Blockchain Technology: Potential Applications for Public Sector E-Procurement and Project Management

Abstract

Project implementations normally fail due to sustainable development problems that inhibit the usage levels required to facilitate successful implementations. This paper explores the successful implementation from a Bangladesh perspective. In particular, it identifies the possible applications of Blockchain in project procurement and management, and it develops a guideline for incorporating Blockchain into project management to improve the existing project and the procurement management practices in developing countries. This is a qualitative study with an interpretivist research methodology. By adopting an interpretive approach, this study construes knowledge as that only gained through social constructions, such as language, shared meanings, documents, industry reports, reviews of academic papers, and tools; it is a changing and relative phenomenon. This study reveals that developing countries are suffering in terms of the development of projects, including poor project management, a lack of transparency, poor procurement management, etc. A total of 38 issues were identified through this study, which are the main barriers to the successful implementation of public sector projects. One of the main reasons is due to the practice of awarding the lowest bidder during the procurement process due to the current regulatory requirements. This paper found that the Oracle platform, built on Blockchain technology as a cloud-computing platform, is one of the prominent E-procurement platforms that provides both the Blockchain platform and the cloud-based applications. Therefore, after observing and analysing the platform, it is found that Blockchain technology has the capability to resolve 25 issues out of 38 identified issues.

Mitigating bureaucratic inefficiencies through blockchain technology in Africa

“…The analysis of documents has shown that, although the common breeding ground for corruption in African bureaucracy, public procurement systems are often subjected to corrupt activities as technology in this sector is minimal. The study of Khalfan et al (2022) revealed that many developing countries are not managing development projects due to poor project management, absence of transparency, and poor procurement management. These challenges are also evident in many African states, such as South Africa and Zimbabwe, where cases of public sector corruption are rampant, as noted in their State Capture Inquiry (South Africa) and other case related to various government departments in Zimbabwe.…”

Transformative Procurement Trends: Integrating Industry 4.0 Technologies for Enhanced Procurement Processes

“…Studying the potential applications of blockchain technology in public sector E-Procurement in Bangladesh, Khalfan et al [130] argue that many developing countries are suffering seriously in terms of the development project and identify 38 such issues in public sector issues in Bangladesh. Most of these failures are attached to a lack of a proper development project, including poor project management, poor procurement management, and lack of transparency.…”

Role of Technology in Enhancing Procurement Processes and Efficiency in Firms in Odense, Denmark.

“…Technology has the potential to transform procurement, making it more efficient, effective, and collaborative. E-procurement systems, spend analysis, contract management, supplier management, and cloud-based procurement are just a few of the ways technology can enhance procurement (Khalfan, Azizi, Haass, Maqsood & Ahmed, 2022). By embracing these tools and solutions, organizations can reduce costs, improve supplier relationships, and gain a competitive edge.…”