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To succeed, service businesses must offer their customers high‐quality, reliable service. However, many of the characteristics that make services unique also make it difficult to ensure consistently correct performance. To promptly identify and correct errors when they occur, service managers have been advised to include recovery steps in their service processes. However, while service recovery has anecdotal support, the literature has so far not offered management tools for analytically evaluating a system's needs for recovery measures or assessing their potential benefit. To provide such a tool, this paper transfers the logic of reliability theory, which is widely used in the design of electrical and mechanical systems. The application of this approach yields several useful insights for managers, to include the effects of various process structure characteristics.

The purpose of this paper is to examine to what extent the factors of the operating environment influence the structural dimensions and subsequent performance of a firm's recovery system.

Using contingency theory and a sample of 158 service firms, this research tests for structural differences in service recovery systems based on Schmenner's widely‐cited taxonomy, the service process matrix. To conduct the analysis, both multiple analysis of variance (MANOVA) and analysis of variance (ANOVA) models were tested to assess overall system differences and to detect individual dimensional differences.

The results indicate that differences in the structure of service recovery systems do exist across divergent operating environments. Additionally, differences in performance measures were found only in capability improvements, while customer‐oriented performance did not vary across operating environments.

The paper is believed to be the first to empirically investigate how differences in operating environments increase the likelihood that firms will employ divergent recovery system configurations. This work yields valuable insights into how organizations can design their systems to more appropriately respond to the demands of the environments in which they operate. The results also lend credence to the concept of equifinality, which suggests similar ends are attainable through multiple means.

The purpose of this paper is to examine the influence of different antecedent factors (contingencies) on the design of a service recovery system (SRS).

A conceptual model was framed and a series of hypotheses generated and tested using data from 158 practicing managers using a multivariate general linear modeling technique.

The analyses indicated that firms, by and large, mainly considered environmental factors in the SRS design. Additional evidence suggests that managers do consider other contingencies but may do so in a fragmented manner. The results presented herein indicate that firms design back-office aspects of SRS in response to external factors (i.e. the environmental contingency). In contrast, the front-office components appear to have more diverse antecedents but are strongly influenced by the firm’s recovery orientation. The specific recovery practices appear to be implemented per industry standards. In sum, evidence indicates that there are diverse driving factors to total SRS design.

Limitations are based primarily on the methodology as data were obtained from a single person who represented the entire SRS. Care was taken in the study design in order not to compromise the validity of the findings.

The results indicated that managers responsible for system design need to be holistic in SRS design to more tightly link decisions across multiple contingencies so as to more fully integrate total service system design. This is potentially accomplished through the inclusion of aspects of all relevant contingencies when designing recovery systems.

This paper’s main contribution is that it employs established theory to develop and test a model to show that firms consider multiple contingencies while designing SRS. It contributes to the emerging body of work on SRS design by providing insights that can be considered as driving forces behind the design of SRS.

E-retailing grows rapidly in recent years. The majority of previous research on e-retailing service recovery has been mainly focussed on the customers’ perspective. The purpose of this paper is to examine service recovery from the operations management perspective of the e-retailing industry in order to investigate the impact of an integrated service recovery system on e-retailers’ capability improvement and market performance.

Empirical data consists of a sample of 256 employees from a leading e-retailer in China. Structural Equation Model was used to verify the relationship between the integrated recovery system and employees’ job satisfaction and organizational citizenship behavior (OCB) as well as e-retailers’ capability improvement and market performance.

The empirical results reveal that e-retailers need to pay attention to establishing an integrated recovery system. The system can facilitate employee job satisfaction and OCB, ultimately the e-retailer’s market performance. However, the relationships between job satisfaction and OCB as well as market performance are found to be low in the context of e-retailing in China.

This research contributes to the effectiveness of an integrated service recovery system in the context of e-retailing and the important role played by employees during recovery process.

This study aims to explore whether frontline employees' service recovery performance as well as customers' recovery satisfaction (RS) act as mediating mechanisms that simultaneously transmit the positive influence of an integrated service recovery system (SRS) on customers' service loyalty (SL).

A total of 134 useable retail banking branch cases (including responses from 134 branch heads, 439 frontline employees and 941 customers) were used to test our model using the partial least squares structural equation modeling (PLS-SEM) approach.

Service recovery system, measured as a higher-order multidimensional construct, has a strong and positive influence on customers' SL. Besides, service recovery performance partially mediates, along with RS, the relationship between SRS and SL. Finally, customers' recovery satisfaction has the strongest influence on service loyalty.

This study strongly suggests that practitioners not only focus on implementing an effective SRS but also on leveraging service recovery performance and RS to build sustained customers' loyalty. Practitioners must provide more attention to training their frontline employees, reward and recognize employees and continually evaluate their employees' recovery efforts.

The role of frontline employees' service recovery performance and customers' RS as mediating mechanisms in transmitting the positive effect of SRS on customers' SL is investigated using the combined perspectives of social-technical system theory and interdependence theory.

Theoretical generalisation provides the basis for tackling problems of service complexity, fragmentation and disrupted care pathways.

Recent mental health service transformation in Wales, United Kingdom, has been stimulated by a policy programme underpinned by person-centred recovery values. This paper offers analysis informed by the perspectives of Niklas Luhmann and other noted theorists to examine escalating service system complexity related to this transformation. Analysis builds upon the findings of a qualitative study employing thematic discourse analysis of talk of people with mental illness and associated workers.

