sustainability
Article
Leveraging Smart Contract in Project Procurement through DLT
to Gain Sustainable Competitive Advantages
Evin Özkan
1
, Neda Azizi
2,
* and Omid Haass
1
Citation: Özkan, E.; Azizi, N.; Haass,
O. Leveraging Smart Contract in
Project Procurement through DLT to
Gain Sustainable Competitive
Advantages. Sustainability 2021, 13,
13380. https://doi.org/10.3390/
su132313380
Academic Editors: Kerry London,
Jian Zuo, Zelinna Pablo and
Ruidong Chang
Received: 27 October 2021
Accepted: 24 November 2021
Published: 3 December 2021
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4.0/).
1
School of Property, Construction and Project Management, RMIT University, Melbourne, VIC 3000, Australia;
evinn.ozkan@gmail.com (E.Ö.); omid.haass@rmit.edu.au (O.H.)
2
School of Business, Torrens University Australia, Melbourne, VIC 3000, Australia
* Correspondence: neda.azizi@torrens.edu.au
Abstract: Project delivery on time, with agreed quality and assigned budget, is the desire of project-
based companies. Time, quality, and cost are determinants of project success; however, organisations
suffer from achieving these three success criteria at the same time. Failures in project delivery cause
the loss of the competitive advantage. The recent digital technologies introduce smart contracts to
supply chain (SC) operations for improving SC processes. Project procurement is the area for smart
contract implementation to deliver successful projects and gain sustainable competitive advantages.
The aim of this study was in explaining how smart contracts benefit project organisations through
project procurement. Qualitative research design guided this research with phenomenology. Semi-
structured interviews generated the data. The obtained research data were analysed with thematic,
textual, and discourse analysis. Published industry reports were used to triangulate the data. This
study demonstrated an integrated relationship model to answer the research question. The research
findings initially identified the fact that smart contracts improve procurement efficiency through
cost, time, and quality. Secondly, smart contracts build a trust-less platform where reliability is
delivered and reinforced with transparency, traceability, and security. This study found that enhanced
procurement efficiency and reliability meet requirements to gain sustainable competitive advantages.
This study intends to contribute to industry practices and future research. The correlation of project
procurement management success, smart contracts, and sustainable competitive advantages are
expected to guide feature research and business practices.
Keywords: project procurement management; smart contract; competitive advantage; qualitative
research; sustainability
1. Introduction
Project management is an approach which is becoming more and more important for
today’s businesses. The Project Management Institute (PMI) [1] defines project management
as a way of creating value and staying competitive in the business environment. The role of
project management comes into prominence in industries such as construction, information
technologies (IT), and manufacturing [2]. The project management body of knowledge
correlates with 10 knowledge areas, with procurement management being one of them [1].
The challenge for project managers is to deliver successful projects whilst facing numerous
risks [2].
The global project success rate is surveyed by the Project Management Institute
(PMI) [3]. According to the results, less than 60% of analysed projects were delivered
within the projected budget, and the rate of project completion on time remained slightly
above 50%. The total project cost and time vary in parallel with the efficiency in the
procurement process due to its association with payment and logistics activities. To give
an example, from time to time, project managers might face material acquisition challenges
such as payment, product misfit or raw material, product/service prices, delivery time,
Sustainability 2021, 13, 13380. https://doi.org/10.3390/su132313380 https://www.mdpi.com/journal/sustainability