Adaptability of blockchain-based E-Procurement system in Sri Lankan construction projects

Abstract

E-procurement and Blockchain are relatively new technologies that have the potential to provide a variety of benefits due to their unique features such as transparency, decentralized approach, immutability, and consensus. The Sri Lankan construction industry is corrupted and that drives up construction costs, which are then passed on to the general public. Procurement plays a major role in construction projects as it is the basis of any transaction. E-Procurement is one of the recent technologies used by modern businesses to save time, money, and effort. Therefore, the current research aims to investigate the adaptability of e-procurement using Blockchain technology in the Sri Lankan construction industry. A mixed research approach was adopted including a questionnaire survey and semi-structured interview. A total of 55 questionnaires were distributed among experienced professionals, and 37 responses were received. The data collected from the questionnaire survey were analysed using Relative Important Index (RII) and Gap analysis. For the interview, total of 5 professionals who have experience in procurement and tender management were drawn through the snowball sampling technique to identify the strategies for the adoption of Blockchain based E-procurement. The survey found that there is a gap between the desirability and readiness for Blockchain adoption. In addition, the eight important drivers and barriers to the adoption have been identified. As a result, from an organizational and governmental perspective, measures must be designed and implemented to overcome barriers and enhance readiness levels, so closing the gap between desirability and readiness. Finally, based on the findings, strategies for improving the readiness of Blockchain-based EProcurement practices in the Sri Lankan construction industry were identified.