Adoption of distributed ledger technology for construction projects: a study of the challenges in a developing country

Abstract

Purpose

The construction industry in Nigeria, like many others worldwide, grapples with increasing demands for enhanced efficiency, transparency and security. While distributed ledger technology (DLT) offers substantial potential in tackling these issues, its implementation faces numerous obstacles. This study aims to investigate the challenges hindering the adoption of DLT within the Nigerian construction sector, capitalizing on a recognized research gap in this field.

Design/methodology/approach

A comprehensive literature review identified 20 challenges to DLT adoption. A structured questionnaire was developed and distributed to 98 construction professionals selected from a pool of 5,330 members using purposive and snowball sampling. Background information was assessed using frequency and percentage, data normality with the Shapiro–Wilk test and nonparametric data compared using the Kruskal–Wallis H-test. Factor analysis was then used to reduce the challenges into a more coherent set.

Findings

Findings revealed the top five challenges: power supply issues, data privacy and compliance, an uncertain legal framework, insufficient training and education and a lack of skilled workforce. Further analysis revealed four clusters of challenges, namely, technical and infrastructure barriers, organizational and cultural challenges, financial and economic challenges and regulatory and legal challenges.

Practical implications

Through the evaluation of challenges and potential strategies to overcome them, this study aims to lay a foundation that assists construction entities in effectively harnessing the benefits of DLT while navigating the obstacles inherent in its adoption.

Originality/value

This study contributes to the existing body of knowledge by offering insights into the challenges surrounding the adoption of DLT, specifically within the Nigerian construction sector. By juxtaposing the findings from this study with existing research conducted in other countries such as India, South Africa and the USA, a more comprehensive understanding of the challenges unique to the Nigerian context can be gained.

Citation

Oke, A.E., Aliu, J., Ehiosun, L.U., Kineber, A.F. and Stephen, S.S. (2024), "Adoption of distributed ledger technology for construction projects: a study of the challenges in a developing country", Journal of Engineering, Design and Technology, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEDT-11-2023-0474