Influence of blockchain adoption barriers and drivers on potential application areas in the construction lifecycle: partial least squares structural equation modelling (PLS-SEM) approach

Abstract

PurposeThe construction industry faces public criticism for issues like wastefulness, inefficiency, slim profits, scheduling setbacks, budget overruns, quality concerns, trust deficits, transparency, coordination, communication and fraud. This paper aims to assess the nexus between barriers and drivers for adopting blockchain in construction and its impact on construction lifecycle.Design/methodology/approachA quantitative research approach was used to collect data using a well-structured questionnaire survey. The survey, which used snowball sampling, included 155 Nigerian construction experts that included architects, builders, quantity surveyors and engineers in the built environment. The data were analysed using partial least squares structural equation modelling (PLS-SEM), which allowed for a thorough evaluation of the proposed relationships as well as industry-specific insights.FindingsThe study's findings validate the conceptual framework established. The results indicate that implementing blockchain across all stages of construction projects has the potential to improve the construction process by 88.2% through its drivers. However, there were no significant relationships found between the barriers to adopting blockchain and the potential application areas in the construction lifecycle.Research limitations/implicationsThis research was carried out in the South-western which is one of the six geo-political zones/regions in Nigeria, using a cross-sectional survey method. The study did not investigate the interdependence of the identified categories of drivers and barriers, limiting a comprehensive understanding of the complex dynamics and interactions influencing blockchain adoption in construction. The study is expected to stimulate further exploration and generate new insights on how blockchain technology (BT) can influence various stages of the construction lifecycle.Practical implicationsThe findings will be immensely beneficial to both professionals and practitioners in the Nigerian construction industry in learning about the potential of BT application in improving the construction lifecycle.Originality/valueThis paper developed and assessed a conceptual framework by investigating the interrelationships between the constructs. The findings have important implications for the construction industry, as they offer opportunities to improve the construction process and overall lifecycle. The findings are useful for researchers interested in the potential impact of BT on the construction lifecycle and its wider implications.