Abstract:
This research investigates the causative relationship between trust influencing factors
and Blockchain-based smart contract features by addressing the complexity of trust
dynamics in construction industry. The objective was to identify key factors causing
system-based trust issues and see the impact of Smart Contracts in improving system-
based trust among stakeholders. Increasing adversarial relationships and degrading
culture of trust among construction stakeholders resulting from the failure of traditional
contracts led to the development of problem statement. From literature key factors
effecting system-based trust and the key features of Blockchain-based smart contracts
were identified. Through content analysis, surveys, and field expert interviews these
variables and their relationships were shortlisted. Finally, relationships among 9
features of smart contracts and 16 trust factors were studied in a systems thinking
diagram and a system dynamics model. Systems thinking diagram indicated that smart
contract based contractual system improved system-based trust. The selected stocks in
System Dynamics (SD) model: Opportunistic Behavior, Protection from insolvency
and Transparency, all showed positive impact once a smart contract was introduced in
the system. This research provides a tech-based solution for the factors that engender
trust issues among stakeholders in construction industry by proposing blockchain-based
smart contracts. Majority of the studies in construction field has focused on the “black
box” trust from a plethora of angles however it has not been discussed from the
perspective of complexity. Similarly, neither have smart contracts been discussed for
its efficacy in enhancing the system-based trust.
