planning and leadership due to the increase in changing customer requirements and
rapid technological advancement. Fikar et al. (2018) clarified how practices such as strategic plan­
ning and leadership help to improve practices such as close partnerships with suppliers, close part­
nerships with customers, use of advanced information management and advanced e-procurement
systems. Table 1 presents the LMLPs adopted from the literature.
Jiang et al. (2023) shed light on the application of BT adoption to improve waste management
using smart contracts, data traceability and the integration of IoT, however, also concluding
several challenges like data acquisition. Han et al. (2023) also provided a literature review and sum­
maries that BT can provide auditable, verified and agreed-upon data. It is observed that most of the
recent papers or literature review or conceptual papers. Since BT adoption is in its initial stages,
limited case studies are available, so the main source of BT adoption benefits remains literature.
Li, Barenji, and Huang (2018) enlightened that the BT adoption provides real-time information
sharing which avoids unnecessary delays and helps in reduced lead times. Wang and Yang (2022)
explained that BT features like transparency and traceability help in quick decision-making that
enhances supply chain flexibility. López-Pintado et al. (2022) found that BT adoption provides a plat­
form for collaboration that brings agility and resilience. The operational and strategic benefits have
indirect financial benefits; companies can achieve lower costs and higher revenues by achieving
benefits like reduced lead time, flexibility and reduced inventory levels. BT adoption benefits from
the literature are summarised in Table 2.
Saberi et al. (2019) segregated BT adoption challenges into four categories; inter-organisational
barriers, system-related barriers, intra-organisational barriers and external barriers. These challenges
can further be summarised into three primary areas: no or uncertain policy, lack of technical maturity

Table 2. BT adoption benefits in supply chain.

Item Blockchain benefits (Operational) Mechanism
D1 Reduce lead time Li, Barenji, and Huang (2018)
D2 Flexibility López-Pintado et al. (2022)
D3 Forecasting capabilities Pattanayak et al. (2024)
D4 Cost-savings Ganguly (2024)
D5 Resource planning Sislian and Jaegler (2021)
D6 Reduces inventory level Govindasamy and Antonidoss
(2021)
Blockchain benefits (Strategic)
D7 Ease paperwork processing Fridgen et al. (2018)
D8 Identify counterfeit products Mhatre et al. (2023)
D9 Tracking and tracing Zhou and Liu (2022)
D10 Operate the Internet of Things Banafa (2022)
D11 Proof of delivery system Hasan and Salah (2018)
D12 Support innovative last-mile solutions Kadadha et al. (2024)
D13 Smart contracts promote transparency, data verifiability and allow item tracking Khan et al. (2021)
D14 Blockchain’s decentralisation feature allows a copy of the database file is owned by Khan et al. (2021)
all actors
4 A. MOHAMMED ET AL.

Table 3. Challenges in BT adoption.

Item Blockchain challenges References
C1 The potential for future policy changes Saberi et al. (2019)
C2 The implementation of blockchain solutions requires a high level of technological Saberi et al. (2019)
maturity
C3 Blockchain adoption is influenced by external business partners and their readiness Saberi et al. (2019)
C4 Blockchain benefits are not clear Queiroz and Wamba (2019)
C5 There are no tangible results from the application of blockchain solutions Hackius and Petersen (2020)
C6 Blockchain solutions require the acceptance of multiple supply chain players Saberi et al. (2019)
C7 Blockchain solutions may require the organisation to largely depend on the Fikar et al. (2018)
blockchain operators
C8 The acceptance of blockchain depends on the trust level Dominguez Anguiano and Parte
(2024)
C9 Blockchain solutions require a significant amount of fund Aslam et al. (2021)
C10 Blockchain solutions require a significant amount of time Dominguez Anguiano and Parte
(2024)
C11 The level of adoption of the technology is relatively low in the field of your Saberi et al. (2019)
organisation
C12 Blockchain solutions are not mature which does not allow businesses to evaluate the Dominguez Anguiano and Parte
outcomes of adoption (2024)

