Barriers to the adoption of blockchain technology in construction management a total interpretive structural modelling (tism) and dematel approach

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VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

KHUC QUANG TRUNG

BARRIERS TO THE ADOPTION OF BLOCKCHAIN TECHNOLOGY IN CONSTRUCTION MANAGEMENT: A

TOTAL INTERPRETIVE STRUCTURAL MODELLING (TISM) AND DEMATEL APPROACH

Major: Construction Management Major code: 8580302

MASTER’S THESIS

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HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY – VNU–HCM

Supervisor: Assoc Prof Do Tien Sy Supervisor: Dr Nguyen Thanh Viet Examiner 1: Dr Huynh Nhat Minh Examiner 2: Dr Dang Ngoc Chau

This master‟s thesis is defended at HCM City University of Technology, VNU- HCM City in room 409A4 – Building A4 - HCMUT Campus 1 on 19th July 2023 Master‟s Thesis Committee:

1 Dr Nguyen Anh Thu - Chairman

2 Assoc Prof Tran Duc Hoc - Member, Secretary 3 Dr Huynh Nhat Minh - Reviewer 1

4 Dr Dang Ngoc Chau - Reviewer 2

5 Dr Chu Viet Cuong - Member

Approval of the Chairman of the Master‟s Thesis Committee and Dean of Faculty of Civil Engineering after the thesis being corrected

CHAIRMAN OF THE COUNCIL

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[i]

VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom - Happiness

THE TASK SHEET OF MASTER’S THESIS

Full name: Khúc Quang Trung Student code: 2170309

Date of birth: 14.04.1996 Place of birth: Dong Thap

Major: Construction Management Major code: 8580302

I THESIS TOPIC

Barriers To The Adoption Of Blockchain Technology In Construction Management: A Total Interpretive Structural Modelling (TISM) And DEMATEL Approach

TÊN ĐỀ TÀI

Rào Cản Đối Với Việc Áp Dụng Công Nghệ Blockchain Trong Quản Lý Xây Dựng: Phương Pháp Tiếp Cận Mơ Hình TISM và DEMATEL

II TASKS AND CONTENTS

- Identify the primary barriers affecting blockchain adoption in Vietnam - Determine the interactions and contextual relationships among these barriers - Evaluate the intensity of these interrelationships

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III TASKS STARTING DATE: 06.02.2023 IV TASKS ENDING DATE: 10.06.2023

V INSTRUCTOR:

- Assoc Prof Do Tien Sy - Dr Nguyen Thanh Viet

Ho Chi Minh City, 07th, August 2023

INSTRUCTOR 1

(Full name and signature)

Assoc Prof Do Tien Sy

INSTRUCTOR

(Full name and signature)

Dr Nguyen Thanh Viet

HEAD OF ACADEMIC DEPARTMENT

(Full name and signature)

Dr Le Hoai Long

DEAN OF FACULTY OF CIVIL ENGINEERING

(Full name and signature)

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[iii]

ACKNOWLEDGEMENT

First, I acknowledge Ho Chi Minh City University of Technology (HCMUT), VNU-HCM for supporting this study Also, I would like to mention the support system and consideration of Construction Management BK-IMP Lecturers and Facilitators, who guided me in doing this thesis I sincerely thank the lessons learned from the lecturers at Yokohama National University, Japan

In composing this master's thesis entitled "Barriers to the Adoption of Blockchain Technology in Construction Management: A Total Interpretive Structural Modeling (TISM) and DEMATEL Approach", I have been fortunate to receive a tremendous amount of guidance, support, and inspiration

Dr Nguyen Thanh Viet and Assoc Prof Dr Do Tien Sy, my devoted and enthusiastic advisor, deserves my deepest gratitude They guided me through the academic research labyrinth by providing me with essential resources, methodologies, and thesis guidance Their enthusiasm and dedication have sparked a fire within me, inspiring me to persevere and complete this thesis

I would also like to salute my companions Son and Nhu, whose friendship, shared humor, and mutual support have made the journey more enjoyable

In addition, this research would not have been possible without the generous time and effort of the twelve experts who participated in the four survey sessions and substantially improved the quality of this work

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ABSTRACT

Blockchain technology (BTC) has the potential to revolutionize the efficacy, trust, and procurement practices of numerous industries, including the construction sector Nonetheless, there is a dearth of research on the barriers preventing blockchain adoption in the construction industry This study seeks to identify the primary barriers to blockchain technology adoption in the construction industry

Through a review of the relevant literature, the major barriers to blockchain adoption have been identified The study employs TISM to investigate the interrelationships between these barriers and DEMATEL to establish cause-and-effect relationships

Integrating the TISM and DEMATEL methodologies reveals that regulatory uncertainty, data privacy/security concerns, limited knowledge and expertise, and reliance on blockchain administrators are crucial adoption considerations In addition, issues with scalability, uncertain benefits, and a lack of collaboration are dependent on other identified barriers The DEMATEL analysis identifies seven cause barriers, while the remaining barriers are regarded as significant contributors to the overall adoption challenges

This study contributes by providing decision-makers with a comprehensive comprehension of significant barriers through an integrated approach and by facilitating contextual connections through cause-and-effect analysis In addition, it provides a novel strategy for promoting the adoption and utilization of blockchain technology in the construction industry

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[v]

TĨM TẮT

ơng nghệ blockchain (BTC) có tiềm năng cách mạng hóa hiệu quả, niềm tin và thực hành mua sắm của nhiều ngành công nghiệp, bao gồm ngành xây dựng Tuy nhiên, hiện nay còn thiếu hụt các nghiên cứu về những rào cản ngăn chặn việc áp dụng blockchain trong ngành xây dựng Nghiên cứu này tìm kiếm để xác định các rào cản chính cho việc áp dụng công nghệ blockchain trong ngành xây dựng

