Preparing construction supply chains for blockchain: An exploratory analysis

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