and lack of support from partners and stakeholders. Dhingra et al. (2024) concluded that challenges
like cost, uncertain regulations and resistance to change are some key challenges. BT is not yet stan­
dardised or regulated (Raj et al. 2023) and faces infrastructural challenges (Raj, Singh, Kumar, and
Verma 2024). Recently, Dominguez Anguiano and Parte (2024) shared the many challenges including
regulation, technology maturity, standardisation and readiness. Ganguly (2024) also discussed chal­
lenges associated with BT adoption which include cost, standardisation and acceptance from mul­
tiple supply chain players. After a detailed literature review, the BT adoption challenges can be
summarised in Table 3.
Despite the many studies in the area of BT adoption benefits and challenges in general and its
adoption in last-mile logistics, there is a dire need for a study tailored to provide insights into the
Saudi last-mile logistics sector offering specific evidence of how blockchain adoption can be ben­
eficial and what challenges are expected. As BT adoption is at the early stages of implementation,
such localised understanding is valuable for both practitioners and policymakers in the region.

3. Methodology
The sequence of research method is elaborated in Figure 2.
Based on the identified LMLPs from literature, participants were asked to score the LMLPs of their
respective supply chains on a 7-point Likert scale. Where 1 means not at all implemented and 7
means fully implemented. Similarly, based on Tables 2 and 3, participants were asked to score the
BT adoption benefits and challenges.

3.1. Hypothesis development

Blockchain is viewed as a strategic resource aligning with the resource-based view (RBV) that offers
firms significant advantages in last-mile logistics by reducing transaction costs and aligns with trans­
action cost economics (TCE) theory enhancing dynamic capabilities theory. BT adoption benefits,
such as enhanced transparency, improved security and cost reduction, provide logistics firms with
strategic resources and capabilities that significantly improve LMLPs by optimising operational
efficiency, reducing transaction costs and enabling dynamic responses to environmental changes.
Therefore, the proposed hypothesis is given below (Figure 3):
H1: BT adoption benefits have a positive impact on LMLPs.
 TECHNOLOGY ANALYSIS & STRATEGIC MANAGEMENT 5

Figure 2. Methodology of the research.

3.2. Data collection and analysis

The objective of the study is to understand the impact of BT adoption benefits on LMLPs, for this, we
targeted all the companies focusing on last-mile logistics within Saudi Arabia. Stratified sampling
was used to ensure the representation of different segments of the sector. The developed question­
naire was first tested on a group of experts and checked for wording, format and structure. The data
were collected in 2022. The survey was distributed with 103 last-mile logistics experts working across
the different regions of Saudi Arabia, we received responses from 73 experts with a response rate of
71%. The descriptive statistics of the data are shown in Table 4.

3.3. Principal component analysis

PCA is used for dimensionality reduction, feature selection and ranking (Florou and Anastasiadou
2020). PCA computes the mean absolute loading for each principal component and the loading
value represents the contribution of each component in explaining the variance of the data. A
higher loading value means a high influence on the component of the data. By ordering the
loading value, variables can be ranked, where the variance factor shows the influence of each vari­
able in explaining the variance of the data. Before analysis, data were standardised, cleaned for
missing data and checked for outliers.

Figure 3. Conceptual model for regression analysis.

6 A. MOHAMMED ET AL.

Table 4. Descriptive statistics of the data.

BT adoption challenges BT adoption benefits LMLPs
Count 73.00 73.00 73.00
Mean 5.01 5.52 5.17
Std 0.85 1.26 1.32
Min 2.33 1.00 1.00
25% 4.56 4.79 4.00
50% 5.11 5.86 5.60
75% 5.67 6.50 6.20
Max 6.78 7.00 7.00

4. Results and discussion

Figure 4 depicts the respondents’ various years of experience in the last-mile logistics industry.
We first investigated the level of understanding for BT (Figure 5), the findings indicated that
nearly 70% of respondents have at least become involved by observing blockchain developments,
investigating potential applications or implementing blockchain solutions.

