Implementation drivers of blockchain technology for payment processes of construction projects in South Africa: a quantitative analysis
Matthew Ikuabe, Clinton Ohis Aigbavboa, Murendeni Liphadzi, Rawlings AdomPurpose
Innovative technologies such as blockchain are changing the modus operandi of construction contract execution and project actualisation. Implementing blockchain technology for the payment process seeks to proffer solutions to conventional challenges facing construction contract execution. This study aims to explore the drivers of implementing blockchain technology for the payment process in construction contract administration from a developing economy perspective.
Design/methodology/approach
The study used a quantitative approach aided by a well-structured questionnaire for data collection from the target respondents. The retrieved data was analysed using descriptive and inferential statistics, namely, the Kruskal-Wallis h-test, Student Newman Kauls (post hoc) test and exploratory factor analysis.
Findings
The principal components extracted from the analysis portrayed three main drivers of implementing blockchain technology for the payment process in the construction industry: automation functionality, enhanced security and transparency and trust. Also, it was revealed that there are diverging viewpoints among the respondents on some of the identified drivers.
Practical implications
The study’s findings unravel practical insights that can assist in driving the digital transformation of payment processes of construction projects for effective contract administration.
Originality/value
To the best of the authors’ knowledge, from a developing country perspective, this is the first study to explore the propelling measures of using blockchain technology to improve payment processes for construction projects, which has been a significant challenge to the industry over time. Also, the study’s outcome adds to the growing conversation about the digital transformation for construction processes for enhanced project delivery.