Examining the relationship between e-service recovery quality and e-service recovery satisfaction moderated by perceived justice in the banking context

2020 ◽  
Vol 27 (6) ◽  
pp. 1951-1980
Author(s):  
Sonia Mathew ◽  
Ajay Jose ◽  
Rejikumar G ◽  
Dony Peter Chacko

PurposeThe study focuses on the core issue faced by bankers on how to retain existing customers who have encountered an e-service failure and who are skeptical about the justice received through the service recovery process. It further endeavors to create an internal bench-marking model for assessing e-service recovery satisfaction.Design/methodology/approachBy the experimental study, the authors confirm a measurement model using structural equation modeling for examining the impact of perceived service recovery quality antecedents on e-service recovery satisfaction moderated by perceived justice. In total, responses from 399 e-banking customers, who had experienced a e-service failure, were recorded using a 5-point Likert scale with a structured questionnaire.FindingsThe perceived e-service recovery quality antecedents identified were perceived information quality, digital commitment, perceived employee performance and perceived service orientation of organization. The empirical results revealed that “perceived information quality” was the most significant predictor of e-service recovery satisfaction. Perceived justice moderates the relation between perceived service recovery quality and e-service recovery satisfaction.Research limitations/implicationsThe research does not contemplate the e-service recovery satisfaction of customers who have undergone multiple service failures.Practical implicationsThe conclusions of the investigation suggest that the four antecedents of perceived e-service recovery quality model are suitable instruments for creating benchmarks for e-service recovery satisfaction for banks, and that perceived justice moderates the relationship between e-service recovery quality and e-service recovery satisfaction. Therefore, policymakers in banks can use this model to assess the e-service recovery quality, and they ought to enhance the perceived justice feel of the customers who have experienced a service failure.Originality/valueThere remains scarcity of empirical research focusing on perceived information quality and digital commitment as antecedents of perceived e-service recovery quality and its effect on e-service recovery satisfaction in the banking context. Furthermore, similar studies within the banking sector have rarely considered perceived justice as a moderator variable. Hence, this paper attempts to accomplish the research gap by empirically testing the e-service recovery satisfaction level of a large sample of the population toward four antecedents of perceived e-service recovery quality rendered by banks and create a benchmark model to ascertain e-service recovery satisfaction.

2019 ◽  
Vol 33 (2) ◽  
pp. 206-219 ◽  
Author(s):  
Suna La ◽  
Beomjoon Choi

PurposeThe purpose of this paper is to examine the relationships between perceived justice and perceived corporate social responsibility (CSR) and the impact of perceived justice and CSR perceptions on customers’ behavioral responses, such as satisfaction and repatronage intention after service recovery. The authors also investigate the moderating role of service failure severity in the relationship between perceived justice and perceived CSR.Design/methodology/approachThe data were collected using individually completed questionnaires. The proposed model was tested using structural equation modeling, and the moderation effects of failure severity in the relationship between perceived justice and perceived CSR were analyzed using stepwise multiple regression models.FindingsThe results suggest a path from satisfaction to CSR perceptions, which indicates that the link between CSR perceptions and satisfaction is reversed in the context of service recovery. The authors further reveal recovery satisfaction in two ways: It has a direct influence on repatronage intentions as well as an indirect influence via perceived CSR. Finally, the results demonstrate that the severity of a service failure intensifies the impact of distributive and procedural justice perceptions on perceived CSR, and perceived CSR serves as a partial mediator in the path from recovery satisfaction to repatronage intentions.Research limitations/implicationsThe results demonstrate that perceived justice of service recovery affects perceived CSR after a service failure and that the severity of a service failure moderates the impact of justice perceptions on perceived CSR. However, the possibility of intercausal relationships among distributive, procedural and interactional justice may need to be further explored in future research.Practical implicationsGiven that the impact of distributive and procedural justice on CSR perceptions has become more critical as the severity of service failure increases, companies should prioritize allocating a fair amount of monetary compensation in a timely manner, particularly for those who experience a severe service failure.Originality/valueThe authors propose a model of perceived justice – perceived CSR – repatronage intentions within the service recovery context in an attempt to deepen the understanding of the antecedents of repatronage intention and the relationship between repatronage intention and recovery satisfaction following service recovery encounters by introducing perceived justice and CSR. Moreover, the authors discover the moderating effect of service failure severity on the relationship between justice perceptions and perceived CSR.


