A Quantitative Blockchain-Based Model for Construction Supply Chain Risk Management

Abstract

Although the use of Blockchain Technology in construction industry has been limited, nowadays several cases of adoption of this technology in construction sector can been identified. Such examples consist of maintaining digital asset records, timestamps for contracts or transactions, multiple signature transactions, smart contracts, and the repository of real information. This paper proposes a methodology consisting of a Electre Tri multi-criteria analysis method where a list of indicators and a questionnaire are used to fill a model that can be applied to evaluate the suitability of blockchain technology as a tool to mitigate supply chain risks that small and medium enterprises face in the construction industry. The model has been applied to two companies operating in the construction industry. This study contributes to the existing literature by quantitatively assessing the adoption of blockchain technology on two real case studies – company Alpha and company Beta – to limit supply chain risk in the construction sector. The dimensions considered in the analysis are company data, payments, materials, supply chain structure and information and document flow. According to the findings, the model suggests that for company Alpha blockchain technology is recommended but not useful to mitigate risks and so improving supply chain performance. On the contrary, results show that for company Beta the implementation of blockchain technology is useful.