Oke, A E; Aliu, J; Ehiosun, L U; Kineber, A F and Stephen, S S (2025) Adoption of distributed ledger technology for construction projects: A study of the challenges in a developing country. Journal of Engineering, Design and Technology, 23(5), pp. 1364-1383. ISSN 1726-0531
Abstract
Purpose – The construction industry in Nigeria, like many others worldwide, grapples with increasing demands for enhanced efficiency, transparency and security. While distributed ledger technology (DLT) offers substantial potential in tackling these issues, its implementation faces numerous obstacles. This study aims to investigate the challenges hindering the adoption of DLT within the Nigerian construction sector, capitalizing on a recognized research gap in this field. Design/methodology/approach – A comprehensive literature review identified 20 challenges to DLT adoption. A structured questionnaire was developed and distributed to 98 construction professionals selected from a pool of 5, 330 members using purposive and snowball sampling. Background information was assessed using frequency and percentage, data normality with the Shapiro–Wilk test and nonparametric data compared using the Kruskal–Wallis H-test. Factor analysis was then used to reduce the challenges into a more coherent set. Findings – Findings revealed the top five challenges: power supply issues, data privacy and compliance, an uncertain legal framework, insufficient training and education and a lack of skilled workforce. Further analysis revealed four clusters of challenges, namely, technical and infrastructure barriers, organizational and cultural challenges, financial and economic challenges and regulatory and legal challenges. Practical implications – Through the evaluation of challenges and potential strategies to overcome them, this study aims to lay a foundation that assists construction entities in effectively harnessing the benefits of DLT while navigating the obstacles inherent in its adoption. Originality/value – This study contributes to the existing body of knowledge by offering insights into the challenges surrounding the adoption of DLT, specifically within the Nigerian construction sector. By juxtaposing the findings from this study with existing research conducted in other countries such as India, South Africa and the USA, a more comprehensive understanding of the challenges unique to the Nigerian context can be gained.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | asset lifecycle; blockchain technology; construction industry; distributed ledger technology; smart contracts; supply chain management |
| Index terms: | methodology, construction project, questionnaire, privacy, body of knowledge, construction sector, South Africa, compliance, developing country, face, literature review, strategy, construction professional, factor analysis, lifecycle, sampling, construction industry, smart contract, implementation, India, transparency, blockchain, efficiency, Nigeria |
| Subjects: | digital technology, psychology, contractual arrangements, knowledge management, research methods, development economics, Geography, health safety and environment, production management, professional ethics, data collection methods, computing systems, project delivery, data analysis and analytics, performance management, management, professional development, statistical analysis, industry analysis |
| Topics: | Digital Applications, International Construction, Organizational Design, Business Strategy, Research Practice, Information Management, Legal Issues, Quality Management, Health and Safety, Geographical Context, Project Management, Procurement |
| Descriptive scope: | 5 PCTEA |
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