“The Status Knowledge of Blockchain Technology Potentials to Build Robust and Resilient Supply Chain in the Construction Industry in Saudi Arabia”

Abstract

The construction industry is a major economic sector in Saudi Arabia's economy. The sector is increasingly becoming one of the largest industries. However, the industry encountered many issues ranging from low production and inefficiencies in the supply chain management to lacking digitalisation, transparency, and traceability. Blockchain Technology has emerged as a practical and strategic solution offering the extraordinary potential to revolutionise the traditional supply chain and resolve the construction industry issues. The application of BCT in the SCM is rarely examined in Saudi Arabia. This study aims to evaluate BCT's knowledge level and understanding of the construction industry supply chain in Saudi Arabia. This qualitative study used a pre-set open-ended questionnaire to collect data from ten employees working in the supply chain of construction companies in Saudi Arabia. Using criteria of four levels of knowledge, the content analysis suggests a high level of blockchain knowledge among the participants. The findings show that all the participants either have some knowledge, heard about it or have good knowledge and understanding of the potential and benefits of BCT. Some participants took training related to BCT, but all showed great interest in receiving training that will help prepare them for adopting BCT. However, the study found that Saudi Arabian construction companies face organisational and technical challenges that deter or delay adopting BCT. Additionally, the study found that construction companies do not have the resources to implement BCT in the supply chain including financial, physical, intellectual, human, and digital expertise. The study concludes that despite the employees’ good knowledge and excitement for adopting BCT, given resources unavailability, it seems there will be no widespread adoption of BCT in the Saudi Arabia construction companies' supply chain in the short run. The findings will help the Ministry of Industry, construction companies and association, and contribute to filling a gap in the academic literature.