4.1. Ranking of LMLPs

Figure 6 shows the Pareto chart of the results from PCA, it can be observed that close partnership
with customers explains 59% of the variance of the data which means it is the most important
LMLP in the Saudi Arabia’s last-mile logistics industry. The first three practices combinedly represent
80% of the total variance and align quite well with the BT features. Both, the close partnership with
customers and suppliers, require frequent and transparent information sharing. BT adoption can
provide the ideal form of information sharing in the shape of real-time information sharing.
Further, the close partnership requires traceability and trackability and BT offers features like trace­
ability and trackability. The second most important practice was identified as state-of-the-art cyber
security, and it is well established that BT can provide state-of-the-art cyber security (Taylor et al.
2020).
From a generic perspective, the identified LMLPs require a higher level of internal and external
integration, and BT can be an ideal fit for integration-based supply chain practices. Similarly, the
BT adoption can enhance strategic planning and information management system (Berdik et al.
2021), and these are fourth- and fifth-ranked LMLPs in Saudi Arabia, respectively. BT adoption can

Figure 4. Count of respondents based on their years of experience.

 TECHNOLOGY ANALYSIS & STRATEGIC MANAGEMENT 7

Figure 5. Response distribution by company blockchain stance.

further help establish advanced e-procurement systems (Nodehi et al. 2022). It is observed that all
the identified LMLPs are understood in the Saudi Arabian last-mile logistics industry and align
quite well with BT features as shown in Figure 7. The last two ranked practices are IT infrastructure
and advanced e-procurement systems. IT infrastructure is a must in this digital era and is not a com­
petitive advantage anymore. Adequate IT infrastructure is the basic requirement for efficient last-
mile logistics as it enables seamless integration. A robust infrastructure supports the high compu­
tational needs and capabilities required for blockchain. Organisations with advanced technologies
are better equipped to integrate blockchain. Furthermore, e-procurement is covered in advanced
enterprise resource planning (ERP) systems that are an integral part of advanced information man­
agement system (Li and Wu 2021). Therefore, the study will further consider the top 5 practices only.

4.2. Ranking of BT adoption benefits

Figure 8 shows that BT adoption can provide both operational and strategic benefits. Results from
the last-mile logistics industry are well aligned with the generic expected operational and strategic

Figure 6. Pareto analysis of LMLPs after PCA implementation.

8 A. MOHAMMED ET AL.

Figure 7. Alignment of top 3 LMLPs with BT features.

benefits of BT adoption in literature. Interestingly, the strategic benefits support innovation from the
perspective of products (Rank 8) and technological advancement (Ranks 3, 7 and 10). The ranking of
expected benefits from the BT adoption also aligns well with the ranking of LMLPs. The purpose of
practices such as partnership with customers and suppliers is to reduce the lead time, increase flexi­
bility and forecasting capabilities, and reduce costs and inventory levels. Further, the third ranked
benefit is that BT adoption can provide innovative last-mile solutions which address the LMLPs; IT
infrastructure, cyber, security, information management system and e-procurement, as it covers
different aspects like automation and crowdsourcing. Blockchain’s real-time data sharing and trans­
parency may allow the stakeholders like drivers and the customers to access live information on ship­
ments, reducing delays in tracking products and even identifying the bottlenecks. Similarly, smart
contracts automate approvals and transactions minimising administrative delays. The decentralised
network enables all the logistics participants to adapt quickly to the changes by providing updated
information across the chain. Real-time data can be used for agile decision-making like rerouting in
case of route closures and reallocation of resources based on demand fluctuations. Blockchain’s
application programming interfaces (APIs) for interactions allow integration of emerging last-mile
solutions like drones, IoTs and sensors by providing real-time, secure tracking data allowing for inno­
vative last-mile delivery options.
The alignment of BT adoption benefits with BT features is depicted in Figure 9. Which sheds light
on the use-cases of BT adoption, for instance, logistics companies can integrate blockchain to track
 TECHNOLOGY ANALYSIS & STRATEGIC MANAGEMENT 9

