The Perceived Effectiveness of Blockchain for Digital Operational Risk Resilience in the European Union Insurance Market Sector
Abstract
:1. Introduction
2. Literature Review
3. Aim and Objective
4. Research Questions
5. Methodology
5.1. Designing the Tool
5.2. Sample
5.3. Hypotheses
5.4. Data Analysis
6. Findings and Analysis
6.1. Participants’ Demographics
6.2. Exploratory Factor Analysis
6.3. Confirmatory Factor Analysis
6.4. Structural Model
- H1:
- There is a significant effect of integration on BE.
- H2:
- There is a significant impact of reliability on BE.
- H3:
- There is a significant impact of flexibility on BE.
- H4:
- There is a significant impact of relevance on BE.
- H5:
- There is a significant impact of timeliness on BE.
- A statistically significant relationship was found between reliability and BE (B = −0.134, p < 0.05).
- A statistically significant relationship was found between flexibility and BE (B = 0.179, p < 0.05).
- A statistically significant relationship was found between relevance and BE (B = 0.568, p < 0.01).
- A statistically insignificant relationship was found between integration and BE (B = 0.024, p > 0.05).
- A statistically insignificant relationship was found between timeliness and BE (B = 0.115, p > 0.05).
6.5. Moderation Effect of Experience
7. Discussions and Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Preposition | Construct | Number of Items | Sources |
---|---|---|---|
1 | Integration (I) | 4 (Statements 2 to 5) | Chenhall and Morris (1986); Napitupulu et al. (2016); Tan (2016); Qatanani and Hezabr (2015) |
2 | Flexible (F) | 4 (Statements 10 to 13) | Napitupulu et al. (2016); Shagari et al. (2017); Tan (2016) |
3 | Reliability (Re) | 5 (Statements 6 to 9 and statement 1) | Napitupulu et al. (2016); Shagari et al. (2017) |
4 | Relevance (R) | 4 (Statements 14 to 17) | Teru et al. (2017); Al-Dalabeeh and Al-Zeaud (2012); Abdallah (2014); Shagari et al. (2017); Markgraf (2019) |
5 | Timeliness (T) | 3 (Statements 18 to 20) | Chenhall and Morris (1986); Patel (2015); Shagari et al. (2017) |
6 | Experience (EX) | 3 | Toth (2012); Altawalbeh et al. (2017); Herda and Martin (2016) |
7 | Effectiveness | 6 | Alzeban and Gwilliam (2014) |
STATEMENT | |
---|---|
1 | Blockchain can improve the accuracy of data and information management |
2 | Blockchain includes internal controls which can help to reduce the cases of fraud in the accounting data |
3 | The integration of Blockchain can improve the internal control effectiveness |
4 | Blockchain encourages the spirit of creativity and innovation among all employees |
5 | The information contained in the reports issued by Blockchain are credible and transparent |
6 | Blockchain can provide information that reduces errors during work |
7 | There is trust in the quality of Blockchain |
8 | The reliability of Blockchain outputs is important for decision-makers |
9 | Blockchain in my organization can help in complementing the formal procedures |
10 | Blockchain can adapt to modern legislation and laws |
11 | The flexibility of can increase the internal control effectiveness |
12 | Blockchain can provide information capable of correcting previous events |
13 | Blockchain provides various options for selection |
14 | Blockchain can provide efficient and relevant information to serve any purpose |
15 | Blockchain can provide operational reports related to the current operations of the organization |
