Exploring the adoption of blockchain in modular integrated construction projects: A game theory-based analysis

Abstract

Efficient information sharing across Modular integrated Construction (MiC) stakeholders (e.g., client, contractor, manufacturer, etc.) is critical for MiC project success. Blockchain, a creative information and communication technology, provides MiC participants with powerful solutions to address the “island of information” and foster mutual trust among inter-organizational collaborations. However, there is a lack of empirical evidence from the construction industry about blockchain deployment, showing that the industry is cautious about, and generally unprepared for, implementing this disruptive technology. Existing studies mainly focused on proposing technological solutions for blockchain-based applications, with little attempt made to demonstrate how MiC stakeholders make decisions about blockchain adoption. Aiming to bridge this gap, this study adopted game theory to examine stakeholders' decision-making processes. The results revealed the best responses of key MiC stakeholders regarding whether or not to implement blockchain under various conditions. Their decisions were largely influenced by diffusion rate value thresholds, which were mainly affected by three factors: the benefits of blockchain adoption; government subsidies; and relevant costs. In addition, two valuable implications (i.e., enhancing stakeholders’ perceived values on blockchain adoption through pilot projects and publishing subsidy or incentive policies) were determined for promoting the adoption of blockchain in MiC projects.