Figure 8. Pareto analysis of BT benefits after PCA.

the real-time location and status of packages providing better transparency to both customers and
suppliers which will ultimately improve trust between stakeholders and help to optimise several
operational tasks like route planning and delivery performance yielding reduced lead times, costs
and inventory levels.
However, to achieve such benefits from the BT adoption, blockchain should be designed accord­
ingly. For instance, for transparency and traceability, the design must include the immutable ledger;
for efficiency and cost reduction, smart contracts should be added; cryptographic security should be
included for increased security; consensus mechanism is required for trustless operations and distrib­
uted ledger technology for real-time data sharing.

4.3. Ranking of BT adoption challenges

The decision of BT adoption is not easy and requires careful assessment prior to implementation due
to its higher cost. However, it is not the only challenge organisations may face. The results in
Figure 10 show that the strongest challenge impeding the BT adoption is uncertain policy from reg­
ulators which explains over 30% variance. Interestingly, such a phenomenon was identified as early
10 A. MOHAMMED ET AL.

Figure 9. BT adoption benefits aligned with BT features.

as BT became the buzzword (Finck 2018). Regulatory uncertainty has other consequences as well, it
directly impacts the organisations’ decision to invest. BT adoption requires highly skilled tech-
experts and on top of that BT adoption benefits are not clear. Saudi government is taking initiatives

Figure 10. Pareto analysis of expected BT adoption challenges after PCA implementation.
 TECHNOLOGY ANALYSIS & STRATEGIC MANAGEMENT 11

and promoting BT adoption by motivating entrepreneurs and investors and trying to bring block­
chain to the national agenda by introducing regulations and laws. Although BT adoption involves
high cost, the cost factor is ranked at number 11. It reflects that industry players understand its
understated potential and might be willing to invest, however, are reluctant because of other uncer­
tainties. The fourth-ranked challenge is the acceptance of BT adoption at each node of the supply
chain, it is equally important as supply chain profits are calculated collectively. BT adoption provides
different BT features which means the BT adoption challenges impede the implementation of such
features which can provide excellent operational benefits. For example, C1 could significantly disrupt
B2, as uncertainty in regulations might force companies to constantly adjust their strategies. Simi­
larly, C2 might impede B1 (IT Infrastructure) and B7 (Advanced information management system),
requiring businesses to invest more in upgrading technology, potentially delaying implementation.
C4 (Unclear benefits) could make B3 (Close partnership with suppliers) and B4 (Close partnership
with customers) more difficult, as partners might be hesitant to engage with blockchain without
clear value propositions.
The ranked challenges help us to understand the preconditions for BT adoption, and these
boundary conditions may impact the feasibility and effectiveness of BT in practice. Without addres­
sing these conditions, the anticipated benefits may not materialise as expected. Based on challenges,
these boundary conditions can be summarised as follows:

. Network readiness: The necessity for key stakeholders (e.g. delivery providers, retailers and custo­
mers) to be technologically equipped to participate in a blockchain network.
. Data privacy and security: Concerns about what data should or should not be shared on the block­
chain, especially when sensitive information is involved.
. Regulatory constraints: The legal frameworks surrounding data sharing, cross-border logistics and
compliance with international standards.

The results reflect that BT solutions are time-consuming and require trust. However, these beliefs
are contradictory to BT adoption benefits identified in Table 2. This contradiction requires a more
careful understanding of the challenges. For the said purpose, this study uses the BT adoption chal­
lenges as a control variable while performing regression analysis for the proposed hypothesis H1.
However, we considered the challenges that explain the 90% variance of the data.

