Investigating the Impact of Blockchain on Project Risk Management Success: A Structural Equation Model

Abstract

Lately, the construction industry has shown a great deal of openness to utilizing novel and innovative technologies. The industry's complexity necessitates cooperative and efficient process management. Utilizing value-adding technologies is crucial in that regard. Among them, blockchain has recently gained prominence as an enabling technology for smart contracts, and secure data management for the construction industry. This study employs a structural equation model to quantify the relationship between risk management (RM), a key project management activity, and blockchain technology. To this end, a survey was created and distributed to construction professionals. A structural equation modeling analysis was performed on the data collected from 103 respondents. The findings show that construction project RM can be significantly affected by key blockchain features. This study contributes to the body of knowledge by presenting a conceptual framework that captures the essential elements of RM and blockchain. The results also empirically show that RM and blockchain are closely related, confirming blockchain's potential and relevance in RM applications. In this article, we also discuss the risks associated with adopting blockchain in the construction industry. The results of this study can help construction practitioners and policy-makers create plans for incorporating blockchain into RM workflows.