Distributed ledger technology integration in Nigerian construction industry: key drivers

Abstract

Purpose

This study aims to evaluate the drivers influencing the integration of distributed ledger technologies (DLTs) in the Nigerian construction industry to provide a comprehensive analysis of the factors that shape the adoption and utilization of this transformative technology within the sector.

Design/methodology/approach

This objective was achieved through a quantitative research approach, utilizing a structured questionnaire to systematically gather data from various stakeholders in the Nigerian construction sector. Data obtained were analyzed using descriptive statistics, alongside inferential statistical techniques like the Kruskal-Wallis H-test, the Shapiro-Wilk test and exploratory factor analysis.

Findings

The most highly ranked drivers for DLT within the construction industry are security and fraud resistance, traceability and transparency, government support, compliance and reporting and trust building. Further analysis unveiled five distinct factors of application areas, namely: technological and operational drivers, economic and financial drivers, regulatory and government drivers, collaborative and stakeholder drivers and environmental and sustainability drivers.

Practical implications

The practical implications emphasize the need for construction industry stakeholders to focus on security, transparency and trust-building when considering DLT adoption. This study also offers valuable insights for investors and technology providers seeking opportunities in the Nigerian construction sector.

Originality/value

This study sheds light on the factors most critical for DLT adoption in the Nigerian construction sector. Unlike previous research, this study pinpoints security and fraud resistance, along with traceability and transparency, as the most influential drivers. This highlights the Nigerian construction industry’s particular vulnerability to fraud and its emphasis on clear audit trails.

Citation

Aliu, J., Oke, A.E. and Ehiosun, L.U. (2024), "Distributed ledger technology integration in Nigerian construction industry: key drivers", International Journal of Building Pathology and Adaptation, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJBPA-02-2024-0044