4.4. Impact of BT adoption benefits on LMLPs

Correlation (Pearson) matrix and Cronbach’s alpha are presented in Table 5. The values in braces
show the p-values of the relationship indicating significance level.
Regression analysis was performed to test H1, where BT adoption challenges are kept as the
control variable. The initial results are presented in Table 6 showing that BT adoption benefits
have a positive and significant impact on LMLPs. Further, after adding the control variable, the coeffi­
cient value has decreased from 0.4800 (Table 6) to 0.3149 (Table 7) but remains significant which
shows the confounding impact of BT adoption challenges on the relationship between BT adoption
benefits and LMLPs. Such suppression of control variable hints towards situational moderation. The
BT adoption improves the LMLPs; however, the BT adoption challenges in general act as barriers and
impede the impact of BT adoption in last-mile logistics.

Table 5. Correlation matrix of the variables.

Variables LMLPs Challenges Benefits Cronbach’s alpha
LMLPs 1.000 0.427 0.395 0.719
Challenges 0.427 (0.00161) 1.000 0.556
Benefits 0.395 (0.00526) 0.556 (0.00000) 1.000
12 A. MOHAMMED ET AL.

Table 6. Results of regression analysis without control variable.

Relationship Coefficient p-value F-statistic R-sq Adj. R-sq H1
Benefits –> LMLPs 0.4800 0.000 18.59 0.208 0.196 Accepted

Table 7. Results of regression analysis with control variable.

Relationship Coefficient p-value Coefficient of control variable p-value F-statistic R-sq Adj. R-sq
Benefits –> LMLPs 0.3149 0.019 0.4289 0.030 12.27 0.260 0.238

Figure 11 shows the impact of adding challenges aggregately, and then, each selected challenge
as a control variable separately. It is observed that, in most cases, the original regression coefficient
was reduced after adding the control variable (C1, C2, C3, C4, C6, C10 and C12) and, in few cases, the
coefficient was increased after adding the control variable (C7 and C8). Usually, when the coefficients
are decreased from the original value, it shows the confounding relationship; on the other hand,
when the coefficients are increased, it shows an influential role in refining the relationship. The
blue bars in Figure 11 represent when the coefficient of the control variable is significant, and the
red bars indicate when the control variable is insignificant. From Figure 11, three different scenarios
can be observed.
Scenario 1: When the coefficient is increased, the control variable is insignificant (C7 and C8).
Insignificance shows that it does not capture the relevant factors and increases the coefficient
based on the spurious results. It is a weak instrument, and the increase in the coefficient may be
due to correlation. It can also represent an indirect relationship due to the complex nature of the
relationship and requires more exploration.
Scenario 2: When the coefficient is decreased, the control variable is insignificant (C4, C10 and
C12). The variables are addressing some omitted variable bias; maybe increasing the sample size
will bring more interesting results so require further investigation.

Figure 11. Combined and individual impact of BT adoption challenges.

 TECHNOLOGY ANALYSIS & STRATEGIC MANAGEMENT 13

Scenario 3: When the coefficient is decreased, the control variable is significant (C1, C2, C3 and
C6). These variables are performing situational moderation which means their presence weakens
the relationship and these variables work as speed breakers. In the presence of these variables,
the original relationship is suppressed.