Thông qua việc xem xét lại văn bản liên quan, các rào cản lớn đối với việc chấp nhận blockchain đã được xác định Nghiên cứu sử dụng TISM để điều tra mối quan hệ tương hỗ giữa các rào cản này và DEMATEL để thiết lập mối quan hệ nguyên nhân và kết quả

Kết hợp phương pháp TISM và DEMATEL cho thấy rằng sự không chắc chắn về quy định, những lo ngại về quyền riêng tư/an ninh dữ liệu, hạn chế kiến thức và chuyên môn, và sự phụ thuộc vào quản trị viên blockchain là những yếu tố quan trọng cần xem xét khi chấp nhận Ngoài ra, vấn đề về khả năng mở rộng, lợi ích khơng rõ ràng, và thiếu sự hợp tác phụ thuộc vào các rào cản khác đã được xác định Phân tích DEMATEL xác định ra bảy rào cản nguyên nhân, trong khi các rào cản còn lại được coi là những đóng góp quan trọng cho những thách thức chung trong việc chấp nhận

Nghiên cứu này góp phần bằng cách cung cấp cho người ra quyết định một sự hiểu biết toàn diện về các rào cản quan trọng thơng qua một phương pháp tích hợp và bằng cách tạo ra các mối liên hệ ngữ cảnh thông qua phân tích nguyên nhân và kết quả Ngồi ra, nó cung cấp một chiến lược mới để thúc đẩy việc chấp nhận và sử dụng công nghệ blockchain trong ngành xây dựng

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AUTHOR’S COMMITMENT

The undersigned below:

Name : Khuc Quang Trung

Student ID : 2170309

Place of birth : Dong Thap Date of birth : 14.04.1996

Address : Resgreen Apartment, 7A Thoai Ngoc Hau Street, Phu Trung Ward, Tan Phu district, Ho Chi Minh City

Email: : khucquangtrung@hcmut.edu.vn

Phone number : (+84) 907 154 046

With the declaring that the master thesis entitled “Barriers to the adoption of Blockchain technology in construction management: A Total Interpretive Structural Modelling TISM and DMATEL approach” has been done by the author under the

instruction of supervisors All works, ideas, and material that was gained from other references have been cited accurately

Ho Chi Minh City, August 2023 Author

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Master Thesis [vii] Khuc Quang Trung - 2170309

TABLE OF CONTENT

THE TASK SHEET OF MASTER’S THESIS i

ACKNOWLEDGEMENT iii

ABSTRACT iv

TÓM TẮT v

AUTHOR’S COMMITMENT vi

TABLE OF CONTENT vii

LIST OF FIGURES xLIST OF TABLES xiCHAPTER 1: INTRODUCTION 11.1 Problem Statement 11.2 Research Objective 31.3 Scope of Study 3

CHAPTER 2: LITERATURE REVIEW 5

2.1 Definitions of blockchain 5

2.2 Blockchain characteristic 5

2.3 Blockchain network 7

2.3.1 Private and Public Blockchain 8

2.3.2 Consortium blockchain 10

2.4 Main Blockchain platform 11

2.4.1 Ethereum 11

2.4.2 Hyperledger Fabric 12

2.5 Blockchain technology in the AEC industry 13

2.6 Barriers to the adoption of blockchain in the AEC industry 16

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CHAPTER 3: METHODOLOGY 24

3.1 TISM model 24

3.2 MICMAC model 27

3.3 DEMATEL model 28

3.4 Delphi technique 30

3.5 Development of the integrated TISM-DEMATEL-MICMAC 33

CHAPTER 4: RESEARCH RESULTS 40

4.1 Data collection 40

4.2 TISM analysis 42

4.2.1 Step 1: Identifying and defining the barriers 42

4.2.2 Step 2: Defining contextual relationships 47

4.2.3 Step 3: Binary interpretation of pair-wise comparisons 48

4.2.4 Step 4: Reachability matrix and a check of transitivity 49

4.2.5 Step 5: Level partitions 53

4.2.6 Step 6: development of digraph 54

4.2.7 Step 7: Interaction matrix and Interpretive matrix 55

4.2.8 Step 8: TISM model 56

4.3 MICMAC analysis 63

4.4 DEMATEL analysis 65

4.5 An integrated TISM – DEMATEL 68

CHAPTER 5: DISCUSSION 71

5.1 TISM Analysis 71

5.2 MICMAC model 74

5.3 DEMATEL analysis 76

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Master Thesis [ix] Khuc Quang Trung - 2170309

CHAPTER 6: CONCLUSION AND RECOMMANDATION 81

6.1 Conclusion 81

6.2 Recommendation 81

6.2.1 The barrier of regulatory uncertainty (B3): 81

6.2.2 The barrier of data privacy/security (B2): 82

6.2.3 The barrier of lack of knowledge and expertise (B11): 83

6.2.4 The barrier of dependency on blockchain operators (B7) 84

6.3 Research implication 87

6.3.1 Practical implication 87

6.3.2 Academic implication 88

REFERENCES 89

APPENDIX 1: QUESTIONAIRE SURVEY 1 98

APPENDIX 2: QUESTIONAIRE SURVEY 2 108

APPENDIX 3: QUESTIONAIRE SURVEY 3 114

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LIST OF FIGURES

Figure 2.1 Blockchain process [35] [36] 6

Figure 2.2 The skeleton of a private blockchain network [38] 9

Figure 2.3 The skeleton of a public blockchain network [38] 9

Figure 2.4 The Skeleton of a consortium blockchain network [38] 11

Figure 4.1 TISM model – a simple version 55

Figure 4.2 TISM model 62

Figure 4.3 MICMAC diagram 64

Figure 4.4 Cause Effect Diagram 67

Figure 4.5 Integrated TISM-DEMATEL model 70

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Master Thesis [xi] Khuc Quang Trung - 2170309

