Arbitrator acceptability in international commercial arbitration The trading firm perspective

Abstract

Purpose - The purpose of this paper is to identify the determinants of arbitrator acceptability and investigate whether the perceived costs of arbitration moderate the relationship between arbitrator acceptability and arbitrator characteristics in international commercial arbitration. Design/methodology/approach - A two-stage analytic process is used to test the dimensionality, reliability and validity of each construct and then the proposed hypotheses. Findings - The findings show that the five constructs of arbitrator characteristics - reputation, practical expertise, legal expertise, experience and procedural justice - statistically significantly explain arbitrator acceptability. Moreover, perceived cost of arbitration moderates the relationship between arbitrator acceptability and arbitrator characteristics. However, the moderating effect of perceived costs of arbitration is not equal across characteristics. Research limitations/implications - Knowledge regarding potential moderators of the strength of the indicators of arbitrator acceptability will be useful to future researchers in determining which variables to study in arbitrator selection research. Practical implications - Useful guidelines in the selection of an international arbitrator are proposed. Originality/value - This study contributes to arbitrator acceptability literature through the suggestion of a hypothesized model of arbitrator acceptability with auxiliary hypothesis of reputation in international contexts. In addition, this study investigates the moderating role of perceived cost of arbitration on the relationship between arbitrator acceptability and arbitrator characteristics.