Introduction
The section provides a detailed account of what has been published on the adoption of smart construction projects in Nigeria and some other countries worldwide relative to the adoption witnessed in Nigeria. Besides, the literature review is set to offer an opportunity for the evaluation of unsuccessful and successful assessment and research methodologies in the smart contract realm. The research objectives provide direction in the entire review process by utilizing the majority of scholarly sources that have been published recently. The literature is then linked to the main topic of study to identify how the topic will be crucial in filling gaps and contributing to the available body of knowledge.
The scholarly work by Ebekozien et al., 2023 identified the need to study the application of smart contracts in established surroundings. The article notes that there have been significant advancements in technology involving intelligent contract applications, improving both the post-contract and pre-contract administration in the built surroundings (Ebekozien et al., 2023, 2). It is noted that studies focusing on the application of the smart contract in Nigeria need to be revised. The main objective of the study was to carry out an exploration of the appropriate smart contract technology while addressing the challenges being encountered in the adoption and provision of strategies that are aimed at the mitigation of obstacles encountered by applications that are smart-contract-based. The methodology involved in the study considered virtual interview sessions to realize the data saturation. Their analysis of the data later was faced with a thematic approach that gave better findings that could influence the study outcomes (Ebekozien et al., 2023, 4). Smart contracts are identified to enable automatic payments of goods and services without the consideration of third parties (Ebekozien et al., 2023, 6). The study notes the absence of a local-based legal framework, intricate implementation process, excessive electricity consumption, lack of driving impetus, relatively high computational expenses, synchronization issues, data leakage, and identity theft as impediments recurrently influencing the intelligent contract application adoption in Nigeria. The study concludes by identifying its capacity to offer a pioneering effort, more so in the Nigerian context (Ebekozien et al., 2023, 9). The contracts in the built surroundings seem challenging, repetitive, intricate, and extensive to comprehend. Thus, there is a need to conduct research focusing on the aspects of smart contracts, particularly for Nigeria, by identifying the factors influencing the adoption.
In another study by Ejidike, 2022 technological penetration in developing nations is noted to have significantly influenced the activities of the construction industry, with the majority of the construction stakeholders deploying a myriad of technologies into the building’s maintenance, management, construction, and lifecycle design (Ejidike, 2022, 13). The leading game changers being implemented include IoT, smart devices, and building information modeling, which, in turn, decrease the complexity of activities in construction and lower productivity. To some extent, intelligent contracts embody sustainable practices that contribute to the effective management of the natural resources available on earth and an accompanying pathway for the ecosystem to have balance together with providing a path through which the ecosystem realizes balance. The sustainability aspect also involves the management of wastes in the construction process, learning indoor comfort for occupants, and efficiency in the utilization of energy (Ejidike, 2022, 15). To develop a surrounding that is free from carbon. The methodology involved in the study is a quantitative research design that considers a random sampling method in selecting the construction professionals interested in the study (Ejidike, 2022, 47). The study findings show that construction professionals in Nigeria are generally aware of the smart contract concept. The factors realized to enhance the adoption of smart building concepts include health care, safety and security, job creation, cost-saving, and energy (Ejidike, 2022, 105). The study concluded that there is a need for governing institutions to put in place common platforms through which all the stakeholders involved in the construction sector can collaborate through research funding and policymaking to implement intelligent technologies effectively (Ejidike, 2022, 108). Similarly, smart contracts can be a better way for countries such as Nigeria to create employment opportunities and enhance the country’s economy. The study recommends the need to carry out research studies that focus on assessing discovered barriers in different states within Nigeria to effectively understand obstacles and evaluate the competence skills necessary for professionals to perform functions in smart contracts that are technologically based.
Similarly, in another study by Olawumi et al., 2021 the construction sector is noted to be an industry slowly adopting more innovative technologies than other related economic sectors (Olawumi et al., 2021, 2). Despite the continual adoption of technologies such as robotics and building information modeling, the adoption of the technologies faces many issues. The analytical findings of the study suggest that the development of compatible and standardized strategies, top management support, and stakeholder satisfaction and awareness can enhance the adoption of smart technologies in the construction sector (Olawumi et al., 2021, 6). The study emphasizes integrating blockchain technologies with existing technologies to ensure effectiveness in delivering smart cities and buildings globally. Nigeria can capitalize on the technology to enhance its delivery in the projects currently being implemented in the construction sector.
