Critical Success Factors for the Widespread Adoption of Virtual Alternative Dispute Resolution (VADR) in the Construction Industry: A Structural Equation Modeling Analysis

Abstract

This study explores the increasing adoption of virtual alternative dispute resolution (VADR) in the construction industry, enhancing efficiency and accessibility in dispute resolution. VADR is crucial for streamlining processes and reducing participation barriers. The study aims to investigate the critical success factors (CSFs) influencing the adoption of VADR in the construction sector. Given the rising importance of VADR technologies, understanding the key factors driving their acceptance is crucial. The background highlights the growing reliance on innovative technologies to boost operational efficiency and decision-making processes. The data for the study were collected using a cross-sectional design with online structured survey questionnaire (N = 97) from diversified construction industries. Using Smart PLS 4, structural equation modeling (SEM) was employed to test the validity, reliability, and proposed hypotheses of the study. The results showed that cost factors had the greatest impact on VADR acceptance, followed by user competence and training, procedural adaptability, and technological infrastructure. Logistical assistance and legal frameworks also had a considerable favorable impact. However, stakeholder buy-in had no significant influence on VADR implementation. The implications indicate that economic feasibility, logistical readiness, flexible procedures, supportive legal contexts, and user skills are significant factors for successful VADR integration. Governments and organizations should deploy VADR technologies to encourage innovation and operational improvement in the construction industry.