Antecedents and outcomes of service recovery performance: an empirical study of frontline employees...
Transcript of Antecedents and outcomes of service recovery performance: an empirical study of frontline employees...
Antecedents and outcomes of service recoveryperformance an empirical study of frontlineemployees in Turkish banks
Ugur YavasEast Tennessee State University Johnson City Tennessee USAOsman M KaratepeEastern Mediterranean University Gazimagusa Turkish Republic of NorthernCyprusTurgay AvciEastern Mediterranean University Gazimagusa Turkish Republic of NorthernCyprusMehmet TekinkusGaziantep University Gaziantep Turkey
Introduction
In an era of deregulation and intense
competitive pressures (Yavas and Shemwell
1997a) bank executives realize that
attaining customer satisfaction through
delivery of quality services is a key to their
survival This widespread sentiment among
bank executives in the West is also shared
by bank executives in Turkey where the
current study was conducted (Takan 2001
Yavas et al 1997 Yavas 1999) Having a
loyal base of satisfied customers increases
revenues reduces costs improves bottom
lines and builds market shares Not
surprisingly the pivotal role of service
quality in the implementation of services
marketing programs to achieve such
desirable outcomes is well documented in
the financial services marketing and
management literatures The large number
of theoretical and empirical studies is prima
facie evidence of this
Yet how hard they may try and how
well-intentioned they may be banks face
challenges in delivering high quality service
to their customers Indeed as is the case with
other services (Bejou and Palmer 1998
Bitner et al 1990 1994 Mattila 2001 Yasin
and Yavas 1999 Yavas and Shemwell 1997b)
mistakes and failures in delivery of banking
services are frequent occurrences (Lewis and
Spyrakopoulos 2001 Shemwell and Yavas
1999 Yavas and Yasin 2001) Service
managers are well aware that service failure
and recovery encounters are critical
moments of truth in their quests to satisfy
and retain customers and that customers are
more emotionally involved in recovery
service than routine service (Smith and
Bolton 2002) Also being aware that unless
satisfactorily rectified service failures can
result in detrimental outcomes (eg decline
in customer confidence negative
word-of-mouth loss of customers
permanently) and recognizing the
paradoxical situation that if effectively
resolved failures represent positive
opportunities (Kelley et al 1993) service
organizations seek the solutions to service
failures on several fronts These
solutionsresponses to failures collectively
called service recovery strategies among
others include refunds discounts free gifts
reengineering company policies and
procedures apology manageremployee
intervention and replacement (see for
example Boshoff 1997 Lewis and
Spyrakopoulos 2001 Kelley et al 1993
Mattila 2001 Yavas and Shemwell 1997b
Yavas and Yasin 2001)
Because of their boundary-spanning roles
(Bowen and Schneider 1988) frontline
employees play a critical role in the recovery
of service failures in an effective and efficient
manner (Boshoff and Allen 2000) After all
these employees have the opportunity to
tailor in real-time not only the services the
firm offers but also the manner in which the
services are delivered (Bettencourt and
Gwinner 1996) They too have the capability
more so than other employees in an
organization for returning aggrieved
customers to a state of satisfaction after a
service fails to live up to expectations
Against this background this study
investigates the potential impact of
The Emerald Research Register for this journal is available at
httpwwwemeraldinsightcomresearchregisterThe current issue and full text archive of this journal is available at
httpwwwem eraldinsightcom 0265-2323htm
[ 255 ]
International Journal of BankMarketing215 [2003] 255-265
MCB UP Limited[ISSN 0265-2323][DOI 0110802652320310488439]
KeywordsBanking Service operationsEmployeesrsquo attitudesJob satisfaction Turkey
AbstractThis study investigates the
potential impact of organizationalvariables on the service recoveryperformance of frontline
employees and the impact ofsuccessful service recovery onfrontline employeesrsquo job
satisfaction and intensions toresign Data obtained from a
survey of frontline employeesworking in several banks in twocities in Western Turkey serve as
the study setting Results andtheir implications are discussed
Revised November 2002Accepted February 2003
organizational variables on the service
recovery performance of frontline staff and
the impact of successful service recovery on
frontline employeesrsquo job satisfaction and
intensions to resign by using Turkish
banking scene as a case in point
The remainder of the paper is divided
into four sections The next section presents
the conceptual model and hypotheses This
is followed by discussions of the method
and results of the empirical study The
paper concludes with implications of the
results
Conceptual model and hypotheses
The conceptual model guiding the study is
based on Boshoff and Allenrsquos (2000) work As
shown in Figure 1 the purpose of the model
is to explain the underlying processes
through which managerial attitudes in a
bank and frontline employeesrsquo perceptions of
their work environment influence service
recovery performance and how service
recovery performance leads to different
outcomes As can be seen from Figure 1 the
managerial attitudes which can potentially
influence service recovery performance are
customer service orientation of the firm and
its willingness to reward employees for
service excellence Work environment
perceptions that can have a bearing on
service recovery performance can be related
to training empowerment teamwork role
ambiguity and commitment Service
recovery performance in turn is posited to
result in a decrease in intensions to resign
and higher extrinsic job satisfaction The
hypothesized relationships among the study
variables are discussed next
Perceived managerial attitudesCustomer service orientation of the firmGronroos (1990a) cogently argues that an
organizational culture focusing on strong
service orientation is a must for sustaining
healthy long-term relationships with
customers According to him a strong service
orientation is imperative for the creation and
or enhancement of good interactive marketing
performance Lewis and Gabrielsen (1998)
point out that employees in organizations
with a strong customer-oriented service
culture feel a personal responsibility for
delivering superior service quality According
to Gronroos (1990b) a service-oriented
organizational culture is needed not only to
enhance service quality but also to respond to
new unforeseen and even awkward
situations That is a strong service-oriented
organizational culture is critical not only in
the delivery of high quality services but also
in quick appropriate and equitable recovery
responses to failures This sentiment is
echoed by Boshoff and Allen (2000) who
believe that a strong customer-oriented
organizational culture influences employeesrsquo
behaviors in a service recovery situation as
well
Thus
H1 The perceived customer service
orientation of the firm will exert a
positive influence on the service
recovery performance of frontline
employees
Employee rewardsEmployee rewards have an impact on service
quality (Lewis and Gabrielsen 1998
Parasuraman 1987) Kotler et al (1999)
indicate that if firms wish to to have
customer-oriented employees then they
should reward them Rewards are not only
important in inducing employees to deliver
high quality services but also in motivating
them when they have to deal with customer
complaints (Bowen and Johnston 1999)
Thus firms trying to deliver superior service
quality as a competitive advantage should
also encourage employee behaviors to find
proper recoveries to service failures If
service firms do not reward recovery efforts
frontline employees will not spend much
effort on dealing with customersrsquo complaints
or service failures This in turn would result
in customer dissatisfaction andor loss of
customers It is therefore hypothesized that
H2 Rewarding employees both for
delivering quality service and for
effectively handling customer
complaints will exert a positive
influence on the service recovery
performance of frontline employees
Perceptions of the working environmentStaff trainingPast writings suggest that training of
frontline employees both in job related skills
as well as in behavioral skills to improve
their capability to deal with varying
customer needs personalities and
circumstances is critical for delivering
superior service quality (Bettencourt and
Gwinner 1996 Lewis and Gabrielsen 1998
Yavas 1998) It is clear that employees who
do not possess the requisite job and
interpersonal skills fail in providing a high
level of service and dealing with customersrsquo
complaints (Boshoff and Allen 2000) Indeed
a study by Bitner et al (1990) showed that 429
per cent of unsatisfactory service encounters
result from employeesrsquo inability or
unwillingness to respond to service failures
[ 256]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
In view of the above discussion it is
hypothesized that
H3 Training employees both to deliver
quality service and to handle customer
complaints effectively will exert a
positive influence on the service
recovery performance of frontline
employees
EmpowermentEmpowerment is a key to managerial and
organizational effectiveness (Conger and
Kanungo 1988) and to corporate success as
demonstrated by the experiences of
successful service firms such as Disney
World (Tschohl 1998) Federal Express and
the Ritz-Carlton Hotel Company (George and
Weimerskirch 1994) Empowerment provides
frontline employees with the responsibility
and authority needed to act quickly without a
long chain of command (Lewis and
Gabrielsen 1998 Hart et al 1990) By
empowering employees the manager
relinquishes control over many aspects of the
service delivery (Hartline and Ferrell 1996)
to the frontline employees who because of
Figure 1Conceptual model
[ 257 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
their boundary spanning roles can provide
quick appropriate and equitable responses
to dissatisfied customers (Boshoff and Allen
2000 Spreng et al 1995 Bowen and Lawler
1992) Empirical evidence suggests that when
addressed with appropriate responses
service failures may indeed create satisfied
customers (Kelly et al 1993)
In light of these the following hypothesis is
advanced
H4 Empowerment of frontline staff will
exert a positive influence on the
service recovery performance of
frontline employees
TeamworkTeamwork in service organizations is of
great importance in the delivery of superior
service quality and service recovery
(Shemwell and Yavas 1998) Not
surprisingly many successful companies
focus on fostering teamwork within and
across business functions to effectively reach
common objectives (George and
Weimerskirch 1994) Among others
teamwork enables employees to learn from
each other (Boshoff and Allen 2000) and to
cooperate (rather than compete) in handling
service related opportunities and problems
Thus it is hypothesized that
H5 Teamwork will exert a positive
influence on the service recovery
performance of frontline employees
Role ambiguityRole ambiguity is a common occurrence
among employees with boundary-spanning
roles (Brown and Peterson 1994) It happens
when employees do not feel that they have
the necessary information to perform their
roles adequately andor when they are
uncertain about what is expected of them
(Walker et al 1975) Although the nature of
the relationship between role ambiguity and
performance remains unclear Van Sell et al
(1981) and Boshoff and Mels (1995) argue that
defining and clarifying roles of service
personnel is essential for effective
performance If frontline employees are not
sure what their duties are all about they are
unlikely to deliver satisfactory recovery to
customers It is thus hypothesized that
H6 Role ambiguity will exert a negative
influence on the service recovery
performance of frontline employees
Organizational commitmentMowday et al (1979) and Meyer et al (1989)
argue that individuals affectively committed
to their organizations (ie those who identify
with and involve themselves in an
organization) perform at a high level Recent
findings from financial services sector lend
credence to these observations and suggest
that organizational commitment has a direct
positive influence on both the external and
internal service quality (Boshoff and Tait
1996 Boshoff and Mels 1995) Hence it is
hypothesized that
H7 Frontline employees who have a high
level of affective commitment to their
organizations will demonstrate a high
level of service recovery performance
Outcome variablesAs noted before in this study service
recovery performance is believed to be
related to two outcome variables intentions
to resign and extrinsic job satisfaction
(Boshoff and Allen 2000) While research
evidence is not monotonic in support the
weight of the evidence suggests that job
performance and turnover are inversely
related In other words employees who feel
that they perform their jobs effectively are
more likely to continue their employment
(McEnvoy and Cascio 1987) On the contrary
employees who are unable to provide a
consistent level of service quality and quick
appropriate and equitable recovery
responses to failures will be more likely to
resign from the organization There is also
evidence that being effective in performing a
job is positively related to job satisfaction
(Rust et al 1996) It is thus hypothesized
that
H8 Effective service recovery
performance by frontline employees
will decrease their intentions to
resign
H9 Effective service recovery
performance by frontline employees
will enhance their extrinsic job
satisfaction
Methodology
SampleTo collect the data for the study a total of 400
questionnaires were distributed to frontline
employees working in 16 public (owned and
managed by state economic enterprises eg
Ziraat Bankasi Halk Bankasi Vakiflar
Bankasi) and private (owned and managed by
private companies eg Akbank Yapi ve
Kredi Bankasi Garanti Bankasi) retail banks
in two cities in Western Turkey All of these
employees had boundary-spanning roles and
spent most of their time directly dealing with
customers Respondents were asked to
complete the questionnaire in a
self-administered manner By the cut-off date
[ 258]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
for data collection 180 usable questionnaires
were retrieved for a response rate of 455 per
cent
Almost two-thirds of the respondents (63
per cent) were female 50 per cent had
secondary and 32 per cent college education
Little over one-half (51 per cent) of the
respondents were between the ages of 18 and
37 and 38 per cent between 38 and 47
MeasurementIn designing the survey instrument the
relevant writings were canvassed (eg
Boshoff and Allen 2000 Mowday et al 1979
Lucas et al 1990 Parasuraman et al 1990)
Multiple item indicators were employed to
operationalize the ten study constructs
depicted in Figure 1 Specifically customer
service orientation of the firm employee
rewards and service recovery performance
were operationalized via five items Role
ambiguity empowerment organizational
commitment and extrinsic job satisfaction
each consisted of four items Intentions to
resign and teamwork had three items each
And training consisted of six items (see
Appendix) Responses to the questionnaire
items were elicited on five-point scales
ranging from ` 5 = strongly agreersquorsquo to
` 1 = strongly disagreersquorsquo
The questionnaire was originally prepared
in English and then translated into Turkish
by using the back-translation method
(McGorry 2000) The cross-linguistic
comparability of the questionnaire was
further tested with the faculty members of a
Turkish university who were fluent in both
languages This was deemed necessary since
the concern was not so much with a literal
translation but with generating meaning
which was as similar as possible to the
original English version
Items relating to a particular construct
were summed to create overall composite
scores for each respondent As reported in
the Appendix internal consistency
reliability estimates (coefficient alphas) of
the constructs exceeded the 070 benchmark
recommended by Nunnally (1978) They
ranged from a low of 078 (empowerment) to a
high of 094 (training)
The measures were subjected to
convergent and discriminant validity
assessment by utilizing the covariance
structure analysis (Anderson and Gerbing
1988 Bagozzi and Yi 1988 Fornell and
Larcker 1981) Under the covariance
structure analysis method average variance
extracted by an underlying construct from its
indicators is used as an index of convergent
validity An average variance extracted in
excess of 050 provides evidence of
convergent validity In addition the
magnitudes and significance levels
associated with factor loading estimates are
examined to determine the degree of
convergence of each item to the underlying
construct (Anderson and Gerbing 1988)
T-values greater than two indicate that the
associated factor loading is statistically
significant and therefore the scale item in
question exhibits convergent validity
As shown in Table I the items belonging to
each of the ten study constructs had factor
loadings greater than 050 and their t-values
well exceeded 2 The average variances
extracted were greater than 050 with respect
to eight of the ten constructs For the
remaining two they were very close to 050
(empowerement 048 and service recovery
performance 049)
To assess the discriminant validity of the
underlying constructs shared variances
between constructs (ie the squared
correlation between two constructs) were
computed As an evidence of discriminant
validity shared variances between
constructs should be smaller than the
` average variance extractedrsquorsquo by each
construct (Fornell and Larcker 1981)
Additionally a good fit of the model to the
data using an overall fit index such as the
comparative fit index (CFI gt 090) provides
further support for discriminant validity
(Bentler 1990) Table I demonstrates that all
shared variances are smaller than the
average variances extracted And the
CFI = 087 approached the 090 limit Overall
these results provide support for the
reliability and convergent and discriminant
validities of the measures used in the study
Results
The relationships hypothesized in Figure 1
were tested by the method of path analysis
(Loehlin 1987) Compared to regression path
analysis allows a simultaneous test of a
system of theoretical relationships involving
multiple dependent variables The technique
also permits for restricted models with
systematic constraints on relationships
among variables Thus models that include
only those paths hypothesized a priori can be
tested
As can be seen from the results presented
in Table II neither of the two perceived
managerial attitude constructs (customer
service orientation of the firm and employee
rewards) depicts significant relationship
with service recovery performance Thus H1
and H2 are not supported Of the five work
environment-related variables two are
[ 259 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Table IConvergent and discriminant validity of the instrument
V ariab le Fa ctor load inga T -va lu eb Avera ge va rian cec S hared va rianc ed
C SO 1 071 1042 058 C SO R EW 02 5C SO 2 066 960 C SO TR A 02 9
C 50 3 081 1273 C SO EM P 02 1C 50 4 080 1244 C SO TEA M 02 1C 50 5 081 1274 C SO R OLE A 01 6
C SO SAT 01 0R E W 1 086 1432 072 C SO O RG 03 4R E W 2 093 1620 C SO R ES 00 8
R E W 3 086 1422 C SO P ER F 01 4R E W 4 086 1419 R E W T R A 03 7R E W 5 073 1114 R E W E M P 03 7
R E W T E AM 00 9T RA 1 078 1242 071 R E W R OLE A 00 3T RA 2 073 1116 R E W S AT 02 5T RA 3 078 1225 R E W O RG 00 4
T RA 4 088 1489 R E W R ES 00 5T RA S 094 1657 R E W P E R F 00 4T RA 6 094 1655 T RA EM P 02 7
T RA TE AM 01 2E M P 1 067 930 048 T RA R O LEA 00 9E M P 2 059 792 T RA SAT 02 2
E M P 3 080 1168 T RA O R G 01 1E M P 4 070 984 T RA R ES 00 2
T RA P ER F 00 7
T EAM 1 067 946 061 E M P TE AM 00 6T EAM 2 081 1211 E M P R O LEA 00 4T EAM 3 084 1279 E M P SAT 03 4
E M P O R G 00 8R O LEA 1 068 984 061 E M P R ES 00 001R O LEA 2 080 1243 E M P P ER F 01 4
R O LEA 3 088 1418 T EAM RO LE A 02 9R O LEA 4 074 1105 T EAM SAT 01 3
T EAM OR G 03 2
O R G 1 076 1132 0S7 T EAM RE S 01 6O R G 2 080 1222 T EAM PE R F 00 8O R G 3 076 1135 R O LEA SA T 00 6
O R G 4 068 969 R O LEA O R G 03 8R O LEA R E S 00 4
P E R F1 071 1036 049 R O LEA P E RF 04 0P E R F2 066 934 S ATO R G 01 2
P E R F3 071 1026 S ATR E S 00 3P E R F4 083 1265 S ATP E R F 00 7P E R F5 055 738 O R G R E S 02 3
O R G P E R F 02 8R E S1 085 1350 070 R E SP E R F 00 2R E S2 091 1480
R E S3 074 1112S AT1 079 1212 060S AT2 071 1061
S AT3 092 1538S AT4 063 906
N otes a Item loadings by confirm ato ry factor an alys is b T -va lue s for the item loadin gs For convergent va lid ityt -va lues should be g reater than at leas t 2 00 (And erson and G erb ing 1988) c For convergent va lid it y ave ra gevarianc e extrac ted fo r ea ch variab le shou ld be equ al to or grea ter than 05 (Fom ell and Larcke r 1981 ) d Ford iscrim inant va lid ity average variance ex tra cted for each variab le should b e gre ater than the sha re d varianc eb etw ee n variab le s (Fom ell an d Larc ker 19 81)
[ 260]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
significantly related to service recovery
performance Both of these significant
relationships are in the hypothesized
directions Results show that empowerment
exerts a positive and role ambiguity a strong
negative influence on the service recovery
performance of frontline staff Thus H4 and
H6 are confirmed The remaining three work
environment variables (training teamwork
and organizational commitment) do not have
any significant effects on the service
recovery performance of frontline staff
Therefore H3 H5 and H7 cannot be
supported
The path analysis results also reveal that
when frontline staff perform service recovery
effectively they demonstrate higher levels of
extrinsic job satisfaction This is in
accordance with H9 Effective service
recovery was posited to decrease the
intention to resign from the bank However
results do not demonstrate any significant
relationship between service recovery
performance of frontline staff and their
intentions to resign Therefore no support
exists for H8
Discussion
Based on Boshoff and Allenrsquos (2000) work
this article presented a model to explain the
underlying process through which a set of
organizational variables influence service
recovery performance and how service
recovery performance leads to different
outcomes Specifically by using frontline
employees in Turkish banks as its setting
the study examined relationships between
managerial attitudes frontline employeesrsquo
perceptions of their work environment and
their service recovery performance and the
impact of service recovery performance on
these employeesrsquo job satisfaction and
intentions to resign
Study results revealed that of the two
perceived managerial attitudes neither
customer service orientation of the bank nor
rewarding employees for service excellence
had any bearing on the employeesrsquo service
recovery performance The two working
environment perceptions which depicted
significant relationships with service
recovery performance were empowerment
and role ambiguity As hypothesized
empowerment had a positive and role
ambiguity a negative relationship with
service recovery performance However the
remaining work environment-related factors
including training teamwork and
commitment were not related to service
recovery performance In terms of the impact
of service recovery performance on outcome
variables the results suggest that effective
service recovery performance enhances
frontline employeesrsquo extrinsic job
satisfaction but it has no influence on their
intentions to resign from their jobs
Specific circumstances inherent in the
Turkish economic environment in general
and Turkish banking environment in
particular can offer explanations for the lack
of hypothesized relationships among several
study variables For instance while Turkish
bank executives recognize the importance of
delivery of high quality service to customers
customer service orientation is still in its
infancy in Turkey The organizational
structures of the banks are not yet attuned to
looking at things from the customersrsquo
perspective (Yavas et al 1997)
Furthermore currently training programs
in Turkish banks focus on development of
Table IIPath analysis results
P ath Es tim ate (m ax im um like lih ood ) t -va lu e S ignificanc e
C SO P ER F 00 1 007 N SR E W P ER F 00 3 038 N ST RA P E RF plusmn0 0 4 plusmn049 N SE M P P E R F 02 3 304 0 00 01T EAM P ER F plusmn0 0 6 plusmn077 N SR O LEA PE R F plusmn0 4 3 plusmn558 0 00 01O R G PE R F 01 5 184 N S
O ve ra ll R 2 = 035P E R F R E S plusmn0 0 9 plusmn119 N S
O ve ra ll R 2 = 00081P E R F S AT 02 6 353 0 00 01
O ve ra ll R 2 = 0068
N ote Th ere is no e vide nce of a m ult ico llin earity p rob lem since e ach c ondition ing index is low er than 030 a nda t le ast tw o varia nce pro portio ns are low e r tha n 0 50 (T abac hnick an d Fide ll 1996 p 87 ) exce pt for a variab lew hose va rianc e propo rtions w ith o th ers w ere 0 98 (con stant) 0 52 and 051
[ 261 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
functional skills They overlook behavioral
skills training so important in effectively
handling customer complaints Nor do they
emphasize teamwork training After basic
training employees return to their
respective positions and utilization of
teamwork is left to the initiative of the
employees Additionally in Turkish banks
employees are generally praised for their
ability to follow orders rather than work as a
team As Yavas et al (1995) cogently argue
the undue emphasis placed on following
orders is not only counter-productive in
terms of teamwork but certainly hurts
employeesrsquo perceived job control and
