The purpose of this paper is to explore the contingencies and characteristics of service recovery system (SRS) design.
Informed by extensive case study data from two large Italian retail banks, the theory-building study builds on the seven design characteristics proposed by Smith et al. (2009). In all, 19 sub-dimensions are identified that provide a finer-grain 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.
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 and C-type) that correspond with the SR strategy. Two propositions have been formulated with respect to this SR strategy – SRS contingency. An additional set of sub-dimensions, common to both cases, is explained by conformance to regulatory control.
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 the current theory. This provides opportunities for both practising managers and for future theoretical development.