16 | Blockchain can provide relevant information supporting organization strategy |
17 | Blockchain can provide relevant information for decision making |
18 | Blockchain can ensure that requested information is created immediately upon request |
19 | Blockchain can ensure that correct and consistent information is provided on time when required |
20 | Blockchain can ensure that data is available regularly enough to influence management decisions |
No. | Statement |
---|---|
1 | BE1. With Blockchain the internal controls and governance and performance are improved |
2 | BE2. With Blockchain the internal controls, governance and operations to ascertain that results are consistent with organization goals are improved |
3 | BE3. With Blockchain the accuracy and reliability improved |
4 | BE4. With Blockchain the compliance with policies, plans, laws and regulations are improved |
5 | BE5. With Blockchain the effectiveness of risk management is improved |
6 | BE6. With Blockchain the internal controls, governance, and operations to ascertain that results are consistent with organization goals are improved |
No. | Statement |
---|---|
1 | E1. Employee training to increase their skill and knowledge in Blockchain helps in the use of the application |
2 | E2. Experience and Knowledge of Blockchain and Insurance helps to achieve consistent, and quality results |
3 | E3. The experience and knowledge of Blockchain and Insurance helps controllers to use Blockchain in an efficient manner |
F1 | F2 | F3 | F4 | F5 | |
---|---|---|---|---|---|
BV5. Blockchain can improve the accuracy of data and information management | 0.859 | ||||
BV2. Blockchain includes internal controls which can help to reduce the cases of fraud in the accounting data | 0.842 | ||||
BV3. The integration of Blockchain can improve the internal control effectiveness | 0.769 | ||||
BV4. Blockchain encourages the spirit of creativity and innovation among all employees | 0.555 | ||||
BV12. The information contained in the reports issued by Blockchain are credible and transparent | 0.793 | ||||
BV13. Blockchain can provide information that reduces errors during work | 0.771 | ||||
BV11. There is trust in the quality of Blockchain | 0.661 | ||||
BV10. The reliability of Blockchain outputs is important for decision makers | 0.621 | ||||
BV1. Blockchain in my organization can help in complementing the formal procedures | 0.754 | ||||
BV7. Blockchain can adapt to modern legislation and laws | 0.709 | ||||
BV9. The flexibility of Blockchain can increase the internal control effectiveness | 0.610 | ||||
BV8. Blockchain can provide information capable of correcting previous events | 0.600 | ||||
BV6. Blockchain provides various options for the selection | 0.595 | ||||
BV14. Blockchain can provide efficient and relevant information to serve any purpose | 0.738 | ||||
BV15. Blockchain can provide operational reports related to the current operations of the organization | 0.738 | ||||
BV16. Blockchain can provide relevant information supporting the organization strategy | 0.720 | ||||
BV17. Blockchain can provide relevant information for decision making | 0.682 | ||||
BV20. Blockchain can ensure that requested information is created immediately upon request | 0.815 | ||||
BV19. Blockchain can ensure that correct and consistent information is provided on time when required | 0.787 | ||||
