Analysis of the Impact of Blockchain and Internet of Things (BIoT) on Public Procurement

Abstract

Most countries in the world are currently faced with a series of public procurement challenges. Moreover, the large volumes of public procurement and the impact it may have of the global economy, the environment and the society at large justify a research study aimed at achieving sustainable and smart procurement. Smart public procurement intensively relies on emerging technologies and it is both an international priority and a challenge to achieve it. This paper is aimed at addressing such procurement-specific challenges. This study reflects the current status and the trends in public procurement, as well as the manner in which Blockchain and the Internet of Things (BIoT) may lead to a beneficial change in the field. In order to analyse the impact of BIoT, we are putting forward an assessment model comprising the definition and the description of six hypotheses. They are validated both by reference to the current knowledge status and via the analysis of the data collected in a survey which was conducted in Romania. It was aimed at collecting and analysing the data from the main stakeholders as well as at formulating recommendations/actions related to the modernisation of the current system. The study uses structural equation modelling (SEM) to validate the proposed model and to establish the relationships between the adoption of BIoT and smart, sustainable and transparent public procurement. At the same time, we analyse the links between the adoption of BIoT and aspects such as corruption and fraud, the challenges related to technological integration and the need to reengineer organisations, as well as national and international policies. Following our analyses, there emerged that BIoT adoption has a positive impact on the achievement of sustainable public procurement processes (the highest effect), on transparency and the trust in public procurement, on reducing corruption and fraud in public procurement and on the achievement of smart public procurement. The paper provides theoretical and practical contributions that should support solutions to the current major challenges and represent a vehicle for innovation and sustainable development alike.

Keywords

• Blockchain technology
• Internet of Things
• green public procurement
• public procurement 40
• smart contracts
• smart public procurement