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

Author

Listed:
  • Naif Al Azmi

    (Civil Engineering Department, The University of Jordan, Amman P.O. Box 11942, Jordan)

  • Ghaleb Sweis

    (Civil Engineering Department, The University of Jordan, Amman P.O. Box 11942, Jordan)

  • Rateb Sweis

    (Business Management Department, The University of Jordan, Amman P.O. Box 11942, Jordan)

  • Farouq Sammour

    (Civil Engineering Department, The University of Jordan, Amman P.O. Box 11942, Jordan)

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.

Suggested Citation

  • Naif Al Azmi & Ghaleb Sweis & Rateb Sweis & Farouq Sammour, 2022. "Exploring Implementation of Blockchain for the Supply Chain Resilience and Sustainability of the Construction Industry in Saudi Arabia," Sustainability, MDPI, vol. 14(11), pages 1-17, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:11:p:6427-:d:823075
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    References listed on IDEAS

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    1. Sara Saberi & Mahtab Kouhizadeh & Joseph Sarkis & Lejia Shen, 2019. "Blockchain technology and its relationships to sustainable supply chain management," International Journal of Production Research, Taylor & Francis Journals, vol. 57(7), pages 2117-2135, April.
    2. Walid Al-Saqaf & Nicolas Seidler, 2017. "Blockchain technology for social impact: opportunities and challenges ahead," Journal of Cyber Policy, Taylor & Francis Journals, vol. 2(3), pages 338-354, September.
    3. Andoni, Merlinda & Robu, Valentin & Flynn, David & Abram, Simone & Geach, Dale & Jenkins, David & McCallum, Peter & Peacock, Andrew, 2019. "Blockchain technology in the energy sector: A systematic review of challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 143-174.
    4. Seong-Kyu Kim & Jun-Ho Huh, 2020. "Blockchain of Carbon Trading for UN Sustainable Development Goals," Sustainability, MDPI, vol. 12(10), pages 1-32, May.
    5. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    6. Lohmer, Jacob & Bugert, Niels & Lasch, Rainer, 2020. "Analysis of resilience strategies and ripple effect in blockchain-coordinated supply chains: An agent-based simulation study," International Journal of Production Economics, Elsevier, vol. 228(C).
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    Cited by:

    1. Ajay Kumar Pandey & Yash Daultani & Saurabh Pratap, 2024. "Blockchain technology enabled critical success factors for supply chain resilience and sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1533-1554, February.

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