LIST OF TABLES

Table 2.1 Characteristics of previous studies 18

Table 2.2 List of Barriers, descriptions, and references 20

Table 3.1 A comparison of DEMATEL with AHP/ANP/SEM [83] 29

Table 3.2 Characteristics of Delphi Studies in CEM Research [87] 31

Table 4.1 Experts’ background information 41

Table 4.2 Initial reachability matrix 49

Table 4.3 Final reachability matrix 49

Table 4.4 Elements providing transitivity 50

Table 4.5 The interpretive logic knowledge base 51

Table 4.6 Levels partition of barriers to blockchain adoption 54

Table 4.7 Interaction matrix 55

Table 4.8 Interpretive matrix 57

Table 4.9 Driving power and dependence on barriers 63

Table 4.10 Initial average direct influence matrix A 65

Table 4.11 Normalized initial direct influence matrix N 66

Table 4.12 Total relationship matrix T 66

Table 4.13 The degree of direct and indirect influences 67

Table 4.14 Inner dependency matrix (α = 0.05) 68

Table 5.1 Final results of TISM – MICMAC – DEMATEL model 79

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CHAPTER 1: INTRODUCTION 1.1 Problem Statement

Blockchain technology (BCT) has emerged as a promising solution to revolutionize various industries, including agriculture [1], insurance [2], supply chain management [3], healthcare [4], and the AEC industry [5] The potential of blockchain is recognized by the World Economic Forum Espinel, et al [6], which predicts it will be one of the top computing mega-trends impacting the world in the coming decade The transformative potential of blockchain technology in the AEC industry has been discussed by several scholars including Li, et al [7] and Hunhevicz and Hall [8], Kiu, et al [9], who highlight its ability to provide transparency, immutability, and security As a result, the implementation of blockchain technology has the potential to considerably improve the efficacy and dependability of numerous AEC industry practices, including project management and construction supply chain optimization

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Master Thesis [2] Khuc Quang Trung - 2170309

stakeholders and the complexity of the design, manufacturing, storage, transportation, and on-site assembly processes [14] Consequently, there is a significant lack of an accessible, dependable, transparent, and traceable information resource As a result, both clients and contractors struggle to verify and validate the veracity of information pertaining to the various interactions among stakeholders, such as professional qualifications, building material certifications, project deliverable timeline, and quality As a result, inefficiencies in construction project timelines, costs, and quality may arise, leading to client dissatisfaction and potentially impacting the national economy at large

On the other hand, the construction industry faces several challenges, including ineffective communication, delays, disputes, and errors However, blockchain technology offers a promising solution to these problems By providing a decentralized platform for recording and sharing information, blockchain enables real-time tracking and monitoring of construction activities, creating a trusted and secure environment for transactions and data exchange [9] Smart contracts, a key feature of blockchain technology, can automate and enforce the terms and conditions of construction contracts, leading to fewer disputes and delays and ensuring timely payment and delivery of projects [15]

Additionally, blockchain technology can create a digital identity for construction materials, equipment, and personnel, which can improve the tracking and management of the supply chain [16] This is particularly useful in addressing issues related to quality control and material traceability Furthermore, blockchain can be utilized to create a digital twin of buildings, which enables better monitoring and maintenance of building systems and components, providing a comprehensive database for future upgrades and renovations [17] The integration of blockchain with the building information model (BIM) can further enhance the efficiency and effectiveness of the BIM working environment by improving the management and sharing of information among project stakeholders [18, 19]

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barriers that demand rapid attention For instance, the connectivity between smart contracts and complex projects [20], data privacy and storage [21] [13], platform selection [22], the cost of adopting blockchain systems [13], and legal and regulatory uncertainties [7] Moreover, there may be several linkages between barriers [23] Nonetheless, blockchain adoption barriers in the AEC sector have received little consideration In order to speed up the future acceptance and deployment of this technology in the AEC sector, it is essential to understand these barriers and their interrelationships Consequently, this thesis investigates three specific research questions:

- RQ1: What are the most significant barriers to blockchain adoption in the AEC industry?

- RQ2: What are the interrelationships and contextual ties between the barriers? - RQ3: What is the strength of these interdependencies?

1.2 Research Objective

This thesis seeks to investigate and assess the barriers and their interrelationships associated with the adoption and utilization of blockchain technology in the AEC industry, particularly Vietnam's AEC sector The specific objectives of the thesis are as follows: (1) identify and determine key adoption barriers through a literature review and expert feedback; (2) model those barriers in order to illustrate their interrelationships and hierarchical structure; and (3) assess the strength of causal interrelationships among recognized constructs and classify them

1.3 Scope of Study

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Master Thesis [4] Khuc Quang Trung - 2170309

"project management." In addition to databases, credible journal articles, books, and reports were consulted in order to compile an exhaustive list of barriers

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CHAPTER 2: LITERATURE REVIEW 2.1 Definitions of blockchain

Blockchain is generally defined as a distributed ledger technology that provides a decentralized and immutable record of network participant transactions Dounas and Lombardi [24], describe blockchain as a database technology comprising a distributed ledger, a consensus protocol, and cryptography The technology was devised by Satoshi Nakamoto in 2008, and its most prominent application is in the Bitcoin cryptocurrency

Hamma-adama, et al [25] defines blockchain as a form of distributed ledger technology (DLT) that records all executed and shared digital transactions and events among network participants Akinradewo, et al [26] defines blockchain as a distributed ledger on a peer-to-peer network that stores data on multiple devices without a central server Li, et al [7], a blockchain is a form of expanding an inventory of documents called blocks that are cryptographically linked using hashes

