Author

  • Naharudin Saadan

    • Accountant General's Department of Malaysia (Accounting office), Putrajaya, Malaysia
    • Malaysia

  • Khairil Faizal Khairi

    • Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Nilai, Negeri Sembilan, Malaysia
    • Malaysia

Abstract

This paper examines the persistent inter-organizational collaboration (IOC) challenges undermining the efficiency of electronic payment workflows in Malaysia’s public sector, with a focus on the Transport License Department (TLD). It aims to explore the suitability of Blockchain Technology (BCT) in addressing issues such as fragmented systems, manual reconciliation, and communication bottlenecks. Adopting a Design Science Research (DSR) methodology embedded within a qualitative paradigm, the study collected empirical data through focus group discussions with seven frontline officers directly involved in daily e-payment collection processes. Thematic analysis was used to derive key insights and inform artefact development. The analysis revealed four central challenges: absence of a shared platform, operational inefficiencies and mistrust, inconsistent service-level agreement (SLA) compliance, and fragmented communication. Participants perceived BCT’s decentralized and tamper-resistant features as enabling real-time data exchange, automated reconciliation, and smart contract-enforced compliance. However, socio-cultural resistance, including skepticism towards BCT and reliance on conventional communication norms, emerged as barriers. The study culminated in the development of the Blockchain-Integrated Collaborative E-Payment Framework (BICEF), which was validated by domain experts for its technical and operational feasibility. While the framework demonstrates potential for enhancing transparency and accountability in public sector financial workflows, further longitudinal studies are required to assess its real-world implementation and address cultural and organizational resistance to BCT adoption. This study contributes a novel application of BCT within the context of Malaysian public sector e-payments by integrating blockchain functionalities such as smart contracts and decentralized communication into a validated framework tailored to IOC needs. It advances both theoretical understanding and practical design for improving digital governance in high-volume public agencies.

