Preparing Construction Supply Chains for Blockchain: An Exploratory Analysis

Abstract

Blockchain, a peer-to-peer controlled, distributed database structure, has the potential to profoundly affect
\nthe current business transactions in the construction industry through smart contracts, cryptocurrencies, and
\nreliable asset tracking. The construction industry has often been criticized for being slow in embracing
\nemerging technologies and not effectively diffusing those technologies through its supply chains. Often, the
\nextensive fragmentation, traditional procurement structures, destructive competition, lack of collaboration
\nand transparency, low-profit margins and human resources are shown as the main culprits for this. As
\nBlockchain makes its presence felt strongly in many other industries like finance and banking, this paper
\ninvestigates how to prepare construction supply chains for Blockchain technology through an explorative
\nanalysis. Empirical data for the study were collected through semi-structured interviews with 17 subject
\nexperts and focus groups. Alongside presenting a SWOT (strengths, weaknesses opportunities, threats)
\nanalysis, the paper exhibits the requirements for and steps toward a construction supply structure facilitated
\nby Blockchain.