performance Also Turkish banks do not
typically reward their employees for
increased productivity resulting from
teamwork or good performance (Yavas 1999)
These specific circumstances akin to the
Turkish banking environment may explain
the absence of relationships between
organizational factors and service recovery
performance
The lack of hypothesized relationship
between service recovery performance and
intentions to resign can be attributed to the
current Turkish economic milieu In a period
of severe economic crisis where a high
unemployment rate exists and downsizing is
common place many employees do not
consider quitting their jobs Our experiences
suggest that this is especially true in the
study area where bank employees resigning
from their jobs would not likely find another
job andor get a better one
It is interesting to note that empowerment
and role ambiguity do portray significant
relationships with service recovery
performance and effective service recovery
performance leads to enhanced job
satisfaction Therefore to further enhance
their employeesrsquo performance and to induce
higher levels of job satisfaction Turkish
banks can take actions on two fronts On one
hand they should reverse their policy of
emphasizing ` doing things by the bookrsquorsquo and
encourage and reward employees to exercise
imagination and initiative In other words
they should take decisive steps to empower
their frontline employees with the authority
to make independent decisions give them
adequate freedom to assist customers and
reward such behavior (Yavas 1999) More
empowerment would not only lead to better
service recovery performance but also free
management to concentrate on more
strategic issues (Boshoff 1997) On the other
hand to resolve employeesrsquo role ambiguity
managers should clearly communicate
expectations to frontline employees clarify
their roles and inform them of their
responsibilities and levels of authority
On a closing note it should be underscored
that when the results of this study are
compared to the results of the Boshoff and
Allen (2000) study a number of differences
are apparent Specifically of the nine
hypotheses common to both studies five
generate similar results whereas four do not
yield congruent results These differences
lend further credence to the conclusions of
others (Spreng and Chiou 2002 Menguc
1996) that conceptual models developed in a
particular cultural context and socio-
economic environment cannot be totally
transferred and generalized to another one
In the future researchers adapting a model
developed in one cultural context must
consider cross-cultural and other differences
and incorporate necessary refinements not
only to their conceptual models but also to
their constructs
ReferencesAnderson JC and Gerbing DW (1988)
` Structural equation modeling in practice a
review and recommended two-step
approachrsquorsquo Psychological Bulletin Vol 103
May pp 411-23
Bagozzi RP and Yi Y (1988) ` On the evaluation
of structural equation modelsrsquorsquo Journal of the
Academy of Marketing Science Vol 16 No 1
pp 74-94
Bejou D and Palmer A (1998) ` Service failure
and loyalty an exploratory empirical study of
airline customersrsquorsquo Journal of Services
Marketing Vol 12 No 1 pp 7-22
Bentler PM (1990) ` Comparative fit indices in
structural modelsrsquorsquo Psychological Bulletin
Vol 107 No 2 pp 238-46
Bettencourt LA and Gwinner K (1996)
` Customization of the service experience the
role of the frontline employeersquorsquo International
Journal of Service Industry Management
Vol 7 No 2 pp 3-20
Bitner MJ Booms BH and Mohr LA (1994)
` Critical service encounters the employeersquos
viewpointrsquorsquo Journal of Marketing Vol 58
October pp 95-106
Bitner MJ Booms BH and Tetreault MS
(1990) ` The service encounter diagnosing
favorable and unfavorable incidentsrsquorsquo
Journal of Marketing Vol 54 January
pp 71-84
Boshoff C (1997) ` An experimental study of
service recovery optionsrsquorsquo International
Journal of Service Industry Management
Vol 8 No 2 pp 110-30
Boshoff C and Allen J (2000) ` The influence of
selected antecedents on frontline staffrsquos
perceptions of service recovery
performancersquorsquo International Journal of
Service Industry Management Vol 11 No 1
pp 63-90
[ 262]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Boshoff C and Tait M (1996) ` Quality
perceptions in the financial services sector
the potential impact of internal marketingrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 5-31
Boshoff C and Mels G (1995) ` A causal model to
evaluate the relationships among
supervision role stress organizational
commitment and internal service qualityrsquorsquo
European Journal of Marketing Vol 29 No 2
pp 23-42
Bowen DE and Johnston R (1999) ` Internal
service recovery developing a new
constructrsquorsquo International Journal of Service
Industry Management Vol 10 No 2 pp 118-31
Bowen DE and Lawler EE (1992) ` The
empowerment of service workers what why
how and whenrsquorsquo Sloan Management Review
Vol 33 Spring pp 31-9
Bowen DE and Schneider B (1988)
` Boundary-spanning-role employees and the
service encounter some guidelines for
management and researchrsquorsquo in Czepiel JA
Solomon MR and Suprenant CF (Eds)
The Service Encounter Managing
EmployeeCustomer Interaction in Service
Businesses 4th ed Lexington Books
Lexington MA pp 25-47
Brown SP and Peterson RA (1994) ` The effect
of effort on sales performance and job
satisfactionrsquorsquo Journal of Marketing Vol 58
April pp 70-80
Conger JA and Kanungo RN (1988) ` The
empowerment process integreating theory
and practicersquorsquo Academy of Management
Review Vol 13 No 3 pp 471-82
Fornell C and Larcker DF (1981) ` Evaluating
structural equation models with
unobservable variables and measurement
errorrsquorsquo Journal of Marketing Research Vol 18
February pp 39-50
George S and Weimerskirch A (1994) Total
Quality Management Strategies and
Techniques Proven at Todayrsquos Most Successful
Companies John Wiley amp Sons New York
NY
Gronroos C (1990a) ` Relationship approach to
marketing in service contexts the marketing
and organizational behavior interfacersquorsquo
Journal of Business Research Vol 20 No 1
pp 3-11
Gronroos C (1990b) Service Management and
Marketing Managing the Moments of Truth
in Service Competition Lexington Books
Lexington MA
Hart CWL Heskett JL and Sasser WE Jr
(1990) ` The profitable art of service
recoveryrsquorsquo Harvard Business Review Vol 68
July-August pp 148-56
Hartline MD and Ferrell OC (1996) ` The
management of customer-contact service
employees an empirical investigationrsquorsquo
Journal of Marketing Vol 60 October
pp 52-70
Kelley SW Hoffman KD and Davis MA
(1993) ` A typology of retail failures and
recoveriesrsquorsquo Journal of Retailing Vol 69 No 4
pp 429-52
Kotler P Bowen J and Makens J (1999)
Marketing for Hospitality and Tourism
2nd ed Prentice-Hall Upper Saddle River
NJ
Lewis BR and Gabrielsen GOS (1998)
` Intra-organizational aspects of service
quality management the employeesrsquo
perspectiversquorsquo The Service Industries Journal
Vol 18 No 2 pp 64-89
Lewis BR and Spryrakopoulos S (2001)
` Service failures and recovery in retail
banking the customersrsquo perspectiversquorsquo
International Journal of Bank Marketing
Vol 19 No 1 pp 37-47
Loehlin JC (1987) Latent Variable Models
Lawrence Earlbaum Hillsdale NJ
Lucas GH Babakus E and Ingram TN (1990)
` An empirical test of the job
satisfaction-turnover relationship assessing
the role of job performance for retail
managersrsquorsquo Journal of the Academy of
Marketing Science Vol 18 No 3 pp 199-208
McEnvoy G and Cascio W (1987) ` Do good or
poor performers leave A meta-analysis of the
relationship between performance and
turnoverrsquorsquo Academy of Management Journal
Vol 30 pp 744-62
McGorry SY (2000) ` Measurement in a
cross-cultural environment survey
translation issuesrsquorsquo Qualitative Market
Research An International Journal Vol 3
No 2 pp 74-81
Mattila AS (2001) ` The effectiveness of service
recovery in a multi-industry settingrsquorsquo Journal
of Services Marketing Vol 15 No 7 pp 583-96
Menguc B (1996) ` Evidence for Turkish
industrial salespeople testing the
applicability of a conceptual model for the
effect of effort on sales performance and job
satisfactionrsquorsquo European Journal of Marketing
Vol 30 No 1 pp 33-51
Meyer JP Paunonen SV Gellatly IR
Goffin RD and Jackson DN (1989)
` Organizational commitment and job
performance itrsquos the nature of the
commitment that countsrsquorsquo Journal of Applied
Psychology Vol 74 No 1 pp 152-6
Mowday RT Steers RM and Porter LW
(1979) ` The measurement of organizational
commitmentrsquorsquo Journal of Vocational
Behavior Vol 14 pp 224-47
Nunnally JC (1978) Psychometric Theory
McGraw-Hill New York NY
Parasuraman A (1987) ` Customer-oriented
corporate cultures are crucial to services
marketing successrsquorsquo Journal of Services
Marketing Vol 1 No 1 pp 39-46
Parasuraman A Berry LL and Zeithaml VA
(1990) An Empirical Examination of
Relationships in an Extended Service Quality
[ 263 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Model Report No 90-122 Marketing Science
Institute Cambridge MA
Rust RT Stewart GR Miller H and
Pielack D (1996) ` The satisfaction and
retention of frontline employees a customer
satisfaction measurement approachrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 62-80
Shemwell DJ and Yavas U (1998) ` Seven best
practices for creating a sales culture
transitioning from an internally-focused
transaction-oriented culture to a customer-
focused sales-oriented culturersquorsquo International
Journal of Bank Marketing Vol 16 No 7
pp 293-98
Shemwell DJ and Yavas U (1999) ` Bringing
banks out of darkness eliminating remnants
of the cultural malaise of yesteryearrsquorsquo
Journal of Financial Services Marketing
Vol 3 No 4 pp 334-43
Smith AK and Bolton RN (2002) ` The effect of
customersrsquo emotional responses to service
failures on their recovery evaluations and
satisfaction judgmentsrsquorsquo Journal of the
Academy of Marketing Science Vol 30 No 1
pp 5-23
Spreng RA and Chiou J-S (2002) ` A
cross-cultural assessment of the satisfaction
formation processrsquorsquo European Journal of
Marketing Vol 36 Nos 78 pp 829-39
Spreng RA Harrell GD and Mackoy RD
(1995) ` Service recovery impact on
satisfaction and intentionsrsquorsquo Journal of
Services Marketing Vol 9 No 1 pp 15-23
Tabachnick BG and Fidell LS (1996) Using
Multivariate Statistics 3rd ed HarperCollins
Publishers New York NY
Takan M (2001) Bankacilik Teori Uygulama ve
Yonetim Nobel Yayin Dagitim Ankara
Tschohl J (1998) ` Empowerment plusmn the key to
quality servicersquorsquo Managing Service Quality
Vol 8 No 6 pp 421-5
Van Sell M Brief AP and Schuler RS (1981)
` Role conflict and role ambiguity integration
of the literature and directions for future
researchrsquorsquo Human Relations Vol 34 No 1
pp 43-71
Walker OC Churchill GA Jr and Ford NM
(1975) ` Organizational determinants of the
industrial salesmanrsquos role conflict and role
ambiguityrsquorsquo Journal of Marketing Vol 39
January pp 32-9
Yasin MM and Yavas U (1999) ` Enhancing
customer orientation of service delivery
systems an integrative frameworkrsquorsquo
Managing Service Quality Vol 9 No 3
pp 198-203
Yavas U (1998) ` Service quality sentiments as
correlates of behavioral intentions and
satisfaction a study of Turkish consumersrsquorsquo
Journal of Customer Service in Marketing and
Management Vol 4 No 1 pp 31-45
Yavas U (1999) ` Correlates of satisfaction among
customer-contact personnel in retail banking
services an empirical studyrsquorsquo in
Contemporary Developments in Marketing
ESKA Soup de Co Montpellier pp 547-55
Yavas U and Shemwell D (1997a) ` Analyzing a
bankrsquos competitive position and appropriate
strategyrsquorsquo Journal of Retail Banking Services
Vol 19 No 4 pp 43-51
Yavas U and Shemwell D (1997b) ` Meeting the
service quality challenge structural
problems and solutionsrsquorsquo Managing Service
Quality Vol 7 No 4 pp 198-203
Yavas U and Yasin MM (2001) ` Enhancing
organizational performance in banks a
systematic approachrsquorsquo Journal of Services
Marketing Vol 15 No 6 pp 444-53
Yavas U Arsan N and Dilber M (1995)
` Organizational gaps in delivering banking
services a study of bank employeesrsquorsquo Journal
of International Marketing and Marketing
Research Vol 20 No 1 pp 3-13
Yavas U Bilgin Z and Shemwell DJ (1997)
` Service quality in the banking sector in an
emerging economy a consumer surveyrsquorsquo
International Journal of Bank Marketing
Vol 15 No 6 pp 217-23
Appendix Questionnaire items
Customer service orientation of the firm(CSO) (Cronbachrsquos alpha = 087)
This bank measures customer satisfaction
on a regular basis
This bank understands its customersrsquo
needs
This bank sets objectives in terms of
customer satisfaction
This bank attempts to create value for the
customer
This bank is totally committed to serving
its customers well
Employee rewards (REW) (Cronbachrsquosalpha = 093)
If I improve the level of service I offer
customers I will be rewarded
The rewards I receive are based on
customer evaluations of service
Employees in this bank are rewarded for
serving customers well
Employees of this bank are rewarded for
dealing effectively with customer
problems
I am rewarded for satisfying complaining
customers
Staff training (TRA) (Cronbachrsquosalpha = 094)
Employees in this bank receive continued
txaining to provide good service
Employees in this bank receive extensive
customer service training before they
come into contact with customers
[ 264]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
organizational variables on the service
recovery performance of frontline staff and
the impact of successful service recovery on
frontline employeesrsquo job satisfaction and
intensions to resign by using Turkish
banking scene as a case in point
The remainder of the paper is divided
into four sections The next section presents
the conceptual model and hypotheses This
is followed by discussions of the method
and results of the empirical study The
paper concludes with implications of the
results
Conceptual model and hypotheses
The conceptual model guiding the study is
based on Boshoff and Allenrsquos (2000) work As
shown in Figure 1 the purpose of the model
is to explain the underlying processes
through which managerial attitudes in a
bank and frontline employeesrsquo perceptions of
their work environment influence service
recovery performance and how service
recovery performance leads to different
outcomes As can be seen from Figure 1 the
managerial attitudes which can potentially
influence service recovery performance are
customer service orientation of the firm and
its willingness to reward employees for
service excellence Work environment
perceptions that can have a bearing on
service recovery performance can be related
to training empowerment teamwork role
ambiguity and commitment Service
recovery performance in turn is posited to
result in a decrease in intensions to resign
and higher extrinsic job satisfaction The
hypothesized relationships among the study
variables are discussed next
Perceived managerial attitudesCustomer service orientation of the firmGronroos (1990a) cogently argues that an
organizational culture focusing on strong
service orientation is a must for sustaining
healthy long-term relationships with
customers According to him a strong service
orientation is imperative for the creation and
or enhancement of good interactive marketing
performance Lewis and Gabrielsen (1998)
point out that employees in organizations
with a strong customer-oriented service
culture feel a personal responsibility for
delivering superior service quality According
to Gronroos (1990b) a service-oriented
organizational culture is needed not only to
enhance service quality but also to respond to
new unforeseen and even awkward
situations That is a strong service-oriented
organizational culture is critical not only in
the delivery of high quality services but also
in quick appropriate and equitable recovery
responses to failures This sentiment is
echoed by Boshoff and Allen (2000) who
believe that a strong customer-oriented
organizational culture influences employeesrsquo
behaviors in a service recovery situation as
well
Thus
H1 The perceived customer service
orientation of the firm will exert a
positive influence on the service
recovery performance of frontline
employees
Employee rewardsEmployee rewards have an impact on service
quality (Lewis and Gabrielsen 1998
Parasuraman 1987) Kotler et al (1999)
indicate that if firms wish to to have
customer-oriented employees then they
should reward them Rewards are not only
important in inducing employees to deliver
high quality services but also in motivating
them when they have to deal with customer
complaints (Bowen and Johnston 1999)
Thus firms trying to deliver superior service
quality as a competitive advantage should
also encourage employee behaviors to find
proper recoveries to service failures If
service firms do not reward recovery efforts
frontline employees will not spend much
effort on dealing with customersrsquo complaints
or service failures This in turn would result
in customer dissatisfaction andor loss of
customers It is therefore hypothesized that
H2 Rewarding employees both for
delivering quality service and for
effectively handling customer
complaints will exert a positive
influence on the service recovery
performance of frontline employees
Perceptions of the working environmentStaff trainingPast writings suggest that training of
frontline employees both in job related skills
as well as in behavioral skills to improve
their capability to deal with varying
customer needs personalities and
circumstances is critical for delivering
superior service quality (Bettencourt and
Gwinner 1996 Lewis and Gabrielsen 1998
Yavas 1998) It is clear that employees who
do not possess the requisite job and
interpersonal skills fail in providing a high
level of service and dealing with customersrsquo
complaints (Boshoff and Allen 2000) Indeed
a study by Bitner et al (1990) showed that 429
per cent of unsatisfactory service encounters
result from employeesrsquo inability or
unwillingness to respond to service failures
[ 256]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
In view of the above discussion it is
hypothesized that
H3 Training employees both to deliver
quality service and to handle customer
complaints effectively will exert a
positive influence on the service
recovery performance of frontline
employees
EmpowermentEmpowerment is a key to managerial and
organizational effectiveness (Conger and
Kanungo 1988) and to corporate success as
demonstrated by the experiences of
successful service firms such as Disney
World (Tschohl 1998) Federal Express and
the Ritz-Carlton Hotel Company (George and
Weimerskirch 1994) Empowerment provides
frontline employees with the responsibility
and authority needed to act quickly without a
long chain of command (Lewis and
Gabrielsen 1998 Hart et al 1990) By
empowering employees the manager
relinquishes control over many aspects of the
service delivery (Hartline and Ferrell 1996)
to the frontline employees who because of
Figure 1Conceptual model
[ 257 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
their boundary spanning roles can provide
quick appropriate and equitable responses
to dissatisfied customers (Boshoff and Allen
2000 Spreng et al 1995 Bowen and Lawler
1992) Empirical evidence suggests that when
addressed with appropriate responses
service failures may indeed create satisfied
customers (Kelly et al 1993)
In light of these the following hypothesis is
advanced
H4 Empowerment of frontline staff will
exert a positive influence on the
service recovery performance of
frontline employees
TeamworkTeamwork in service organizations is of
great importance in the delivery of superior
service quality and service recovery
(Shemwell and Yavas 1998) Not
surprisingly many successful companies
focus on fostering teamwork within and
across business functions to effectively reach
common objectives (George and
Weimerskirch 1994) Among others
teamwork enables employees to learn from
each other (Boshoff and Allen 2000) and to
cooperate (rather than compete) in handling
service related opportunities and problems
Thus it is hypothesized that
H5 Teamwork will exert a positive
influence on the service recovery
performance of frontline employees
Role ambiguityRole ambiguity is a common occurrence
among employees with boundary-spanning
roles (Brown and Peterson 1994) It happens
when employees do not feel that they have
the necessary information to perform their
roles adequately andor when they are
uncertain about what is expected of them
(Walker et al 1975) Although the nature of
the relationship between role ambiguity and
performance remains unclear Van Sell et al
(1981) and Boshoff and Mels (1995) argue that
defining and clarifying roles of service
personnel is essential for effective
performance If frontline employees are not
sure what their duties are all about they are
unlikely to deliver satisfactory recovery to
customers It is thus hypothesized that
H6 Role ambiguity will exert a negative
influence on the service recovery
performance of frontline employees
Organizational commitmentMowday et al (1979) and Meyer et al (1989)
argue that individuals affectively committed
to their organizations (ie those who identify
with and involve themselves in an
organization) perform at a high level Recent
findings from financial services sector lend
credence to these observations and suggest
that organizational commitment has a direct
positive influence on both the external and
internal service quality (Boshoff and Tait
1996 Boshoff and Mels 1995) Hence it is
hypothesized that
H7 Frontline employees who have a high
level of affective commitment to their
organizations will demonstrate a high
level of service recovery performance
Outcome variablesAs noted before in this study service
recovery performance is believed to be
related to two outcome variables intentions
to resign and extrinsic job satisfaction
(Boshoff and Allen 2000) While research
evidence is not monotonic in support the
weight of the evidence suggests that job
performance and turnover are inversely
related In other words employees who feel
that they perform their jobs effectively are
more likely to continue their employment
(McEnvoy and Cascio 1987) On the contrary
employees who are unable to provide a
consistent level of service quality and quick
appropriate and equitable recovery
responses to failures will be more likely to
resign from the organization There is also
evidence that being effective in performing a
job is positively related to job satisfaction
(Rust et al 1996) It is thus hypothesized
that
H8 Effective service recovery
performance by frontline employees
will decrease their intentions to
resign
H9 Effective service recovery
performance by frontline employees
will enhance their extrinsic job
satisfaction
Methodology
SampleTo collect the data for the study a total of 400
questionnaires were distributed to frontline
employees working in 16 public (owned and
managed by state economic enterprises eg
Ziraat Bankasi Halk Bankasi Vakiflar
Bankasi) and private (owned and managed by
private companies eg Akbank Yapi ve
Kredi Bankasi Garanti Bankasi) retail banks
in two cities in Western Turkey All of these
employees had boundary-spanning roles and
spent most of their time directly dealing with
customers Respondents were asked to
complete the questionnaire in a
self-administered manner By the cut-off date
[ 258]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
for data collection 180 usable questionnaires
were retrieved for a response rate of 455 per
cent
Almost two-thirds of the respondents (63
per cent) were female 50 per cent had
secondary and 32 per cent college education
Little over one-half (51 per cent) of the
respondents were between the ages of 18 and
37 and 38 per cent between 38 and 47
MeasurementIn designing the survey instrument the
relevant writings were canvassed (eg
Boshoff and Allen 2000 Mowday et al 1979
Lucas et al 1990 Parasuraman et al 1990)
Multiple item indicators were employed to
operationalize the ten study constructs
depicted in Figure 1 Specifically customer
service orientation of the firm employee
rewards and service recovery performance
were operationalized via five items Role
ambiguity empowerment organizational
commitment and extrinsic job satisfaction
each consisted of four items Intentions to
resign and teamwork had three items each
And training consisted of six items (see
Appendix) Responses to the questionnaire
items were elicited on five-point scales
ranging from ` 5 = strongly agreersquorsquo to
` 1 = strongly disagreersquorsquo
The questionnaire was originally prepared
in English and then translated into Turkish
by using the back-translation method
(McGorry 2000) The cross-linguistic
comparability of the questionnaire was
further tested with the faculty members of a
Turkish university who were fluent in both
languages This was deemed necessary since
the concern was not so much with a literal
translation but with generating meaning
which was as similar as possible to the
original English version
Items relating to a particular construct
were summed to create overall composite
scores for each respondent As reported in
the Appendix internal consistency
reliability estimates (coefficient alphas) of
the constructs exceeded the 070 benchmark
recommended by Nunnally (1978) They
ranged from a low of 078 (empowerment) to a
high of 094 (training)
The measures were subjected to
convergent and discriminant validity
assessment by utilizing the covariance
structure analysis (Anderson and Gerbing
1988 Bagozzi and Yi 1988 Fornell and
Larcker 1981) Under the covariance
structure analysis method average variance
extracted by an underlying construct from its
indicators is used as an index of convergent
validity An average variance extracted in
excess of 050 provides evidence of
convergent validity In addition the