According to Tyagi, et al [27], blockchain is a decentralized network in which there is no central organization that controls every transaction and every transaction is visible to every node on the network Yang, et al [13] note that there are two types of blockchain networks: public blockchain networks that can be accessed by the public through generic consensus mechanisms, and consortium blockchain networks in which users must be pre-identified and the mechanism for obtaining their consensus must be specified in advance Abrishami and Elghaish (2019) [28] note that blockchain is a permissioned digital ledger that enables secure, transparent, and unchangeable financial transactions in the AEC industry

2.2 Blockchain characteristic

The emergence of blockchain technology was motivated by the need for a financial system that is transparent, decentralized, autonomous, and stable [29] In 2008, Satoshi Nakamoto proposed the concept that laid the foundation for Bitcoin [30] Since then, blockchain has been utilized in numerous applications [31]

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Master Thesis [6] Khuc Quang Trung - 2170309

participants approve a new block, the consensus is added to the current chain, and the transaction is carried out Every block in the chain corresponds to an entry in the ledger containing transaction data and a hash that links it to the block that came before it If there is no consensus, the new block is rejected [33] Decentralization is a defining characteristic of blockchain technology, as the network is managed by all chain participants without a central authority or infrastructure [34] This means that each participant has a copy of the ledger stored locally

X initiates transaction with Y

Block is created online representing the transaction

Block is broadcasted to all members in network to verify consensus

Approval and validation

of transaction Transaction Scrapped

Block is added permanently to existing blockchain as a transparent record

Transaction between X and Y is executed

No consensus

Consensus receivedfor approval

Step 1: transaction intiation

Step 2: Creation of new Block

Step 3: Broadcast of Block to network

Step 4: Verification of Block

Step 5: Block is added to existing chain

Step 6: Execution of transaction

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X initiates transaction with Y

Block is created online representing the transaction

Block is broadcasted to all members in network to verify consensus

Approval and validation

of transaction Transaction Scrapped

Block is added permanently to existing blockchain as a transparent record

Transaction between X and Y is executed

No consensus

Consensus receivedfor approval

Step 1: transaction intiation

Step 2: Creation of new Block

Step 3: Broadcast of Block to network

Step 4: Verification of Block

Step 5: Block is added to existing chain

Step 6: Execution of transaction

Figure 2.1 depicts the sequential functioning of transactions on the blockchain, with 'X' and

'Y' representing the parties involved 'X' initiates the transaction, whereas 'Y' is the recipient The transaction is subsequently shared and publicly validated across the entire decentralized network, generating a new approval block Once network participants approve a new block, the consensus is added to the current chain, and the deal is carried out Every block in the chain is an entry in the ledger containing transaction data and a hash linking it to the block that came before it If no consensus is reached, the new block is rejected [33]

2.3 Blockchain network

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Master Thesis [8] Khuc Quang Trung - 2170309

any network-connected computer, users can verify the veracity and dependability of data by examining data and tracing transaction history For example, blockchain can facilitate the creation of unique ownership certificates for land titles, enabling purchasers to access property information and verify trading records without the risk of forgery [13] The immutability and tamper-proof nature of the data recorded on the blockchain is ensured by the sequential addition of blocks, each of which contains a cryptographic hash of the preceding block Once added, records on a blockchain cannot be modified, concealed, or falsified [33] Moreover, due to the secure nature of the peer-to-peer network, all transactions are stored in an immutable manner [33] As each transaction is validated and recorded with a timestamp [37], any blockchain user can easily trace past transactions by connecting to any network node In the literature, blockchain networks are classified based on a variety of criteria, with management and permission levels functioning as the most prevalent classification [37]

2.3.1 Private and Public Blockchain

Both private and public blockchain networks have decentralized structures and are used without a trusted third party to record peer-to-peer transactions [13] without the need for a trusted third party However, they have distinct differences

Private blockchains have a high transaction processing rate and a limited number of authorized participants, allowing for a faster consensus and the processing of multiple transactions per second when compared with public blockchain networks as illustrated in

Figure 2.2 Public blockchains, on the other hand, have a limited transaction processing rate

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Figure 2.2 The skeleton of a private blockchain network [38]

Public blockchains benefit from an unlimited number of anonymous nodes and encrypted communication Each node possesses both public and private keys, removing the need to trust

network users As depicted in Figure 2.3, all network members can access and read all

blockchain transactions, which is a significant strength given that these transactions can be independently verified by the general public Private blockchains, in contrast, restrict network access to verified parties for transaction verification With increased decentralization and more nodes, public blockchains present obstacles for malicious actors attempting to manipulate the network In contrast, private blockchains, which contain fewer nodes, are more susceptible to control by malicious actors, thereby increasing the likelihood of hijacking and data manipulation Consequently, public blockchains are regarded as more secure Moreover, public blockchains necessitate no infrastructure costs, whereas private blockchains necessitate substantial adoption and operational costs [40]

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Master Thesis [10] Khuc Quang Trung - 2170309

Federated blockchains incorporate public and private blockchain characteristics [38] In contrast to the strict public/private dichotomy, federated blockchains appoint a named leader to verify transaction processes, resulting in a partially decentralized blockchain system [13] This composite network paradigm provides a balance between low-trust (public blockchains) and high-trust (private blockchains) entity approaches [41]

2.3.2 Consortium blockchain

Consortium blockchains, also referred to as federated blockchains, are semi-private blockchain solutions with no single owner As depicted in Figure 9, these blockchain platforms distribute privileged nodes throughout the network Consortium blockchains share a number of advantages with private blockchains, including privacy, efficiency, scalability, and performance, but they are administered by a group as opposed to a single entity [42] Governance plays a crucial role in consortium blockchains as a result

