Ameyaw, E E; Edwards, D J; Kumar, B; Thurairajah, N; Owusu-Manu, D G and Oppong, G 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
Abstract
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: | blockchain technology; construction projects; smart contracts |
| Index terms: | smart contract, statistics, blockchain, effectiveness, trialability, fuzzy set, critical factor, contractor performance, industry 4.0, efficiency, relative advantage, competitive advantage, key performance indicator, contract term, digital technology, collaboration, construction project, practitioner, project stakeholder, questionnaire, survey, construction practitioner |
| Subjects: | management, performance management, production management, contractual condition, professional development, contract management, market analysis, sociology, decision-making and optimization, data collection methods, risk assessment, mathematical modelling, innovation studies, practitioner, computing systems, digital technology, technology adoption, project delivery |
| Topics: | Quality Management, Digital Applications, Contract Administration, Organizational Design, Research Practice, Project Management, Information Management, Business Strategy, Risk Management, Stakeholder Management, Roles and Professions |
| Descriptive scope: | 4 PCEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here