Adaptability of blockchain-based E-Procurement system in Sri Lankan construction projects

Abstract

E-procurement and Blockchain are relatively new technologies that have the potential to provide a variety of benefits due to their unique features such as transparency, decentralized approach, immutability, and consensus. The Sri Lankan construction industry is corrupted and that drives up construction costs, which are then passed on to the general public. Procurement plays a major role in construction projects as it is the basis of any transaction. E-Procurement is one of the recent technologies used by modern businesses to save time, money, and effort. Therefore, the current research aims to investigate the adaptability of e-procurement using Blockchain technology in the Sri Lankan construction industry. A mixed research approach was adopted including a questionnaire survey and semi-structured interview. A total of 55 questionnaires were distributed among experienced professionals, and 37 responses were received. The data collected from the questionnaire survey were analysed using Relative Important Index (RII) and Gap analysis. For the interview, total of 5 professionals who have experience in procurement and tender management were drawn through the snowball sampling technique to identify the strategies for the adoption of Blockchain based E-procurement. The survey found that there is a gap between the desirability and readiness for Blockchain adoption. In addition, the eight important drivers and barriers to the adoption have been identified. As a result, from an organizational and governmental perspective, measures must be designed and implemented to overcome barriers and enhance readiness levels, so closing the gap between desirability and readiness. Finally, based on the findings, strategies for improving the readiness of Blockchain-based EProcurement practices in the Sri Lankan construction industry were identified.

Strategies for E-Procurement Adoption by Small and Medium-sized Enterprises: Insights from South Sudan

“…Several researchers (Aduwo et al, 2020;Priyatna & Sunandar. 2021;Nitharsan & Francis, 2022) have used RII to explore critical success factors, anti-corruption capacities, and the flexibility of determinants in blockchain-based eprocurement, respectively. Following Dixit et al's explanation, RII is computed using the formula presented in equation ( 2).…”

Integration of Blockchain-Enabled Smart Contracts in Construction: SWOT Framework and Social Network Analysis

“…• Data Irreversibility/Persistency/Tamper-proofing: Once construction data is recorded on BC, it becomes extremely difficult to alter or delete. BC ensures data irreversibility, making information on the ledger tamperproof and resistant to unauthorized alterations [151].…”

“…• Auditability: BSC enhances auditability in construction projects by creating an immutable record of all project transactions and contract terms. This transparent and tamper-proof ledger simplifies the auditing process, allowing for effective and accurate verification of financial and operational aspects, reducing the risk of errors and fraud [19,145,151].…”

“…o Supply chain and Procurement Management: SCs automate order placement and tracking, facilitating material traceability and optimized logistics [30,60,95,134], while ensuring compliance and efficient resource allocation, informed by immutable transaction records [15,22,50,151].…”

“…Stakeholders may be apprehensive about the legal standing of their claims and the remedies available to them in the event of a dispute, leading to a reluctance to fully trust and embrace SCs [23,194]. [14,15,19,29,30,35,36,38,49,50,69,86,102,111,137,150,151,153,154,186,190,191,195,196] 25…”