Effect of blockchain technology adoption on construction supply chain: a structural equation modelling (SEM) approach

Abstract

Purpose

The construction industry is frequently scrutinised by the public for a variety of issues, including waste, inefficiency, narrow profit margins, scheduling setbacks, budget overruns, quality concerns, trust deficits, transparency issues, coordination challenges, communication issues and fraud. The purpose of this paper is to assess the effect of blockchain technology adoption on the construction supply chain.

Design/methodology/approach

This study used a quantitative research approach through a questionnaire survey that was conducted among professionals in the Nigerian construction industry using the snowball sampling method, which resulted in a selection of 155 respondents. The collected data were analysed using partial least squares structural equation modelling, enabling a thorough assessment of the proposed relationships and offering valuable insights specific to the construction industry.

Findings

The study’s findings validated the conceptual framework established. The results indicated that implementing blockchain across all stages of the construction supply chain has the potential to improve the construction process. The study also revealed that blockchain technology will significantly affect the construction supply chain in a positive manner.

Research limitations/implications

This research was carried out in the South-western region which is one of the six geo-political zones in Nigeria using a cross-sectional survey method. The study holds implications not only for local construction practices but will also contribute to the broader discourse on national construction sector challenges and possible solutions.

Practical implications

The findings of this study will be immensely beneficial to both professionals, practitioners and stakeholders in the Nigerian construction industry in learning about the potential of blockchain technology application in improving the construction supply chain.

Originality/value

The study in this paper constructed and evaluated a conceptual framework by exploring the connections between the variables. The results have significant implications for the construction sector, as they provide avenues for enhancing the construction process and the overall supply chain. These findings are valuable for researchers examining the potential effects of blockchain technology on the construction supply chain.

Citation

Okanlawon, T.T., Oyewobi, L.O. and Jimoh, R.A. (2024), "Effect of blockchain technology adoption on construction supply chain: a structural equation modelling (SEM) approach", Journal of Facilities Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFM-07-2023-0077