An integrated service recovery system (ISRS)

María Leticia Santos Vijande · Ana M. Díaz‐Martín · Leticia Suárez Álvarez · Ana Belén del Río Lanza

51 citations0/0 files storedEuropean Journal of Marketing

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Customer Service Quality and Loyalty Service and Product Innovation Customer churn and segmentation

Abstract

Purpose Appropriate management of service failures involves a complex organizational response that allows an effective internal and external recovery, learn from mistakes and introduce future service innovations. Empirical evidence on the organizational recovery practices more suitable to achieve these objectives, leading to superior performance, is limited. The present work seeks to extend the existing literature by identifying the potential dimensions that constitute an integrated service recovery system (ISRS), introducing a strategic, proactive and relational approach to service failure and recovery management, and by proposing a causal model linking the ISRS with performance. Design/methodology/approach The ISRS dimensions and their attributes are derived from an extensive literature review and suggestions from academics and business experts. Structural equations modeling is used to test a model linking the ISRS (conceptualized as a second order construct), with client, employee and business performance indicators, using data from a Spanish sample of 151 Knowledge‐Intensive Business Services (KIBS). Findings Results confirm that the firms' ability to approach service recovery from a strategic, proactive and relational perspective allows improving performance among clients and employees, that is, the external and internal recovery to occur, which leads to a superior competitive performance. Practical implications The ISRS scale can provide managers with a diagnostic tool to analyze their recovery practices and to further improve their competitiveness in the long term. Originality/value The need to assess the integrative nature of effective service recovery systems has been claimed theoretically. An empirical study showing the link between comprehensive service recovery practices and performance was lacking.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 2003Common method biases in behavioral research: A critical review of the literature and recommended remedies.1988On the Evaluation of Structural Equation Models 1985A Conceptual Model of Service Quality and Its Implications for Future Research 1979A Paradigm for Developing Better Measures of Marketing Constructs 1998The Knowledge-Creating Company 1982Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models 1996The Behavioral Consequences of Service Quality

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