Keywords

References

  • Alafnan, M. A., & Mohdzuki, S. F. (2024). Malaysia's National Blockchain Roadmap: A Critical Discourse Analysis of Focus, Goals, and Challenges. World Journal of English Language, 14(5), 482–492. https://doi.org/10.5430/wjel.v14n5p482
  • BaiBaiod, W., & Hussain, M. M. (2024). The impact and adoption of emerging technologies on accounting: perceptions of Canadian companies. International Journal of Accounting & Information Management, 32(4), 557–592. https://doi.org/10.1108/IJAIM-05-2023-0123
  • Banerjee, S. S., & Chandani, A. (2025). Challenges of blockchain application in the financial sector: a qualitative study. Journal of Economic and Administrative Sciences, 41(2), 658–679. https://doi.org/10.1108/JEAS-10-2021-0200
  • Benchis, M. P., Shahzad, K., & Dan, S. (2025). Comparative analysis of blockchain adoption in the public and private sectors. A technology-organization-environment (TOE) framework approach. Journal of Innovation & Knowledge, 10(4), 100746. https://doi.org/10.1016/j.jik.2025.100746
  • Centobelli, P., Cerchione, R., Del Vecchio, P., Oropallo, E., & Secundo, G. (2022). Blockchain technology design in accounting: Game changer to tackle fraud or technological fairy tale? Accounting, Auditing and Accountability Journal, 35(7), 1566–1597. https://doi.org/10.1108/AAAJ-10-2020-4994
  • Central Bank of Malaysia. (2024). BNM Payment Statistic (T2 Report). https://www.bnm.gov.my/payment-statistics
  • Dias Santos, J. C. (2025). Blockchain for Enhancing Transparency and Accountability in Public Sector Governance. In Enhancing Public Sector Accountability and Services Through Digital Innovation (pp. 73–128). IGI Global. https://doi.org/10.4018/979-8-3693-9251-5.ch003
  • Dowelani, M., Okoro, C., & Olaleye, A. (2023). Blockchain technology in the clearing and settlement industry in South Africa. Acta Commercii - Independent Research Journal in the Management Sciences, 23(1), 1–12. https://doi.org/10.4102/ac.v23i1.1097
  • Economic Planning Unit. (2021). Malaysia Digital Economy Blueprint. In the Economic Planning Unit, Prime Minister’s Department. https://www.epu.gov.my/sites/default/files/2021-02/malaysia-digital-economy-blueprint.pdf
  • Faisal, M. N., Sabir, L. Bin, AlNaimi, M. S., Sharif, K. J., & Uddin, S. M. F. (2024). Critical Role of Coopetition Among Supply Chains for Blockchain Adoption: Review of Reviews and Mixed-Method Analysis. Global Journal of Flexible Systems Management, 25(1), 117–136. https://doi.org/10.1007/s40171-023-00369-6
  • Ganeshu, P., Fernando, T., Therrien, M.-C., & Keraminiyage, K. (2024). Inter-Organisational Collaboration Structures and Features to Facilitate Stakeholder Collaboration. Administrative Sciences, 14(2), 25. https://doi.org/10.3390/admsci14020025
  • Gomaa, A. A., Gomaa, M. I., Boumediene, S. L., & Farag, M. S. (2023). The Creation of One Truth: Single-Ledger Entries for Multiple Stakeholders Using Blockchain Technology to Address the Reconciliation Problem. Journal of Emerging Technologies in Accounting, 20(1), 59–75. https://doi.org/10.2308/JETA-19-06-01-28
  • Hevner, A. R., March, S. T., & Ram, S. (2004). Design science in information system research. MIS Quarterly, 28(1), 75–105. https://doi.org/doi.org/10.2307/25148625
  • Hevner, A., & Chatterjee, S. (2010). Design Science Research in Information Systems. In Integrated Series in Information Systems (pp. 9–22). Springer, Boston, MA. https://doi.org/10.1007/978-1-4419-5653-8_2
  • Hubenova, T., Lindeque, J. P., & Peter, M. K. (2024). Explaining the non-adoption of blockchain technology in global value chains: a micro-foundational perspective. In Journal of Industrial and Business Economics (Vol. 51, Issue 2). Springer International Publishing. https://doi.org/10.1007/s40812-023-00296-8
  • Jabatan Akauntan Negara Malaysia. (2025). Surat Pekeliling Akauntan Negara Tatacara Pengurusan Terimaan Bilangan 3 Tahun 2025. 11(03). https://www.anm.gov.my/images/dokumen/pekeliling/surat pekeliling-anm/2025/SPANM Bil. 3 Tahun 2025 Tatacara Pengurusan Terimaan Final.pdf
  • Jabatan Akauntan Negara Malaysia. (2024). Laporan kutipan e-pembayaran bagi agensi kerajaan Persekutuan Malaysia tahun 2024
  • Jabatan Audit Negara Malaysia. (2022). Laporan Ketua Audit Negara 2021 Siri 1 - Aktiviti Kementerian/Jabatan Kerajaan Persekutuan Dan Badan-Badan Berkanun Persekutuan. In Percetakan Nasional Malaysia Berhad. https://www.audit.gov.my
  • Jayasuriya, D. D., & Sims, A. (2023). From the abacus to enterprise resource planning: Is blockchain the next big accounting tool? Accounting, Auditing & Accountability Journal, 36(1), 24–62. https://doi.org/10.1108/AAAJ-08-2020-4718
  • Kang, K., Liu, X., Jiang, Y., Lee, K. K. H., Wan, S. K. W., Huang, G. Q., & Zhong, R. Y. (2022). Blockchain opportunities for the construction industry in Hong Kong: a case study of RISC and site diary. Construction Innovation, 23(2), 443–466. https://doi.org/10.1108/CI-08-2021-0153
  • Karajovic, M., Kim, H. M., & Laskowski, M. (2019). Thinking Outside the Block: Projected Phases of Blockchain Integration in the Accounting Industry. Australian Accounting Review, 29(2), 319–330. https://doi.org/10.1111/auar.12280