magnitudes and significance levels
associated with factor loading estimates are
examined to determine the degree of
convergence of each item to the underlying
construct (Anderson and Gerbing 1988)
T-values greater than two indicate that the
associated factor loading is statistically
significant and therefore the scale item in
question exhibits convergent validity
As shown in Table I the items belonging to
each of the ten study constructs had factor
loadings greater than 050 and their t-values
well exceeded 2 The average variances
extracted were greater than 050 with respect
to eight of the ten constructs For the
remaining two they were very close to 050
(empowerement 048 and service recovery
performance 049)
To assess the discriminant validity of the
underlying constructs shared variances
between constructs (ie the squared
correlation between two constructs) were
computed As an evidence of discriminant
validity shared variances between
constructs should be smaller than the
` average variance extractedrsquorsquo by each
construct (Fornell and Larcker 1981)
Additionally a good fit of the model to the
data using an overall fit index such as the
comparative fit index (CFI gt 090) provides
further support for discriminant validity
(Bentler 1990) Table I demonstrates that all
shared variances are smaller than the
average variances extracted And the
CFI = 087 approached the 090 limit Overall
these results provide support for the
reliability and convergent and discriminant
validities of the measures used in the study
Results
The relationships hypothesized in Figure 1
were tested by the method of path analysis
(Loehlin 1987) Compared to regression path
analysis allows a simultaneous test of a
system of theoretical relationships involving
multiple dependent variables The technique
also permits for restricted models with
systematic constraints on relationships
among variables Thus models that include
only those paths hypothesized a priori can be
tested
As can be seen from the results presented
in Table II neither of the two perceived
managerial attitude constructs (customer
service orientation of the firm and employee
rewards) depicts significant relationship
with service recovery performance Thus H1
and H2 are not supported Of the five work
environment-related variables two are
[ 259 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Table IConvergent and discriminant validity of the instrument
V ariab le Fa ctor load inga T -va lu eb Avera ge va rian cec S hared va rianc ed
C SO 1 071 1042 058 C SO R EW 02 5C SO 2 066 960 C SO TR A 02 9
C 50 3 081 1273 C SO EM P 02 1C 50 4 080 1244 C SO TEA M 02 1C 50 5 081 1274 C SO R OLE A 01 6
C SO SAT 01 0R E W 1 086 1432 072 C SO O RG 03 4R E W 2 093 1620 C SO R ES 00 8
R E W 3 086 1422 C SO P ER F 01 4R E W 4 086 1419 R E W T R A 03 7R E W 5 073 1114 R E W E M P 03 7
R E W T E AM 00 9T RA 1 078 1242 071 R E W R OLE A 00 3T RA 2 073 1116 R E W S AT 02 5T RA 3 078 1225 R E W O RG 00 4
T RA 4 088 1489 R E W R ES 00 5T RA S 094 1657 R E W P E R F 00 4T RA 6 094 1655 T RA EM P 02 7
T RA TE AM 01 2E M P 1 067 930 048 T RA R O LEA 00 9E M P 2 059 792 T RA SAT 02 2
E M P 3 080 1168 T RA O R G 01 1E M P 4 070 984 T RA R ES 00 2
T RA P ER F 00 7
T EAM 1 067 946 061 E M P TE AM 00 6T EAM 2 081 1211 E M P R O LEA 00 4T EAM 3 084 1279 E M P SAT 03 4
E M P O R G 00 8R O LEA 1 068 984 061 E M P R ES 00 001R O LEA 2 080 1243 E M P P ER F 01 4
R O LEA 3 088 1418 T EAM RO LE A 02 9R O LEA 4 074 1105 T EAM SAT 01 3
T EAM OR G 03 2
O R G 1 076 1132 0S7 T EAM RE S 01 6O R G 2 080 1222 T EAM PE R F 00 8O R G 3 076 1135 R O LEA SA T 00 6
O R G 4 068 969 R O LEA O R G 03 8R O LEA R E S 00 4
P E R F1 071 1036 049 R O LEA P E RF 04 0P E R F2 066 934 S ATO R G 01 2
P E R F3 071 1026 S ATR E S 00 3P E R F4 083 1265 S ATP E R F 00 7P E R F5 055 738 O R G R E S 02 3
O R G P E R F 02 8R E S1 085 1350 070 R E SP E R F 00 2R E S2 091 1480
R E S3 074 1112S AT1 079 1212 060S AT2 071 1061
S AT3 092 1538S AT4 063 906
N otes a Item loadings by confirm ato ry factor an alys is b T -va lue s for the item loadin gs For convergent va lid ityt -va lues should be g reater than at leas t 2 00 (And erson and G erb ing 1988) c For convergent va lid it y ave ra gevarianc e extrac ted fo r ea ch variab le shou ld be equ al to or grea ter than 05 (Fom ell and Larcke r 1981 ) d Ford iscrim inant va lid ity average variance ex tra cted for each variab le should b e gre ater than the sha re d varianc eb etw ee n variab le s (Fom ell an d Larc ker 19 81)
[ 260]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
significantly related to service recovery
performance Both of these significant
relationships are in the hypothesized
directions Results show that empowerment
exerts a positive and role ambiguity a strong
negative influence on the service recovery
performance of frontline staff Thus H4 and
H6 are confirmed The remaining three work
environment variables (training teamwork
and organizational commitment) do not have
any significant effects on the service
recovery performance of frontline staff
Therefore H3 H5 and H7 cannot be
supported
The path analysis results also reveal that
when frontline staff perform service recovery
effectively they demonstrate higher levels of
extrinsic job satisfaction This is in
accordance with H9 Effective service
recovery was posited to decrease the
intention to resign from the bank However
results do not demonstrate any significant
relationship between service recovery
performance of frontline staff and their
intentions to resign Therefore no support
exists for H8
Discussion
Based on Boshoff and Allenrsquos (2000) work
this article presented a model to explain the
underlying process through which a set of
organizational variables influence service
recovery performance and how service
recovery performance leads to different
outcomes Specifically by using frontline
employees in Turkish banks as its setting
the study examined relationships between
managerial attitudes frontline employeesrsquo
perceptions of their work environment and
their service recovery performance and the
impact of service recovery performance on
these employeesrsquo job satisfaction and
intentions to resign
Study results revealed that of the two
perceived managerial attitudes neither
customer service orientation of the bank nor
rewarding employees for service excellence
had any bearing on the employeesrsquo service
recovery performance The two working
environment perceptions which depicted
significant relationships with service
recovery performance were empowerment
and role ambiguity As hypothesized
empowerment had a positive and role
ambiguity a negative relationship with
service recovery performance However the
remaining work environment-related factors
including training teamwork and
commitment were not related to service
recovery performance In terms of the impact
of service recovery performance on outcome
variables the results suggest that effective
service recovery performance enhances
frontline employeesrsquo extrinsic job
satisfaction but it has no influence on their
intentions to resign from their jobs
Specific circumstances inherent in the
Turkish economic environment in general
and Turkish banking environment in
particular can offer explanations for the lack
of hypothesized relationships among several
study variables For instance while Turkish
bank executives recognize the importance of
delivery of high quality service to customers
customer service orientation is still in its
infancy in Turkey The organizational
structures of the banks are not yet attuned to
looking at things from the customersrsquo
perspective (Yavas et al 1997)
Furthermore currently training programs
in Turkish banks focus on development of
Table IIPath analysis results
P ath Es tim ate (m ax im um like lih ood ) t -va lu e S ignificanc e
C SO P ER F 00 1 007 N SR E W P ER F 00 3 038 N ST RA P E RF plusmn0 0 4 plusmn049 N SE M P P E R F 02 3 304 0 00 01T EAM P ER F plusmn0 0 6 plusmn077 N SR O LEA PE R F plusmn0 4 3 plusmn558 0 00 01O R G PE R F 01 5 184 N S
O ve ra ll R 2 = 035P E R F R E S plusmn0 0 9 plusmn119 N S
O ve ra ll R 2 = 00081P E R F S AT 02 6 353 0 00 01
O ve ra ll R 2 = 0068
N ote Th ere is no e vide nce of a m ult ico llin earity p rob lem since e ach c ondition ing index is low er than 030 a nda t le ast tw o varia nce pro portio ns are low e r tha n 0 50 (T abac hnick an d Fide ll 1996 p 87 ) exce pt for a variab lew hose va rianc e propo rtions w ith o th ers w ere 0 98 (con stant) 0 52 and 051
[ 261 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
functional skills They overlook behavioral
skills training so important in effectively
handling customer complaints Nor do they
emphasize teamwork training After basic
training employees return to their
respective positions and utilization of
teamwork is left to the initiative of the
employees Additionally in Turkish banks
employees are generally praised for their
ability to follow orders rather than work as a
team As Yavas et al (1995) cogently argue
the undue emphasis placed on following
orders is not only counter-productive in
terms of teamwork but certainly hurts
employeesrsquo perceived job control and
performance Also Turkish banks do not
typically reward their employees for
increased productivity resulting from
teamwork or good performance (Yavas 1999)
These specific circumstances akin to the
Turkish banking environment may explain
the absence of relationships between
organizational factors and service recovery
performance
The lack of hypothesized relationship
between service recovery performance and
intentions to resign can be attributed to the
current Turkish economic milieu In a period
of severe economic crisis where a high
unemployment rate exists and downsizing is
common place many employees do not
consider quitting their jobs Our experiences
suggest that this is especially true in the
study area where bank employees resigning
from their jobs would not likely find another
job andor get a better one
It is interesting to note that empowerment
and role ambiguity do portray significant
relationships with service recovery
performance and effective service recovery
performance leads to enhanced job
satisfaction Therefore to further enhance
their employeesrsquo performance and to induce
higher levels of job satisfaction Turkish
banks can take actions on two fronts On one
hand they should reverse their policy of
emphasizing ` doing things by the bookrsquorsquo and
encourage and reward employees to exercise
imagination and initiative In other words
they should take decisive steps to empower
their frontline employees with the authority
to make independent decisions give them
adequate freedom to assist customers and
reward such behavior (Yavas 1999) More
empowerment would not only lead to better
service recovery performance but also free
management to concentrate on more
strategic issues (Boshoff 1997) On the other
hand to resolve employeesrsquo role ambiguity
managers should clearly communicate
expectations to frontline employees clarify
their roles and inform them of their
responsibilities and levels of authority
On a closing note it should be underscored
that when the results of this study are
compared to the results of the Boshoff and
Allen (2000) study a number of differences
are apparent Specifically of the nine
hypotheses common to both studies five
generate similar results whereas four do not
yield congruent results These differences
lend further credence to the conclusions of
others (Spreng and Chiou 2002 Menguc
1996) that conceptual models developed in a
particular cultural context and socio-
economic environment cannot be totally
transferred and generalized to another one
In the future researchers adapting a model
developed in one cultural context must
consider cross-cultural and other differences
and incorporate necessary refinements not
only to their conceptual models but also to
their constructs
ReferencesAnderson JC and Gerbing DW (1988)
` Structural equation modeling in practice a
review and recommended two-step
approachrsquorsquo Psychological Bulletin Vol 103
May pp 411-23
Bagozzi RP and Yi Y (1988) ` On the evaluation
of structural equation modelsrsquorsquo Journal of the
Academy of Marketing Science Vol 16 No 1
pp 74-94
Bejou D and Palmer A (1998) ` Service failure
and loyalty an exploratory empirical study of
airline customersrsquorsquo Journal of Services
Marketing Vol 12 No 1 pp 7-22
Bentler PM (1990) ` Comparative fit indices in
structural modelsrsquorsquo Psychological Bulletin
Vol 107 No 2 pp 238-46
Bettencourt LA and Gwinner K (1996)
` Customization of the service experience the
role of the frontline employeersquorsquo International
Journal of Service Industry Management
Vol 7 No 2 pp 3-20
Bitner MJ Booms BH and Mohr LA (1994)
` Critical service encounters the employeersquos
viewpointrsquorsquo Journal of Marketing Vol 58
October pp 95-106
Bitner MJ Booms BH and Tetreault MS
(1990) ` The service encounter diagnosing
favorable and unfavorable incidentsrsquorsquo
Journal of Marketing Vol 54 January
pp 71-84
Boshoff C (1997) ` An experimental study of
service recovery optionsrsquorsquo International
Journal of Service Industry Management
Vol 8 No 2 pp 110-30
Boshoff C and Allen J (2000) ` The influence of
selected antecedents on frontline staffrsquos
perceptions of service recovery
performancersquorsquo International Journal of
Service Industry Management Vol 11 No 1
pp 63-90
[ 262]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Boshoff C and Tait M (1996) ` Quality
perceptions in the financial services sector
the potential impact of internal marketingrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 5-31
Boshoff C and Mels G (1995) ` A causal model to
evaluate the relationships among
supervision role stress organizational
commitment and internal service qualityrsquorsquo
European Journal of Marketing Vol 29 No 2
pp 23-42
Bowen DE and Johnston R (1999) ` Internal
service recovery developing a new
constructrsquorsquo International Journal of Service
Industry Management Vol 10 No 2 pp 118-31
Bowen DE and Lawler EE (1992) ` The
empowerment of service workers what why
how and whenrsquorsquo Sloan Management Review
Vol 33 Spring pp 31-9
Bowen DE and Schneider B (1988)
` Boundary-spanning-role employees and the
service encounter some guidelines for
management and researchrsquorsquo in Czepiel JA
Solomon MR and Suprenant CF (Eds)
The Service Encounter Managing
EmployeeCustomer Interaction in Service
Businesses 4th ed Lexington Books
Lexington MA pp 25-47
Brown SP and Peterson RA (1994) ` The effect
of effort on sales performance and job
satisfactionrsquorsquo Journal of Marketing Vol 58
April pp 70-80
Conger JA and Kanungo RN (1988) ` The
empowerment process integreating theory
and practicersquorsquo Academy of Management
Review Vol 13 No 3 pp 471-82
Fornell C and Larcker DF (1981) ` Evaluating
structural equation models with
unobservable variables and measurement
errorrsquorsquo Journal of Marketing Research Vol 18
February pp 39-50
George S and Weimerskirch A (1994) Total
Quality Management Strategies and
Techniques Proven at Todayrsquos Most Successful
Companies John Wiley amp Sons New York
NY
Gronroos C (1990a) ` Relationship approach to
marketing in service contexts the marketing
and organizational behavior interfacersquorsquo
Journal of Business Research Vol 20 No 1
pp 3-11
Gronroos C (1990b) Service Management and
Marketing Managing the Moments of Truth
in Service Competition Lexington Books
Lexington MA
Hart CWL Heskett JL and Sasser WE Jr
(1990) ` The profitable art of service
recoveryrsquorsquo Harvard Business Review Vol 68
July-August pp 148-56
Hartline MD and Ferrell OC (1996) ` The
management of customer-contact service
employees an empirical investigationrsquorsquo
Journal of Marketing Vol 60 October
pp 52-70
Kelley SW Hoffman KD and Davis MA
(1993) ` A typology of retail failures and
recoveriesrsquorsquo Journal of Retailing Vol 69 No 4
pp 429-52
Kotler P Bowen J and Makens J (1999)
Marketing for Hospitality and Tourism
2nd ed Prentice-Hall Upper Saddle River
NJ
Lewis BR and Gabrielsen GOS (1998)
` Intra-organizational aspects of service
quality management the employeesrsquo
perspectiversquorsquo The Service Industries Journal
Vol 18 No 2 pp 64-89
Lewis BR and Spryrakopoulos S (2001)
` Service failures and recovery in retail
banking the customersrsquo perspectiversquorsquo
International Journal of Bank Marketing
Vol 19 No 1 pp 37-47
Loehlin JC (1987) Latent Variable Models
Lawrence Earlbaum Hillsdale NJ
Lucas GH Babakus E and Ingram TN (1990)
` An empirical test of the job
satisfaction-turnover relationship assessing
the role of job performance for retail
managersrsquorsquo Journal of the Academy of
Marketing Science Vol 18 No 3 pp 199-208
McEnvoy G and Cascio W (1987) ` Do good or
poor performers leave A meta-analysis of the
relationship between performance and
turnoverrsquorsquo Academy of Management Journal
Vol 30 pp 744-62
McGorry SY (2000) ` Measurement in a
cross-cultural environment survey
translation issuesrsquorsquo Qualitative Market
Research An International Journal Vol 3
No 2 pp 74-81
Mattila AS (2001) ` The effectiveness of service
recovery in a multi-industry settingrsquorsquo Journal
of Services Marketing Vol 15 No 7 pp 583-96
Menguc B (1996) ` Evidence for Turkish
industrial salespeople testing the
applicability of a conceptual model for the
effect of effort on sales performance and job
satisfactionrsquorsquo European Journal of Marketing
Vol 30 No 1 pp 33-51
Meyer JP Paunonen SV Gellatly IR
Goffin RD and Jackson DN (1989)
` Organizational commitment and job
performance itrsquos the nature of the
commitment that countsrsquorsquo Journal of Applied
Psychology Vol 74 No 1 pp 152-6
Mowday RT Steers RM and Porter LW
(1979) ` The measurement of organizational
commitmentrsquorsquo Journal of Vocational
Behavior Vol 14 pp 224-47
Nunnally JC (1978) Psychometric Theory
McGraw-Hill New York NY
Parasuraman A (1987) ` Customer-oriented
corporate cultures are crucial to services
marketing successrsquorsquo Journal of Services
Marketing Vol 1 No 1 pp 39-46
Parasuraman A Berry LL and Zeithaml VA
(1990) An Empirical Examination of
Relationships in an Extended Service Quality
[ 263 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Model Report No 90-122 Marketing Science
Institute Cambridge MA
Rust RT Stewart GR Miller H and
Pielack D (1996) ` The satisfaction and
retention of frontline employees a customer
satisfaction measurement approachrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 62-80
Shemwell DJ and Yavas U (1998) ` Seven best
practices for creating a sales culture
transitioning from an internally-focused
transaction-oriented culture to a customer-
focused sales-oriented culturersquorsquo International
Journal of Bank Marketing Vol 16 No 7
pp 293-98
Shemwell DJ and Yavas U (1999) ` Bringing
banks out of darkness eliminating remnants
of the cultural malaise of yesteryearrsquorsquo
Journal of Financial Services Marketing
Vol 3 No 4 pp 334-43
Smith AK and Bolton RN (2002) ` The effect of
customersrsquo emotional responses to service
failures on their recovery evaluations and
satisfaction judgmentsrsquorsquo Journal of the
Academy of Marketing Science Vol 30 No 1
pp 5-23
Spreng RA and Chiou J-S (2002) ` A
cross-cultural assessment of the satisfaction
formation processrsquorsquo European Journal of
Marketing Vol 36 Nos 78 pp 829-39
Spreng RA Harrell GD and Mackoy RD
(1995) ` Service recovery impact on
satisfaction and intentionsrsquorsquo Journal of
Services Marketing Vol 9 No 1 pp 15-23
Tabachnick BG and Fidell LS (1996) Using
Multivariate Statistics 3rd ed HarperCollins
Publishers New York NY
Takan M (2001) Bankacilik Teori Uygulama ve
Yonetim Nobel Yayin Dagitim Ankara
Tschohl J (1998) ` Empowerment plusmn the key to
quality servicersquorsquo Managing Service Quality
Vol 8 No 6 pp 421-5
Van Sell M Brief AP and Schuler RS (1981)
` Role conflict and role ambiguity integration
of the literature and directions for future
researchrsquorsquo Human Relations Vol 34 No 1
pp 43-71
Walker OC Churchill GA Jr and Ford NM
(1975) ` Organizational determinants of the
industrial salesmanrsquos role conflict and role
ambiguityrsquorsquo Journal of Marketing Vol 39
January pp 32-9
Yasin MM and Yavas U (1999) ` Enhancing
customer orientation of service delivery
systems an integrative frameworkrsquorsquo
Managing Service Quality Vol 9 No 3
pp 198-203
Yavas U (1998) ` Service quality sentiments as
correlates of behavioral intentions and
satisfaction a study of Turkish consumersrsquorsquo
Journal of Customer Service in Marketing and
Management Vol 4 No 1 pp 31-45
Yavas U (1999) ` Correlates of satisfaction among
customer-contact personnel in retail banking
services an empirical studyrsquorsquo in
Contemporary Developments in Marketing
ESKA Soup de Co Montpellier pp 547-55
Yavas U and Shemwell D (1997a) ` Analyzing a
bankrsquos competitive position and appropriate
strategyrsquorsquo Journal of Retail Banking Services
Vol 19 No 4 pp 43-51
Yavas U and Shemwell D (1997b) ` Meeting the
service quality challenge structural
problems and solutionsrsquorsquo Managing Service
Quality Vol 7 No 4 pp 198-203
Yavas U and Yasin MM (2001) ` Enhancing
organizational performance in banks a
systematic approachrsquorsquo Journal of Services
Marketing Vol 15 No 6 pp 444-53
Yavas U Arsan N and Dilber M (1995)
` Organizational gaps in delivering banking
services a study of bank employeesrsquorsquo Journal
of International Marketing and Marketing
Research Vol 20 No 1 pp 3-13
Yavas U Bilgin Z and Shemwell DJ (1997)
` Service quality in the banking sector in an
emerging economy a consumer surveyrsquorsquo
International Journal of Bank Marketing
Vol 15 No 6 pp 217-23
Appendix Questionnaire items
Customer service orientation of the firm(CSO) (Cronbachrsquos alpha = 087)
This bank measures customer satisfaction
on a regular basis
This bank understands its customersrsquo
needs
This bank sets objectives in terms of
customer satisfaction
This bank attempts to create value for the
customer
This bank is totally committed to serving
its customers well
Employee rewards (REW) (Cronbachrsquosalpha = 093)
If I improve the level of service I offer
customers I will be rewarded
The rewards I receive are based on
customer evaluations of service
Employees in this bank are rewarded for
serving customers well
Employees of this bank are rewarded for
dealing effectively with customer
problems
I am rewarded for satisfying complaining
customers
Staff training (TRA) (Cronbachrsquosalpha = 094)
Employees in this bank receive continued
txaining to provide good service
Employees in this bank receive extensive
customer service training before they
come into contact with customers
[ 264]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
In view of the above discussion it is
hypothesized that
H3 Training employees both to deliver
quality service and to handle customer
complaints effectively will exert a
positive influence on the service
recovery performance of frontline
employees
EmpowermentEmpowerment is a key to managerial and
organizational effectiveness (Conger and
Kanungo 1988) and to corporate success as
demonstrated by the experiences of
successful service firms such as Disney
World (Tschohl 1998) Federal Express and
the Ritz-Carlton Hotel Company (George and
Weimerskirch 1994) Empowerment provides
frontline employees with the responsibility
and authority needed to act quickly without a
long chain of command (Lewis and
Gabrielsen 1998 Hart et al 1990) By
empowering employees the manager
relinquishes control over many aspects of the
service delivery (Hartline and Ferrell 1996)
to the frontline employees who because of
Figure 1Conceptual model
[ 257 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
their boundary spanning roles can provide
quick appropriate and equitable responses
to dissatisfied customers (Boshoff and Allen
2000 Spreng et al 1995 Bowen and Lawler
1992) Empirical evidence suggests that when
addressed with appropriate responses
service failures may indeed create satisfied
customers (Kelly et al 1993)
In light of these the following hypothesis is
advanced
H4 Empowerment of frontline staff will
exert a positive influence on the
service recovery performance of
frontline employees
TeamworkTeamwork in service organizations is of
great importance in the delivery of superior
service quality and service recovery
(Shemwell and Yavas 1998) Not
surprisingly many successful companies
focus on fostering teamwork within and
across business functions to effectively reach
common objectives (George and
Weimerskirch 1994) Among others
teamwork enables employees to learn from
each other (Boshoff and Allen 2000) and to
cooperate (rather than compete) in handling
service related opportunities and problems
Thus it is hypothesized that
H5 Teamwork will exert a positive
influence on the service recovery
performance of frontline employees
Role ambiguityRole ambiguity is a common occurrence
among employees with boundary-spanning
roles (Brown and Peterson 1994) It happens
when employees do not feel that they have
the necessary information to perform their
roles adequately andor when they are
uncertain about what is expected of them
(Walker et al 1975) Although the nature of
the relationship between role ambiguity and
performance remains unclear Van Sell et al
(1981) and Boshoff and Mels (1995) argue that
defining and clarifying roles of service
personnel is essential for effective
performance If frontline employees are not
sure what their duties are all about they are
unlikely to deliver satisfactory recovery to
customers It is thus hypothesized that
H6 Role ambiguity will exert a negative
influence on the service recovery
performance of frontline employees
Organizational commitmentMowday et al (1979) and Meyer et al (1989)
argue that individuals affectively committed
to their organizations (ie those who identify
with and involve themselves in an
organization) perform at a high level Recent
findings from financial services sector lend
credence to these observations and suggest
that organizational commitment has a direct
