Game study on synergistic effect of building supply chain based on blockchain

Abstract

Due to the unique nature of the construction industry, incorporating supply chain information has been challenging, affecting profit margins and competitiveness. The implementation of blockchain, as a decentralized digital technology, can facilitate the optimal performance of the construction supply chain. In order to measure the economic benefits generated by the synergy effect in the procurement process of the construction supply chain. This paper sorts out the existing problems of the construction supply chain, utilizing the Stackelberg game theory, a game model is established to measure the potential positive effects of incorporating blockchain into the construction supply chain. A preference function incorporating information sharing and competitiveness is used to compare the traditional model with the blockchain mode, in order to quantitatively analyze potential benefits. The findings indicate that blockchain can enhance supplier competitiveness, while improving supply chain participants’ profits, if the cost of implementation is controlled effectively. By enhancing information sharing and quality assurance, inventory costs for general contractors may be reduced. Consequently, blockchain can enable supply chain participants to achieve synergistic effect that enhance the overall value of the construction supply chain.