Using Blockchain Technology to Improve the Integrity and Transparency of Procurement Processes between SMMEs and Government: A Systematic Literature Review

Abstract

Fourth industrial revolution (4IR) technologies, such as blockchain, have the potential to improve public and private sector procurement processes. However, governments, including the South African (SA) government, have failed to recognize the significance of blockchain technology for several reasons, including corruption. The PRISMA methodology was used in this study to conduct a systematic literature review of the use of blockchain technology to improve the integrity and transparency of procurement processes between small-, medium- and micro-enterprises (SMMEs) and the SA government. The Scopus database was used to search for literature, and the final analysis included 12 articles that met the eligibility criteria. The 12 articles were analyzed using thematic analysis and the results demonstrated that 10 of the articles applied to this study as they discussed the use of blockchain in relation to integrity and transparency. The remaining two articles did not emphasize the use of blockchain technology in enhancing the integrity and transparency of the procurement processes. The common factors in the 10 articles that were found to impact integrity and transparency were as follows: handling of contracts, risks involved, security of the data, approaches used, management of the procurement process, transaction processing, the chain of events in the procurement process, access to critical data, the application process for securing contracts, quality of products, costs, and types of contracts. We believe that once blockchain technology has been implemented, SMMEs and the public will trust and be confident in the procurement processes as corruption would have been eliminated and tenders would be awarded fairly.