The study by Ameyaw et al 2023 on the other hand identified the need to study the crucial factors affecting the smart contracts that are blockchain-enabled in the construction sector. It is noted that contractual arrangements are the basis of construction projects, making contracts critical in determining their success (Ameyaw et al 2023, 2). The contract is defined as having the capacity to execute work and transfer payments, facilitate project stakeholder collaboration, and track the crucial indicators in performance (Ameyaw et al. 2023, 3). Similarly, the difficulties facing the construction sector are linked to poor alignment between contract performance, contract terms, and the expectations of the clients. Fortunately, the advent of advanced digital technologies spearheaded by the mechanisms of Industry 4.0 has the capacity to benefit construction projects through the exploitation of blockchain-propelled smart contracts. Uncertainly, the exploitation of smart contracts in the construction realm is still at its infant stages, and the factors that will continually influence it still need to be clarified. The research study’s findings demonstrate there are shared views among practitioners on the technological features of blockchain-enabled smart contracts (Ameyaw et al 2023, 25). To some extent, the study contributes significantly to research linked to technology diffusion in the construction realm, identifying drivers that require attention from industry leaders and practitioners to allow for the successful adoption of smart contracts to advance cost-effectiveness in construction project delivery. The study recommends future research concentrate on the establishment of the particular factors that are influencing the exploitation and adoption of smart contracts in construction projects by either identifying new factors and evaluating them or focusing on the specific aspects that the current study has already identified (Ameyaw et al 2023, 30). Thus, there is a need for a study to be conducted to specifically focus on the adoption of smart contracts in construction projects by concentrating on Nigeria as a developing nation.
Badi et al., 2021 aimed to identify the crucial factors affecting the exploitation of smart contracts, specifically in the construction of the UK (Badi et al., 2021, 1). The methodology employed in the study is a deductive questionnaire-based mechanism inspired by the technology-organization-surrounding. The sampling approach is a convenience sampling approach focusing on the construction practitioners in the UK as the population of interest (Badi et al., 2021, 7). The findings illustrate that the key factors affecting the utilization of smart contracts are observability, support from top management, competitive pressure, and pressure originating from the supply chain. The study contains multiple descriptive statistics that offer a detailed understanding of the attitudes and perceptions of the actors in the UK’s construction sector towards using smart contracts. The research findings further elicit the need to consider a perception-based model that capitalizes on the TOE framework to ascertain factors affecting smart contract adoption (Badi et al., 2021, 12). The study contributes to innovation diffusion-based studies in construction project organizations and offers backup to the diffusing curve technology footfall. The study notes that the adoption of smart contracts is still in its embryonic stage, just like the study by Ameyaw et al. 2023 thus, there is a need for future research to focus on the diffusion tracing of the smart contract innovation as it moves along the typical curve of innovation from the early adopters to the laggards. Besides, the research studies should identify the need to study smart contracts relative to their theoretical utilization by managers in their typical engagements.
Babatunde et al., 2021, identify that building information modeling is crucial in the contracting firms’ performance improvement (Babatunde et al., 2021, 2). The relevance stimulates the need for its implementation in the construction sector to satisfy the competitive demands existing in the industry quickly. Unfortunately, there has been insufficient research on BIM exploitation among the contracting organizations in Nigeria. The study focused on examining the existing BIM uptake among contracting organizations in Nigeria, identifying the critical areas in its implementation, and establishing the particular ways that can be utilized in its enhancement within the surroundings in which the organizations operate. The methodology involved in the study is a questionnaire survey on contracting organizations involving large, medium, and small enterprises. The data was then analyzed for its inferential and descriptive statistics (Babatunde et al., 2021, 7). The study suggests that interoperability issues, non-governmental support, cooperation issues, and the absence of tangible BIM benefits are the crucial issues encountered in using BIM. The study further suggests the need for BIM full integration into the architecture curricula, availability of well-trained professionals, and intensified awareness of the BIM benefits to allow its exploitation by clients currently in the public realm (Babatunde et al., 2021, 14). The study recommends enforcement of BIM usage as an essential requirement in their construction projects. It is appropriate if the research study focuses on the state of BIM enforcement in Nigeria by focusing on its current status in construction projects within the Nigerian jurisdiction.