4.5. Discussion
According to the results, it is observed that C1, C2, C3 and C6 are clearly validated and most impor­
tant challenges; however, the rest of the challenges may or may not be important and require further
exploration. It can be said that C1, C2, C3 and C6 are the clear berries to BT adoption in LMLPs. Inter­
estingly, C1 and C2 are the top 2 ranked challenges in the Saudi Arabian last-mile logistics industry.
C1 corresponds to regularity uncertainty which either indicates that the last-mile industry players
think there is no clear policy exists for BT adoption in Saudi Arabia or if it exists, the industry
players are unaware of that, or even afraid of it being changed in the near future. As already men­
tioned, Saudi Arabia has added BT adoption to the national agenda which will reduce this challenge
and industry players will gain awareness in the coming future. Referring to C2, the study identifies
another recommendation regarding policy which is the requirement of skills development and train­
ing in the area as industry players believe that high level of technical maturity is required for block­
chain solutions. This indicates a fear of adopting the BT that can be reduced by skill development
and training. C3 refers to the importance of total stakeholder involvement. As BT is new and BT adop­
tion is complex and brings many challenges, it might be less fruitful to implement by individual
organisations. Rather, the business partners, suppliers, vendors and customers all should be part
of such a transition. C3 is closely related to C6 which synthesises that the most significant challenges
C1, C2, C3 and C4 are most likely to be smoothened with clear and certain policy definitions and
implementation.
Results of the study show that the BT adoption benefits have a positive impact on LMLPs;
however, factors such as policy uncertainty, technological maturity, readiness of external stake­
holders and acceptance of supply chain players impede this impact. Our results can be considered
a response to the findings by Treiblmaier (2018) that discuss the technological and regulatory
hurdles in blockchain adoption across supply chains and suggest that incremental studies are
required to understand the BT adoption, challenges and benefits. Our results also align with
Wang et al. (2020) who emphasise the potential of blockchain to improve supply chain transparency,
which our study supports by showing its impact on last-mile delivery tracking and accountability.
Similarly, with Queiroz and Wamba (2019), who discusses challenges such as technical maturity,
and Oriekhoe et al. (2024) who concludes regularity uncertainty as a major challenge.
It is important to address the identified challenges. In doing so, both the logistics companies and
government should play their roles and collaborate. Government should clarify the current and
future policies and regulations. If any change is to be made, engage with logistics companies and
launch pilot programs to test the technology in a controlled environment. These sandbox initiatives
will help regulators to understand technology’s impact, leading to more informed policy decisions.
Companies should invest in R&D to improve the maturity of blockchain technologies tailored specifi­
cally for last-mile logistics. This includes developing more user-friendly interfaces, scalable solutions
and integrating blockchain with existing logistics technologies. Further, companies should partner
with technology providers specialised in blockchain to stay ahead of technological advancement.
This will also help to build customised solutions addressing specific needs and challenges. Compa­
nies should arrange comprehensive training programs for their staff as well as partners and external
stakeholders. Such education plans also help in reducing the rigidness to change. Similarly, govern­
ment and logistics companies both can incentivise early BT adoption, as a result, many supply chain
players will adopt to blockchain.
Our findings such as the criticality of close partnership with customers emphasising the need for
direct interaction with end users aligns with Aslam et al. (2021); however, this study extends this idea
14 A. MOHAMMED ET AL.

by highlighting how blockchain’s transparency features can foster closer customer partnerships by
offering real-time tracking and reliable information. Lead-time reduction and flexibility were found
to be the most important blockchain benefits for last-mile logistics. These findings are consistent
with many previous studies such as Queiroz and Wamba (2019) who found that blockchain can
improve supply chain agility, reduce lead times and enhance operational flexibility. Policy uncer­
tainty emerged as the most significant challenge to blockchain adoption in last-mile logistics that
has been highlighted in several blockchain studies. For example, Kshetri (2021) discussed the regu­
latory challenges associated with blockchain, emphasising that unclear or evolving legal frameworks
are a significant barrier to widespread adoption.

4.6. Theoretical and practical implications

This study provides both theoretical and practical insights into how BT can be leveraged to
enhance last-mile logistics. From a theoretical perspective, it contributes to understanding the
technology’s potential in improving supply chain responsiveness, while practically, it offers gui­
dance to logistics managers on BT adoption in a strategic and informed manner, emphasising
collaboration, security and overcoming regulatory challenges. Identified challenges like policy
uncertainty can guide policymakers to create supportive regulations and frameworks that facili­
tate blockchain adoption. This could encourage innovation and improve the overall logistics eco­
system. Considering BT to provide a platform for information systems that can help in decision-
making, improving efficiency and achieving competitiveness, the study aligns very well with the
information systems theory. BT implementation in last-mile logistics also supports supply chain
management theory as BT adoption may enhance supply chain management by providing
real-time information systems and visibility.