2019 ◽  
Vol 58 (5) ◽  
pp. 828-843 ◽  
Author(s):  
Mo Zhang ◽  
Ruoqi Geng

Purpose In accordance with the commitment–trust theory, employee attitudes and behaviours mediate the impact of empowerment on service recovery performance. The purpose of this paper is to extend the self-regulating process model and develop a structural framework that combines empowerment, self-regulation mechanisms (service recovery awareness, job engagement and emotional exhaustion) and post-recovery satisfaction. This framework explores how empowerment can lead to action of frontline employees (FLEs) in service recovery. Design/methodology/approach The authors test the hypotheses by investigating 290 pairs of FLEs and customers, who have service failure experience in the express mail industry, using structure equation modelling. Findings The findings show that empowerment enhances both service recovery awareness and job engagement. On the one hand, service recovery awareness has a positive impact on emotional exhaustion, which has a negative impact on post-recovery satisfaction. On the other hand, job engagement has a positive impact on performance. These results provide the whole picture of the double-edged effects of empowerment on FLEs in service recovery. Practical implications This paper indicates that managers should re-consider approaches to empowerment based on self-regulation process to enhance performance following service failure. Originality/value This study explores the dark side of empowerment in service recovery from a self-regulation perspective.


2018 ◽  
Vol 41 (1) ◽  
pp. 113-132 ◽  
Author(s):  
Taghrid S. Suifan ◽  
Ayman Bahjat Abdallah ◽  
Marwa Al Janini

Purpose The purpose of this paper is to examine the effect of transformational leadership on employees’ creativity in the Jordanian banking sector through the mediating effect of perceived organizational support. Design/methodology/approach The study is based on survey data collected from 369 employees working in Jordanian banks. Validity and reliability analyses were performed, and direct and indirect effects were tested using structural equation modeling. Findings The results indicate that transformational leadership positively affects some dimensions of employees’ creativity and perceived organizational support. However, perceived organizational support is found to not be significantly related to some dimensions of employees’ creativity. Additionally, the mediating effect of perceived organizational support on the relationship between transformational leadership and some dimensions of employees’ creativity is found to not be significant. Originality/value This paper is one of the first to examine the relationship between transformational leadership and employees’ creativity through perceived organizational support, especially in an Arab country and in the banking sector.


2012 ◽  
Vol 5 (2) ◽  
pp. 87-100 ◽  
Author(s):  
Jeanne Ellyawati ◽  
Bernardinus M. Purwanto ◽  
Basu Swastha Dharmmesta

This study examines the impact of service failure through the model of service recovery evaluation. The study focuses on the concept of justice theory to determine the influence of emotions on the three dimensions of justice (distributive, procedural, and interactional) for consumer satisfaction. The study considered a sample of 102 retailers in the Yogyakarta region in Indonesia, whose customers had experienced service failure and received service recovery. This study hypothesizes that perceived justice will significantly affect customer satisfaction directly in the context of service recovery satisfaction. It is further hypothesized that there will be a significant indirect effect of perceived justice on customer satisfaction in the context of service recovery satisfaction through emotions. This study employs the hierarchical regression model and shows that perceived justice (distributive, procedural, and interactional) significantly and directly affects customer satisfaction. Further findings indicate that perceived justice also significantly and indirectly affects customer satisfaction. Positive emotions influence the effect of perceived justice on customer satisfaction. Negative emotions only mediate between perceived procedural justice and satisfaction. Thus, negative emotions do not elicit perceived distributive and interactional justice to unsatisfied retailer as consumers. The mediating variables are only partial mediations. The findings hold significant implications for the theory and practice of service recovery management, especially for retailers and service providers.


