From hurdles to heights: blueprint for tackling distributed ledger technology challenges in the construction sector of a developing economy

Abstract

Purpose

The emergence of distributed ledger technology (DLT) has transformed the way construction industries approach data management, ushering in an era of increased transparency, security and efficiency. The purpose of this study is to investigate the strategies to promote the adoption of DLT in the Nigerian construction sector. This was done to address the challenges that hinder the widespread adoption of DLT within the Nigerian construction sector.

Design/methodology/approach

A comprehensive literature review informed the design of a structured questionnaire for data collection. The questionnaire was distributed among diverse construction professionals to explore their perceptions of potential strategies. The collected data were analyzed using the Shapiro–Wilk test for data distribution, while mean values and standard deviations were used to facilitate the ranking of strategies. The Kruskal–Wallis H-test was used to assess opinion differences, and exploratory factor analysis was applied to uncover underlying dimensions.

Findings

The findings revealed the top five strategies for DLT adoption as conducting workshops and seminars to educate professionals, collaborating with universities for DLT courses, encouraging joint projects for shared insights, forming consortia for DLT standards and allocating funding for DLT research in construction. Through factor analysis, the strategies identified were categorized into four principal clusters: awareness and education advancements, government support and incentives, industry collaboration and standards and pilot projects and demonstrations.

Originality/value

While prior studies have identified barriers to DLT adoption and offering recommendations, this research advances the field by empirically investigating and assessing several of these strategies proposed in various studies. This approach provides valuable insights that go beyond existing research, offering a deeper understanding of the practical and contextual dynamics influencing DLT adoption in the construction sector.

Citation

Oke, A.E., Aliu, J., Ehiosun, L.U., Ebekozien, A. and Rotimi, A.A. (2024), "From hurdles to heights: blueprint for tackling distributed ledger technology challenges in the construction sector of a developing economy", Journal of Financial Management of Property and Construction, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFMPC-08-2023-0055