Unveiling the digital desire: UTAUT analysis of NFT investment intentions in Malaysia

Abstract

Purpose

This study pioneers the investigation into the determinants influencing Malaysian investors' intentions towards Non-Fungible Token (NFT) investments, utilizing an extended Unified Theory of Acceptance and Use of Technology (UTAUT) framework. It explores the burgeoning interest in NFTs within the Malaysian market, an emerging economy, and identifies the behavioral adoption determinants critical for NFT investment decisions.

Design/methodology/approach

Adopting a quantitative methodology, the research engaged 183 experienced Malaysian investors through a structured online questionnaire survey. The study employed regression analysis to assess the impact of Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Perceived Usefulness, Social Support and Perceived Trust on NFT investment intentions.

Findings

The findings reveal that Performance Expectancy and Social Support significantly predict the intention to invest in NFTs, accounting for 47% of the variance in investment intentions. The study highlights the crucial role of perceived benefits and community support in shaping Malaysian investors' engagement with NFTs, amidst the complexities of the digital asset landscape.

Research limitations/implications

The study acknowledges the limitation posed by its sampling method and size, suggesting the need for broader investigations that include a more diverse demographic to enhance the generalizability of the findings. Future research could further delve into the specific behaviors, motivations and challenges of NFT investors and creators.

Practical implications

The significant predictive power of Performance Expectancy indicates a primary financial motivation among Malaysian NFT investors, suggesting policymakers consider regulations that foster innovation and growth in the NFT sector while safeguarding investors. The study also underscores the importance of community support, pointing towards the development of platforms that facilitate knowledge sharing among NFT enthusiasts.

Social implications

By demonstrating the pivotal role of social support in the NFT investment decision-making process, the research implies a powerful sense of community among investors in the digital asset space. It suggests the potential of NFTs to foster a more inclusive and accessible market for creative industry entrepreneurs, facilitating direct engagement and profit realization.

Originality/value

This research marks a significant departure from existing studies by tailoring the UTAUT model specifically to the NFT investment context in Malaysia. It unveils the nuanced dynamics influencing NFT investment intentions, emphasizing the unique contributions of Performance Expectancy and Social Support, thus providing a fresh perspective on NFT adoption in emerging markets.

Citation

Ramly, F.B. and Md Zabri, M.Z. (2024), "Unveiling the digital desire: UTAUT analysis of NFT investment intentions in Malaysia", China Finance Review International, Vol. 14 No. 3, pp. 630-647. https://doi.org/10.1108/CFRI-06-2023-0143