5. Conclusion
The study identified LMLPs from the literature, validated it from the last-mile logistics industry of
Saudi Arabia and listed the top 5 practices as follows: (i) close partnership with customers, (ii)
state-of-the-art cyber security system, (iii) close partnership with suppliers, (iv) strategic planning
and leadership and (v) advanced information management system. These practices are well
aligned with BT features as proposed in the literature. The most critical challenge in BT adoption
is policy definition and implementation and probably the assurance to BT adoption players for
investment from policy perspective. The generic BT adoption benefits are equally beneficial for
last-mile logistics, from both operational and strategic perspective. However, the impact of BT adop­
tion is far beyond the identified benefits; the integration of BT with new technologies, such as 5G, AI,
IoT, robotics, augmented reality/virtual reality (AR/VR), cloud computing and smart city infrastruc­
ture, will significantly enhance last-mile logistics. These synergies will lead to more efficient, trans­
parent and secure logistics operations, ultimately revolutionising the way goods are delivered in
the last mile. The integration of these technologies will drive innovation and create new opportu­
nities for improving the logistics ecosystem. BT adoption is likely to evolve, driven by these technol­
ogies, regulatory changes and the growing recognition of blockchain’s benefits across industries,
there would be a greater push towards interoperability between different blockchain networks,
focus on sustainability, growth of decentralised finance and widespread adoption in supply chain
management.
BT adoption may play a crucial role in transformation, but it comes with its benefits and chal­
lenges. BT adoption sounds strategic, but this study shows that it has the potential to increase oper­
ational performance equally. As it is seen the third most important challenge is unclear benefits and
this paper identified BT adoption benefits, differentiated them based on operational and strategic
importance, and ranked them. The paper provides insights for policymakers that a reliable policy
can turn the barriers into enablers for the Saudi Arabian last-mile logistics industry.
 TECHNOLOGY ANALYSIS & STRATEGIC MANAGEMENT 15

Data availability statement

Data supporting this study’s findings are available from the corresponding author upon request.

Acknowledgements
The authors express their gratitude to King Fahd University of Petroleum and Minerals (KFUPM) for supporting this
research, which was funded by the Research Center on Smart Mobility and Logistics at KFUPM through grant INML2410.

Disclosure statement
No potential conflict of interest was reported by the authors.

Notes on contributors
Awsan Mohammed is an Assistant Professor at the Department of Architectural Engineering and Construction Manage­
ment and an affiliate at Interdisciplinary Research Center for Smart Mobility and logistics at King Fahd University of Pet­
roleum and Minerals, Saudi Arabia. His research interests include supply chain, mathematical modelling and smart
infrastructure.
Nokhaiz Tariq Khan is currently working as a post-doctoral researcher at Interdisciplinary Research Center for Smart
Mobility and logistics at King Fahd University of Petroleum and Minerals, Saudi Arabia. His research interests include
technology adoption, supply chain management, operations and transportation.
Omar Alkerishan is currently a master’s student at the Department of Architectural Engineering and Construction Man­
agement, King Fahd University of Petroleum and Minerals, Saudi Arabia. His research interests include logistics manage­
ment, technology management and supply chain management.
Ahmed Ghaithan is currently an Associate Professor at the Department of Architectural Engineering and Construction
Management and an affiliate at Interdisciplinary Research Center for Smart Mobility and logistics at King Fahd University
of Petroleum and Minerals, Saudi Arabia. His research interests include energy optimisation, data analytics and supply
chain and logistics.

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