Elevating service startup survival through strategic service quality

Abstract

PurposeThe purpose of this paper is to unravel the specific service quality dimensions that significantly influence startup survival, providing actionable insights for service managers and entrepreneurs.Design/methodology/approachEmpirical data were collected from 372 service startups over a period of seven years. The Cox proportional hazard model was used to analyze the data.FindingsThe results indicate that the tangible dimension of service quality emerges as the most critical determinant of startup survival. Additionally, the reliability and responsiveness of the service also significantly affect startup survival. Furthermore, the assurance and empathy dimensions have a positive, albeit modest, influence on the survival prospects of service startups.Research limitations/implicationsThis study contributes to the service literature by investigating the relative importance of each dimension of service quality in relation to the survival of service startups.Practical implicationsThe empirical findings empower service startups to make informed decisions, allocate resources judiciously and prioritize aspects of service quality that have a significant impact on their survival and success.Social implicationsThe social implications indicate the significance of service quality dimensions not only for the success of service startups but also for the overall well-being of customers, local economies and the competitive landscape of the service sector.Originality/valueThis study contributes to service science by uniquely highlighting the critical role of tangibles in startup survival, challenging conventional beliefs about the primacy of service reliability.