Smart Contract Adoption in Sarawak’s Construction Industry: A Schematic Review of Drivers, Barriers, and Innovation Attributes

Abstract

The construction industry in Sarawak is undergoing a gradual digital transformation driven by initiatives such as the Sarawak Digital Economy Strategy and the Integrated Project Monitoring System (iPMS). However, persistent issues—including payment delays, disputes, and inefficient contract management—continue to hinder project performance. Smart contracts, enabled by blockchain technology, offer a promising solution by automating contractual execution, improving transparency, and strengthening accountability. Despite these advantages, adoption in Sarawak remains limited due to regulatory ambiguity, low digital literacy, and inadequate technological infrastructure.
This study investigates the acceptance of smart contracts in Sarawak’s construction industry by identifying key drivers, barriers, and innovation attributes influencing adoption. A schematic review methodology was employed, synthesizing peer-reviewed journals, industry reports, and policy documents. The analysis integrates institutional theory (regulative, normative, and cognitive pillars) with diffusion of innovation attributes, including maintainability, reliability, functionality, and usability.
Findings reveal strong regulative support through state-led digitalization policies but highlight critical challenges such as limited stakeholder awareness, resistance to workflow changes, and uneven ICT infrastructure in rural areas. To operationalize adoption, the study recommends a multi-stakeholder, phased implementation roadmap that integrates digital literacy programs, pilot smart contract projects, and regulatory alignment strategies. Comparative benchmarking with other Malaysian and ASEAN regions is suggested to identify best practices and scalability potential.
Future research should explore cost–benefit analyses, cybersecurity concerns, and integration of smart contracts with BIM and iPMS platforms to enable fully digitalized and secure project delivery systems. By aligning with Sarawak’s digital economy agenda, smart contracts can strengthen efficiency, accountability, and competitiveness in the state’s construction sector.