In total, three themes were constructed in participants' talk: “Competing versions of recovery”, “Misaligned service expectations” and “Disrupted care pathways.” Recovery may be understood as a form of moral communication and autopoietic meaning-making activity, according to Luhmann's radical constructionist epistemology. This has the potential to generate competing versions of recovery, a key contributor to escalating complexity.

Findings could be developed further by continued investigation of the relationship between recovery implementation and service fragmentation.

A more judicious, balanced policy-implementation may cultivate optimal conditions for recovery pluralism by avoiding polarisation towards either top-down, policy-based recovery implementation or a proliferation of approaches at the grassroots level. Findings have implications for healthcare settings beyond the scope of mental healthcare, given the prevalence of person-centred care internationally.

A simplistic view of recovery implementation should be challenged. Recovery should not be considered a “magic bullet” for mental healthcare delivery. Haphazard recovery-implementation may have detrimental effects of escalating complexity, service fragmentation and disrupted care pathways.

This article seeks to develop a new framework to outline factors that influence the resolution of unfavourable service experiences as a result of double deviation. The focus is on understanding and managing complex service recovery processes.

An inductive, explorative and narrative approach was selected. Data were collected in the form of narratives from the field through interviews with actors at various levels in organisations as well as with customers in a high‐touch service industry. The data form the analysis of double and triple deviation situations and complex service recovery processes.

The study identifies four factors that influence complex service recovery processes and outcomes in double deviation situations: communication, competence, time, and service system. The resulting theoretical conceptualisation of the recovery process from the customer's perspective emphasises customer perceived control, sense of coherence, and meaning. Together, these factors shape customers' perception of complex service recovery experiences.

The empirical study is limited to the context of restaurant services. However, the findings might generalise analytically to other labour‐intensive, high‐touch services that rely on face‐to‐face interactions between customers and the service employees in triple deviation situations.

The different roles in a complex service recovery process must be managed constantly and in light of actors' resource integration in double deviation situations, as part of value co‐creation. Service organisations should develop a shared understanding of what factors result in favourable complex service recovery processes, to avoid triple deviations.

The paper offers extended understanding of complex service recovery processes through a new, empirically grounded conceptualisation of double service recovery to avoid a triple deviation.

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.

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).

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.

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.

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.

Despite having been widely studied in traditional (bricks‐and‐mortar) services, the effect of service failures and recovery (SFR) on customer loyalty has received only limited attention in the context of e‐services. This paper sets out to empirically test the following set of hypotheses in an e‐service setting: H1, service failures have a negative effect on customer loyalty intentions; H2, failure resolution has a positive effect on customer loyalty intentions; H3, satisfaction with the recovery has a positive effect on customer loyalty intentions; H4, outstanding recovery results in loyalty intentions which are more favorable than they would be had no failure occurred (service recovery paradox).

The paper is based on an online survey of actual customers of a commercial e‐banking service.

H1‐H3 are supported, suggesting that: the detrimental effects of failures are also present online; problem resolution leads to increased loyalty; despite the challenging nature of online failures and the reduced degree of human interaction, it is possible to achieve effective recovery in e‐services. H4 is also supported. We observes a recovery paradox effect but it only take place for a small proportion of “delighted” customers, i.e. those who perceived an outstanding recovery. Although unlikely, the impact (size effect) of outstanding recovery on loyalty is substantial.

Future research should examine other types of e‐services.

E‐service delivery systems should be designed with a strong failure‐prevention mindset and include effective service recovery mechanisms. However, in general, e‐service providers should not look at superior recovery as a substitute for error‐free service. Despite not being a viable strategy in general, delighting customers in the recovery may make sense for the most profitable customers.

The paper provides empirical evidence of the effects of SFR in the context of online service, an area which has received limited attention to date. Unlike other research, this paper draws on data from customers of an actual e‐service and therefore benefits from increased external validity.

The purpose of this paper is to evaluate the interrelationship between process recovery, employee recovery and customer recovery in a financial services call centre. The authors also investigate how process recovery affects customer recovery via employees – the bridge between organisation and customers.

A case study–based approach is adopted in this study, and data triangulation is achieved through multiple data collection methods including semi-structured interviews, employees’ survey and company reports. Justice theory is the theoretical lens considered to understand the “service recovery (SR)” phenomenon.

This paper helps in understanding the relationship of process and employee recovery with customer recovery. Findings suggest that SR could be used for complaint management as well as in understanding and addressing the gaps in internal operations and employee skill sets. Factors such as training, operating systems, empowerment, incentives, and feedback were identified as critical in providing effective SR. Process improvement is necessary to control complaints by conducting root cause analysis and learning from failure.

Findings are limited to a case company in financial services sector and thus limit its generalisability to other context. Questionnaire distributed to employees only included important dimensions of SR, which would be further developed in future research.

This paper explores the specific reverse exchange strategies, termed in this paper as SR, and analyses the different factors responsible for better performance in the exchange process. The paper highlights how the imbalance in the process and employee recovery dimensions can impact on customer recovery. Closing the customer complaint loop by using the SR perspective may help organisation to not only deal with complaints in a better way but also prevent such complaints in the future.