Similarly, to private blockchains, consortium blockchains can restrict participants based on differing levels of access to the ledger's information and can even provide distinct data sets Certain groups of organizations can have exclusive communication channels and data accessible only to their respective associations For instance, certain users may be permitted to examine all or a subset of ledger transactions and pre-approved nodes

More so than in the past, enterprises operate across multiple networks today The financial industry devised and implemented Corda R3, a widely used consortium blockchain network The construction industry frequently operates in consortia or partnerships, and consortium blockchain solutions can promote greater collaboration by enhancing trust and transparency within these partnerships Consortium blockchain has privileged permissioned nodes across

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Figure 2.4 The Skeleton of a consortium blockchain network [38] 2.4 Main Blockchain platform

Ethereum, Hyperledger Fabric, and Corda by R3 are three of the primary blockchain platforms Ethereum and Hyperledger Fabric are adaptable across all sectors, whereas R3's Corda is primarily used in the financial services sector [13] In this study, Ethereum and the Hyperledger Fabric as an entire are evaluated and adopted

2.4.1 Ethereum

Blockchain 1.0, the fundamental technology of Bitcoin, was the first implementation of Nakamoto's [43] concept of blockchain technology This initial implementation of blockchain was utilized predominantly for cryptocurrencies 2015 saw the introduction of Blockchain 2.0, which brought the concept of smart contracts to the forefront of the industry Ethereum, the second public blockchain platform, was created as a consequence of this evolution [10]

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Master Thesis [12] Khuc Quang Trung - 2170309

Ethereum is a multipurpose blockchain platform that enables users to construct cryptocurrency-related applications and implement smart contracts It distinguishes between two categories of accounts: third-party accounts and contract accounts Individuals possess Ethereum-capable identities that are externally managed by a private key By invoking contract functions, such accounts may initiate transactions and interact with external accounts In contrast, contract accounts are governed by contract code and activated by communications from other contract accounts or externally owned accounts

Solidity, a popular scripting language, is commonly used for developing contract account protocols These protocols are then compiled into a stack-based programming language for contract account execution [46]

2.4.2 Hyperledger Fabric

- Hyperledger Fabric is a compilation of blockchain frameworks and tools [47] that was initiated by the Linux Foundation at the beginning of 2016 Hyperledger is a consortium composed of IBM, the Linux Foundation, and other organizations that seek to encourage the creation of blockchain-based applications across industries [35] Hyperledger Fabric, a private blockchain platform that is modular and permission, is regarded as one of the most developed blockchain platforms to date It is the first of its kind to facilitate smart contract execution in multiple general-purpose languages for programming, including Node.js, Java, and Go [47]

- The execute-order-validate architecture [13] of Hyperledger Fabric is one of its distinguishing features that sets it apart from other platforms The transaction flow of this platform comprises transaction execution, prioritization, and validation Unlike public blockchains, each node in Hyperledger Fabric has a unique identity and can perform one of the following functions [47]:

- Clients: They propose and submit transactions for ordering

- Peers: These individuals execute transaction proposals, validate transactions, and maintain blockchains

- Orderers (Ordering Service Nodes): These nodes aggregate client transactions and determine the order of all transactions

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- Membership Service Provider (MSP): The MSP is responsible for administering user identities and regulating network access using a certificate authority (CA) for user validation and authentication

- Smart Contract (chain code): A smart contract, also known as chain code, specifies the tenure of a global asset The chain code includes asset modification and state querying mechanisms The chain code is a Hyperledger Fabric software component that combines one or more smart contracts for implementation on a particular channel

- Transactions: These are consumer-requested modifications to an asset held in the current world state A transaction may read or write the global state and must be validated based on the chain code's endorsement policy

- This is an immutable log of all channel-based transactions An authorized user can observe the complete transaction history of an asset by querying the ledger

- The current status of each asset in the ledger You can obtain the current status of an asset by inquiring about the global state

Channels: Hyperledger Fabric permits the construction of distinct channels, each of which provides an independent communication layer for a subset of participants, ensuring the privacy of communication and data [13]

2.5 Blockchain technology in the AEC industry

Blockchain technology has the potential to revolutionize the construction industry, and researchers have conducted several studies to explore its implementation and potential benefits, with current research in the AEC sector focusing mostly on two topics

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Master Thesis [14] Khuc Quang Trung - 2170309

findings into a framework comprised of two multidimensional conceptual models to develop a road map for deploying blockchain in the construction industry McNamara and Sepasgozar [48] found 46 appropriate papers and outlined the conceptual development of intelligent contracts in the construction sector based on a thorough literature review Dounas and Lombardi (2019) [24] investigated the use of blockchain technology in the construction industry and proposed a framework for its integration They emphasized that blockchain technology can enhance construction processes' transparency, trustworthiness, and accountability Abrishami and Elghaish [28] presented a blockchain with a permissions framework for transforming the AEC financial system during project delivery phases They highlighted the prospective advantages of blockchain-based solutions for enhancing financial transparency, reducing disputes, and boosting construction project confidence

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construction business processes and data They discovered that both varieties of blockchain can enhance construction processes' transparency, traceability, and security

