Abstract

Blockchain, essentially a distributed and immutable database, has emerged as a potential solution to governance problems of accountability, transparency, and trust in the construction industry. In terms of construction quality management (CQM) applications, previous works mainly took a technical perspective, and little is known about the potential of blockchain-based governance for quality opportunism. Moreover, we have seen very few successful blockchain implementations in construction practices. Stakeholders meet the trade-off between potential benefits and risks in blockchain adoption decisions. Previous works mainly focused on barrier analysis, neglecting the dynamic interactions of stakeholders’ strategic behaviors on adopting blockchains. Against this backdrop, this research aims to systematically analyze blockchain impacts on CQM from a governance perspective and then investigate the owner and the main contractors’ strategic behaviors (e.g., adopting blockchains in CQM or not). The agency theory was used as the theoretical lens to examine how blockchain curbs contractors’ quality opportunistic behaviors as a governance mechanism. An evolutionary game theory model was developed to simulate adoption decision interactions between the owner and the main contractor. Finally, policy suggestions were highlighted for policymakers. This research could be one of the first studies examining blockchain potential to CQM from an opportunism governance perspective. Such discussions could inspire more discussions on blockchain-based governance and broaden researchers’ and practitioners’ understandings of blockchain impacts. The proposed policy suggestions from the equilibrium analysis could facilitate blockchain diffusion in the construction industry.

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Data Availability Statement

All data, models, and code generated or used during the study appear in the published article.

Acknowledgments

This research is partly supported by the “National Natural Science Foundation of China” (No. 71821001, U21A20151) and Shenzhen-Hong Kong-Macau S&T Program (Category C) (Grant No. SGDX20201103095203031).

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Journal of Construction Engineering and Management
Volume 150Issue 6June 2024

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Received: Jul 21, 2023
Accepted: Dec 27, 2023
Published online: Mar 20, 2024
Published in print: Jun 1, 2024
Discussion open until: Aug 20, 2024

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Associate Professor, School of Finance, Zhongnan Univ. of Economics and Law, Wuhan 430073, China. ORCID: https://orcid.org/0000-0002-4804-3806. Email: [email protected]
Research Associate, Dept. of Building and Real Estate, The Hong Kong Polytechnic Univ., Hong Kong (corresponding author). ORCID: https://orcid.org/0000-0003-2543-2275. Email: [email protected]
Chair Professor, Dept. of Building and Real Estate, Hong Kong Polytechnic Univ., Hong Kong. Email: [email protected]
Botao Zhong [email protected]
Professor, School of Civil and Hydraulic Engineering, Huazhong Univ. of Science and Technology, Wuhan, Hubei 430074, China. Email: [email protected]
Associate Professor, Dept. of Management Science and Engineering, China Univ. of Geosciences, 388 Lumo Rd., Wuhan 430074, China. ORCID: https://orcid.org/0000-0001-9075-6511. Email: [email protected]
Ivan W. H. Fung [email protected]
Adjunct Professor, School of Civil Engineering and Geomatics, Southwest Petroleum Univ., Chengdu, Sichuan 610500, China. Email: [email protected]
Yiu Yin Lee [email protected]
Associate Professor, Dept. of Architecture and Civil Engineering, City Univ. of Hong Kong, Hong Kong. Email: [email protected]

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