Moreover, in the study by Taherdoost, 2018 multiple frameworks and models have been developed to explain user adoption of technologies. The models are introducing factors that can easily influence the user’s acceptance. The frameworks include the motivational model, PC utilization, Diffusing of innovation, and technology acceptance model (Taherdoost, 2018, 961). Most studies are further noted to have capitalized on the utilization of the models, and in some cases, they are adding new constructs to the already developed models. The adoption of smart contracts is deeply rooted in the theory’s diversity, allowing for adequate explanations of the expansion and making predictions of the different human behaviors in their distinct contexts. The affective, emotional, and cognitive processes are thus influencing the behaviors of individuals. However, it is noted in the research study that positive emotions involving enthusiasm, contentment, joy, interest, and happiness are significantly neglected relative to their influence on the adoption rates of technology that the smart contracts are part of. In the face of smart contracts, the most prevalent approaches are diffusion of innovation, technology acceptance, and unified theory of acceptance and use (Taherdoost, 2018, 965). The study elicits the need to investigate how the prevalent approaches are directly linked to the case of construction projects in Nigeria.
Nevertheless, in another study by Mustonen‐Ollila & Lyytinen, 2003 on why organizations adopt information system engagement innovations, the study establishes factors that influence the majority of innovation adoption strategies in different organizational surroundings (Mustonen‐Ollila & Lyytinen, 2003, 276). The analysis majorly focuses on the diffusion of innovations theory. The findings of the study demonstrate that multiple DOI factors robustly influence IS adoption of innovations. The factors include learning through the embodiment of standards, ease of utilization, autonomous work, own trials, experience, technological infrastructure availability, and the recognition of the user needs (Mustonen‐Ollila & Lyytinen, 2003, 294). Fascinatingly, the IS process innovation exploitations is that organizations begin to concentrate on methodology during business prosperity sessions. The concentration of methods was prevalent in the event the new technology generation was directed to the market compelling renewal of the platform systems.
The study by Bolhassan et al., 2022 identifies that there has been a significant revolution in the Malaysian construction sector through the utilization of emerging technologies that have advanced a paradigm shift that has digitized the entire industry (Bolhassan et al., 2022, 150). However, there is still a need for the sector to adopt a computerized protocol aimed at assisting in the automation of contract performance. The study’s main aim was to evaluate the adoption and implementation of smart contracts in the Malaysian construction sector. The methodology employed in the study is a qualitative research design that capitalizes on utilizing systematic reviews to gather the challenges and benefits of the process involved in adopting smart contracts in the budding and construction realm (Bolhassan et al., 2022; 152). The study found that the self-executing nature of smart contracts can allow for an enhanced apportionment of the contract risks. Besides, the challenges encountered in smart contracts are relatively severe due to the irreversibility, immutability, and vulnerability of the contracts to human-based errors (Bolhassan et al., 2022, 155). The research study further concludes that it is appropriate to implement and apply smart contracts to short-term contracts. Fortunately, the study acknowledges that smart contracts are crucial in enhancing efficiency in contract management due to their vital role in managing disputes and decreasing the time involved in the contract (Bolhassan et al., 2022, 157). The study elicits the need to conduct a research study investigating how smart contracts can assist contract management and administration through investments in new technology in other countries apart from Malaysia, more so those still in the developing category.
Additionally, the study by Rathnayake, Wedawatta, and Tezel, 2022 acknowledges that on-time delivery of contracts and documentation is critical to success in construction projects. The construction sector is still identified as dependent on time-consuming traditional contract processes (Rathnayake, Wedawatta, Tezel, 2022, 2). The conventional processes adversely influence the overall productivity of the industry’s projects. Thus, smart contracts are novel technologies that expedite contractual processes and establish a reliable payment system in the building industry. However, just like the other studies, the utilization of smart contracts is identified to be still in its infancy stages. The infancy of nature thus requires a comprehensive review of strategies, barriers, drivers, and benefits to enhance the utilization of smart contracts, more so in the construction realm. Crucial strategies for enhancing the utilization of smart contracts in the building sectors are testing the existing integration, utilizing selective transparency techniques, and integrating theorems (Rathnayake, Wedawatta, Tezel, 2022, 12). Unfortunately, the study focused on articles that did not have credibility and were not evidence-based, limiting the overall findings of the research study.
In summary, the literature review offers a foundation of knowledge on evaluating the adoption of smart contracts for construction projects in Nigeria. It identifies the inconsistencies currently available in the previous studies, setting the pace for the current studies. There is a need to carry out research focusing on the aspects of smart contracts, particularly for Nigeria. The study should concentrate on establishing the particular factors influencing the exploitation and adoption of smart contracts in construction projects by either identifying and evaluating new factors or focusing on the specific factors that research studies have already identified.
References
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Rathnayake, I., Wedawatta, G. and Tezel, A., 2022. Smart Contracts in the Construction Industry: A Systematic Review. Buildings, 12(12), p.2082.
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