  • Kosti?, N., & Sedej, T. (2022). Blockchain Technology, Inter-Organizational Relationships, and Management Accounting: A Synthesis and a Research Agenda. Accounting Horizons, 36(2), 123–141. https://doi.org/10.2308/HORIZONS-19-147
  • Kowalski, M., Lee, Z. W. Y., & Chan, T. K. H. (2021). Blockchain technology and trust relationships in trade finance. Technological Forecasting and Social Change, 166, 120641. https://doi.org/10.1016/j.techfore.2021.120641
  • Lincoln, Y., & Guba, E. (1985). Naturalistic inquiry. Sage.
  • Ministry of Science, Innovation and Technology. (2021). National Blockchain Roadmap 2021-2025. https://www.mosti.gov.my/wp-content/uploads/2022/08/National-Blockchain-Roadmap-2021-2025.pdf
  • MyDigital Corporation. (2023). Accelerating Growth of Malaysia's Digital Economy (Issue February). https://www.mydigital.gov.my/
  • Nguyen, T.-V., Lê, L.-S., Shah, S. A., Hameed, S., & Draheim, D. (2023). PenChain: A Blockchain-Based Platform for Penalty-Aware Service Provisioning. IEEE Access, 12(November 2023), 1–1. https://doi.org/10.1109/access.2023.3344038
  • Ølnes, S., Ubacht, J., & Janssen, M. (2017). Blockchain in government: Benefits and implications of distributed ledger technology for information sharing. Government Information Quarterly, 34(3), 355–364. https://doi.org/10.1016/j.giq.2017.09.007
  • Rachad, A., Bouragba, K., & Ouzzif, M. (2022). Smart contract for cloud SLA using Service Oriented Architecture and Blockchain. Proceedings - 2022 9th International Conference on Wireless Networks and Mobile Communications, WINCOM 2022, 1–5. https://doi.org/10.1109/WINCOM55661.2022.9966420
  • Rijanto, A. (2021). Blockchain Technology Adoption in Supply Chain Finance. J. Theor. Appl. Electron. Commer. Res., 16, 3078–3098. https://doi.org/https://doi.org/10.3390/jtaer16070168
  • Sabri, A. A. A., Urus, S. T., & Bakar, N. A. (2023). Blockchain Attributes in Malaysia: A Qualitative Approach. Management and Accounting Review, 22(2), 31–61. https://doi.org/10.24191/mar.v22i02-02
  • Sandner, P., Lange, A., & Schulden, P. (2020). The Role of the CFO of an Industrial Company: An Analysis of the Impact of Blockchain Technology. Future Internet, 12(8), 128. https://doi.org/10.3390/fi12080128
  • Spahiu, E., Spagnoletti, P., & Sposito, A. (2024). Building a Blockchain-Based Platform for Interbank Collaboration. International Journal of Electronic Commerce, 28(2), 269–291. https://doi.org/10.1080/10864415.2024.2332051
  • Tsai, W. T., Luo, Y., Deng, E., Zhao, J., Ding, X., Li, J., & Yuan, B. (2020). Blockchain systems for trade clearing. Journal of Risk Finance, 21(5), 469–492. https://doi.org/10.1108/JRF-02-2017-0022
  • U.S. Government Accountability Office. (2023). Small Business Administration: Exploring Potential Use of Blockchain (Issue 1). https://www.gao.gov/products/gao-23-106051
  • Upadhyay, A., Ayodele, J. O., Kumar, A., & Garza-Reyes, J. A. (2021). A review of challenges and opportunities of blockchain adoption for operational excellence in the UK automotive industry. Journal of Global Operations and Strategic Sourcing, 14(1), 7–60. https://doi.org/10.1108/JGOSS-05-2020-0024
  • Van Aken, J. E. (2005). Management Research as a Design Science: Articulating the Research Products of Mode 2 Knowledge Production in Management [Article]. British Journal of Management, 16(1), 19–36. https://doi.org/10.1111/j.1467-8551.2005.00437.x
  • Wang, Y., & Kogan, A. (2018). Designing confidentiality-preserving Blockchain-based transaction processing systems. International Journal of Accounting Information Systems, 30, 1–18. https://doi.org/10.1016/j.accinf.2018.06.001
  • Yaakub, N. A., Ramli, N. M., Muhamed, N. A., Abd Aziz, S., & Tahir, A. M. (2023). A theoretical framework of e-wallet adoption among small-sized Muslim merchants: An application and extension of the Technology Acceptance Model. Journal of Information Systems and Technology Management, 8(33), 255–268. https://doi.org/10.35631/JISTM.833019
  • Yin, R. K. (2018). Case study research and applications: Design and methods. In SAGE Publications, Inc. SAGE Publications, Inc.
  • Zairul, M. (2021). The recent trends in prefabricated buildings with a circular economy (CE) approach. Cleaner Engineering and Technology, 4. https://doi.org/10.1016/j.clet.2021.100239
  • Zairul, M., Abdullah, H., D’silva, J. L., Dahalan, D., & Harun, S. R. (2023). Real-Time Data Validation in Online Focus Groups: A Modified ARC Technique for Focus Group Data Collection. https://doi.org/10.2139/ssrn.4614753

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Saadan, N., & Khairi, K. F. (2025). Exploring the Suitability of Blockchain Technology in Improving Inter-Organizational Collaboration Workflows in E-Payment Processes at the Transport License Department of Malaysia. Information Management and Business Review, 17(3(I)S), 102-114. https://doi.org/10.22610/imbr.v17i3(I)S.4675

Share this article

License

Copyright (c) 2025 Naharudin Saadan, Khairil Faizal Khairi (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 17 No. 3(I)S (2025) Digital Leadership, AI-Assisted Learning & Inclusive Workforce View issue contents

Published

2025-10-14

Submissions

Have research to publish? Information Management and Business Review welcomes submissions.

Make a Submission