positive influence on both the external and
internal service quality (Boshoff and Tait
1996 Boshoff and Mels 1995) Hence it is
hypothesized that
H7 Frontline employees who have a high
level of affective commitment to their
organizations will demonstrate a high
level of service recovery performance
Outcome variablesAs noted before in this study service
recovery performance is believed to be
related to two outcome variables intentions
to resign and extrinsic job satisfaction
(Boshoff and Allen 2000) While research
evidence is not monotonic in support the
weight of the evidence suggests that job
performance and turnover are inversely
related In other words employees who feel
that they perform their jobs effectively are
more likely to continue their employment
(McEnvoy and Cascio 1987) On the contrary
employees who are unable to provide a
consistent level of service quality and quick
appropriate and equitable recovery
responses to failures will be more likely to
resign from the organization There is also
evidence that being effective in performing a
job is positively related to job satisfaction
(Rust et al 1996) It is thus hypothesized
that
H8 Effective service recovery
performance by frontline employees
will decrease their intentions to
resign
H9 Effective service recovery
performance by frontline employees
will enhance their extrinsic job
satisfaction
Methodology
SampleTo collect the data for the study a total of 400
questionnaires were distributed to frontline
employees working in 16 public (owned and
managed by state economic enterprises eg
Ziraat Bankasi Halk Bankasi Vakiflar
Bankasi) and private (owned and managed by
private companies eg Akbank Yapi ve
Kredi Bankasi Garanti Bankasi) retail banks
in two cities in Western Turkey All of these
employees had boundary-spanning roles and
spent most of their time directly dealing with
customers Respondents were asked to
complete the questionnaire in a
self-administered manner By the cut-off date
[ 258]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
for data collection 180 usable questionnaires
were retrieved for a response rate of 455 per
cent
Almost two-thirds of the respondents (63
per cent) were female 50 per cent had
secondary and 32 per cent college education
Little over one-half (51 per cent) of the
respondents were between the ages of 18 and
37 and 38 per cent between 38 and 47
MeasurementIn designing the survey instrument the
relevant writings were canvassed (eg
Boshoff and Allen 2000 Mowday et al 1979
Lucas et al 1990 Parasuraman et al 1990)
Multiple item indicators were employed to
operationalize the ten study constructs
depicted in Figure 1 Specifically customer
service orientation of the firm employee
rewards and service recovery performance
were operationalized via five items Role
ambiguity empowerment organizational
commitment and extrinsic job satisfaction
each consisted of four items Intentions to
resign and teamwork had three items each
And training consisted of six items (see
Appendix) Responses to the questionnaire
items were elicited on five-point scales
ranging from ` 5 = strongly agreersquorsquo to
` 1 = strongly disagreersquorsquo
The questionnaire was originally prepared
in English and then translated into Turkish
by using the back-translation method
(McGorry 2000) The cross-linguistic
comparability of the questionnaire was
further tested with the faculty members of a
Turkish university who were fluent in both
languages This was deemed necessary since
the concern was not so much with a literal
translation but with generating meaning
which was as similar as possible to the
original English version
Items relating to a particular construct
were summed to create overall composite
scores for each respondent As reported in
the Appendix internal consistency
reliability estimates (coefficient alphas) of
the constructs exceeded the 070 benchmark
recommended by Nunnally (1978) They
ranged from a low of 078 (empowerment) to a
high of 094 (training)
The measures were subjected to
convergent and discriminant validity
assessment by utilizing the covariance
structure analysis (Anderson and Gerbing
1988 Bagozzi and Yi 1988 Fornell and
Larcker 1981) Under the covariance
structure analysis method average variance
extracted by an underlying construct from its
indicators is used as an index of convergent
validity An average variance extracted in
excess of 050 provides evidence of
convergent validity In addition the
magnitudes and significance levels
associated with factor loading estimates are
examined to determine the degree of
convergence of each item to the underlying
construct (Anderson and Gerbing 1988)
T-values greater than two indicate that the
associated factor loading is statistically
significant and therefore the scale item in
question exhibits convergent validity
As shown in Table I the items belonging to
each of the ten study constructs had factor
loadings greater than 050 and their t-values
well exceeded 2 The average variances
extracted were greater than 050 with respect
to eight of the ten constructs For the
remaining two they were very close to 050
(empowerement 048 and service recovery
performance 049)
To assess the discriminant validity of the
underlying constructs shared variances
between constructs (ie the squared
correlation between two constructs) were
computed As an evidence of discriminant
validity shared variances between
constructs should be smaller than the
` average variance extractedrsquorsquo by each
construct (Fornell and Larcker 1981)
Additionally a good fit of the model to the
data using an overall fit index such as the
comparative fit index (CFI gt 090) provides
further support for discriminant validity
(Bentler 1990) Table I demonstrates that all
shared variances are smaller than the
average variances extracted And the
CFI = 087 approached the 090 limit Overall
these results provide support for the
reliability and convergent and discriminant
validities of the measures used in the study
Results
The relationships hypothesized in Figure 1
were tested by the method of path analysis
(Loehlin 1987) Compared to regression path
analysis allows a simultaneous test of a
system of theoretical relationships involving
multiple dependent variables The technique
also permits for restricted models with
systematic constraints on relationships
among variables Thus models that include
only those paths hypothesized a priori can be
tested
As can be seen from the results presented
in Table II neither of the two perceived
managerial attitude constructs (customer
service orientation of the firm and employee
rewards) depicts significant relationship
with service recovery performance Thus H1
and H2 are not supported Of the five work
environment-related variables two are
[ 259 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Table IConvergent and discriminant validity of the instrument
V ariab le Fa ctor load inga T -va lu eb Avera ge va rian cec S hared va rianc ed
C SO 1 071 1042 058 C SO R EW 02 5C SO 2 066 960 C SO TR A 02 9
C 50 3 081 1273 C SO EM P 02 1C 50 4 080 1244 C SO TEA M 02 1C 50 5 081 1274 C SO R OLE A 01 6
C SO SAT 01 0R E W 1 086 1432 072 C SO O RG 03 4R E W 2 093 1620 C SO R ES 00 8
R E W 3 086 1422 C SO P ER F 01 4R E W 4 086 1419 R E W T R A 03 7R E W 5 073 1114 R E W E M P 03 7
R E W T E AM 00 9T RA 1 078 1242 071 R E W R OLE A 00 3T RA 2 073 1116 R E W S AT 02 5T RA 3 078 1225 R E W O RG 00 4
T RA 4 088 1489 R E W R ES 00 5T RA S 094 1657 R E W P E R F 00 4T RA 6 094 1655 T RA EM P 02 7
T RA TE AM 01 2E M P 1 067 930 048 T RA R O LEA 00 9E M P 2 059 792 T RA SAT 02 2
E M P 3 080 1168 T RA O R G 01 1E M P 4 070 984 T RA R ES 00 2
T RA P ER F 00 7
T EAM 1 067 946 061 E M P TE AM 00 6T EAM 2 081 1211 E M P R O LEA 00 4T EAM 3 084 1279 E M P SAT 03 4
E M P O R G 00 8R O LEA 1 068 984 061 E M P R ES 00 001R O LEA 2 080 1243 E M P P ER F 01 4
R O LEA 3 088 1418 T EAM RO LE A 02 9R O LEA 4 074 1105 T EAM SAT 01 3
T EAM OR G 03 2
O R G 1 076 1132 0S7 T EAM RE S 01 6O R G 2 080 1222 T EAM PE R F 00 8O R G 3 076 1135 R O LEA SA T 00 6
O R G 4 068 969 R O LEA O R G 03 8R O LEA R E S 00 4
P E R F1 071 1036 049 R O LEA P E RF 04 0P E R F2 066 934 S ATO R G 01 2
P E R F3 071 1026 S ATR E S 00 3P E R F4 083 1265 S ATP E R F 00 7P E R F5 055 738 O R G R E S 02 3
O R G P E R F 02 8R E S1 085 1350 070 R E SP E R F 00 2R E S2 091 1480
R E S3 074 1112S AT1 079 1212 060S AT2 071 1061
S AT3 092 1538S AT4 063 906
N otes a Item loadings by confirm ato ry factor an alys is b T -va lue s for the item loadin gs For convergent va lid ityt -va lues should be g reater than at leas t 2 00 (And erson and G erb ing 1988) c For convergent va lid it y ave ra gevarianc e extrac ted fo r ea ch variab le shou ld be equ al to or grea ter than 05 (Fom ell and Larcke r 1981 ) d Ford iscrim inant va lid ity average variance ex tra cted for each variab le should b e gre ater than the sha re d varianc eb etw ee n variab le s (Fom ell an d Larc ker 19 81)
[ 260]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
significantly related to service recovery
performance Both of these significant
relationships are in the hypothesized
directions Results show that empowerment
exerts a positive and role ambiguity a strong
negative influence on the service recovery
performance of frontline staff Thus H4 and
H6 are confirmed The remaining three work
environment variables (training teamwork
and organizational commitment) do not have
any significant effects on the service
recovery performance of frontline staff
Therefore H3 H5 and H7 cannot be
supported
The path analysis results also reveal that
when frontline staff perform service recovery
effectively they demonstrate higher levels of
extrinsic job satisfaction This is in
accordance with H9 Effective service
recovery was posited to decrease the
intention to resign from the bank However
results do not demonstrate any significant
relationship between service recovery
performance of frontline staff and their
intentions to resign Therefore no support
exists for H8
Discussion
Based on Boshoff and Allenrsquos (2000) work
this article presented a model to explain the
underlying process through which a set of
organizational variables influence service
recovery performance and how service
recovery performance leads to different
outcomes Specifically by using frontline
employees in Turkish banks as its setting
the study examined relationships between
managerial attitudes frontline employeesrsquo
perceptions of their work environment and
their service recovery performance and the
impact of service recovery performance on
these employeesrsquo job satisfaction and
intentions to resign
Study results revealed that of the two
perceived managerial attitudes neither
customer service orientation of the bank nor
rewarding employees for service excellence
had any bearing on the employeesrsquo service
recovery performance The two working
environment perceptions which depicted
significant relationships with service
recovery performance were empowerment
and role ambiguity As hypothesized
empowerment had a positive and role
ambiguity a negative relationship with
service recovery performance However the
remaining work environment-related factors
including training teamwork and
commitment were not related to service
recovery performance In terms of the impact
of service recovery performance on outcome
variables the results suggest that effective
service recovery performance enhances
frontline employeesrsquo extrinsic job
satisfaction but it has no influence on their
intentions to resign from their jobs
Specific circumstances inherent in the
Turkish economic environment in general
and Turkish banking environment in
particular can offer explanations for the lack
of hypothesized relationships among several
study variables For instance while Turkish
bank executives recognize the importance of
delivery of high quality service to customers
customer service orientation is still in its
infancy in Turkey The organizational
structures of the banks are not yet attuned to
looking at things from the customersrsquo
perspective (Yavas et al 1997)
Furthermore currently training programs
in Turkish banks focus on development of
Table IIPath analysis results
P ath Es tim ate (m ax im um like lih ood ) t -va lu e S ignificanc e
C SO P ER F 00 1 007 N SR E W P ER F 00 3 038 N ST RA P E RF plusmn0 0 4 plusmn049 N SE M P P E R F 02 3 304 0 00 01T EAM P ER F plusmn0 0 6 plusmn077 N SR O LEA PE R F plusmn0 4 3 plusmn558 0 00 01O R G PE R F 01 5 184 N S
O ve ra ll R 2 = 035P E R F R E S plusmn0 0 9 plusmn119 N S
O ve ra ll R 2 = 00081P E R F S AT 02 6 353 0 00 01
O ve ra ll R 2 = 0068
N ote Th ere is no e vide nce of a m ult ico llin earity p rob lem since e ach c ondition ing index is low er than 030 a nda t le ast tw o varia nce pro portio ns are low e r tha n 0 50 (T abac hnick an d Fide ll 1996 p 87 ) exce pt for a variab lew hose va rianc e propo rtions w ith o th ers w ere 0 98 (con stant) 0 52 and 051
[ 261 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
functional skills They overlook behavioral
skills training so important in effectively
handling customer complaints Nor do they
emphasize teamwork training After basic
training employees return to their
respective positions and utilization of
teamwork is left to the initiative of the
employees Additionally in Turkish banks
employees are generally praised for their
ability to follow orders rather than work as a
team As Yavas et al (1995) cogently argue
the undue emphasis placed on following
orders is not only counter-productive in
terms of teamwork but certainly hurts
employeesrsquo perceived job control and
performance Also Turkish banks do not
typically reward their employees for
increased productivity resulting from
teamwork or good performance (Yavas 1999)
These specific circumstances akin to the
Turkish banking environment may explain
the absence of relationships between
organizational factors and service recovery
performance
The lack of hypothesized relationship
between service recovery performance and
intentions to resign can be attributed to the
current Turkish economic milieu In a period
of severe economic crisis where a high
unemployment rate exists and downsizing is
common place many employees do not
consider quitting their jobs Our experiences
suggest that this is especially true in the
study area where bank employees resigning
from their jobs would not likely find another
job andor get a better one
It is interesting to note that empowerment
and role ambiguity do portray significant
relationships with service recovery
performance and effective service recovery
performance leads to enhanced job
satisfaction Therefore to further enhance
their employeesrsquo performance and to induce
higher levels of job satisfaction Turkish
banks can take actions on two fronts On one
hand they should reverse their policy of
emphasizing ` doing things by the bookrsquorsquo and
encourage and reward employees to exercise
imagination and initiative In other words
they should take decisive steps to empower
their frontline employees with the authority
to make independent decisions give them
adequate freedom to assist customers and
reward such behavior (Yavas 1999) More
empowerment would not only lead to better
service recovery performance but also free
management to concentrate on more
strategic issues (Boshoff 1997) On the other
hand to resolve employeesrsquo role ambiguity
managers should clearly communicate
expectations to frontline employees clarify
their roles and inform them of their
responsibilities and levels of authority
On a closing note it should be underscored
that when the results of this study are
compared to the results of the Boshoff and
Allen (2000) study a number of differences
are apparent Specifically of the nine
hypotheses common to both studies five
generate similar results whereas four do not
yield congruent results These differences
lend further credence to the conclusions of
others (Spreng and Chiou 2002 Menguc
1996) that conceptual models developed in a
particular cultural context and socio-
economic environment cannot be totally
transferred and generalized to another one
In the future researchers adapting a model
developed in one cultural context must
consider cross-cultural and other differences
and incorporate necessary refinements not
only to their conceptual models but also to
their constructs
ReferencesAnderson JC and Gerbing DW (1988)
` Structural equation modeling in practice a
review and recommended two-step
approachrsquorsquo Psychological Bulletin Vol 103
May pp 411-23
Bagozzi RP and Yi Y (1988) ` On the evaluation
of structural equation modelsrsquorsquo Journal of the
Academy of Marketing Science Vol 16 No 1
pp 74-94
Bejou D and Palmer A (1998) ` Service failure
and loyalty an exploratory empirical study of
airline customersrsquorsquo Journal of Services
Marketing Vol 12 No 1 pp 7-22
Bentler PM (1990) ` Comparative fit indices in
structural modelsrsquorsquo Psychological Bulletin
Vol 107 No 2 pp 238-46
Bettencourt LA and Gwinner K (1996)
` Customization of the service experience the
role of the frontline employeersquorsquo International
Journal of Service Industry Management
Vol 7 No 2 pp 3-20
Bitner MJ Booms BH and Mohr LA (1994)
` Critical service encounters the employeersquos
viewpointrsquorsquo Journal of Marketing Vol 58
October pp 95-106
Bitner MJ Booms BH and Tetreault MS
(1990) ` The service encounter diagnosing
favorable and unfavorable incidentsrsquorsquo
Journal of Marketing Vol 54 January
pp 71-84
Boshoff C (1997) ` An experimental study of
service recovery optionsrsquorsquo International
Journal of Service Industry Management
Vol 8 No 2 pp 110-30
Boshoff C and Allen J (2000) ` The influence of
selected antecedents on frontline staffrsquos
perceptions of service recovery
performancersquorsquo International Journal of
Service Industry Management Vol 11 No 1
pp 63-90
[ 262]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Boshoff C and Tait M (1996) ` Quality
perceptions in the financial services sector
the potential impact of internal marketingrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 5-31
Boshoff C and Mels G (1995) ` A causal model to
evaluate the relationships among
supervision role stress organizational
commitment and internal service qualityrsquorsquo
European Journal of Marketing Vol 29 No 2
pp 23-42
Bowen DE and Johnston R (1999) ` Internal
service recovery developing a new
constructrsquorsquo International Journal of Service
Industry Management Vol 10 No 2 pp 118-31
Bowen DE and Lawler EE (1992) ` The
empowerment of service workers what why
how and whenrsquorsquo Sloan Management Review
Vol 33 Spring pp 31-9
Bowen DE and Schneider B (1988)
` Boundary-spanning-role employees and the
service encounter some guidelines for
management and researchrsquorsquo in Czepiel JA
Solomon MR and Suprenant CF (Eds)
The Service Encounter Managing
EmployeeCustomer Interaction in Service
Businesses 4th ed Lexington Books
Lexington MA pp 25-47
Brown SP and Peterson RA (1994) ` The effect
of effort on sales performance and job
satisfactionrsquorsquo Journal of Marketing Vol 58
April pp 70-80
Conger JA and Kanungo RN (1988) ` The
empowerment process integreating theory
and practicersquorsquo Academy of Management
Review Vol 13 No 3 pp 471-82
Fornell C and Larcker DF (1981) ` Evaluating
structural equation models with
unobservable variables and measurement
errorrsquorsquo Journal of Marketing Research Vol 18
February pp 39-50
George S and Weimerskirch A (1994) Total
Quality Management Strategies and
Techniques Proven at Todayrsquos Most Successful
Companies John Wiley amp Sons New York
NY
Gronroos C (1990a) ` Relationship approach to
marketing in service contexts the marketing
and organizational behavior interfacersquorsquo
Journal of Business Research Vol 20 No 1
pp 3-11
Gronroos C (1990b) Service Management and
Marketing Managing the Moments of Truth
in Service Competition Lexington Books
Lexington MA
Hart CWL Heskett JL and Sasser WE Jr
(1990) ` The profitable art of service
recoveryrsquorsquo Harvard Business Review Vol 68
July-August pp 148-56
Hartline MD and Ferrell OC (1996) ` The
management of customer-contact service
employees an empirical investigationrsquorsquo
Journal of Marketing Vol 60 October
pp 52-70
Kelley SW Hoffman KD and Davis MA
(1993) ` A typology of retail failures and
recoveriesrsquorsquo Journal of Retailing Vol 69 No 4
pp 429-52
Kotler P Bowen J and Makens J (1999)
Marketing for Hospitality and Tourism
2nd ed Prentice-Hall Upper Saddle River
NJ
Lewis BR and Gabrielsen GOS (1998)
` Intra-organizational aspects of service
quality management the employeesrsquo
perspectiversquorsquo The Service Industries Journal
Vol 18 No 2 pp 64-89
Lewis BR and Spryrakopoulos S (2001)
` Service failures and recovery in retail
banking the customersrsquo perspectiversquorsquo
International Journal of Bank Marketing
Vol 19 No 1 pp 37-47
Loehlin JC (1987) Latent Variable Models
Lawrence Earlbaum Hillsdale NJ
Lucas GH Babakus E and Ingram TN (1990)
` An empirical test of the job
satisfaction-turnover relationship assessing
the role of job performance for retail
managersrsquorsquo Journal of the Academy of
Marketing Science Vol 18 No 3 pp 199-208
McEnvoy G and Cascio W (1987) ` Do good or
poor performers leave A meta-analysis of the
relationship between performance and
turnoverrsquorsquo Academy of Management Journal
Vol 30 pp 744-62
McGorry SY (2000) ` Measurement in a
cross-cultural environment survey
translation issuesrsquorsquo Qualitative Market
Research An International Journal Vol 3
No 2 pp 74-81
Mattila AS (2001) ` The effectiveness of service
recovery in a multi-industry settingrsquorsquo Journal
of Services Marketing Vol 15 No 7 pp 583-96
Menguc B (1996) ` Evidence for Turkish
industrial salespeople testing the
applicability of a conceptual model for the
effect of effort on sales performance and job
satisfactionrsquorsquo European Journal of Marketing
Vol 30 No 1 pp 33-51
Meyer JP Paunonen SV Gellatly IR
Goffin RD and Jackson DN (1989)
` Organizational commitment and job
performance itrsquos the nature of the
commitment that countsrsquorsquo Journal of Applied
Psychology Vol 74 No 1 pp 152-6
Mowday RT Steers RM and Porter LW
(1979) ` The measurement of organizational
commitmentrsquorsquo Journal of Vocational
Behavior Vol 14 pp 224-47
Nunnally JC (1978) Psychometric Theory
McGraw-Hill New York NY
Parasuraman A (1987) ` Customer-oriented
corporate cultures are crucial to services
marketing successrsquorsquo Journal of Services
Marketing Vol 1 No 1 pp 39-46
Parasuraman A Berry LL and Zeithaml VA
(1990) An Empirical Examination of
Relationships in an Extended Service Quality
[ 263 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Model Report No 90-122 Marketing Science
Institute Cambridge MA
Rust RT Stewart GR Miller H and
Pielack D (1996) ` The satisfaction and
retention of frontline employees a customer
satisfaction measurement approachrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 62-80
Shemwell DJ and Yavas U (1998) ` Seven best
practices for creating a sales culture
transitioning from an internally-focused
transaction-oriented culture to a customer-
focused sales-oriented culturersquorsquo International
Journal of Bank Marketing Vol 16 No 7
pp 293-98
Shemwell DJ and Yavas U (1999) ` Bringing
banks out of darkness eliminating remnants
of the cultural malaise of yesteryearrsquorsquo
Journal of Financial Services Marketing
Vol 3 No 4 pp 334-43
Smith AK and Bolton RN (2002) ` The effect of
customersrsquo emotional responses to service
failures on their recovery evaluations and
satisfaction judgmentsrsquorsquo Journal of the
Academy of Marketing Science Vol 30 No 1
pp 5-23
Spreng RA and Chiou J-S (2002) ` A
cross-cultural assessment of the satisfaction
formation processrsquorsquo European Journal of
Marketing Vol 36 Nos 78 pp 829-39
Spreng RA Harrell GD and Mackoy RD
(1995) ` Service recovery impact on
satisfaction and intentionsrsquorsquo Journal of
Services Marketing Vol 9 No 1 pp 15-23
Tabachnick BG and Fidell LS (1996) Using
Multivariate Statistics 3rd ed HarperCollins
Publishers New York NY
Takan M (2001) Bankacilik Teori Uygulama ve
Yonetim Nobel Yayin Dagitim Ankara
Tschohl J (1998) ` Empowerment plusmn the key to
quality servicersquorsquo Managing Service Quality
Vol 8 No 6 pp 421-5
Van Sell M Brief AP and Schuler RS (1981)
` Role conflict and role ambiguity integration
of the literature and directions for future
researchrsquorsquo Human Relations Vol 34 No 1
pp 43-71
Walker OC Churchill GA Jr and Ford NM
(1975) ` Organizational determinants of the
industrial salesmanrsquos role conflict and role
ambiguityrsquorsquo Journal of Marketing Vol 39
January pp 32-9
Yasin MM and Yavas U (1999) ` Enhancing
customer orientation of service delivery
systems an integrative frameworkrsquorsquo
Managing Service Quality Vol 9 No 3
pp 198-203
Yavas U (1998) ` Service quality sentiments as
correlates of behavioral intentions and
satisfaction a study of Turkish consumersrsquorsquo
Journal of Customer Service in Marketing and
Management Vol 4 No 1 pp 31-45
Yavas U (1999) ` Correlates of satisfaction among
customer-contact personnel in retail banking
services an empirical studyrsquorsquo in
Contemporary Developments in Marketing
ESKA Soup de Co Montpellier pp 547-55
Yavas U and Shemwell D (1997a) ` Analyzing a
bankrsquos competitive position and appropriate
strategyrsquorsquo Journal of Retail Banking Services
Vol 19 No 4 pp 43-51
Yavas U and Shemwell D (1997b) ` Meeting the
service quality challenge structural
problems and solutionsrsquorsquo Managing Service
Quality Vol 7 No 4 pp 198-203
Yavas U and Yasin MM (2001) ` Enhancing
organizational performance in banks a
systematic approachrsquorsquo Journal of Services
Marketing Vol 15 No 6 pp 444-53
Yavas U Arsan N and Dilber M (1995)
` Organizational gaps in delivering banking
services a study of bank employeesrsquorsquo Journal
of International Marketing and Marketing
Research Vol 20 No 1 pp 3-13
Yavas U Bilgin Z and Shemwell DJ (1997)
` Service quality in the banking sector in an
