Contingencies and characteristics of service recovery system design: insights from retail banking

Abstract

Purpose: this paper explores the contingencies and characteristics of service recovery system (SRS) design. Design/methodology/approach: informed by extensive case study data from two large Italian retail banks, our theory-building study builds on the seven design characteristics proposed by Smith et al. (2009). Nineteen sub-dimensions are identified that provide a finergrain view of the SRS at the operational level. The design characteristics and the corresponding sub-dimensions comprise the SRS design framework. These sub-dimensions are then analysed across the two cases. Specific attention is given to sub-dimensions that are contingent upon service recovery strategy. Findings: the findings suggest that the extended set of SRS sub-dimensions (providing greater specificity) contributes to identifying commonality and difference between SRS configurations. This specificity facilitates the identification of two sets of SRS design characteristics (S-Type; C-Type) that correspond with SR strategy. Two propositions have been formulated with respect to this SR strategy – SRS contingency. An additional set of subdimensions, common to both cases, is explained by conformance to regulatory control. Originality/value: the paper provides novel theoretical insights into SRS design. The increased specificity of the SRS framework and the sets of sub-dimensions contingent on SR strategy extend current theory in OM. This provides opportunities for both practicing managers and for future theoretical development.