Exploring Implementation of Blockchain for the Supply Chain Resilience and Sustainability of the Construction Industry in Saudi Arabia

Abstract

The construction industry plays an essential role in economic development since it is one of the largest industries all over the world. Blockchain has the potential to reshape the structure of all accessible networks in the future. Construction businesses are increasingly interested in embracing blockchain technology to improve supply chain sustainability performance and supply chain resilience in times of globally increasing risks and volatility. This study evaluates the readiness of actors involved in the producing of concrete goods to emphasize the necessity to bring blockchain into the construction industry, as it may be a solution for supply chain resilience and long-term sustainable growth. Qualitative and quantitative research methods were used in collecting and analyzing the data and testing the hypotheses. Data were collected using an online questionnaire distributed to 300 employees who work within the biggest concrete producing companies in Saudi Arabia. 120 respondents completed the questionnaires. Additionally, confirmatory semi-structured interviews with experts in supply chain financing, IT departments, and procurement departments have been conducted; the study’s findings revealed a low level of blockchain knowledge within Saudi Arabia’s construction industry, since (90%) of respondents have not worked with Blockchain technology. Several technologists barely understand it, and the level of readiness is very low. However, there is a lot of potential, and it is worth investing in it combined with other technologies such as BIM technology. In this study, the authors have sought to provide a measure of Saudi professionals’ attitudes and understanding of blockchain technology solutions within the construction industry in Saudi Arabia. Furthermore, the study’s novelty aimed to provide a grasp of the conceptual, theoretical, and fundamental features of blockchain technology in the construction industry, as blockchain solutions could benefit the global economy by increasing levels of monitoring, tracing, and confidence in international supply chain resilience.