emerging economy a consumer surveyrsquorsquo
International Journal of Bank Marketing
Vol 15 No 6 pp 217-23
Appendix Questionnaire items
Customer service orientation of the firm(CSO) (Cronbachrsquos alpha = 087)
This bank measures customer satisfaction
on a regular basis
This bank understands its customersrsquo
needs
This bank sets objectives in terms of
customer satisfaction
This bank attempts to create value for the
customer
This bank is totally committed to serving
its customers well
Employee rewards (REW) (Cronbachrsquosalpha = 093)
If I improve the level of service I offer
customers I will be rewarded
The rewards I receive are based on
customer evaluations of service
Employees in this bank are rewarded for
serving customers well
Employees of this bank are rewarded for
dealing effectively with customer
problems
I am rewarded for satisfying complaining
customers
Staff training (TRA) (Cronbachrsquosalpha = 094)
Employees in this bank receive continued
txaining to provide good service
Employees in this bank receive extensive
customer service training before they
come into contact with customers
[ 264]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
their boundary spanning roles can provide
quick appropriate and equitable responses
to dissatisfied customers (Boshoff and Allen
2000 Spreng et al 1995 Bowen and Lawler
1992) Empirical evidence suggests that when
addressed with appropriate responses
service failures may indeed create satisfied
customers (Kelly et al 1993)
In light of these the following hypothesis is
advanced
H4 Empowerment of frontline staff will
exert a positive influence on the
service recovery performance of
frontline employees
TeamworkTeamwork in service organizations is of
great importance in the delivery of superior
service quality and service recovery
(Shemwell and Yavas 1998) Not
surprisingly many successful companies
focus on fostering teamwork within and
across business functions to effectively reach
common objectives (George and
Weimerskirch 1994) Among others
teamwork enables employees to learn from
each other (Boshoff and Allen 2000) and to
cooperate (rather than compete) in handling
service related opportunities and problems
Thus it is hypothesized that
H5 Teamwork will exert a positive
influence on the service recovery
performance of frontline employees
Role ambiguityRole ambiguity is a common occurrence
among employees with boundary-spanning
roles (Brown and Peterson 1994) It happens
when employees do not feel that they have
the necessary information to perform their
roles adequately andor when they are
uncertain about what is expected of them
(Walker et al 1975) Although the nature of
the relationship between role ambiguity and
performance remains unclear Van Sell et al
(1981) and Boshoff and Mels (1995) argue that
defining and clarifying roles of service
personnel is essential for effective
performance If frontline employees are not
sure what their duties are all about they are
unlikely to deliver satisfactory recovery to
customers It is thus hypothesized that
H6 Role ambiguity will exert a negative
influence on the service recovery
performance of frontline employees
Organizational commitmentMowday et al (1979) and Meyer et al (1989)
argue that individuals affectively committed
to their organizations (ie those who identify
with and involve themselves in an
organization) perform at a high level Recent
findings from financial services sector lend
credence to these observations and suggest
that organizational commitment has a direct
positive influence on both the external and
internal service quality (Boshoff and Tait
1996 Boshoff and Mels 1995) Hence it is
hypothesized that
H7 Frontline employees who have a high
level of affective commitment to their
organizations will demonstrate a high
level of service recovery performance
Outcome variablesAs noted before in this study service
recovery performance is believed to be
related to two outcome variables intentions
to resign and extrinsic job satisfaction
(Boshoff and Allen 2000) While research
evidence is not monotonic in support the
weight of the evidence suggests that job
performance and turnover are inversely
related In other words employees who feel
that they perform their jobs effectively are
more likely to continue their employment
(McEnvoy and Cascio 1987) On the contrary
employees who are unable to provide a
consistent level of service quality and quick
appropriate and equitable recovery
responses to failures will be more likely to
resign from the organization There is also
evidence that being effective in performing a
job is positively related to job satisfaction
(Rust et al 1996) It is thus hypothesized
that
H8 Effective service recovery
performance by frontline employees
will decrease their intentions to
resign
H9 Effective service recovery
performance by frontline employees
will enhance their extrinsic job
satisfaction
Methodology
SampleTo collect the data for the study a total of 400
questionnaires were distributed to frontline
employees working in 16 public (owned and
managed by state economic enterprises eg
Ziraat Bankasi Halk Bankasi Vakiflar
Bankasi) and private (owned and managed by
private companies eg Akbank Yapi ve
Kredi Bankasi Garanti Bankasi) retail banks
in two cities in Western Turkey All of these
employees had boundary-spanning roles and
spent most of their time directly dealing with
customers Respondents were asked to
complete the questionnaire in a
self-administered manner By the cut-off date
[ 258]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
for data collection 180 usable questionnaires
were retrieved for a response rate of 455 per
cent
Almost two-thirds of the respondents (63
per cent) were female 50 per cent had
secondary and 32 per cent college education
Little over one-half (51 per cent) of the
respondents were between the ages of 18 and
37 and 38 per cent between 38 and 47
MeasurementIn designing the survey instrument the
relevant writings were canvassed (eg
Boshoff and Allen 2000 Mowday et al 1979
Lucas et al 1990 Parasuraman et al 1990)
Multiple item indicators were employed to
operationalize the ten study constructs
depicted in Figure 1 Specifically customer
service orientation of the firm employee
rewards and service recovery performance
were operationalized via five items Role
ambiguity empowerment organizational
commitment and extrinsic job satisfaction
each consisted of four items Intentions to
resign and teamwork had three items each
And training consisted of six items (see
Appendix) Responses to the questionnaire
items were elicited on five-point scales
ranging from ` 5 = strongly agreersquorsquo to
` 1 = strongly disagreersquorsquo
The questionnaire was originally prepared
in English and then translated into Turkish
by using the back-translation method
(McGorry 2000) The cross-linguistic
comparability of the questionnaire was
further tested with the faculty members of a
Turkish university who were fluent in both
languages This was deemed necessary since
the concern was not so much with a literal
translation but with generating meaning
which was as similar as possible to the
original English version
Items relating to a particular construct
were summed to create overall composite
scores for each respondent As reported in
the Appendix internal consistency
reliability estimates (coefficient alphas) of
the constructs exceeded the 070 benchmark
recommended by Nunnally (1978) They
ranged from a low of 078 (empowerment) to a
high of 094 (training)
The measures were subjected to
convergent and discriminant validity
assessment by utilizing the covariance
structure analysis (Anderson and Gerbing
1988 Bagozzi and Yi 1988 Fornell and
Larcker 1981) Under the covariance
structure analysis method average variance
extracted by an underlying construct from its
indicators is used as an index of convergent
validity An average variance extracted in
excess of 050 provides evidence of
convergent validity In addition the
magnitudes and significance levels
associated with factor loading estimates are
examined to determine the degree of
convergence of each item to the underlying
construct (Anderson and Gerbing 1988)
T-values greater than two indicate that the
associated factor loading is statistically
significant and therefore the scale item in
question exhibits convergent validity
As shown in Table I the items belonging to
each of the ten study constructs had factor
loadings greater than 050 and their t-values
well exceeded 2 The average variances
extracted were greater than 050 with respect
to eight of the ten constructs For the
remaining two they were very close to 050
(empowerement 048 and service recovery
performance 049)
To assess the discriminant validity of the
underlying constructs shared variances
between constructs (ie the squared
correlation between two constructs) were
computed As an evidence of discriminant
validity shared variances between
constructs should be smaller than the
` average variance extractedrsquorsquo by each
construct (Fornell and Larcker 1981)
Additionally a good fit of the model to the
data using an overall fit index such as the
comparative fit index (CFI gt 090) provides
further support for discriminant validity
(Bentler 1990) Table I demonstrates that all
shared variances are smaller than the
average variances extracted And the
CFI = 087 approached the 090 limit Overall
these results provide support for the
reliability and convergent and discriminant
validities of the measures used in the study
Results
The relationships hypothesized in Figure 1
were tested by the method of path analysis
(Loehlin 1987) Compared to regression path
analysis allows a simultaneous test of a
system of theoretical relationships involving
multiple dependent variables The technique
also permits for restricted models with
systematic constraints on relationships
among variables Thus models that include
only those paths hypothesized a priori can be
tested
As can be seen from the results presented
in Table II neither of the two perceived
managerial attitude constructs (customer
service orientation of the firm and employee
rewards) depicts significant relationship
with service recovery performance Thus H1
and H2 are not supported Of the five work
environment-related variables two are
[ 259 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Table IConvergent and discriminant validity of the instrument
V ariab le Fa ctor load inga T -va lu eb Avera ge va rian cec S hared va rianc ed
C SO 1 071 1042 058 C SO R EW 02 5C SO 2 066 960 C SO TR A 02 9
C 50 3 081 1273 C SO EM P 02 1C 50 4 080 1244 C SO TEA M 02 1C 50 5 081 1274 C SO R OLE A 01 6
C SO SAT 01 0R E W 1 086 1432 072 C SO O RG 03 4R E W 2 093 1620 C SO R ES 00 8
R E W 3 086 1422 C SO P ER F 01 4R E W 4 086 1419 R E W T R A 03 7R E W 5 073 1114 R E W E M P 03 7
R E W T E AM 00 9T RA 1 078 1242 071 R E W R OLE A 00 3T RA 2 073 1116 R E W S AT 02 5T RA 3 078 1225 R E W O RG 00 4
T RA 4 088 1489 R E W R ES 00 5T RA S 094 1657 R E W P E R F 00 4T RA 6 094 1655 T RA EM P 02 7
T RA TE AM 01 2E M P 1 067 930 048 T RA R O LEA 00 9E M P 2 059 792 T RA SAT 02 2
E M P 3 080 1168 T RA O R G 01 1E M P 4 070 984 T RA R ES 00 2
T RA P ER F 00 7
T EAM 1 067 946 061 E M P TE AM 00 6T EAM 2 081 1211 E M P R O LEA 00 4T EAM 3 084 1279 E M P SAT 03 4
E M P O R G 00 8R O LEA 1 068 984 061 E M P R ES 00 001R O LEA 2 080 1243 E M P P ER F 01 4
R O LEA 3 088 1418 T EAM RO LE A 02 9R O LEA 4 074 1105 T EAM SAT 01 3
T EAM OR G 03 2
O R G 1 076 1132 0S7 T EAM RE S 01 6O R G 2 080 1222 T EAM PE R F 00 8O R G 3 076 1135 R O LEA SA T 00 6
O R G 4 068 969 R O LEA O R G 03 8R O LEA R E S 00 4
P E R F1 071 1036 049 R O LEA P E RF 04 0P E R F2 066 934 S ATO R G 01 2
P E R F3 071 1026 S ATR E S 00 3P E R F4 083 1265 S ATP E R F 00 7P E R F5 055 738 O R G R E S 02 3
O R G P E R F 02 8R E S1 085 1350 070 R E SP E R F 00 2R E S2 091 1480
R E S3 074 1112S AT1 079 1212 060S AT2 071 1061
S AT3 092 1538S AT4 063 906
N otes a Item loadings by confirm ato ry factor an alys is b T -va lue s for the item loadin gs For convergent va lid ityt -va lues should be g reater than at leas t 2 00 (And erson and G erb ing 1988) c For convergent va lid it y ave ra gevarianc e extrac ted fo r ea ch variab le shou ld be equ al to or grea ter than 05 (Fom ell and Larcke r 1981 ) d Ford iscrim inant va lid ity average variance ex tra cted for each variab le should b e gre ater than the sha re d varianc eb etw ee n variab le s (Fom ell an d Larc ker 19 81)
[ 260]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
significantly related to service recovery
performance Both of these significant
relationships are in the hypothesized
directions Results show that empowerment
exerts a positive and role ambiguity a strong
negative influence on the service recovery
performance of frontline staff Thus H4 and
H6 are confirmed The remaining three work
environment variables (training teamwork
and organizational commitment) do not have
any significant effects on the service
recovery performance of frontline staff
Therefore H3 H5 and H7 cannot be
supported
The path analysis results also reveal that
when frontline staff perform service recovery
effectively they demonstrate higher levels of
extrinsic job satisfaction This is in
accordance with H9 Effective service
recovery was posited to decrease the
intention to resign from the bank However
results do not demonstrate any significant
relationship between service recovery
performance of frontline staff and their
intentions to resign Therefore no support
exists for H8
Discussion
Based on Boshoff and Allenrsquos (2000) work
this article presented a model to explain the
underlying process through which a set of
organizational variables influence service
recovery performance and how service
recovery performance leads to different
outcomes Specifically by using frontline
employees in Turkish banks as its setting
the study examined relationships between
managerial attitudes frontline employeesrsquo
perceptions of their work environment and
their service recovery performance and the
impact of service recovery performance on
these employeesrsquo job satisfaction and
intentions to resign
Study results revealed that of the two
perceived managerial attitudes neither
customer service orientation of the bank nor
rewarding employees for service excellence
had any bearing on the employeesrsquo service
recovery performance The two working
environment perceptions which depicted
significant relationships with service
recovery performance were empowerment
and role ambiguity As hypothesized
empowerment had a positive and role
ambiguity a negative relationship with
service recovery performance However the
remaining work environment-related factors
including training teamwork and
commitment were not related to service
recovery performance In terms of the impact
of service recovery performance on outcome
variables the results suggest that effective
service recovery performance enhances
frontline employeesrsquo extrinsic job
satisfaction but it has no influence on their
intentions to resign from their jobs
Specific circumstances inherent in the
Turkish economic environment in general
and Turkish banking environment in
particular can offer explanations for the lack
of hypothesized relationships among several
study variables For instance while Turkish
bank executives recognize the importance of
delivery of high quality service to customers
customer service orientation is still in its
infancy in Turkey The organizational
structures of the banks are not yet attuned to
looking at things from the customersrsquo
perspective (Yavas et al 1997)
Furthermore currently training programs
in Turkish banks focus on development of
Table IIPath analysis results
P ath Es tim ate (m ax im um like lih ood ) t -va lu e S ignificanc e
C SO P ER F 00 1 007 N SR E W P ER F 00 3 038 N ST RA P E RF plusmn0 0 4 plusmn049 N SE M P P E R F 02 3 304 0 00 01T EAM P ER F plusmn0 0 6 plusmn077 N SR O LEA PE R F plusmn0 4 3 plusmn558 0 00 01O R G PE R F 01 5 184 N S
O ve ra ll R 2 = 035P E R F R E S plusmn0 0 9 plusmn119 N S
O ve ra ll R 2 = 00081P E R F S AT 02 6 353 0 00 01
O ve ra ll R 2 = 0068
N ote Th ere is no e vide nce of a m ult ico llin earity p rob lem since e ach c ondition ing index is low er than 030 a nda t le ast tw o varia nce pro portio ns are low e r tha n 0 50 (T abac hnick an d Fide ll 1996 p 87 ) exce pt for a variab lew hose va rianc e propo rtions w ith o th ers w ere 0 98 (con stant) 0 52 and 051
[ 261 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
functional skills They overlook behavioral
skills training so important in effectively
handling customer complaints Nor do they
emphasize teamwork training After basic
training employees return to their
respective positions and utilization of
teamwork is left to the initiative of the
employees Additionally in Turkish banks
employees are generally praised for their
ability to follow orders rather than work as a
team As Yavas et al (1995) cogently argue
the undue emphasis placed on following
orders is not only counter-productive in
terms of teamwork but certainly hurts
employeesrsquo perceived job control and
performance Also Turkish banks do not
typically reward their employees for
increased productivity resulting from
teamwork or good performance (Yavas 1999)
These specific circumstances akin to the
Turkish banking environment may explain
the absence of relationships between
organizational factors and service recovery
performance
The lack of hypothesized relationship
between service recovery performance and
intentions to resign can be attributed to the
current Turkish economic milieu In a period
of severe economic crisis where a high
unemployment rate exists and downsizing is
common place many employees do not
consider quitting their jobs Our experiences
suggest that this is especially true in the
study area where bank employees resigning
from their jobs would not likely find another
job andor get a better one
It is interesting to note that empowerment
and role ambiguity do portray significant
relationships with service recovery
performance and effective service recovery
performance leads to enhanced job
satisfaction Therefore to further enhance
their employeesrsquo performance and to induce
higher levels of job satisfaction Turkish
banks can take actions on two fronts On one
hand they should reverse their policy of
emphasizing ` doing things by the bookrsquorsquo and
encourage and reward employees to exercise
imagination and initiative In other words
they should take decisive steps to empower
their frontline employees with the authority
to make independent decisions give them
adequate freedom to assist customers and
reward such behavior (Yavas 1999) More
empowerment would not only lead to better
service recovery performance but also free
management to concentrate on more
strategic issues (Boshoff 1997) On the other
hand to resolve employeesrsquo role ambiguity
managers should clearly communicate
expectations to frontline employees clarify
their roles and inform them of their
responsibilities and levels of authority
On a closing note it should be underscored
that when the results of this study are
compared to the results of the Boshoff and
Allen (2000) study a number of differences
are apparent Specifically of the nine
hypotheses common to both studies five
generate similar results whereas four do not
yield congruent results These differences
lend further credence to the conclusions of
others (Spreng and Chiou 2002 Menguc
1996) that conceptual models developed in a
particular cultural context and socio-
economic environment cannot be totally
transferred and generalized to another one
In the future researchers adapting a model
developed in one cultural context must
consider cross-cultural and other differences
and incorporate necessary refinements not
only to their conceptual models but also to
their constructs
ReferencesAnderson JC and Gerbing DW (1988)
` Structural equation modeling in practice a
review and recommended two-step
approachrsquorsquo Psychological Bulletin Vol 103
May pp 411-23
Bagozzi RP and Yi Y (1988) ` On the evaluation
of structural equation modelsrsquorsquo Journal of the
Academy of Marketing Science Vol 16 No 1
pp 74-94
Bejou D and Palmer A (1998) ` Service failure
and loyalty an exploratory empirical study of
airline customersrsquorsquo Journal of Services
Marketing Vol 12 No 1 pp 7-22
Bentler PM (1990) ` Comparative fit indices in
structural modelsrsquorsquo Psychological Bulletin
Vol 107 No 2 pp 238-46
Bettencourt LA and Gwinner K (1996)
` Customization of the service experience the
role of the frontline employeersquorsquo International
Journal of Service Industry Management
Vol 7 No 2 pp 3-20
Bitner MJ Booms BH and Mohr LA (1994)
` Critical service encounters the employeersquos
viewpointrsquorsquo Journal of Marketing Vol 58
October pp 95-106
Bitner MJ Booms BH and Tetreault MS
(1990) ` The service encounter diagnosing
favorable and unfavorable incidentsrsquorsquo
Journal of Marketing Vol 54 January
pp 71-84
Boshoff C (1997) ` An experimental study of
service recovery optionsrsquorsquo International
Journal of Service Industry Management
Vol 8 No 2 pp 110-30
Boshoff C and Allen J (2000) ` The influence of
selected antecedents on frontline staffrsquos
perceptions of service recovery
performancersquorsquo International Journal of
Service Industry Management Vol 11 No 1
pp 63-90
[ 262]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Boshoff C and Tait M (1996) ` Quality
perceptions in the financial services sector
the potential impact of internal marketingrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 5-31
Boshoff C and Mels G (1995) ` A causal model to
evaluate the relationships among
supervision role stress organizational
commitment and internal service qualityrsquorsquo
European Journal of Marketing Vol 29 No 2
pp 23-42
Bowen DE and Johnston R (1999) ` Internal
service recovery developing a new
constructrsquorsquo International Journal of Service
Industry Management Vol 10 No 2 pp 118-31
Bowen DE and Lawler EE (1992) ` The
empowerment of service workers what why
how and whenrsquorsquo Sloan Management Review
Vol 33 Spring pp 31-9
Bowen DE and Schneider B (1988)
` Boundary-spanning-role employees and the
service encounter some guidelines for
management and researchrsquorsquo in Czepiel JA
Solomon MR and Suprenant CF (Eds)
The Service Encounter Managing
EmployeeCustomer Interaction in Service
Businesses 4th ed Lexington Books
Lexington MA pp 25-47
Brown SP and Peterson RA (1994) ` The effect
of effort on sales performance and job
satisfactionrsquorsquo Journal of Marketing Vol 58
April pp 70-80
Conger JA and Kanungo RN (1988) ` The
empowerment process integreating theory
and practicersquorsquo Academy of Management
Review Vol 13 No 3 pp 471-82
Fornell C and Larcker DF (1981) ` Evaluating
structural equation models with
unobservable variables and measurement
errorrsquorsquo Journal of Marketing Research Vol 18
February pp 39-50
George S and Weimerskirch A (1994) Total
Quality Management Strategies and
Techniques Proven at Todayrsquos Most Successful
Companies John Wiley amp Sons New York
NY
Gronroos C (1990a) ` Relationship approach to
marketing in service contexts the marketing
and organizational behavior interfacersquorsquo
Journal of Business Research Vol 20 No 1
pp 3-11
Gronroos C (1990b) Service Management and
Marketing Managing the Moments of Truth
in Service Competition Lexington Books
Lexington MA
Hart CWL Heskett JL and Sasser WE Jr
(1990) ` The profitable art of service
recoveryrsquorsquo Harvard Business Review Vol 68
July-August pp 148-56
Hartline MD and Ferrell OC (1996) ` The
management of customer-contact service
employees an empirical investigationrsquorsquo
Journal of Marketing Vol 60 October
pp 52-70
Kelley SW Hoffman KD and Davis MA
(1993) ` A typology of retail failures and
recoveriesrsquorsquo Journal of Retailing Vol 69 No 4
pp 429-52
Kotler P Bowen J and Makens J (1999)
Marketing for Hospitality and Tourism
2nd ed Prentice-Hall Upper Saddle River
NJ
Lewis BR and Gabrielsen GOS (1998)
` Intra-organizational aspects of service
quality management the employeesrsquo
perspectiversquorsquo The Service Industries Journal
Vol 18 No 2 pp 64-89
Lewis BR and Spryrakopoulos S (2001)
` Service failures and recovery in retail
banking the customersrsquo perspectiversquorsquo
International Journal of Bank Marketing
Vol 19 No 1 pp 37-47
Loehlin JC (1987) Latent Variable Models
Lawrence Earlbaum Hillsdale NJ
Lucas GH Babakus E and Ingram TN (1990)
` An empirical test of the job
satisfaction-turnover relationship assessing
the role of job performance for retail
managersrsquorsquo Journal of the Academy of
Marketing Science Vol 18 No 3 pp 199-208
McEnvoy G and Cascio W (1987) ` Do good or
poor performers leave A meta-analysis of the
relationship between performance and
turnoverrsquorsquo Academy of Management Journal
Vol 30 pp 744-62
McGorry SY (2000) ` Measurement in a
cross-cultural environment survey
translation issuesrsquorsquo Qualitative Market
Research An International Journal Vol 3
No 2 pp 74-81
Mattila AS (2001) ` The effectiveness of service
recovery in a multi-industry settingrsquorsquo Journal
of Services Marketing Vol 15 No 7 pp 583-96
Menguc B (1996) ` Evidence for Turkish
industrial salespeople testing the
applicability of a conceptual model for the
effect of effort on sales performance and job
satisfactionrsquorsquo European Journal of Marketing
Vol 30 No 1 pp 33-51
Meyer JP Paunonen SV Gellatly IR
Goffin RD and Jackson DN (1989)
` Organizational commitment and job
performance itrsquos the nature of the
commitment that countsrsquorsquo Journal of Applied
Psychology Vol 74 No 1 pp 152-6
Mowday RT Steers RM and Porter LW
(1979) ` The measurement of organizational
commitmentrsquorsquo Journal of Vocational
Behavior Vol 14 pp 224-47
Nunnally JC (1978) Psychometric Theory
McGraw-Hill New York NY
Parasuraman A (1987) ` Customer-oriented
corporate cultures are crucial to services
marketing successrsquorsquo Journal of Services
Marketing Vol 1 No 1 pp 39-46
Parasuraman A Berry LL and Zeithaml VA
(1990) An Empirical Examination of
