Financing model for prefabricated building supply chain under the blockchain environment

Purpose The purpose of this study is to evaluate that prefabricated buildings (PBs), which offer environmental, economic and logistical benefits, are constrained by substantial capital requirements. PB construction’s complex, gray-box supply chain creates uncertainty in the bank’s financing decisions. Recent advances in blockchain-driven supply chain finance can resolve trust issues to spawn a feasible multilevel finance system. Design/methodology/approach A blockchain-enabled financing model for the PB supply chain was established to characterize the interactions among contractors, suppliers and banks. An evolutionary game model was developed to analyze their strategic behaviors and equilibrium conditions under different incentive and penalty scenarios. A system dynamics simulation, using real project data, was conducted to verify the theoretical model and evaluate the effects of key parameters on system stability. Findings The proposed blockchain model effectively mitigates information asymmetry and lowers supplier financing costs within the prefabricated construction supply chain. Under conventional static incentive mechanisms, the tripartite evolutionary game lacks a stable equilibrium, leading to persistent behavioral fluctuations among contractors, suppliers and banks. By implementing a dynamic incentive mechanism that adjusts subsidies and penalties based on real-time compliance performance, the system converges to a stable state in which all participants consistently adhere to blockchain-based strategies. This approach not only enhances operational transparency and trust but also safeguards the interests of all stakeholders while promoting the practical adoption of blockchain technology. Originality/value The results provide theoretical support and practical guidance for refining financing arrangements for the complex PB supply chain.