Li, X.; Chen, W.; Lu, J. and Jim, C. Y. (2026) Financing model for prefabricated building supply chain under the blockchain environment. Journal of Financial Management of Property and Construction, 31(2), pp. 297-324. ISSN 1366-4387
Abstract
Purpose – The purpose of this study is to evaluate that prefabricated buildings (PBs), which offer environmental, economic and logistical benefits, are constrained by substantial capital requirements. PB construction's complex, gray-box supply chain creates uncertainty in the bank's financing decisions. Recent advances in blockchain-driven supply chain finance can resolve trust issues to spawn a feasible multilevel finance system. Design/methodology/approach – A blockchain-enabled financing model for the PB supply chain was established to characterize the interactions among contractors, suppliers and banks. An evolutionary game model was developed to analyze their strategic behaviors and equilibrium conditions under different incentive and penalty scenarios. A system dynamics simulation, using real project data, was conducted to verify the theoretical model and evaluate the effects of key parameters on system stability. Findings – The proposed blockchain model effectively mitigates information asymmetry and lowers supplier financing costs within the prefabricated construction supply chain. Under conventional static incentive mechanisms, the tripartite evolutionary game lacks a stable equilibrium, leading to persistent behavioral fluctuations among contractors, suppliers and banks. By implementing a dynamic incentive mechanism that adjusts subsidies and penalties based on real-time compliance performance, the system converges to a stable state in which all participants consistently adhere to blockchain-based strategies. This approach not only enhances operational transparency and trust but also safeguards the interests of all stakeholders while promoting the practical adoption of blockchain technology. Originality/value – The results provide theoretical support and practical guidance for refining financing arrangements for the complex PB supply chain.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | blockchain technology; financial risk; financing model; game analysis; prefabricated building; supply-chain enterprise |
| Index terms: | prefabricated building, construction supply chain, information asymmetry, penalty, blockchain, evolutionary game, project data, system dynamics, compliance, methodology, stability, interaction, safeguards, strategy, subsidy, financing, transparency |
| Subjects: | economic theory, management, research methods, regulatory law, construction logistics, health safety and environment, structural engineering, economic analysis, professional development, occupational health and safety management, data collection methods, building construction, behavioral psychology, computing systems, transaction economics |
| Topics: | Construction Technology, Engineering Principles, Supply Chain Management, Information Management, Legal Issues, Research Practice, Business Strategy, Health and Safety, Digital Applications |
| Descriptive scope: | 4 PCTE |
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