Factors Influencing the Adoption of Blockchain Technology in the Construction Industry – A System Dynamics Approach

Abstract

The construction industry is always a slow adopter of innovative technologies than other sectors of the economy. Although some technologies, such as Building Information Modelling (BIM), robotics, among others, have been implemented, their adoption has faced some challenges. Blockchain technology is also considered a game-changer for the construction sector with the functionalities and capabilities to improve the construction supply chain, improve transparency, sustainability, and the like. Hence, this study using the system dynamics approach aims to conceptualize the complex causal interrelationship of the key factors influencing blockchain technology adoption in the construction industry. The analytical findings revealed that stakeholders’ awareness and satisfaction, support from top management, and the development of standardized and compatible blockchain solutions would enhance its adoption in construction firms and the construction industry. The study also emphasizes the need to integrate blockchain technology with the existing technologies towards facilitating the delivery of smart buildings and cities as well as enhancing the operation of modular integrated construction (MiC) projects both in Hong Kong and overseas