In addition, the combination of Blockchain with other digital technologies such as IoT, BIM, AI, Big Data, etc., in an effort to enhance current construction information management practices, has been a common research strategy The incorporation of distributed ledger technology with BIM is being investigated the most BIM is becoming a standard platform on which all stakeholders (such as architects, engineers, and construction professionals) collaborate on a single, shared model One of the greatest obstacles in implementing a BIM-based system is the fact that data are dispersed across multiple variants of the BIM model, resulting in fragmented and erratic management of model use and unclear custody of the BIM model [54] Due to the centralization characteristic of blockchain, combining the use of this technology with BIM has the ability to transform the construction sector by addressing the aforementioned deficiency of the BIM work process Xue and Lu [55] have devised a semantic difference transformation model that facilitates the integration of BIM and blockchain by minimizing redundant information Sinenko, et al [56] have suggested a blockchain-based integration of BIM that provides secure access to information for all involved professionals An application of a BIM-based system is hampered by the fragmented and inconsistent administration of model custody and model use BIM models can be accessed securely using smart contracts, and all operations may be recorded on blockchain [57] As the burden and technical requirements of converting all contracts to smart contracts may exceed the capacity of project teams, Ye, et al [58] suggest that only certain specified transactions need to be written by smart contracts in a BIM workflow

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Master Thesis [16] Khuc Quang Trung - 2170309

machine learning, hybrid learning models, and lean augmented data learning [13] K Tyagi et al investigate the prospective applications of blockchain and Internet of Things (IoT) integration in Industry 4.0 and Society 5.0 The authors discuss the challenges and opportunities of this integration and emphasize the potential benefits, including increased security, transparency, and efficiency in a variety of industries, including agriculture, healthcare, transportation, and logistics In addition, several case studies and use cases are presented to illustrate the application of blockchain and IoT in Industry 4.0 and Society 5.0 The authors conclude that the incorporation of blockchain technology and the Internet of Things (IoT) can lead to transformational shifts in multiple industries and in society as a whole In addition, the electronic document management (EDM) platform was created and modified over time prior to the advent of blockchain technology EDM is an integral part of the construction industry because it simplifies the complexity of construction and procurement initiatives [61] Blockchain technology offers a robust and affordable alternative to the current EDM system and a secure infrastructure for storing data throughout the life cycle of a construction project With the adoption of blockchain technology, digital databases can contain records with a complete signature of their creation, eradication, and modification Relevant design records, such as schematics, site instructions, certificates, change orders, and construction work programs, can be stored in a decentralized environment where specific documents require confirmation from blockchain platform participants [62]

In recent years, blockchain has been exhaustively researched in relation to the AEC industry; however, blockchain applications and research are still in their infancy when compared to its immense potential and potential obstacles Using an exhaustive literature review, the next section summarizes the barriers to blockchain adoption in the AEC industry

2.6 Barriers to the adoption of blockchain in the AEC industry

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interrelationships between barriers, instead concentrating on enumerating general barriers to BCT implementation

Thus, their content only listed some barriers to BCT implementation generally Using case study analysis, Perera, et al [38], investigated potential applications of blockchain technology for addressing multiple issues, including supply chain management, payment processing, and data sharing Similarly, Li, et al [7] provided an exhaustive evaluation of blockchain usage in construction and proposed a conceptual model for blockchain integration within the built environment and construction industry This study highlighted the prospective benefits of blockchain technology, including increased transparency, enhanced collaboration, and cost savings Through a pilot study, Yang, et al [13] illustrated the procedures, benefits, and challenges of integrating private and public blockchains in the construction industry Teisserenc and Sepasgozar [14] proposed a framework for integrating BCT with Digital Twin in the context of Industry 4.0 for initiatives in the Building,

Engineering, Construction, Operations, and Mining (BECOM) industries Table 2.1 details

the characteristics of these previous investigations Typically, these studies focused on barriers to blockchain technology adoption in the AEC industry However, only three studies including Cheng, et al [11], Li, et al [63], and the research of Xu, et al [64], have investigated the interdependent relationships between these barriers within the context of the construction industry However, these studies had a limited purview and lacked a comprehensive analysis of these relationships

The majority of prior research has based its discussions on survey data or literature reviews, conceptual perspectives The infancy of blockchain technology restricts the population of individuals with significant knowledge and experience, thereby reducing the size of survey samples In addition, there was a glaring absence of analysis, particularly regarding the evaluation of interrelationships between barriers and the investigation of direct and indirect links between various obstacles from the perspectives of various stakeholders This study aims to fill these gaps in the existing literature

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Master Thesis [18] Khuc Quang Trung - 2170309

overlap Table 2.2 summarizes the identified barriers and the frequency with which they were

cited

Table 2.1 Characteristics of previous studies

Articles Theme Type of Study

M Hamma-adama et al [25]

Challenges and Opportunities when Adopting BCT in the

Construction Industry Literature review

S Perera et al [38] Analyzing the application potential of blockchains in construction

Literature review/ case studies

J Li et al [7]

Assessing the current state of distributed ledger technologies (DLT) in the built environment Proposing conceptual models for implementing blockchain in the construction industry

Literature review/ conceptual/ practical case study

A K Tyagi et al [27]

examining the potential benefits and challenges of combining blockchain technology and the Internet of Things (IoT) for Industry 4.0 and Society 5.0

Literature review

B Penzes [53] overview of the potential applications of blockchain technology in the construction industry

Literature

review/Case study

C Li et al [63]

Identifying the determinants of blockchain adoption in the construction industry and verifying the influence of the combination of various factors on adoption intention

Literature review/survey

Y Xu et al [64]

provide a comprehensive understanding of BCT adoption barriers and their interdependent relationships in the context of the AEC industry

Literature review/interview

B Teisserenc and S Sepasgozar [14]

proposes the use of blockchain technology and digital twins in the construction industry

Literature review/ conceptual O I Akinradewo et

al [26]

exploring the barriers to the implementation of blockchain

technology in the construction questionnaire survey

M Cheng et al [11]

Reviewing the current status of blockchain applications via a bibliometric analysis combined with a systematic literature review

Systematic review

R Yang et al [13] exploring the feasibility of applying both public blockchain and

private blockchain technologies in the construction industry Practical case studies

