Assessing Blockchain Technology for Transparent Public Procurement Processes

Thesis Abstract

The increasing prevalence of corruption and inefficiencies within public procurement processes necessitates innovative solutions to enhance transparency, accountability, and trust in government transactions. Blockchain technology, with its decentralized, immutable, and transparent ledger features, presents a promising avenue for reforming traditional procurement systems. This study aims to assess the potential and challenges of implementing blockchain technology to improve transparency in public procurement processes within urban government agencies. The specific objectives include evaluating the perceived effectiveness of blockchain for transparency enhancement, identifying barriers to adoption, and proposing a conceptual framework for integrating blockchain into existing procurement systems. A mixed-methods research design was adopted, combining quantitative surveys and qualitative interviews to provide a comprehensive understanding of the subject. The population comprised procurement officials, IT managers, and suppliers involved in public procurement within the metropolitan city’s government agencies, totaling an estimated 250 individuals. A stratified random sampling technique was employed to select a sample of 150 participants, ensuring representation across different roles and departments. Quantitative data were collected through a structured questionnaire developed based on existing literature and validated via content validity and pilot testing, with a reliability coefficient of 0.87 (Cronbach’s alpha). Qualitative data were obtained through semi-structured interviews conducted with 12 key informants, selected via purposive sampling based on their expertise and involvement with procurement processes. Data analysis involved descriptive statistics and inferential techniques, including multiple regression analysis to examine factors influencing perceived blockchain effectiveness, utilizing SPSS version 26. Thematic analysis was applied to qualitative interview transcripts, following Braun and Clarke’s framework, to identify emerging themes related to barriers and facilitators of adoption. Additionally, the study tested the applicability of the Technology Acceptance Model (TAM) and Institutional Theory to explain user acceptance and institutional readiness for blockchain integration. The anticipated findings indicate a generally positive perception of blockchain’s potential to increase transparency and reduce corruption risks in public procurement. Key benefits identified include enhanced auditability, reduced transaction transparency gaps, and improved stakeholder trust. Nevertheless, significant barriers such as technological complexity, lack of regulatory frameworks, resistance to change, and high implementation costs are expected to hamper adoption efforts. The regression analysis is projected to reveal that perceived usefulness and ease of use significantly influence acceptance levels, aligning with TAM predictions. Qualitative insights are expected to unveil organizational and infrastructural challenges, providing nuanced understanding of contextual factors affecting adoption. This research contributes to the existing body of knowledge by empirically demonstrating the applicability of blockchain technology within the public procurement domain, particularly in developing urban contexts. It advances theoretical understanding by testing the TAM and Institutional Theory frameworks in this specific setting, providing a tailored conceptual model for blockchain adoption in public administration. The study's findings will inform policymakers, technology vendors, and public sector practitioners about practical approaches and critical considerations for leveraging blockchain to enhance procurement transparency. The study concludes that while blockchain has considerable potential to transform public procurement by fostering transparency, successful implementation hinges on addressing technological, regulatory, and organizational barriers. Recommendations include establishing clear legal frameworks, capacity building for procurement officials, phased pilot programs, and fostering stakeholder collaboration. Future research should explore longitudinal impacts of blockchain deployment and comparative analyses across different governmental jurisdictions, providing further insights into sustainable integration in public administration processes.