Critical Factors Influencing Adoption of Blockchain-Enabled Smart Contracts in Construction Projects

Ameyaw, Ernest Effah, Edwards, David J., Kumar, Bimal, Thurairajah, Niraj, Owusu-Manu, De-Graft and Oppong, Goodenough D. (2023) Critical Factors Influencing Adoption of Blockchain-Enabled Smart Contracts in Construction Projects. Journal of Construction Engineering and Management, 149 (3). 04023003. ISSN 0733-9364

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Construction projects are premised upon contractual arrangements, and contracts constitute the basis of their success. A contract enables execution of work and transfer of payments, tracking of key performance indicators, and facilitation of collaboration among project stakeholders. Historically, construction projects have faced critical challenges due to poor alignment between clients’ expectations, contract terms, and contractor performance. The advent of advanced digital technologies under the concept of Industry 4.0 has the potential to benefit construction projects through application of blockchain-enabled smart contracts. However, the adoption of smart contracts in construction projects is in its early stages, and the factors that will influence its adoption remain unclear. Therefore, this study aimed to explore and establish the critical factors influencing adoption of smart contracts in construction contractual arrangements. This study administered an international questionnaire survey among experienced construction practitioners with involvement in smart contract initiatives and activities. The results obtained from descriptive statistics and fuzzy set-based analysis show that trialability, relative advantage, competitive advantage, and compatibility of smart contracts are the important predictors of the adoption of such contracts. The findings suggest that practitioners share a view that technological characteristics of blockchain-enabled smart contracts are critical to their adoption, regarding the technology’s perceived practicality in improving effectiveness and efficiency of construction projects. This study contributes to technology diffusion research in construction and highlights drivers that require practitioners’ and industry leaders’ attention to ensure successful adoption of smart contracts for cost-effective delivery of construction projects.

Item Type: Article
Uncontrolled Keywords: Strategy and Management, Industrial relations, Building and Construction, Civil and Structural Engineering
Subjects: K100 Architecture
K900 Others in Architecture, Building and Planning
Department: Faculties > Engineering and Environment > Architecture and Built Environment
Depositing User: Rachel Branson
Date Deposited: 16 Jan 2023 11:55
Last Modified: 16 Jan 2023 12:00

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