FACTORS INFLUENCING THE ADOPTION OF SMART CONTRACTS IN THE CONSTRUCTION INDUSTRY IN KLANG VALLEY, MALAYSIA
Asia Pacific Journal of Emerging Markets, Vol. 7, No. 2, 2023 ISSN: 2706-5634
Authors: Natalie Ng Wern Jing, Noor Izzati Ab Rahman, Hafinaz Hasniyanti Hassan
ABSTRACT
This study aims to examine the factors influencing the adoption of smart contracts within the construction industry in the Klang Valley area of Malaysia and provide implications for the construction industry to encourage the adoption of smart contracts to solve existing problems and increase technological advancements. A sample of 60 employees working in the construction industry was collected in an online survey. The SPSS software provided the descriptive analysis for each variable and the reliability test. Pearson’s Correlation Coefficient is applied to observe the correlation between the dependent variable and each of the independent variables. The regression model used is the Multiple Linear Regression model to test the relationship between the variables. The study found that time management is one factor that influences the adoption of smart contracts in the construction industry near Klang Valley. The other variables, including late payment, administration cost, and dispute, were found not to influence the adoption of the blockchain-based application but could be tested further by other researchers. The study results provide implications for the employees in the construction industry in adopting smart contracts based on an understanding of their perceptions of intelligent contracts…..
INTRODUCTION
The prosperity of a country is correlated with economic growth in which all sectors, including primary, secondary, tertiary, and quaternary sectors, cooperate to maintain economic stability (Alaloul et al., 2021). Thus, the construction sector is significant in Malaysia as its importance indicates the country’s wealth, standard of living, and health. Globally, the construction industry generates USD 1.7 trillion, contributing 5-7 % of GDP in most nations. The necessity for development in the construction sector is critical because it makes a sizeable contribution to the country’s GDP (Alaloul et al., 2021). The construction industry is the most important element of a country’s economy, especially Malaysia’s. In other words, the growth of Malaysia’s economy depends on the construction sector….
Keywords: Smart Contract; Blockchain; Construction Industry; Time Management
References
Reference to this paper should be made as follows: Wern-Jing, N. N., Ab Rahman, N.I. & Hassan, H. H. (2023). Factors Influencing the Adoption of Smart Contracts in the Construction Industry in Klang Valley, Malaysia. Asia Pacific Journal of Emerging Markets, 7(2), 82-101.