Relationships in an Extended Service Quality
[ 263 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Model Report No 90-122 Marketing Science
Institute Cambridge MA
Rust RT Stewart GR Miller H and
Pielack D (1996) ` The satisfaction and
retention of frontline employees a customer
satisfaction measurement approachrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 62-80
Shemwell DJ and Yavas U (1998) ` Seven best
practices for creating a sales culture
transitioning from an internally-focused
transaction-oriented culture to a customer-
focused sales-oriented culturersquorsquo International
Journal of Bank Marketing Vol 16 No 7
pp 293-98
Shemwell DJ and Yavas U (1999) ` Bringing
banks out of darkness eliminating remnants
of the cultural malaise of yesteryearrsquorsquo
Journal of Financial Services Marketing
Vol 3 No 4 pp 334-43
Smith AK and Bolton RN (2002) ` The effect of
customersrsquo emotional responses to service
failures on their recovery evaluations and
satisfaction judgmentsrsquorsquo Journal of the
Academy of Marketing Science Vol 30 No 1
pp 5-23
Spreng RA and Chiou J-S (2002) ` A
cross-cultural assessment of the satisfaction
formation processrsquorsquo European Journal of
Marketing Vol 36 Nos 78 pp 829-39
Spreng RA Harrell GD and Mackoy RD
(1995) ` Service recovery impact on
satisfaction and intentionsrsquorsquo Journal of
Services Marketing Vol 9 No 1 pp 15-23
Tabachnick BG and Fidell LS (1996) Using
Multivariate Statistics 3rd ed HarperCollins
Publishers New York NY
Takan M (2001) Bankacilik Teori Uygulama ve
Yonetim Nobel Yayin Dagitim Ankara
Tschohl J (1998) ` Empowerment plusmn the key to
quality servicersquorsquo Managing Service Quality
Vol 8 No 6 pp 421-5
Van Sell M Brief AP and Schuler RS (1981)
` Role conflict and role ambiguity integration
of the literature and directions for future
researchrsquorsquo Human Relations Vol 34 No 1
pp 43-71
Walker OC Churchill GA Jr and Ford NM
(1975) ` Organizational determinants of the
industrial salesmanrsquos role conflict and role
ambiguityrsquorsquo Journal of Marketing Vol 39
January pp 32-9
Yasin MM and Yavas U (1999) ` Enhancing
customer orientation of service delivery
systems an integrative frameworkrsquorsquo
Managing Service Quality Vol 9 No 3
pp 198-203
Yavas U (1998) ` Service quality sentiments as
correlates of behavioral intentions and
satisfaction a study of Turkish consumersrsquorsquo
Journal of Customer Service in Marketing and
Management Vol 4 No 1 pp 31-45
Yavas U (1999) ` Correlates of satisfaction among
customer-contact personnel in retail banking
services an empirical studyrsquorsquo in
Contemporary Developments in Marketing
ESKA Soup de Co Montpellier pp 547-55
Yavas U and Shemwell D (1997a) ` Analyzing a
bankrsquos competitive position and appropriate
strategyrsquorsquo Journal of Retail Banking Services
Vol 19 No 4 pp 43-51
Yavas U and Shemwell D (1997b) ` Meeting the
service quality challenge structural
problems and solutionsrsquorsquo Managing Service
Quality Vol 7 No 4 pp 198-203
Yavas U and Yasin MM (2001) ` Enhancing
organizational performance in banks a
systematic approachrsquorsquo Journal of Services
Marketing Vol 15 No 6 pp 444-53
Yavas U Arsan N and Dilber M (1995)
` Organizational gaps in delivering banking
services a study of bank employeesrsquorsquo Journal
of International Marketing and Marketing
Research Vol 20 No 1 pp 3-13
Yavas U Bilgin Z and Shemwell DJ (1997)
` Service quality in the banking sector in an
emerging economy a consumer surveyrsquorsquo
International Journal of Bank Marketing
Vol 15 No 6 pp 217-23
Appendix Questionnaire items
Customer service orientation of the firm(CSO) (Cronbachrsquos alpha = 087)
This bank measures customer satisfaction
on a regular basis
This bank understands its customersrsquo
needs
This bank sets objectives in terms of
customer satisfaction
This bank attempts to create value for the
customer
This bank is totally committed to serving
its customers well
Employee rewards (REW) (Cronbachrsquosalpha = 093)
If I improve the level of service I offer
customers I will be rewarded
The rewards I receive are based on
customer evaluations of service
Employees in this bank are rewarded for
serving customers well
Employees of this bank are rewarded for
dealing effectively with customer
problems
I am rewarded for satisfying complaining
customers
Staff training (TRA) (Cronbachrsquosalpha = 094)
Employees in this bank receive continued
txaining to provide good service
Employees in this bank receive extensive
customer service training before they
come into contact with customers
[ 264]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
for data collection 180 usable questionnaires
were retrieved for a response rate of 455 per
cent
Almost two-thirds of the respondents (63
per cent) were female 50 per cent had
secondary and 32 per cent college education
Little over one-half (51 per cent) of the
respondents were between the ages of 18 and
37 and 38 per cent between 38 and 47
MeasurementIn designing the survey instrument the
relevant writings were canvassed (eg
Boshoff and Allen 2000 Mowday et al 1979
Lucas et al 1990 Parasuraman et al 1990)
Multiple item indicators were employed to
operationalize the ten study constructs
depicted in Figure 1 Specifically customer
service orientation of the firm employee
rewards and service recovery performance
were operationalized via five items Role
ambiguity empowerment organizational
commitment and extrinsic job satisfaction
each consisted of four items Intentions to
resign and teamwork had three items each
And training consisted of six items (see
Appendix) Responses to the questionnaire
items were elicited on five-point scales
ranging from ` 5 = strongly agreersquorsquo to
` 1 = strongly disagreersquorsquo
The questionnaire was originally prepared
in English and then translated into Turkish
by using the back-translation method
(McGorry 2000) The cross-linguistic
comparability of the questionnaire was
further tested with the faculty members of a
Turkish university who were fluent in both
languages This was deemed necessary since
the concern was not so much with a literal
translation but with generating meaning
which was as similar as possible to the
original English version
Items relating to a particular construct
were summed to create overall composite
scores for each respondent As reported in
the Appendix internal consistency
reliability estimates (coefficient alphas) of
the constructs exceeded the 070 benchmark
recommended by Nunnally (1978) They
ranged from a low of 078 (empowerment) to a
high of 094 (training)
The measures were subjected to
convergent and discriminant validity
assessment by utilizing the covariance
structure analysis (Anderson and Gerbing
1988 Bagozzi and Yi 1988 Fornell and
Larcker 1981) Under the covariance
structure analysis method average variance
extracted by an underlying construct from its
indicators is used as an index of convergent
validity An average variance extracted in
excess of 050 provides evidence of
convergent validity In addition the
magnitudes and significance levels
associated with factor loading estimates are
examined to determine the degree of
convergence of each item to the underlying
construct (Anderson and Gerbing 1988)
T-values greater than two indicate that the
associated factor loading is statistically
significant and therefore the scale item in
question exhibits convergent validity
As shown in Table I the items belonging to
each of the ten study constructs had factor
loadings greater than 050 and their t-values
well exceeded 2 The average variances
extracted were greater than 050 with respect
to eight of the ten constructs For the
remaining two they were very close to 050
(empowerement 048 and service recovery
performance 049)
To assess the discriminant validity of the
underlying constructs shared variances
between constructs (ie the squared
correlation between two constructs) were
computed As an evidence of discriminant
validity shared variances between
constructs should be smaller than the
` average variance extractedrsquorsquo by each
construct (Fornell and Larcker 1981)
Additionally a good fit of the model to the
data using an overall fit index such as the
comparative fit index (CFI gt 090) provides
further support for discriminant validity
(Bentler 1990) Table I demonstrates that all
shared variances are smaller than the
average variances extracted And the
CFI = 087 approached the 090 limit Overall
these results provide support for the
reliability and convergent and discriminant
validities of the measures used in the study
Results
The relationships hypothesized in Figure 1
were tested by the method of path analysis
(Loehlin 1987) Compared to regression path
analysis allows a simultaneous test of a
system of theoretical relationships involving
multiple dependent variables The technique
also permits for restricted models with
systematic constraints on relationships
among variables Thus models that include
only those paths hypothesized a priori can be
tested
As can be seen from the results presented
in Table II neither of the two perceived
managerial attitude constructs (customer
service orientation of the firm and employee
rewards) depicts significant relationship
with service recovery performance Thus H1
and H2 are not supported Of the five work
environment-related variables two are
[ 259 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Table IConvergent and discriminant validity of the instrument
V ariab le Fa ctor load inga T -va lu eb Avera ge va rian cec S hared va rianc ed
C SO 1 071 1042 058 C SO R EW 02 5C SO 2 066 960 C SO TR A 02 9
C 50 3 081 1273 C SO EM P 02 1C 50 4 080 1244 C SO TEA M 02 1C 50 5 081 1274 C SO R OLE A 01 6
C SO SAT 01 0R E W 1 086 1432 072 C SO O RG 03 4R E W 2 093 1620 C SO R ES 00 8
R E W 3 086 1422 C SO P ER F 01 4R E W 4 086 1419 R E W T R A 03 7R E W 5 073 1114 R E W E M P 03 7
R E W T E AM 00 9T RA 1 078 1242 071 R E W R OLE A 00 3T RA 2 073 1116 R E W S AT 02 5T RA 3 078 1225 R E W O RG 00 4
T RA 4 088 1489 R E W R ES 00 5T RA S 094 1657 R E W P E R F 00 4T RA 6 094 1655 T RA EM P 02 7
T RA TE AM 01 2E M P 1 067 930 048 T RA R O LEA 00 9E M P 2 059 792 T RA SAT 02 2
E M P 3 080 1168 T RA O R G 01 1E M P 4 070 984 T RA R ES 00 2
T RA P ER F 00 7
T EAM 1 067 946 061 E M P TE AM 00 6T EAM 2 081 1211 E M P R O LEA 00 4T EAM 3 084 1279 E M P SAT 03 4
E M P O R G 00 8R O LEA 1 068 984 061 E M P R ES 00 001R O LEA 2 080 1243 E M P P ER F 01 4
R O LEA 3 088 1418 T EAM RO LE A 02 9R O LEA 4 074 1105 T EAM SAT 01 3
T EAM OR G 03 2
O R G 1 076 1132 0S7 T EAM RE S 01 6O R G 2 080 1222 T EAM PE R F 00 8O R G 3 076 1135 R O LEA SA T 00 6
O R G 4 068 969 R O LEA O R G 03 8R O LEA R E S 00 4
P E R F1 071 1036 049 R O LEA P E RF 04 0P E R F2 066 934 S ATO R G 01 2
P E R F3 071 1026 S ATR E S 00 3P E R F4 083 1265 S ATP E R F 00 7P E R F5 055 738 O R G R E S 02 3
O R G P E R F 02 8R E S1 085 1350 070 R E SP E R F 00 2R E S2 091 1480
R E S3 074 1112S AT1 079 1212 060S AT2 071 1061
S AT3 092 1538S AT4 063 906
N otes a Item loadings by confirm ato ry factor an alys is b T -va lue s for the item loadin gs For convergent va lid ityt -va lues should be g reater than at leas t 2 00 (And erson and G erb ing 1988) c For convergent va lid it y ave ra gevarianc e extrac ted fo r ea ch variab le shou ld be equ al to or grea ter than 05 (Fom ell and Larcke r 1981 ) d Ford iscrim inant va lid ity average variance ex tra cted for each variab le should b e gre ater than the sha re d varianc eb etw ee n variab le s (Fom ell an d Larc ker 19 81)
[ 260]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
significantly related to service recovery
performance Both of these significant
relationships are in the hypothesized
directions Results show that empowerment
exerts a positive and role ambiguity a strong
negative influence on the service recovery
performance of frontline staff Thus H4 and
H6 are confirmed The remaining three work
environment variables (training teamwork
and organizational commitment) do not have
any significant effects on the service
recovery performance of frontline staff
Therefore H3 H5 and H7 cannot be
supported
The path analysis results also reveal that
when frontline staff perform service recovery
effectively they demonstrate higher levels of
extrinsic job satisfaction This is in
accordance with H9 Effective service
recovery was posited to decrease the
intention to resign from the bank However
results do not demonstrate any significant
relationship between service recovery
performance of frontline staff and their
intentions to resign Therefore no support
exists for H8
Discussion
Based on Boshoff and Allenrsquos (2000) work
this article presented a model to explain the
underlying process through which a set of
organizational variables influence service
recovery performance and how service
recovery performance leads to different
outcomes Specifically by using frontline
employees in Turkish banks as its setting
the study examined relationships between
managerial attitudes frontline employeesrsquo
perceptions of their work environment and
their service recovery performance and the
impact of service recovery performance on
these employeesrsquo job satisfaction and
intentions to resign
Study results revealed that of the two
perceived managerial attitudes neither
customer service orientation of the bank nor
rewarding employees for service excellence
had any bearing on the employeesrsquo service
recovery performance The two working
environment perceptions which depicted
significant relationships with service
recovery performance were empowerment
and role ambiguity As hypothesized
empowerment had a positive and role
ambiguity a negative relationship with
service recovery performance However the
remaining work environment-related factors
including training teamwork and
commitment were not related to service
recovery performance In terms of the impact
of service recovery performance on outcome
variables the results suggest that effective
service recovery performance enhances
frontline employeesrsquo extrinsic job
satisfaction but it has no influence on their
intentions to resign from their jobs
Specific circumstances inherent in the
Turkish economic environment in general
and Turkish banking environment in
particular can offer explanations for the lack
of hypothesized relationships among several
study variables For instance while Turkish
bank executives recognize the importance of
delivery of high quality service to customers
customer service orientation is still in its
infancy in Turkey The organizational
structures of the banks are not yet attuned to
looking at things from the customersrsquo
perspective (Yavas et al 1997)
Furthermore currently training programs
in Turkish banks focus on development of
Table IIPath analysis results
P ath Es tim ate (m ax im um like lih ood ) t -va lu e S ignificanc e
C SO P ER F 00 1 007 N SR E W P ER F 00 3 038 N ST RA P E RF plusmn0 0 4 plusmn049 N SE M P P E R F 02 3 304 0 00 01T EAM P ER F plusmn0 0 6 plusmn077 N SR O LEA PE R F plusmn0 4 3 plusmn558 0 00 01O R G PE R F 01 5 184 N S
O ve ra ll R 2 = 035P E R F R E S plusmn0 0 9 plusmn119 N S
O ve ra ll R 2 = 00081P E R F S AT 02 6 353 0 00 01
O ve ra ll R 2 = 0068
N ote Th ere is no e vide nce of a m ult ico llin earity p rob lem since e ach c ondition ing index is low er than 030 a nda t le ast tw o varia nce pro portio ns are low e r tha n 0 50 (T abac hnick an d Fide ll 1996 p 87 ) exce pt for a variab lew hose va rianc e propo rtions w ith o th ers w ere 0 98 (con stant) 0 52 and 051
[ 261 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
functional skills They overlook behavioral
skills training so important in effectively
handling customer complaints Nor do they
emphasize teamwork training After basic
training employees return to their
respective positions and utilization of
teamwork is left to the initiative of the
employees Additionally in Turkish banks
employees are generally praised for their
ability to follow orders rather than work as a
team As Yavas et al (1995) cogently argue
the undue emphasis placed on following
orders is not only counter-productive in
terms of teamwork but certainly hurts
employeesrsquo perceived job control and
performance Also Turkish banks do not
typically reward their employees for
increased productivity resulting from
teamwork or good performance (Yavas 1999)
These specific circumstances akin to the
Turkish banking environment may explain
the absence of relationships between
organizational factors and service recovery
performance
The lack of hypothesized relationship
between service recovery performance and
intentions to resign can be attributed to the
current Turkish economic milieu In a period
of severe economic crisis where a high
unemployment rate exists and downsizing is
common place many employees do not
consider quitting their jobs Our experiences
suggest that this is especially true in the
study area where bank employees resigning
from their jobs would not likely find another
job andor get a better one
It is interesting to note that empowerment
and role ambiguity do portray significant
relationships with service recovery
performance and effective service recovery
performance leads to enhanced job
satisfaction Therefore to further enhance
their employeesrsquo performance and to induce
higher levels of job satisfaction Turkish
banks can take actions on two fronts On one
hand they should reverse their policy of
emphasizing ` doing things by the bookrsquorsquo and
encourage and reward employees to exercise
imagination and initiative In other words
they should take decisive steps to empower
their frontline employees with the authority
to make independent decisions give them
adequate freedom to assist customers and
reward such behavior (Yavas 1999) More
empowerment would not only lead to better
service recovery performance but also free
management to concentrate on more
strategic issues (Boshoff 1997) On the other
hand to resolve employeesrsquo role ambiguity
managers should clearly communicate
expectations to frontline employees clarify
their roles and inform them of their
responsibilities and levels of authority
On a closing note it should be underscored
that when the results of this study are
compared to the results of the Boshoff and
Allen (2000) study a number of differences
are apparent Specifically of the nine
hypotheses common to both studies five
generate similar results whereas four do not
yield congruent results These differences
lend further credence to the conclusions of
others (Spreng and Chiou 2002 Menguc
1996) that conceptual models developed in a
particular cultural context and socio-
economic environment cannot be totally
transferred and generalized to another one
In the future researchers adapting a model
developed in one cultural context must
consider cross-cultural and other differences
and incorporate necessary refinements not
only to their conceptual models but also to
their constructs
ReferencesAnderson JC and Gerbing DW (1988)
` Structural equation modeling in practice a
review and recommended two-step
approachrsquorsquo Psychological Bulletin Vol 103
May pp 411-23
Bagozzi RP and Yi Y (1988) ` On the evaluation
of structural equation modelsrsquorsquo Journal of the
Academy of Marketing Science Vol 16 No 1
pp 74-94
Bejou D and Palmer A (1998) ` Service failure
and loyalty an exploratory empirical study of
airline customersrsquorsquo Journal of Services
Marketing Vol 12 No 1 pp 7-22
Bentler PM (1990) ` Comparative fit indices in
structural modelsrsquorsquo Psychological Bulletin
Vol 107 No 2 pp 238-46
Bettencourt LA and Gwinner K (1996)
` Customization of the service experience the
role of the frontline employeersquorsquo International
Journal of Service Industry Management
Vol 7 No 2 pp 3-20
Bitner MJ Booms BH and Mohr LA (1994)
` Critical service encounters the employeersquos
viewpointrsquorsquo Journal of Marketing Vol 58
October pp 95-106
Bitner MJ Booms BH and Tetreault MS
(1990) ` The service encounter diagnosing
favorable and unfavorable incidentsrsquorsquo
Journal of Marketing Vol 54 January
pp 71-84
Boshoff C (1997) ` An experimental study of
service recovery optionsrsquorsquo International
Journal of Service Industry Management
Vol 8 No 2 pp 110-30
Boshoff C and Allen J (2000) ` The influence of
selected antecedents on frontline staffrsquos
perceptions of service recovery
performancersquorsquo International Journal of
Service Industry Management Vol 11 No 1
pp 63-90
[ 262]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Boshoff C and Tait M (1996) ` Quality
perceptions in the financial services sector
the potential impact of internal marketingrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 5-31
Boshoff C and Mels G (1995) ` A causal model to
evaluate the relationships among
supervision role stress organizational
commitment and internal service qualityrsquorsquo
European Journal of Marketing Vol 29 No 2
pp 23-42
Bowen DE and Johnston R (1999) ` Internal
service recovery developing a new
constructrsquorsquo International Journal of Service
Industry Management Vol 10 No 2 pp 118-31
Bowen DE and Lawler EE (1992) ` The
empowerment of service workers what why
how and whenrsquorsquo Sloan Management Review
Vol 33 Spring pp 31-9
Bowen DE and Schneider B (1988)
` Boundary-spanning-role employees and the
service encounter some guidelines for
management and researchrsquorsquo in Czepiel JA
Solomon MR and Suprenant CF (Eds)
The Service Encounter Managing
EmployeeCustomer Interaction in Service
Businesses 4th ed Lexington Books
Lexington MA pp 25-47
Brown SP and Peterson RA (1994) ` The effect
of effort on sales performance and job
satisfactionrsquorsquo Journal of Marketing Vol 58
April pp 70-80
Conger JA and Kanungo RN (1988) ` The
empowerment process integreating theory
and practicersquorsquo Academy of Management
Review Vol 13 No 3 pp 471-82
Fornell C and Larcker DF (1981) ` Evaluating
structural equation models with
unobservable variables and measurement
errorrsquorsquo Journal of Marketing Research Vol 18
February pp 39-50
George S and Weimerskirch A (1994) Total
Quality Management Strategies and
Techniques Proven at Todayrsquos Most Successful
Companies John Wiley amp Sons New York
NY
Gronroos C (1990a) ` Relationship approach to
marketing in service contexts the marketing
and organizational behavior interfacersquorsquo
Journal of Business Research Vol 20 No 1
pp 3-11
Gronroos C (1990b) Service Management and
Marketing Managing the Moments of Truth
in Service Competition Lexington Books
Lexington MA
Hart CWL Heskett JL and Sasser WE Jr
(1990) ` The profitable art of service
recoveryrsquorsquo Harvard Business Review Vol 68
July-August pp 148-56
Hartline MD and Ferrell OC (1996) ` The
management of customer-contact service
employees an empirical investigationrsquorsquo
Journal of Marketing Vol 60 October
pp 52-70
Kelley SW Hoffman KD and Davis MA
(1993) ` A typology of retail failures and
recoveriesrsquorsquo Journal of Retailing Vol 69 No 4
pp 429-52
Kotler P Bowen J and Makens J (1999)
Marketing for Hospitality and Tourism
2nd ed Prentice-Hall Upper Saddle River
NJ
Lewis BR and Gabrielsen GOS (1998)
` Intra-organizational aspects of service
quality management the employeesrsquo
perspectiversquorsquo The Service Industries Journal
Vol 18 No 2 pp 64-89
Lewis BR and Spryrakopoulos S (2001)
` Service failures and recovery in retail
banking the customersrsquo perspectiversquorsquo
International Journal of Bank Marketing
Vol 19 No 1 pp 37-47
Loehlin JC (1987) Latent Variable Models
Lawrence Earlbaum Hillsdale NJ
Lucas GH Babakus E and Ingram TN (1990)
` An empirical test of the job
satisfaction-turnover relationship assessing
the role of job performance for retail
managersrsquorsquo Journal of the Academy of
Marketing Science Vol 18 No 3 pp 199-208
McEnvoy G and Cascio W (1987) ` Do good or
poor performers leave A meta-analysis of the
relationship between performance and
turnoverrsquorsquo Academy of Management Journal
Vol 30 pp 744-62
McGorry SY (2000) ` Measurement in a
cross-cultural environment survey
translation issuesrsquorsquo Qualitative Market
Research An International Journal Vol 3
No 2 pp 74-81
Mattila AS (2001) ` The effectiveness of service
recovery in a multi-industry settingrsquorsquo Journal
of Services Marketing Vol 15 No 7 pp 583-96
Menguc B (1996) ` Evidence for Turkish
industrial salespeople testing the
applicability of a conceptual model for the
effect of effort on sales performance and job
satisfactionrsquorsquo European Journal of Marketing
Vol 30 No 1 pp 33-51
Meyer JP Paunonen SV Gellatly IR
Goffin RD and Jackson DN (1989)
` Organizational commitment and job
performance itrsquos the nature of the
commitment that countsrsquorsquo Journal of Applied
Psychology Vol 74 No 1 pp 152-6
Mowday RT Steers RM and Porter LW
(1979) ` The measurement of organizational
commitmentrsquorsquo Journal of Vocational
Behavior Vol 14 pp 224-47
Nunnally JC (1978) Psychometric Theory
McGraw-Hill New York NY
Parasuraman A (1987) ` Customer-oriented
corporate cultures are crucial to services
marketing successrsquorsquo Journal of Services
Marketing Vol 1 No 1 pp 39-46
Parasuraman A Berry LL and Zeithaml VA
(1990) An Empirical Examination of
Relationships in an Extended Service Quality
[ 263 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Model Report No 90-122 Marketing Science
Institute Cambridge MA
Rust RT Stewart GR Miller H and
Pielack D (1996) ` The satisfaction and
retention of frontline employees a customer
satisfaction measurement approachrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 62-80
Shemwell DJ and Yavas U (1998) ` Seven best
practices for creating a sales culture
transitioning from an internally-focused
transaction-oriented culture to a customer-
focused sales-oriented culturersquorsquo International
Journal of Bank Marketing Vol 16 No 7
pp 293-98
Shemwell DJ and Yavas U (1999) ` Bringing
banks out of darkness eliminating remnants
of the cultural malaise of yesteryearrsquorsquo
Journal of Financial Services Marketing
Vol 3 No 4 pp 334-43
Smith AK and Bolton RN (2002) ` The effect of
