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Selection of dispute resolution methods: factor analysis approach

Heap‐Yih Chong (Department of Built Environment, Universiti Tunku Abdul Rahman, Kuala Lumpur, Malaysia)
Rosli Mohamad Zin (Department of Structure and Materials, Universiti Teknologi Malaysia, Johor Bahru, Malaysia)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Article publication date: 29 June 2012

5538

Abstract

Purpose

The purpose of this research is to discover the behavior of dispute resolution in the Malaysian construction industry by analyzing factors that affect the selection of dispute resolution methods using factor analysis approach.

Design/methodology/approach

Preliminary interviews and a questionnaire survey were conducted. Dispute resolution methods were grouped and discussed together, based on the similarity of their characteristics, and used for the questionnaire survey. This research approach is different from the earlier studies that mostly focused on a single dispute resolution method. The data were further analyzed with factor analysis. This improved the data interpretation.

Findings

Seven latent factors were extracted and revealed that the contractors and developers preferred alternative dispute resolution (ADR). However, the appreciation of the outcomes of ADR was perceived to be very low. Arbitration and litigation were in part accepted and agreed upon by the respondents.

Originality/value

The combined results from the literature review on the stages of dispute resolution and the latent factors affecting the selection of dispute resolution methods could assist in decision making. The selection of ADR or non‐ADR itself is not a major issue; rather, there is a concern for increased efficiency and an appreciation of the methods in the construction industry are more demanding.

Keywords

Citation

Chong, H. and Mohamad Zin, R. (2012), "Selection of dispute resolution methods: factor analysis approach", Engineering, Construction and Architectural Management, Vol. 19 No. 4, pp. 428-443. https://doi.org/10.1108/09699981211237120

Publisher

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Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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