2018 ◽  
Vol 23 (3) ◽  
pp. 218-235
Author(s):  
Murni Setyawati

The purpose of this study is to assess the relative influences of distributive (DJ), procedural (PJ), and interactional (IJ) justices on customer satisfaction with service recovery and to examine the relationship between recovery satisfaction and word-of-mouth intention. On-site surveys were administered to collect data from hotel guests who stayed and experienced a service failure at five-star hotels. The effects of procedural and interactional justice have a positive relationship with complainant satisfaction and word-of-mouth intention. The results also confirmed the role of complainant satisfaction on word-of-mouth intention. Managerial implications of these findings are briefly discussed. Keywords: service failure, service recovery, perceived justice, complainant satisfaction, word-of-mouth intention


2016 ◽  
Vol 54 (10) ◽  
pp. 2524-2543 ◽  
Author(s):  
Fung Yi Millissa Cheung ◽  
Wai Ming To

Purpose Service recovery is a challenge to organizations because customers will respond to recovery processes and outcomes differently. Yet, there are few studies that examine the antecedents of customer co-recovery. Hence, the purpose of this paper is to adopt a customer-dominant logic to explore the antecedents of customer co-creation of service recovery (CCSR) and its effects on perceived justice and satisfaction. Design/methodology/approach The authors reviewed the service management literature and proposed a theoretical model that links customer involvement with service failure (CISF), customer CCSR, perceived justice, to customer satisfaction with service recovery (CSSR). The sample included 594 customers who had recent experience of service failure and service recovery in Hong Kong. The research model was tested using structural equations modeling. Findings The results of structural equation modeling showed that CISF had an effect on customer CCSR in the form of information sharing and co-production, and this effect influenced customers’ justice perceptions, which in turn affected CSSR. Practical implications The findings supported the notion that service management should be viewed from customer-dominant logic and effective facilitation shall be deployed to engage and support customers in service recovery processes. Originality/value The study contributes to service management by identifying the salient role and form of customer co-creation in making customers feel satisfied with service recovery.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bengü Sevil Oflaç ◽  
Ursula Y. Sullivan ◽  
Zeynep Kaya Aslan

Purpose This paper aims to examine the relationships between locus of attribution, recovery justice perceptions, recovery satisfaction and repurchase intention after a B2B service failure. Design/methodology/approach Structural equation modeling was used to analyze 300 customer surveys from hospitality businesses. The connections between the selected variables were explored through path analysis using AMOS 24. Findings Based on the results, the more that business customers blame their wholesalers after a service failure, the less they perceive the procedures in the recovery process as fair. Findings also indicate that in the recovery process, interactional connections through fair treatment and inclusion of customer opinions are important to achieve high recovery satisfaction levels. Moreover, if business customers perceive the monetary compensation provided as fair, their recovery satisfaction increases, and recovery satisfaction then helps to retain these business customers after a service failure. Research limitations/implications Starting from the locus of blame, this study highlights the after-failure calculation that business customers make in considering their recovery justice perceptions and the resulting satisfaction level. Practical implications The findings have relevance for B2B relationships. This study provides practical processes for failure and recovery management in B2B settings, especially for wholesale providers who function as resellers rather than as manufacturers. Originality/value The contributions from this study are largely due to examining B2B service failure and recovery as a process that starts at the pre-recovery stage with the locus of attribution followed by recovery justice perceptions. Whereas other studies have focused more on justice perceptions, the authors go back a step in the recovery process to better understand the antecedents of repurchase intention in B2B transactions.