customersrsquo emotional responses to service
failures on their recovery evaluations and
satisfaction judgmentsrsquorsquo Journal of the
Academy of Marketing Science Vol 30 No 1
pp 5-23
Spreng RA and Chiou J-S (2002) ` A
cross-cultural assessment of the satisfaction
formation processrsquorsquo European Journal of
Marketing Vol 36 Nos 78 pp 829-39
Spreng RA Harrell GD and Mackoy RD
(1995) ` Service recovery impact on
satisfaction and intentionsrsquorsquo Journal of
Services Marketing Vol 9 No 1 pp 15-23
Tabachnick BG and Fidell LS (1996) Using
Multivariate Statistics 3rd ed HarperCollins
Publishers New York NY
Takan M (2001) Bankacilik Teori Uygulama ve
Yonetim Nobel Yayin Dagitim Ankara
Tschohl J (1998) ` Empowerment plusmn the key to
quality servicersquorsquo Managing Service Quality
Vol 8 No 6 pp 421-5
Van Sell M Brief AP and Schuler RS (1981)
` Role conflict and role ambiguity integration
of the literature and directions for future
researchrsquorsquo Human Relations Vol 34 No 1
pp 43-71
Walker OC Churchill GA Jr and Ford NM
(1975) ` Organizational determinants of the
industrial salesmanrsquos role conflict and role
ambiguityrsquorsquo Journal of Marketing Vol 39
January pp 32-9
Yasin MM and Yavas U (1999) ` Enhancing
customer orientation of service delivery
systems an integrative frameworkrsquorsquo
Managing Service Quality Vol 9 No 3
pp 198-203
Yavas U (1998) ` Service quality sentiments as
correlates of behavioral intentions and
satisfaction a study of Turkish consumersrsquorsquo
Journal of Customer Service in Marketing and
Management Vol 4 No 1 pp 31-45
Yavas U (1999) ` Correlates of satisfaction among
customer-contact personnel in retail banking
services an empirical studyrsquorsquo in
Contemporary Developments in Marketing
ESKA Soup de Co Montpellier pp 547-55
Yavas U and Shemwell D (1997a) ` Analyzing a
bankrsquos competitive position and appropriate
strategyrsquorsquo Journal of Retail Banking Services
Vol 19 No 4 pp 43-51
Yavas U and Shemwell D (1997b) ` Meeting the
service quality challenge structural
problems and solutionsrsquorsquo Managing Service
Quality Vol 7 No 4 pp 198-203
Yavas U and Yasin MM (2001) ` Enhancing
organizational performance in banks a
systematic approachrsquorsquo Journal of Services
Marketing Vol 15 No 6 pp 444-53
Yavas U Arsan N and Dilber M (1995)
` Organizational gaps in delivering banking
services a study of bank employeesrsquorsquo Journal
of International Marketing and Marketing
Research Vol 20 No 1 pp 3-13
Yavas U Bilgin Z and Shemwell DJ (1997)
` Service quality in the banking sector in an
emerging economy a consumer surveyrsquorsquo
International Journal of Bank Marketing
Vol 15 No 6 pp 217-23
Appendix Questionnaire items
Customer service orientation of the firm(CSO) (Cronbachrsquos alpha = 087)
This bank measures customer satisfaction
on a regular basis
This bank understands its customersrsquo
needs
This bank sets objectives in terms of
customer satisfaction
This bank attempts to create value for the
customer
This bank is totally committed to serving
its customers well
Employee rewards (REW) (Cronbachrsquosalpha = 093)
If I improve the level of service I offer
customers I will be rewarded
The rewards I receive are based on
customer evaluations of service
Employees in this bank are rewarded for
serving customers well
Employees of this bank are rewarded for
dealing effectively with customer
problems
I am rewarded for satisfying complaining
customers
Staff training (TRA) (Cronbachrsquosalpha = 094)
Employees in this bank receive continued
txaining to provide good service
Employees in this bank receive extensive
customer service training before they
come into contact with customers
[ 264]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Table IConvergent and discriminant validity of the instrument
V ariab le Fa ctor load inga T -va lu eb Avera ge va rian cec S hared va rianc ed
C SO 1 071 1042 058 C SO R EW 02 5C SO 2 066 960 C SO TR A 02 9
C 50 3 081 1273 C SO EM P 02 1C 50 4 080 1244 C SO TEA M 02 1C 50 5 081 1274 C SO R OLE A 01 6
C SO SAT 01 0R E W 1 086 1432 072 C SO O RG 03 4R E W 2 093 1620 C SO R ES 00 8
R E W 3 086 1422 C SO P ER F 01 4R E W 4 086 1419 R E W T R A 03 7R E W 5 073 1114 R E W E M P 03 7
R E W T E AM 00 9T RA 1 078 1242 071 R E W R OLE A 00 3T RA 2 073 1116 R E W S AT 02 5T RA 3 078 1225 R E W O RG 00 4
T RA 4 088 1489 R E W R ES 00 5T RA S 094 1657 R E W P E R F 00 4T RA 6 094 1655 T RA EM P 02 7
T RA TE AM 01 2E M P 1 067 930 048 T RA R O LEA 00 9E M P 2 059 792 T RA SAT 02 2
E M P 3 080 1168 T RA O R G 01 1E M P 4 070 984 T RA R ES 00 2
T RA P ER F 00 7
T EAM 1 067 946 061 E M P TE AM 00 6T EAM 2 081 1211 E M P R O LEA 00 4T EAM 3 084 1279 E M P SAT 03 4
E M P O R G 00 8R O LEA 1 068 984 061 E M P R ES 00 001R O LEA 2 080 1243 E M P P ER F 01 4
R O LEA 3 088 1418 T EAM RO LE A 02 9R O LEA 4 074 1105 T EAM SAT 01 3
T EAM OR G 03 2
O R G 1 076 1132 0S7 T EAM RE S 01 6O R G 2 080 1222 T EAM PE R F 00 8O R G 3 076 1135 R O LEA SA T 00 6
O R G 4 068 969 R O LEA O R G 03 8R O LEA R E S 00 4
P E R F1 071 1036 049 R O LEA P E RF 04 0P E R F2 066 934 S ATO R G 01 2
P E R F3 071 1026 S ATR E S 00 3P E R F4 083 1265 S ATP E R F 00 7P E R F5 055 738 O R G R E S 02 3
O R G P E R F 02 8R E S1 085 1350 070 R E SP E R F 00 2R E S2 091 1480
R E S3 074 1112S AT1 079 1212 060S AT2 071 1061
S AT3 092 1538S AT4 063 906
N otes a Item loadings by confirm ato ry factor an alys is b T -va lue s for the item loadin gs For convergent va lid ityt -va lues should be g reater than at leas t 2 00 (And erson and G erb ing 1988) c For convergent va lid it y ave ra gevarianc e extrac ted fo r ea ch variab le shou ld be equ al to or grea ter than 05 (Fom ell and Larcke r 1981 ) d Ford iscrim inant va lid ity average variance ex tra cted for each variab le should b e gre ater than the sha re d varianc eb etw ee n variab le s (Fom ell an d Larc ker 19 81)
[ 260]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
significantly related to service recovery
performance Both of these significant
relationships are in the hypothesized
directions Results show that empowerment
exerts a positive and role ambiguity a strong
negative influence on the service recovery
performance of frontline staff Thus H4 and
H6 are confirmed The remaining three work
environment variables (training teamwork
and organizational commitment) do not have
any significant effects on the service
recovery performance of frontline staff
Therefore H3 H5 and H7 cannot be
supported
The path analysis results also reveal that
when frontline staff perform service recovery
effectively they demonstrate higher levels of
extrinsic job satisfaction This is in
accordance with H9 Effective service
recovery was posited to decrease the
intention to resign from the bank However
results do not demonstrate any significant
relationship between service recovery
performance of frontline staff and their
intentions to resign Therefore no support
exists for H8
Discussion
Based on Boshoff and Allenrsquos (2000) work
this article presented a model to explain the
underlying process through which a set of
organizational variables influence service
recovery performance and how service
recovery performance leads to different
outcomes Specifically by using frontline
employees in Turkish banks as its setting
the study examined relationships between
managerial attitudes frontline employeesrsquo
perceptions of their work environment and
their service recovery performance and the
impact of service recovery performance on
these employeesrsquo job satisfaction and
intentions to resign
Study results revealed that of the two
perceived managerial attitudes neither
customer service orientation of the bank nor
rewarding employees for service excellence
had any bearing on the employeesrsquo service
recovery performance The two working
environment perceptions which depicted
significant relationships with service
recovery performance were empowerment
and role ambiguity As hypothesized
empowerment had a positive and role
ambiguity a negative relationship with
service recovery performance However the
remaining work environment-related factors
including training teamwork and
commitment were not related to service
recovery performance In terms of the impact
of service recovery performance on outcome
variables the results suggest that effective
service recovery performance enhances
frontline employeesrsquo extrinsic job
satisfaction but it has no influence on their
intentions to resign from their jobs
Specific circumstances inherent in the
Turkish economic environment in general
and Turkish banking environment in
particular can offer explanations for the lack
of hypothesized relationships among several
study variables For instance while Turkish
bank executives recognize the importance of
delivery of high quality service to customers
customer service orientation is still in its
infancy in Turkey The organizational
structures of the banks are not yet attuned to
looking at things from the customersrsquo
perspective (Yavas et al 1997)
Furthermore currently training programs
in Turkish banks focus on development of
Table IIPath analysis results
P ath Es tim ate (m ax im um like lih ood ) t -va lu e S ignificanc e
C SO P ER F 00 1 007 N SR E W P ER F 00 3 038 N ST RA P E RF plusmn0 0 4 plusmn049 N SE M P P E R F 02 3 304 0 00 01T EAM P ER F plusmn0 0 6 plusmn077 N SR O LEA PE R F plusmn0 4 3 plusmn558 0 00 01O R G PE R F 01 5 184 N S
O ve ra ll R 2 = 035P E R F R E S plusmn0 0 9 plusmn119 N S
O ve ra ll R 2 = 00081P E R F S AT 02 6 353 0 00 01
O ve ra ll R 2 = 0068
N ote Th ere is no e vide nce of a m ult ico llin earity p rob lem since e ach c ondition ing index is low er than 030 a nda t le ast tw o varia nce pro portio ns are low e r tha n 0 50 (T abac hnick an d Fide ll 1996 p 87 ) exce pt for a variab lew hose va rianc e propo rtions w ith o th ers w ere 0 98 (con stant) 0 52 and 051
[ 261 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
functional skills They overlook behavioral
skills training so important in effectively
handling customer complaints Nor do they
emphasize teamwork training After basic
training employees return to their
respective positions and utilization of
teamwork is left to the initiative of the
employees Additionally in Turkish banks
employees are generally praised for their
ability to follow orders rather than work as a
team As Yavas et al (1995) cogently argue
the undue emphasis placed on following
orders is not only counter-productive in
terms of teamwork but certainly hurts
employeesrsquo perceived job control and
performance Also Turkish banks do not
typically reward their employees for
increased productivity resulting from
teamwork or good performance (Yavas 1999)
These specific circumstances akin to the
Turkish banking environment may explain
the absence of relationships between
organizational factors and service recovery
performance
The lack of hypothesized relationship
between service recovery performance and
intentions to resign can be attributed to the
current Turkish economic milieu In a period
of severe economic crisis where a high
unemployment rate exists and downsizing is
common place many employees do not
consider quitting their jobs Our experiences
suggest that this is especially true in the
study area where bank employees resigning
from their jobs would not likely find another
job andor get a better one
It is interesting to note that empowerment
and role ambiguity do portray significant
relationships with service recovery
performance and effective service recovery
performance leads to enhanced job
satisfaction Therefore to further enhance
their employeesrsquo performance and to induce
higher levels of job satisfaction Turkish
banks can take actions on two fronts On one
hand they should reverse their policy of
emphasizing ` doing things by the bookrsquorsquo and
encourage and reward employees to exercise
imagination and initiative In other words
they should take decisive steps to empower
their frontline employees with the authority
to make independent decisions give them
adequate freedom to assist customers and
reward such behavior (Yavas 1999) More
empowerment would not only lead to better
service recovery performance but also free
management to concentrate on more
strategic issues (Boshoff 1997) On the other
hand to resolve employeesrsquo role ambiguity
managers should clearly communicate
expectations to frontline employees clarify
their roles and inform them of their
responsibilities and levels of authority
On a closing note it should be underscored
that when the results of this study are
compared to the results of the Boshoff and
Allen (2000) study a number of differences
are apparent Specifically of the nine
hypotheses common to both studies five
generate similar results whereas four do not
yield congruent results These differences
lend further credence to the conclusions of
others (Spreng and Chiou 2002 Menguc
1996) that conceptual models developed in a
particular cultural context and socio-
economic environment cannot be totally
transferred and generalized to another one
In the future researchers adapting a model
developed in one cultural context must
consider cross-cultural and other differences
and incorporate necessary refinements not
only to their conceptual models but also to
their constructs
ReferencesAnderson JC and Gerbing DW (1988)
` Structural equation modeling in practice a
review and recommended two-step
approachrsquorsquo Psychological Bulletin Vol 103
May pp 411-23
Bagozzi RP and Yi Y (1988) ` On the evaluation
of structural equation modelsrsquorsquo Journal of the
Academy of Marketing Science Vol 16 No 1
pp 74-94
Bejou D and Palmer A (1998) ` Service failure
and loyalty an exploratory empirical study of
airline customersrsquorsquo Journal of Services
Marketing Vol 12 No 1 pp 7-22
Bentler PM (1990) ` Comparative fit indices in
structural modelsrsquorsquo Psychological Bulletin
Vol 107 No 2 pp 238-46
Bettencourt LA and Gwinner K (1996)
` Customization of the service experience the
role of the frontline employeersquorsquo International
Journal of Service Industry Management
Vol 7 No 2 pp 3-20
Bitner MJ Booms BH and Mohr LA (1994)
` Critical service encounters the employeersquos
viewpointrsquorsquo Journal of Marketing Vol 58
October pp 95-106
Bitner MJ Booms BH and Tetreault MS
(1990) ` The service encounter diagnosing
favorable and unfavorable incidentsrsquorsquo
Journal of Marketing Vol 54 January
pp 71-84
Boshoff C (1997) ` An experimental study of
service recovery optionsrsquorsquo International
Journal of Service Industry Management
Vol 8 No 2 pp 110-30
Boshoff C and Allen J (2000) ` The influence of
selected antecedents on frontline staffrsquos
perceptions of service recovery
performancersquorsquo International Journal of
Service Industry Management Vol 11 No 1
pp 63-90
[ 262]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Boshoff C and Tait M (1996) ` Quality
perceptions in the financial services sector
the potential impact of internal marketingrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 5-31
Boshoff C and Mels G (1995) ` A causal model to
evaluate the relationships among
supervision role stress organizational
commitment and internal service qualityrsquorsquo
European Journal of Marketing Vol 29 No 2
pp 23-42
Bowen DE and Johnston R (1999) ` Internal
service recovery developing a new
constructrsquorsquo International Journal of Service
Industry Management Vol 10 No 2 pp 118-31
Bowen DE and Lawler EE (1992) ` The
empowerment of service workers what why
how and whenrsquorsquo Sloan Management Review
Vol 33 Spring pp 31-9
Bowen DE and Schneider B (1988)
` Boundary-spanning-role employees and the
service encounter some guidelines for
management and researchrsquorsquo in Czepiel JA
Solomon MR and Suprenant CF (Eds)
The Service Encounter Managing
EmployeeCustomer Interaction in Service
Businesses 4th ed Lexington Books
Lexington MA pp 25-47
Brown SP and Peterson RA (1994) ` The effect
of effort on sales performance and job
satisfactionrsquorsquo Journal of Marketing Vol 58
April pp 70-80
Conger JA and Kanungo RN (1988) ` The
empowerment process integreating theory
and practicersquorsquo Academy of Management
Review Vol 13 No 3 pp 471-82
Fornell C and Larcker DF (1981) ` Evaluating
structural equation models with
unobservable variables and measurement
errorrsquorsquo Journal of Marketing Research Vol 18
February pp 39-50
George S and Weimerskirch A (1994) Total
Quality Management Strategies and
Techniques Proven at Todayrsquos Most Successful
Companies John Wiley amp Sons New York
NY
Gronroos C (1990a) ` Relationship approach to
marketing in service contexts the marketing
and organizational behavior interfacersquorsquo
Journal of Business Research Vol 20 No 1
pp 3-11
Gronroos C (1990b) Service Management and
Marketing Managing the Moments of Truth
in Service Competition Lexington Books
Lexington MA
Hart CWL Heskett JL and Sasser WE Jr
(1990) ` The profitable art of service
recoveryrsquorsquo Harvard Business Review Vol 68
July-August pp 148-56
Hartline MD and Ferrell OC (1996) ` The
management of customer-contact service
employees an empirical investigationrsquorsquo
Journal of Marketing Vol 60 October
pp 52-70
Kelley SW Hoffman KD and Davis MA
(1993) ` A typology of retail failures and
recoveriesrsquorsquo Journal of Retailing Vol 69 No 4
pp 429-52
Kotler P Bowen J and Makens J (1999)
Marketing for Hospitality and Tourism
2nd ed Prentice-Hall Upper Saddle River
NJ
Lewis BR and Gabrielsen GOS (1998)
` Intra-organizational aspects of service
quality management the employeesrsquo
perspectiversquorsquo The Service Industries Journal
Vol 18 No 2 pp 64-89
Lewis BR and Spryrakopoulos S (2001)
` Service failures and recovery in retail
banking the customersrsquo perspectiversquorsquo
International Journal of Bank Marketing
Vol 19 No 1 pp 37-47
Loehlin JC (1987) Latent Variable Models
Lawrence Earlbaum Hillsdale NJ
Lucas GH Babakus E and Ingram TN (1990)
` An empirical test of the job
satisfaction-turnover relationship assessing
the role of job performance for retail
managersrsquorsquo Journal of the Academy of
Marketing Science Vol 18 No 3 pp 199-208
McEnvoy G and Cascio W (1987) ` Do good or
poor performers leave A meta-analysis of the
relationship between performance and
turnoverrsquorsquo Academy of Management Journal
Vol 30 pp 744-62
McGorry SY (2000) ` Measurement in a
cross-cultural environment survey
translation issuesrsquorsquo Qualitative Market
Research An International Journal Vol 3
No 2 pp 74-81
Mattila AS (2001) ` The effectiveness of service
recovery in a multi-industry settingrsquorsquo Journal
of Services Marketing Vol 15 No 7 pp 583-96
Menguc B (1996) ` Evidence for Turkish
industrial salespeople testing the
applicability of a conceptual model for the
effect of effort on sales performance and job
satisfactionrsquorsquo European Journal of Marketing
Vol 30 No 1 pp 33-51
Meyer JP Paunonen SV Gellatly IR
Goffin RD and Jackson DN (1989)
` Organizational commitment and job
performance itrsquos the nature of the
commitment that countsrsquorsquo Journal of Applied
Psychology Vol 74 No 1 pp 152-6
Mowday RT Steers RM and Porter LW
(1979) ` The measurement of organizational
commitmentrsquorsquo Journal of Vocational
Behavior Vol 14 pp 224-47
Nunnally JC (1978) Psychometric Theory
McGraw-Hill New York NY
Parasuraman A (1987) ` Customer-oriented
corporate cultures are crucial to services
marketing successrsquorsquo Journal of Services
Marketing Vol 1 No 1 pp 39-46
Parasuraman A Berry LL and Zeithaml VA
(1990) An Empirical Examination of
Relationships in an Extended Service Quality
[ 263 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Model Report No 90-122 Marketing Science
Institute Cambridge MA
Rust RT Stewart GR Miller H and
Pielack D (1996) ` The satisfaction and
retention of frontline employees a customer
satisfaction measurement approachrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 62-80
Shemwell DJ and Yavas U (1998) ` Seven best
practices for creating a sales culture
transitioning from an internally-focused
transaction-oriented culture to a customer-
focused sales-oriented culturersquorsquo International
Journal of Bank Marketing Vol 16 No 7
pp 293-98
Shemwell DJ and Yavas U (1999) ` Bringing
banks out of darkness eliminating remnants
of the cultural malaise of yesteryearrsquorsquo
Journal of Financial Services Marketing
Vol 3 No 4 pp 334-43
Smith AK and Bolton RN (2002) ` The effect of
customersrsquo emotional responses to service
failures on their recovery evaluations and
satisfaction judgmentsrsquorsquo Journal of the
Academy of Marketing Science Vol 30 No 1
pp 5-23
Spreng RA and Chiou J-S (2002) ` A
cross-cultural assessment of the satisfaction
formation processrsquorsquo European Journal of
Marketing Vol 36 Nos 78 pp 829-39
Spreng RA Harrell GD and Mackoy RD
(1995) ` Service recovery impact on
satisfaction and intentionsrsquorsquo Journal of
Services Marketing Vol 9 No 1 pp 15-23
Tabachnick BG and Fidell LS (1996) Using
Multivariate Statistics 3rd ed HarperCollins
Publishers New York NY
Takan M (2001) Bankacilik Teori Uygulama ve
Yonetim Nobel Yayin Dagitim Ankara
Tschohl J (1998) ` Empowerment plusmn the key to
quality servicersquorsquo Managing Service Quality
Vol 8 No 6 pp 421-5
Van Sell M Brief AP and Schuler RS (1981)
` Role conflict and role ambiguity integration
of the literature and directions for future
researchrsquorsquo Human Relations Vol 34 No 1
pp 43-71
Walker OC Churchill GA Jr and Ford NM
(1975) ` Organizational determinants of the
industrial salesmanrsquos role conflict and role
ambiguityrsquorsquo Journal of Marketing Vol 39
January pp 32-9
Yasin MM and Yavas U (1999) ` Enhancing
customer orientation of service delivery
systems an integrative frameworkrsquorsquo
Managing Service Quality Vol 9 No 3
pp 198-203
Yavas U (1998) ` Service quality sentiments as
correlates of behavioral intentions and
satisfaction a study of Turkish consumersrsquorsquo
Journal of Customer Service in Marketing and
Management Vol 4 No 1 pp 31-45
Yavas U (1999) ` Correlates of satisfaction among
customer-contact personnel in retail banking
services an empirical studyrsquorsquo in
Contemporary Developments in Marketing
ESKA Soup de Co Montpellier pp 547-55
Yavas U and Shemwell D (1997a) ` Analyzing a
bankrsquos competitive position and appropriate
strategyrsquorsquo Journal of Retail Banking Services
Vol 19 No 4 pp 43-51
Yavas U and Shemwell D (1997b) ` Meeting the
service quality challenge structural
problems and solutionsrsquorsquo Managing Service
Quality Vol 7 No 4 pp 198-203
Yavas U and Yasin MM (2001) ` Enhancing
organizational performance in banks a
systematic approachrsquorsquo Journal of Services
Marketing Vol 15 No 6 pp 444-53
Yavas U Arsan N and Dilber M (1995)
` Organizational gaps in delivering banking
services a study of bank employeesrsquorsquo Journal
of International Marketing and Marketing
Research Vol 20 No 1 pp 3-13
Yavas U Bilgin Z and Shemwell DJ (1997)
` Service quality in the banking sector in an
emerging economy a consumer surveyrsquorsquo
International Journal of Bank Marketing
Vol 15 No 6 pp 217-23
Appendix Questionnaire items
Customer service orientation of the firm(CSO) (Cronbachrsquos alpha = 087)
This bank measures customer satisfaction
on a regular basis
This bank understands its customersrsquo
needs
This bank sets objectives in terms of
customer satisfaction
This bank attempts to create value for the
customer
This bank is totally committed to serving
its customers well
Employee rewards (REW) (Cronbachrsquosalpha = 093)
If I improve the level of service I offer
customers I will be rewarded
The rewards I receive are based on
customer evaluations of service
Employees in this bank are rewarded for
serving customers well
Employees of this bank are rewarded for
dealing effectively with customer
problems
I am rewarded for satisfying complaining
customers
Staff training (TRA) (Cronbachrsquosalpha = 094)
Employees in this bank receive continued
txaining to provide good service
Employees in this bank receive extensive
customer service training before they
come into contact with customers
[ 264]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
significantly related to service recovery
performance Both of these significant
relationships are in the hypothesized
directions Results show that empowerment
exerts a positive and role ambiguity a strong
negative influence on the service recovery
performance of frontline staff Thus H4 and
H6 are confirmed The remaining three work
environment variables (training teamwork
and organizational commitment) do not have
any significant effects on the service
recovery performance of frontline staff
Therefore H3 H5 and H7 cannot be
supported
The path analysis results also reveal that
when frontline staff perform service recovery
effectively they demonstrate higher levels of
extrinsic job satisfaction This is in
accordance with H9 Effective service
recovery was posited to decrease the
intention to resign from the bank However
results do not demonstrate any significant
relationship between service recovery
performance of frontline staff and their
intentions to resign Therefore no support
exists for H8
Discussion
Based on Boshoff and Allenrsquos (2000) work
this article presented a model to explain the
underlying process through which a set of
organizational variables influence service
recovery performance and how service
recovery performance leads to different
outcomes Specifically by using frontline
employees in Turkish banks as its setting
the study examined relationships between
managerial attitudes frontline employeesrsquo
perceptions of their work environment and
their service recovery performance and the
impact of service recovery performance on
these employeesrsquo job satisfaction and
intentions to resign
Study results revealed that of the two
perceived managerial attitudes neither
customer service orientation of the bank nor
rewarding employees for service excellence
had any bearing on the employeesrsquo service
recovery performance The two working
environment perceptions which depicted