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incompleted regulations and fragmentation in construction projects will be major challenges for BCT adoption Another example is the study from O I Akinradewo, et al [26] ranked the most significant barriers, which included a lack of clarity, scalability risks, a lack of skills or knowledge, social acceptance, and a lack of standardization In order to clarify how respondents perceive these barriers to the implementation of blockchain technology in the built environment, they were subsequently categorized into three groups: organisational barriers, social barriers, and technological barriers

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Master Thesis [20] Khuc Quang Trung - 2170309

highlighted that support from top management plays a crucial role in the successful adoption of blockchain technology The barriers to the blockchain technology adoption were also

reported by other researchers as shown in Table 2.2

Table 2.2 List of Barriers, descriptions, and references

No Barriers Description References

B1

The reluctance of the business owner

they may perceive it as a risky and untested technology and may be hesitant to invest resources in something that is not yet widely adopted or proven to provide significant benefits This limits the potential for innovation and progress in the industry

[3], [11], [64], [63] B2 Data privacy/security concerns

The decentralized nature of Blockchain makes it difficult to guarantee the privacy and security of sensitive data such as building plans, contracts, and financial information [3], [26], [64], [27], [38], [14] B3 Regulatory uncertainty

The majority of nations are not prepared to adopt blockchain technology because they lack the necessary policies, regulations, and oversight it creates legal and compliance risks for stakeholders This creates a reluctance to invest in the technology and limits its adoption in the industry

[3], [11], [26], [64], [63], [27], [7], [53] B4 Lack of Information Technology (IT) infrastructure

Lack of the necessary technical expertise and Information Technology (IT) infrastructure to effectively implement and maintain blockchain solutions This limits the potential benefits of blockchain technology and creates a reluctance to invest in the necessary resources for adoption

[3], [26], [64], [53] B5 High implementation cost

The costs associated with developing, deploying, and maintaining blockchain solutions can be prohibitively expensive for many stakeholders This limits the adoption of blockchain technology to large-scale projects with sufficient budgets, creating a barrier for smaller projects and stakeholders

[3], [26], [13], [64], [63], [27], [14] B6 Uncertain benefits

It is possible that stakeholders are unaware of all the potential benefits and risks of blockchain applications, resulting in an unwillingness to invest time and resources in the technology This deprives the industry of motivation and enthusiasm for blockchain adoption

[3], [7], [53]

B7

Dependence on Blockchain operators

Fear of Dependence on Blockchain operators, high-tech companies it creates concerns about trust, security, and data privacy This limits the potential benefits of decentralization and transparency offered by blockchain technology.[3], [63], [53] B8 Lack of collaboration among stakeholders

For the creation of a blockchain network system, every stakeholder needs to get involved and be persuaded that blockchain is a useful tool During the implementation process, collaboration, interaction, and organization are also difficult [3], [64], [26], [7], [53], [14] B9 Construction project's complexity and fragmentation

Multiple stakeholders, fragmentation, and unique project requirements make it difficult to design and implement broadly applicable, standardized blockchain solutions This limits the scalability and viability of blockchain solutions within the industry

[64], [53], [38], [14]

B10 Scalability

issues

The AEC industry demands the rapid and effective processing of huge amounts of complex data This reduces the applicability and utility of blockchain solutions in numerous AEC applications

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No Barriers Description References

B11

Lack of knowledge and expertise

Blockchain application requires specialized technical skills and an understanding of the technology to effectively implement and utilize it This limits the number of stakeholders who can adopt blockchain and its potential for widespread adoption in the industry

[26], [64], [53], [53]

2.7 Research gap

The global Architecture, Engineering, and Construction (AEC) industry is poised to benefit from the transformative potential of blockchain technology, which is gaining prominence, the likelihood of integrating this technology into existing infrastructures is growing A thorough comprehension of the interdependencies between barriers is crucial for making sound decisions regarding the successful implementation of blockchain While existing literature has made advances toward explaining these barriers and has proposed certain quantitative hypotheses, the absence of studies theorizing and defining the mutually reinforcing connections between these barriers to blockchain adoption in the AEC sector is striking

With the growing prominence of blockchain technology and the transformative benefits it may provide to the global Architecture, Engineering, and Construction (AEC) industry, the likelihood of integrating this technology into existing infrastructures is growing A thorough comprehension of the interdependencies between barriers is crucial for making sound decisions regarding the successful implementation of blockchain While existing literature has made advances toward explaining these barriers and has proposed certain quantitative hypotheses, the absence of studies theorizing and defining the mutually reinforcing connections between these barriers to blockchain adoption in the AEC sector is striking

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Master Thesis [22] Khuc Quang Trung - 2170309

Using fuzzy DEMATEL and social network analysis (FDSNA), Atul Kumar Singh [65] focused on analyzing barriers affecting the application of blockchain technology in sustainable construction FDSNA, while insightful, lacks the depth and clarity of TISM in investigating the complex connections between barriers

Akinradewo, et al [26] analysis of barriers to the implementation of blockchain technology in the South African built environment was also a significant contribution However, this study did not investigate the interrelationships between the identified barrier categories, and the data was limited to the developing nation of South Africa

Existing literature offers valuable insights and attempts to validate previous findings; however, there is a significant gap in the development of a robust theoretical framework that incorporates both qualitative and quantitative methodologies to clarify the complex interrelationships between the barriers to blockchain adoption in the AEC sector

This thesis endeavors to address existing research voids by developing a performance model for eleven identified barriers impeding the adoption of blockchain technology in the AEC industry The model will employ the TISM method, which concentrates on contextual relationships, and incorporate insights from pertinent industry professionals TISM provides more comprehensive insights than other frameworks such as the Diffusion of Innovation (DOI) theory and the Technology-Organisation-Environment (TOE) TOE focuses on the factors that influence an organization's ability to adopt technological advancements, whereas DOI is helpful for predicting a firm's receptivity to novel technology based on innovation and organizational characteristics

