Shang, G; Pheng, L S and Zhong Xia, R L (2024) Adoption of smart contracts in the construction industry: An institutional analysis of drivers and barriers. Construction Innovation, 24(5), pp. 1401-1421. ISSN 1471-4175
Abstract
Purpose: The construction industry has arrived at a crossroads of rapid technological progress. While it is foreseen that the advent of new construction technologies will disrupt the construction industry’s future, such disruptions often create the ideal environment for innovation. As poor payment practices continue to plague the construction industry, the advent of smart contracts has created an opportunity to rectify the inherent flaws in the mitigation of payment problems in traditional construction contracts. Given the intrinsic resistance of construction firms to such revolutionary changes, this study aims to understand the various factors influencing the adoption of smart contracts in the Singapore construction industry. Design/methodology/approach: A mixed method was adopted involving quantifying respondents’ perceptions of the factors influencing smart contract adoption, and validation from a group of interviewees on the matter. Out of 461 registered quantity surveyor members contacted via the Singapore institute of surveyors and valuers website, 55 respondents took part in the survey. This is followed by semi-structured interviews to validate the survey results. Findings: The findings indicate that construction firms have neither a significant knowledge of nor willingness to adopt smart contracts. A total of 29 institutional factors were also identified that significantly influence the adoption of smart contracts. The quantitative findings were further reinforced by qualitative interviews with five industry experts. Originality/value: With recognition of and the successful formulation of the significant institutional drivers and barriers, the key findings of this study will be integral in driving the commercial adoption of smart contracts within the construction industry.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | barriers; construction industry; drivers; institutional theory; Singapore; smart contracts |
| Index terms: | smart contract, construction industry, construction technology, Singapore, institutional theory, mixed method, valuer, traditional construction, registered quantity surveyor, methodology, validation, mitigation, survey, construction firm, interview |
| Subjects: | Geography, financial risk, professional development, research methods, industry analysis, heritage and conservation, sociology, profession, data collection methods, organization, digital engineering, digital technology |
| Topics: | Roles and Professions, Business Strategy, Cost Management, Research Practice, Geographical Context, Information Management, Design Practice, 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