BV18. Blockchain can ensure that data is available regularly enough to influence management decisions | 0.679 |
Factor | Name of Factor | Item | Mean | Min-Max | Cronbach Alpha |
---|---|---|---|---|---|
Factor 1 (F1) | Integration | 4 | 3.539 | 3.413–3.729 | 0.79 |
Factor 2 (F2) | Reliability | 4 | 4.103 | 3.916–4.181 | 0.71 |
Factor 3 (F3) | Flexibility | 5 | 3.502 | 3.361–3.657 | 0.70 |
Factor 4 (F4) | Relevance | 4 | 4.002 | 3.986–4.310 | 0.70 |
Factor 5 (F5) | Timeliness | 3 | 3.417 | 3.409–3.423 | 0.65 |
β0 | β1 | S.E. | C.R. | R2 | p | |||
---|---|---|---|---|---|---|---|---|
Measurement Model | ||||||||
BV1 | <--- | F | 0.581 | 1 | 0.337 | |||
BV6 | <--- | F | 0.549 | 0.938 | 0.105 | 8.915 | 0.296 | *** |
BV7 | <--- | F | 0.617 | 1.123 | 0.117 | 9.567 | 0.383 | *** |
BV9 | <--- | F | 0.629 | 1.179 | 0.122 | 9.672 | 0.400 | *** |
BV5 | <--- | I | 0.650 | 1 | 0.437 | |||
BV3 | <--- | I | 0.754 | 1.016 | 0.077 | 13.269 | 0.518 | *** |
BV2 | <--- | I | 0.833 | 1.184 | 0.087 | 13.564 | 0.697 | *** |
BV11 | <--- | Re | 0.584 | 0.821 | 0.079 | 10.374 | 0.336 | *** |
BV12 | <--- | Re | 0.736 | 1.006 | 0.089 | 11.334 | 0.540 | *** |
BV13 | <--- | Re | 0.718 | 1 | 0.522 | |||
BV20 | <--- | T | 0.730 | 1 | 0.534 | |||
BV19 | <--- | T | 0.617 | 0.831 | 0.098 | 8.483 | 0.381 | *** |
BV18 | <--- | T | 0.520 | 0.712 | 0.088 | 8.057 | 0.268 | *** |
BV17 | <--- | R | 0.582 | 1 | 0.490 | |||
BV16 | <--- | R | 0.521 | 0.93 | 0.101 | 9.228 | 0.396 | *** |
BV15 | <--- | R | 0.687 | Oca.16 | 0.122 | 9.495 | 0.284 | *** |
BV14 | <--- | R | 0.628 | 1.094 | 0.118 | 9.242 | 0.224 | *** |
BE2 | <--- | BE | 0.644 | 1 | 0.416 | |||
BE3 | <--- | BE | 0.701 | 1.198 | 0.099 | 12.149 | 0.492 | *** |
BE5 | <--- | BE | 0.692 | 1.108 | 0.092 | 12.053 | 0.473 | *** |
BE6 | <--- | BE | 0.720 | 1.173 | 0.095 | 12.341 | 0.523 | *** |
Structural Model | ||||||||
BE | <--- | I | 0.024 | 0.022 | 0.066 | 0.329 | 0.428 | 0.742 |
BE | <--- | Re | −0.134 | −0.123 | 0.062 | −1.987 | ** | |
BE | <--- | F | 0.179 | 0.207 | 0.103 | 2.003 | ** | |
BE | <--- | R | 0.568 | 0.526 | 0.085 | 6.164 | *** | |
BE | <--- | T | 0.115 | 0.113 | 0.062 | 1.835 | 0.067 |
Moderation Effects | Standardized Indirect Effect (β) | Bootstrap Lower–Upper Bounds TZ %95 | Hypothesis Decision |
---|---|---|---|
BE<---EX<---F | 0.042 | −0.061–0.143 | Reject |
BE<---EX<---I | 0.050 | −0.034–0.142 | Reject |
BE<---EX<---Re | 0.063 | −0.017–0.155 | Reject |
BE<---EX<---T | 0.090 | 0.019–0.179 | Accept |
BE<---EX<---R | 0.274 | 0.122–0.512 | Accept |
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Grima, S.; Kizilkaya, M.; Sood, K.; ErdemDelice, M. The Perceived Effectiveness of Blockchain for Digital Operational Risk Resilience in the European Union Insurance Market Sector. J. Risk Financial Manag. 2021, 14, 363. https://doi.org/10.3390/jrfm14080363
Grima S, Kizilkaya M, Sood K, ErdemDelice M. The Perceived Effectiveness of Blockchain for Digital Operational Risk Resilience in the European Union Insurance Market Sector. Journal of Risk and Financial Management. 2021; 14(8):363. https://doi.org/10.3390/jrfm14080363
Chicago/Turabian StyleGrima, Simon, Murat Kizilkaya, Kiran Sood, and Mehmet ErdemDelice. 2021. "The Perceived Effectiveness of Blockchain for Digital Operational Risk Resilience in the European Union Insurance Market Sector" Journal of Risk and Financial Management 14, no. 8: 363. https://doi.org/10.3390/jrfm14080363