2019 ◽  
Vol 37 (2) ◽  
pp. 621-645 ◽  
Author(s):  
Ahasan Harun ◽  
Md Rokonuzzaman ◽  
Gayle Prybutok ◽  
Victor R. Prybutok

PurposeThe purpose of this paper is to develop and examine a theoretical framework that evaluates the effects of banking consumers’ justice perception on their post-complaint mindsets. It also aims to help business strategists to customize service failure management activities to achieve a competitive advantage.Design/methodology/approachTo examine the proposed framework using partial least square structural equation modeling, the authors collected data through a survey. The authors also evaluated the proposed framework through multi-group analysis and importance-performance map analysis (IPMA).FindingsResults show that recovery disconfirmation mediates the relationship between banking consumers’ perception of justice and recovery satisfaction. Moreover, after a service failure, brand equity and loyalty mediate the relationship between recovery satisfaction and positive word-of-mouth behavior. IPMA analysis at the construct level shows that fostering the perception of recovery satisfaction is crucial for creating a positive post-failure impression in the mind of the banking consumer.Practical implicationsFor banking practitioners, the findings of this research provide a strategic blueprint for managing service failure by developing relationships with consumers, thus creating an opportunity to gain competitive advantage.Originality/valueAnchored in the theoretical framework of justice theory (Adams, 1963), expectation disconfirmation theory (Oliver, 1977) and social exchange theory (Kelley and Thibaut, 1978), the research adds to the literature by providing a critical evaluation of how to influence banking consumers’ post-complaint behavior from a more systematic perspective.


2019 ◽  
Vol 53 (4) ◽  
pp. 708-732 ◽  
Author(s):  
Mirella Yani-de-Soriano ◽  
Paul H.P. Hanel ◽  
Rosario Vazquez-Carrasco ◽  
Jesús Cambra-Fierro ◽  
Alan Wilson ◽  
...  

Purpose The purpose of this paper is, first, to identify the relationship, if any, between customers’ perceptions of justice (functional element) and employee effort (symbolic element) and their effects on satisfaction and loyalty in the context of service recovery and, second, to determine the impact of cross-cultural differences on these relationships. Design/methodology/approach Survey data from actual customers were gathered in three countries ( n = 414) and analyzed using structural equation modeling to test the proposed hypotheses. Findings The results demonstrate the role of the constructs of perceived employee effort and perceived justice in influencing post-recovery satisfaction and loyalty across cultures. While perceived justice is valued across cultures, customers from feminine (masculine) cultures require more (less) employee effort to influence post-recovery satisfaction positively. Customers from low (high) uncertainty cultures are more (less) willing to give the provider another chance after a service recovery. Research limitations/implications The study shows that both functional and symbolic elements of service recovery are important determinants of customer satisfaction and loyalty and that their influence can be significant in a cross-cultural context. Practical implications International service managers must consider the nature of cultural differences in their markets to develop and implement tailored recovery strategies that can result in satisfied customers. Originality/value This study is the first to integrate the functional and symbolic elements of service recovery, their impact on customers’ behavioral responses and the influence of cultural variations.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Badraoui ◽  
Ivo van der Lans ◽  
Youssef Boulaksil ◽  
Jack G.A.J. van der Vorst

PurposeThis study investigates the impact of agri-food supply chains (AFSCs) characteristics on the antecedents of horizontal logistics collaboration (HLC). Specifically, the study compares the relationship between collaboration activities and outcomes for companies in and outside AFSCs.Design/methodology/approachFirst, a survey was used to collect data from different industries. Second, confirmatory factor analysis and structural equation modeling were applied to compare the measurement and structural models from different industry categories.FindingsThe results support the premise that collaboration improves trust and commitment in the relationship, which in turn enhance satisfaction. The results also show the existence of a minor influence of AFSCs characteristics on HLC antecedents, in the form of an indirect impact of dedicated investments on commitment.Practical implicationsThe factors having a significant influence on the collaboration outcomes and their respective effects are generally similar across food and nonfood supply chains, providing opportunities for interdisciplinary and collaboration experiences.Originality/valueThis research contributes to the body of knowledge on interfirm collaboration by considering the specificities of HLC. It also highlights the importance of conducting contingency research on collaborative experiences, as firms from different industry contexts operate under distinct operational conditions.


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