Barriers to Implementing ADR Mechanisms in the Construction Industry: A DEMATEL–ISM–MICMAC Analysis

Abstract Alternative dispute resolution (ADR) mechanisms are considered to offer several advantages over litigation and arbitration, including greater flexibility, lower cost, and better preservation of cooperative relationships between disputing parties. However, they have not been widely adopted in China’s construction industry. This study aims to identify the barriers to the implementation of ADR mechanisms for dispute resolution in the Chinese construction industry. First, 15 barrier factors were identified through a literature review and expert interviews. Then, the integrated Decision Making Trial and Evaluation Laboratory-Interpretive Structural Modeling-Cross Impact Matrix Multiplication Applied to Classification (DEMATEL-ISM-MICMAC) approach was employed to analyze the interrelationships among these factors and to develop a multilevel hierarchical structural model of the barriers to implementing ADR mechanisms for dispute resolution in China’s construction industry, thereby identifying the most fundamental barriers. The results were further validated based on the driving power and dependence of the barrier factors. The findings indicate that the lack of supporting laws and regulations is the most fundamental barrier to the implementation of ADR mechanisms in China’s construction industry. The absence of explicit ADR provisions in contracts and the low willingness to use ADR mechanisms are identified as direct barriers. The results are of great significance for enriching the body of knowledge on ADR mechanisms and promoting their global development. They also provide useful references for the promotion of ADR mechanisms in China and in other countries and regions where ADR is still at an early stage of development.