Daoud, A. O.; Lal, R.; Gouda Mohamed, A.; Mohamed, M. and Wefki, H. (2026) An implementation framework for blockchain and smart contracts adoption in the egyptian construction sector. International Journal of Construction Management, 26(9), pp. 1707-1726. ISSN 1562-3599
Abstract
The Egyptian construction sector faces persistent challenges, including inefficiencies, delays, cost overruns, and contractual disputes, often due to fragmented workflows, manual documentation, and limited technological integration. This study investigates the potential of blockchain technology and smart contracts to improve transparency, automate contract enforcement, and enhance risk management within the sector. A conceptual framework was developed and tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) based on data from 92 professionals across the construction industry. The findings reveal that key motivators for adoption include the willingness of clients and contractors (β = 0.809), clarity in responsibility and risk allocation (β = 0.772), and user-friendly contract interfaces (β = 0.747). Conversely, significant challenges include legal enforceability concerns (β = 0.855), broader legal ambiguities (β = 0.805), and market hesitation (β = 0.672). The study highlights the mediating role of these challenges and emphasizes the need for regulatory reform, stakeholder engagement, and capacity building. The proposed framework offers practical guidance for policymakers, industry leaders, and technology providers aiming to drive blockchain adoption in Egypt's construction sector and similar emerging markets.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | blockchain adoption; construction sector; digital transformation; Egypt; legal challenges; PLS-SEM; smart contracts |
| Index terms: | face, construction industry, enforcement, Egypt, documentation, smart contract, capacity building, integration, partial least square, risk allocation, construction sector, risk management, conceptual framework, cost overrun, implementation, blockchain, stakeholder engagement, motivator, transformation, transparency, structural equation modelling, workflow, dispute, emerging market |
| Subjects: | risk assessment, business, economic analysis, community and social dimensions, psychology, financial risk, computing systems, statistical analysis, theoretical framing, professional development, health safety and environment, organizational analysis, Geography, contractual arrangements, management, dispute resolution, industry analysis, financial and cost management, social and economic development, digital technology |
| Topics: | Health and Safety, Risk Management, Organizational Design, Cost Management, Human Resources, Legal Issues, Business Strategy, Stakeholder Management, Procurement, Digital Applications, Research Practice, Information Management, Geographical Context, International Construction |
| Descriptive scope: | 4 PCTA |
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