Relevant factors that affect service recovery performance

Abstract

This paper explores the factors that affect employees' service recovery performance from the perspectives of internal management. In addition, this paper combines the techniques of linear multi-variable statistical analysis and nonlinear fuzzy neural network methodology to analyse data and validate hypotheses. This paper selects travel agents who have frequent interactions with customers and provide intangible services. The empirical finding indicates that the more authoritative leaders have a more negative effect on employees' service recovery performance. Strong corporate culture works against employees' service recovery performance. Employees with high self-efficacy have better service recovery performance. The important characteristic of this paper is that it combines multi-variable analysis and nonlinear fuzzy neural network methodology in its empirical approach. Meanwhile, the factors concerning internal management within an organisation are examined, and measures to enhance employees' service recovery performance are proposed. In other words, these are responses to improve service recovery performance of employees on a preventive basis within an organisation. This is very different from the consumers' perspectives as seen in most of the previous literature. Past studies tend to focus on the amendments and responses of service recovery from the perspectives of consumers, and a vast majority of the case studies examine western enterprises. This paper studies small and medium enterprises in Taiwan and illustrates the factors that affect employees' service recovery performance.