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Master Thesis [24] Khúc Quang Trung - 2170307

CHAPTER 3: METHODOLOGY 3.1 TISM model

Several multi-criteria decision-making (MCDM) approaches are used to represent critical constructs in the literature, with interpretative structural modeling (ISM) being the most prevalent Unlike other MCDM approaches, such as ANP, AHP, and TOPSIS [58], ISM does not require the intentionality of the link between constructs This increases the model's precision by reducing the experts' bias Although some researchers criticize ISM applications for failing to comprehend crucial transitive relationships [67], another issue is that ISM focuses solely on nodes and has a limited understanding of links [68] Total Interpretive Structural Modelling (TISM), which eliminates the shortcomings of ISM, is an appropriate method for addressing such challenges

TISM is an evolution of traditional ISM [69] that is used to build a contextual relationship-based performance model for the obstacles impeding the effective deployment of blockchain in the AEC industry This is an interpretive approach to modeling specific relationships that uses the group's perceptions of the interaction between the many involved aspects [67] The TISM method helps illustrate the connections between paragraph elements [70] A directional indicator indicates the hierarchical order and direction of the interconnections between the components The levels where the influential barriers are ultimately positioned in the diagram can be used to identify them, whereas the contextual connections between any two portions are specified along the connecting arrow [71] This is an enhancement over the standard ISM, and critical thinking allows for the retracing of transitive relationships In contrast to ISM, TISM evaluates the actual cause of transitivity, if any, based on expert opinion, and only considers effective transitive relationships when developing the model The necessary TISM methodology stages are outlined and illustrated:

Step 1: define and explain the barriers whose interrelationship must be determined via the literature or a group of subject matter experts

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procedural dependency, augmentation of attributes, priority, and purpose For instance, the contextual link between the two characteristics could be "P facilitates the achievement of R"

Step 3: Analyze the relationship between the criteria/elements Although the mutual relationship provides insight into the nature of the relationship, it does not explain "how" the relationship functions In the TISM method, it is necessary to establish the relationship's interpretation, and it should be noted that the interpretation will be explicit and specific for each pair of elements

Step 4: Interpret the rationale for pairwise comparison The concept of interpretative matrix offers a comprehensive comprehension of paired comparison by focusing on the action of a directed connection In a comparable evaluation, each factor is independently equated to the ith component The input for each link (i-j) may be 'Y' (Yes) or 'N' (No); if 'Y', it is evaluated further This conventional approach to database interpretation based on tables

Step 5: Create a reachability matrix and confirm the existence of transitive relationships The 'Y' or 'N' knowledge base items are converted to a binary matrix ('Y' equals 1 and 'N' equals 0) The transitivity of the formed reachability matrix must then be evaluated If a factor or variable 'A' has an effect on 'B,' and 'B' has an effect on 'C,' then 'A' can also have an effect on 'C.' The ultimate reachability matrix (FRM) is this matrix

Step 6: Separate the reachability matrix through multiple layers Determine the reachability, antecedent, and intersection sets for each barrier using the FRM A barrier with identical values in the reachability and intersection sets must be eliminated and moved to the summit of the hierarchy In order to obtain varying levels of elimination, all assignments were repeated in a similar manner

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Master Thesis [26] Khúc Quang Trung - 2170307

Step 8: Generate the interaction matrix by converting the final digraph toward a binary matrix representing all pertinent interactions Insert a '1' to denote the connection in the binary matrix, followed by the translation statement in the interpretative matrix

Step 9: Construct the TISM model employing its outcome diagram and interaction matrix The TISM model should emphasize the interpretations of matching comparisons in conjunction with the hierarchical structural model

TISM has been utilized in various studies to develop hierarchical models, investigate enablers and barriers, and analyze the interrelationships of factors in different industries In the study of Yadav [72], Utilizing TISM, a hierarchical model for strategic management of performance in Indian telecom service providers was developed, disclosing key success factors and how they interact Jayalakshmi and Pramod [73] utilized TISM to investigate the enablers of a flexible system of control for industry, resulting in a comprehensive decision-making framework C, et al [74] show that TISM has also been used to analyze the drivers and barriers of integrated solid waste management However, The TISM method has not been studied and applied in the AEC industry This study identified key drivers and barriers as well as their interrelationships, providing a framework for strategic policymaking This study identified critical drivers and barriers and their relationships, providing a strategic framework for policymaking

Wuni and Shen (2019) [75] used TISM to create a holistic review and conceptual framework for the drivers of offsite construction, identifying ten key drivers that influence the adoption and implementation of offsite construction and analyzing their interrelationships More recently, Mathivathanan, et al [3] employed TISM to analyze the barriers to the adoption of blockchain technology in business supply chains The study identified 12 key barriers and analyzed their interrelationships

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These studies identified key factors and analyzed their interrelationships to provide insights for improving performance and sustainability Finally, a study by Sindhwani and Malhotra [78] used TISM to create a framework for enhancing agile manufacturing systems The study identified key factors and analyzed their interrelationships to provide insights for improving agility and performance Overall, TISM has proven to be a valuable approach for analyzing complex systems and providing strategic insights for decision-making across various fields [3]

The utilization of TISM in the aforementioned studies has showcased its potential in developing conceptual models for complex systems, particularly in analyzing the barriers and interplay between them when applying blockchain technology in the construction industry of developing countries such as Vietnam Compared to other decision-making methods such as AHP or ANP, TISM has been proven to be an effective tool for identifying critical factors and their relationships, which in turn facilitates policy development and informed decision-making As such, the continued use of TISM in future research holds great promise in advancing the understanding of complex systems and enhancing decision-making effectiveness across various domains

3.2 MICMAC model