significant relationships with service
recovery performance were empowerment
and role ambiguity As hypothesized
empowerment had a positive and role
ambiguity a negative relationship with
service recovery performance However the
remaining work environment-related factors
including training teamwork and
commitment were not related to service
recovery performance In terms of the impact
of service recovery performance on outcome
variables the results suggest that effective
service recovery performance enhances
frontline employeesrsquo extrinsic job
satisfaction but it has no influence on their
intentions to resign from their jobs
Specific circumstances inherent in the
Turkish economic environment in general
and Turkish banking environment in
particular can offer explanations for the lack
of hypothesized relationships among several
study variables For instance while Turkish
bank executives recognize the importance of
delivery of high quality service to customers
customer service orientation is still in its
infancy in Turkey The organizational
structures of the banks are not yet attuned to
looking at things from the customersrsquo
perspective (Yavas et al 1997)
Furthermore currently training programs
in Turkish banks focus on development of
Table IIPath analysis results
P ath Es tim ate (m ax im um like lih ood ) t -va lu e S ignificanc e
C SO P ER F 00 1 007 N SR E W P ER F 00 3 038 N ST RA P E RF plusmn0 0 4 plusmn049 N SE M P P E R F 02 3 304 0 00 01T EAM P ER F plusmn0 0 6 plusmn077 N SR O LEA PE R F plusmn0 4 3 plusmn558 0 00 01O R G PE R F 01 5 184 N S
O ve ra ll R 2 = 035P E R F R E S plusmn0 0 9 plusmn119 N S
O ve ra ll R 2 = 00081P E R F S AT 02 6 353 0 00 01
O ve ra ll R 2 = 0068
N ote Th ere is no e vide nce of a m ult ico llin earity p rob lem since e ach c ondition ing index is low er than 030 a nda t le ast tw o varia nce pro portio ns are low e r tha n 0 50 (T abac hnick an d Fide ll 1996 p 87 ) exce pt for a variab lew hose va rianc e propo rtions w ith o th ers w ere 0 98 (con stant) 0 52 and 051
[ 261 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
functional skills They overlook behavioral
skills training so important in effectively
handling customer complaints Nor do they
emphasize teamwork training After basic
training employees return to their
respective positions and utilization of
teamwork is left to the initiative of the
employees Additionally in Turkish banks
employees are generally praised for their
ability to follow orders rather than work as a
team As Yavas et al (1995) cogently argue
the undue emphasis placed on following
orders is not only counter-productive in
terms of teamwork but certainly hurts
employeesrsquo perceived job control and
performance Also Turkish banks do not
typically reward their employees for
increased productivity resulting from
teamwork or good performance (Yavas 1999)
These specific circumstances akin to the
Turkish banking environment may explain
the absence of relationships between
organizational factors and service recovery
performance
The lack of hypothesized relationship
between service recovery performance and
intentions to resign can be attributed to the
current Turkish economic milieu In a period
of severe economic crisis where a high
unemployment rate exists and downsizing is
common place many employees do not
consider quitting their jobs Our experiences
suggest that this is especially true in the
study area where bank employees resigning
from their jobs would not likely find another
job andor get a better one
It is interesting to note that empowerment
and role ambiguity do portray significant
relationships with service recovery
performance and effective service recovery
performance leads to enhanced job
satisfaction Therefore to further enhance
their employeesrsquo performance and to induce
higher levels of job satisfaction Turkish
banks can take actions on two fronts On one
hand they should reverse their policy of
emphasizing ` doing things by the bookrsquorsquo and
encourage and reward employees to exercise
imagination and initiative In other words
they should take decisive steps to empower
their frontline employees with the authority
to make independent decisions give them
adequate freedom to assist customers and
reward such behavior (Yavas 1999) More
empowerment would not only lead to better
service recovery performance but also free
management to concentrate on more
strategic issues (Boshoff 1997) On the other
hand to resolve employeesrsquo role ambiguity
managers should clearly communicate
expectations to frontline employees clarify
their roles and inform them of their
responsibilities and levels of authority
On a closing note it should be underscored
that when the results of this study are
compared to the results of the Boshoff and
Allen (2000) study a number of differences
are apparent Specifically of the nine
hypotheses common to both studies five
generate similar results whereas four do not
yield congruent results These differences
lend further credence to the conclusions of
others (Spreng and Chiou 2002 Menguc
1996) that conceptual models developed in a
particular cultural context and socio-
economic environment cannot be totally
transferred and generalized to another one
In the future researchers adapting a model
developed in one cultural context must
consider cross-cultural and other differences
and incorporate necessary refinements not
only to their conceptual models but also to
their constructs
ReferencesAnderson JC and Gerbing DW (1988)
` Structural equation modeling in practice a
review and recommended two-step
approachrsquorsquo Psychological Bulletin Vol 103
May pp 411-23
Bagozzi RP and Yi Y (1988) ` On the evaluation
of structural equation modelsrsquorsquo Journal of the
Academy of Marketing Science Vol 16 No 1
pp 74-94
Bejou D and Palmer A (1998) ` Service failure
and loyalty an exploratory empirical study of
airline customersrsquorsquo Journal of Services
Marketing Vol 12 No 1 pp 7-22
Bentler PM (1990) ` Comparative fit indices in
structural modelsrsquorsquo Psychological Bulletin
Vol 107 No 2 pp 238-46
Bettencourt LA and Gwinner K (1996)
` Customization of the service experience the
role of the frontline employeersquorsquo International
Journal of Service Industry Management
Vol 7 No 2 pp 3-20
Bitner MJ Booms BH and Mohr LA (1994)
` Critical service encounters the employeersquos
viewpointrsquorsquo Journal of Marketing Vol 58
October pp 95-106
Bitner MJ Booms BH and Tetreault MS
(1990) ` The service encounter diagnosing
favorable and unfavorable incidentsrsquorsquo
Journal of Marketing Vol 54 January
pp 71-84
Boshoff C (1997) ` An experimental study of
service recovery optionsrsquorsquo International
Journal of Service Industry Management
Vol 8 No 2 pp 110-30
Boshoff C and Allen J (2000) ` The influence of
selected antecedents on frontline staffrsquos
perceptions of service recovery
performancersquorsquo International Journal of
Service Industry Management Vol 11 No 1
pp 63-90
[ 262]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Boshoff C and Tait M (1996) ` Quality
perceptions in the financial services sector
the potential impact of internal marketingrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 5-31
Boshoff C and Mels G (1995) ` A causal model to
evaluate the relationships among
supervision role stress organizational
commitment and internal service qualityrsquorsquo
European Journal of Marketing Vol 29 No 2
pp 23-42
Bowen DE and Johnston R (1999) ` Internal
service recovery developing a new
constructrsquorsquo International Journal of Service
Industry Management Vol 10 No 2 pp 118-31
Bowen DE and Lawler EE (1992) ` The
empowerment of service workers what why
how and whenrsquorsquo Sloan Management Review
Vol 33 Spring pp 31-9
Bowen DE and Schneider B (1988)
` Boundary-spanning-role employees and the
service encounter some guidelines for
management and researchrsquorsquo in Czepiel JA
Solomon MR and Suprenant CF (Eds)
The Service Encounter Managing
EmployeeCustomer Interaction in Service
Businesses 4th ed Lexington Books
Lexington MA pp 25-47
Brown SP and Peterson RA (1994) ` The effect
of effort on sales performance and job
satisfactionrsquorsquo Journal of Marketing Vol 58
April pp 70-80
Conger JA and Kanungo RN (1988) ` The
empowerment process integreating theory
and practicersquorsquo Academy of Management
Review Vol 13 No 3 pp 471-82
Fornell C and Larcker DF (1981) ` Evaluating
structural equation models with
unobservable variables and measurement
errorrsquorsquo Journal of Marketing Research Vol 18
February pp 39-50
George S and Weimerskirch A (1994) Total
Quality Management Strategies and
Techniques Proven at Todayrsquos Most Successful
Companies John Wiley amp Sons New York
NY
Gronroos C (1990a) ` Relationship approach to
marketing in service contexts the marketing
and organizational behavior interfacersquorsquo
Journal of Business Research Vol 20 No 1
pp 3-11
Gronroos C (1990b) Service Management and
Marketing Managing the Moments of Truth
in Service Competition Lexington Books
Lexington MA
Hart CWL Heskett JL and Sasser WE Jr
(1990) ` The profitable art of service
recoveryrsquorsquo Harvard Business Review Vol 68
July-August pp 148-56
Hartline MD and Ferrell OC (1996) ` The
management of customer-contact service
employees an empirical investigationrsquorsquo
Journal of Marketing Vol 60 October
pp 52-70
Kelley SW Hoffman KD and Davis MA
(1993) ` A typology of retail failures and
recoveriesrsquorsquo Journal of Retailing Vol 69 No 4
pp 429-52
Kotler P Bowen J and Makens J (1999)
Marketing for Hospitality and Tourism
2nd ed Prentice-Hall Upper Saddle River
NJ
Lewis BR and Gabrielsen GOS (1998)
` Intra-organizational aspects of service
quality management the employeesrsquo
perspectiversquorsquo The Service Industries Journal
Vol 18 No 2 pp 64-89
Lewis BR and Spryrakopoulos S (2001)
` Service failures and recovery in retail
banking the customersrsquo perspectiversquorsquo
International Journal of Bank Marketing
Vol 19 No 1 pp 37-47
Loehlin JC (1987) Latent Variable Models
Lawrence Earlbaum Hillsdale NJ
Lucas GH Babakus E and Ingram TN (1990)
` An empirical test of the job
satisfaction-turnover relationship assessing
the role of job performance for retail
managersrsquorsquo Journal of the Academy of
Marketing Science Vol 18 No 3 pp 199-208
McEnvoy G and Cascio W (1987) ` Do good or
poor performers leave A meta-analysis of the
relationship between performance and
turnoverrsquorsquo Academy of Management Journal
Vol 30 pp 744-62
McGorry SY (2000) ` Measurement in a
cross-cultural environment survey
translation issuesrsquorsquo Qualitative Market
Research An International Journal Vol 3
No 2 pp 74-81
Mattila AS (2001) ` The effectiveness of service
recovery in a multi-industry settingrsquorsquo Journal
of Services Marketing Vol 15 No 7 pp 583-96
Menguc B (1996) ` Evidence for Turkish
industrial salespeople testing the
applicability of a conceptual model for the
effect of effort on sales performance and job
satisfactionrsquorsquo European Journal of Marketing
Vol 30 No 1 pp 33-51
Meyer JP Paunonen SV Gellatly IR
Goffin RD and Jackson DN (1989)
` Organizational commitment and job
performance itrsquos the nature of the
commitment that countsrsquorsquo Journal of Applied
Psychology Vol 74 No 1 pp 152-6
Mowday RT Steers RM and Porter LW
(1979) ` The measurement of organizational
commitmentrsquorsquo Journal of Vocational
Behavior Vol 14 pp 224-47
Nunnally JC (1978) Psychometric Theory
McGraw-Hill New York NY
Parasuraman A (1987) ` Customer-oriented
corporate cultures are crucial to services
marketing successrsquorsquo Journal of Services
Marketing Vol 1 No 1 pp 39-46
Parasuraman A Berry LL and Zeithaml VA
(1990) An Empirical Examination of
Relationships in an Extended Service Quality
[ 263 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Model Report No 90-122 Marketing Science
Institute Cambridge MA
Rust RT Stewart GR Miller H and
Pielack D (1996) ` The satisfaction and
retention of frontline employees a customer
satisfaction measurement approachrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 62-80
Shemwell DJ and Yavas U (1998) ` Seven best
practices for creating a sales culture
transitioning from an internally-focused
transaction-oriented culture to a customer-
focused sales-oriented culturersquorsquo International
Journal of Bank Marketing Vol 16 No 7
pp 293-98
Shemwell DJ and Yavas U (1999) ` Bringing
banks out of darkness eliminating remnants
of the cultural malaise of yesteryearrsquorsquo
Journal of Financial Services Marketing
Vol 3 No 4 pp 334-43
Smith AK and Bolton RN (2002) ` The effect of
customersrsquo emotional responses to service
failures on their recovery evaluations and
satisfaction judgmentsrsquorsquo Journal of the
Academy of Marketing Science Vol 30 No 1
pp 5-23
Spreng RA and Chiou J-S (2002) ` A
cross-cultural assessment of the satisfaction
formation processrsquorsquo European Journal of
Marketing Vol 36 Nos 78 pp 829-39
Spreng RA Harrell GD and Mackoy RD
(1995) ` Service recovery impact on
satisfaction and intentionsrsquorsquo Journal of
Services Marketing Vol 9 No 1 pp 15-23
Tabachnick BG and Fidell LS (1996) Using
Multivariate Statistics 3rd ed HarperCollins
Publishers New York NY
Takan M (2001) Bankacilik Teori Uygulama ve
Yonetim Nobel Yayin Dagitim Ankara
Tschohl J (1998) ` Empowerment plusmn the key to
quality servicersquorsquo Managing Service Quality
Vol 8 No 6 pp 421-5
Van Sell M Brief AP and Schuler RS (1981)
` Role conflict and role ambiguity integration
of the literature and directions for future
researchrsquorsquo Human Relations Vol 34 No 1
pp 43-71
Walker OC Churchill GA Jr and Ford NM
(1975) ` Organizational determinants of the
industrial salesmanrsquos role conflict and role
ambiguityrsquorsquo Journal of Marketing Vol 39
January pp 32-9
Yasin MM and Yavas U (1999) ` Enhancing
customer orientation of service delivery
systems an integrative frameworkrsquorsquo
Managing Service Quality Vol 9 No 3
pp 198-203
Yavas U (1998) ` Service quality sentiments as
correlates of behavioral intentions and
satisfaction a study of Turkish consumersrsquorsquo
Journal of Customer Service in Marketing and
Management Vol 4 No 1 pp 31-45
Yavas U (1999) ` Correlates of satisfaction among
customer-contact personnel in retail banking
services an empirical studyrsquorsquo in
Contemporary Developments in Marketing
ESKA Soup de Co Montpellier pp 547-55
Yavas U and Shemwell D (1997a) ` Analyzing a
bankrsquos competitive position and appropriate
strategyrsquorsquo Journal of Retail Banking Services
Vol 19 No 4 pp 43-51
Yavas U and Shemwell D (1997b) ` Meeting the
service quality challenge structural
problems and solutionsrsquorsquo Managing Service
Quality Vol 7 No 4 pp 198-203
Yavas U and Yasin MM (2001) ` Enhancing
organizational performance in banks a
systematic approachrsquorsquo Journal of Services
Marketing Vol 15 No 6 pp 444-53
Yavas U Arsan N and Dilber M (1995)
` Organizational gaps in delivering banking
services a study of bank employeesrsquorsquo Journal
of International Marketing and Marketing
Research Vol 20 No 1 pp 3-13
Yavas U Bilgin Z and Shemwell DJ (1997)
` Service quality in the banking sector in an
emerging economy a consumer surveyrsquorsquo
International Journal of Bank Marketing
Vol 15 No 6 pp 217-23
Appendix Questionnaire items
Customer service orientation of the firm(CSO) (Cronbachrsquos alpha = 087)
This bank measures customer satisfaction
on a regular basis
This bank understands its customersrsquo
needs
This bank sets objectives in terms of
customer satisfaction
This bank attempts to create value for the
customer
This bank is totally committed to serving
its customers well
Employee rewards (REW) (Cronbachrsquosalpha = 093)
If I improve the level of service I offer
customers I will be rewarded
The rewards I receive are based on
customer evaluations of service
Employees in this bank are rewarded for
serving customers well
Employees of this bank are rewarded for
dealing effectively with customer
problems
I am rewarded for satisfying complaining
customers
Staff training (TRA) (Cronbachrsquosalpha = 094)
Employees in this bank receive continued
txaining to provide good service
Employees in this bank receive extensive
customer service training before they
come into contact with customers
[ 264]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
functional skills They overlook behavioral
skills training so important in effectively
handling customer complaints Nor do they
emphasize teamwork training After basic
training employees return to their
respective positions and utilization of
teamwork is left to the initiative of the
employees Additionally in Turkish banks
employees are generally praised for their
ability to follow orders rather than work as a
team As Yavas et al (1995) cogently argue
the undue emphasis placed on following
orders is not only counter-productive in
terms of teamwork but certainly hurts
employeesrsquo perceived job control and
performance Also Turkish banks do not
typically reward their employees for
increased productivity resulting from
teamwork or good performance (Yavas 1999)
These specific circumstances akin to the
Turkish banking environment may explain
the absence of relationships between
organizational factors and service recovery
performance
The lack of hypothesized relationship
between service recovery performance and
intentions to resign can be attributed to the
current Turkish economic milieu In a period
of severe economic crisis where a high
unemployment rate exists and downsizing is
common place many employees do not
consider quitting their jobs Our experiences
suggest that this is especially true in the
study area where bank employees resigning
from their jobs would not likely find another
job andor get a better one
It is interesting to note that empowerment
and role ambiguity do portray significant
relationships with service recovery
performance and effective service recovery
performance leads to enhanced job
satisfaction Therefore to further enhance
their employeesrsquo performance and to induce
higher levels of job satisfaction Turkish
banks can take actions on two fronts On one
hand they should reverse their policy of
emphasizing ` doing things by the bookrsquorsquo and
encourage and reward employees to exercise
imagination and initiative In other words
they should take decisive steps to empower
their frontline employees with the authority
to make independent decisions give them
adequate freedom to assist customers and
reward such behavior (Yavas 1999) More
empowerment would not only lead to better
service recovery performance but also free
management to concentrate on more
strategic issues (Boshoff 1997) On the other
hand to resolve employeesrsquo role ambiguity
managers should clearly communicate
expectations to frontline employees clarify
their roles and inform them of their
responsibilities and levels of authority
On a closing note it should be underscored
that when the results of this study are
compared to the results of the Boshoff and
Allen (2000) study a number of differences
are apparent Specifically of the nine
hypotheses common to both studies five
generate similar results whereas four do not
yield congruent results These differences
lend further credence to the conclusions of
others (Spreng and Chiou 2002 Menguc
1996) that conceptual models developed in a
particular cultural context and socio-
economic environment cannot be totally
transferred and generalized to another one
In the future researchers adapting a model
developed in one cultural context must
consider cross-cultural and other differences
and incorporate necessary refinements not
only to their conceptual models but also to
their constructs
ReferencesAnderson JC and Gerbing DW (1988)
` Structural equation modeling in practice a
review and recommended two-step
approachrsquorsquo Psychological Bulletin Vol 103
May pp 411-23
Bagozzi RP and Yi Y (1988) ` On the evaluation
of structural equation modelsrsquorsquo Journal of the
Academy of Marketing Science Vol 16 No 1
pp 74-94
Bejou D and Palmer A (1998) ` Service failure
and loyalty an exploratory empirical study of
airline customersrsquorsquo Journal of Services
Marketing Vol 12 No 1 pp 7-22
Bentler PM (1990) ` Comparative fit indices in
structural modelsrsquorsquo Psychological Bulletin
Vol 107 No 2 pp 238-46
Bettencourt LA and Gwinner K (1996)
` Customization of the service experience the
role of the frontline employeersquorsquo International
Journal of Service Industry Management
Vol 7 No 2 pp 3-20
Bitner MJ Booms BH and Mohr LA (1994)
` Critical service encounters the employeersquos
viewpointrsquorsquo Journal of Marketing Vol 58
October pp 95-106
Bitner MJ Booms BH and Tetreault MS
(1990) ` The service encounter diagnosing
favorable and unfavorable incidentsrsquorsquo
Journal of Marketing Vol 54 January
pp 71-84
Boshoff C (1997) ` An experimental study of
service recovery optionsrsquorsquo International
Journal of Service Industry Management
Vol 8 No 2 pp 110-30
Boshoff C and Allen J (2000) ` The influence of
selected antecedents on frontline staffrsquos
perceptions of service recovery
performancersquorsquo International Journal of
Service Industry Management Vol 11 No 1
pp 63-90
[ 262]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Boshoff C and Tait M (1996) ` Quality
perceptions in the financial services sector
the potential impact of internal marketingrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 5-31
Boshoff C and Mels G (1995) ` A causal model to
evaluate the relationships among
supervision role stress organizational
commitment and internal service qualityrsquorsquo
European Journal of Marketing Vol 29 No 2
pp 23-42
Bowen DE and Johnston R (1999) ` Internal
service recovery developing a new
constructrsquorsquo International Journal of Service
Industry Management Vol 10 No 2 pp 118-31
Bowen DE and Lawler EE (1992) ` The
empowerment of service workers what why
how and whenrsquorsquo Sloan Management Review
Vol 33 Spring pp 31-9
Bowen DE and Schneider B (1988)
` Boundary-spanning-role employees and the
service encounter some guidelines for
management and researchrsquorsquo in Czepiel JA
Solomon MR and Suprenant CF (Eds)
The Service Encounter Managing
EmployeeCustomer Interaction in Service
Businesses 4th ed Lexington Books
Lexington MA pp 25-47
Brown SP and Peterson RA (1994) ` The effect
of effort on sales performance and job
satisfactionrsquorsquo Journal of Marketing Vol 58
April pp 70-80
Conger JA and Kanungo RN (1988) ` The
empowerment process integreating theory
and practicersquorsquo Academy of Management
Review Vol 13 No 3 pp 471-82
Fornell C and Larcker DF (1981) ` Evaluating
structural equation models with
unobservable variables and measurement
errorrsquorsquo Journal of Marketing Research Vol 18
February pp 39-50
George S and Weimerskirch A (1994) Total
Quality Management Strategies and
Techniques Proven at Todayrsquos Most Successful
Companies John Wiley amp Sons New York
NY
Gronroos C (1990a) ` Relationship approach to
marketing in service contexts the marketing
and organizational behavior interfacersquorsquo
Journal of Business Research Vol 20 No 1
pp 3-11
Gronroos C (1990b) Service Management and
Marketing Managing the Moments of Truth
in Service Competition Lexington Books
Lexington MA
Hart CWL Heskett JL and Sasser WE Jr
(1990) ` The profitable art of service
recoveryrsquorsquo Harvard Business Review Vol 68
July-August pp 148-56
Hartline MD and Ferrell OC (1996) ` The
management of customer-contact service
employees an empirical investigationrsquorsquo
Journal of Marketing Vol 60 October
pp 52-70
Kelley SW Hoffman KD and Davis MA
(1993) ` A typology of retail failures and
recoveriesrsquorsquo Journal of Retailing Vol 69 No 4
pp 429-52
Kotler P Bowen J and Makens J (1999)
Marketing for Hospitality and Tourism
2nd ed Prentice-Hall Upper Saddle River
NJ
Lewis BR and Gabrielsen GOS (1998)
` Intra-organizational aspects of service
quality management the employeesrsquo
perspectiversquorsquo The Service Industries Journal
Vol 18 No 2 pp 64-89
Lewis BR and Spryrakopoulos S (2001)
` Service failures and recovery in retail
banking the customersrsquo perspectiversquorsquo
International Journal of Bank Marketing
Vol 19 No 1 pp 37-47
Loehlin JC (1987) Latent Variable Models
Lawrence Earlbaum Hillsdale NJ
Lucas GH Babakus E and Ingram TN (1990)
` An empirical test of the job
satisfaction-turnover relationship assessing
the role of job performance for retail
managersrsquorsquo Journal of the Academy of
Marketing Science Vol 18 No 3 pp 199-208
McEnvoy G and Cascio W (1987) ` Do good or
poor performers leave A meta-analysis of the
relationship between performance and
turnoverrsquorsquo Academy of Management Journal
Vol 30 pp 744-62
McGorry SY (2000) ` Measurement in a
cross-cultural environment survey
translation issuesrsquorsquo Qualitative Market
Research An International Journal Vol 3
No 2 pp 74-81
Mattila AS (2001) ` The effectiveness of service
recovery in a multi-industry settingrsquorsquo Journal
of Services Marketing Vol 15 No 7 pp 583-96
Menguc B (1996) ` Evidence for Turkish
industrial salespeople testing the
applicability of a conceptual model for the
effect of effort on sales performance and job
satisfactionrsquorsquo European Journal of Marketing
Vol 30 No 1 pp 33-51
Meyer JP Paunonen SV Gellatly IR
Goffin RD and Jackson DN (1989)
` Organizational commitment and job
performance itrsquos the nature of the
commitment that countsrsquorsquo Journal of Applied
Psychology Vol 74 No 1 pp 152-6
Mowday RT Steers RM and Porter LW
(1979) ` The measurement of organizational
commitmentrsquorsquo Journal of Vocational
Behavior Vol 14 pp 224-47
Nunnally JC (1978) Psychometric Theory
McGraw-Hill New York NY
Parasuraman A (1987) ` Customer-oriented
corporate cultures are crucial to services
marketing successrsquorsquo Journal of Services
Marketing Vol 1 No 1 pp 39-46
Parasuraman A Berry LL and Zeithaml VA
(1990) An Empirical Examination of
Relationships in an Extended Service Quality
[ 263 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Model Report No 90-122 Marketing Science
Institute Cambridge MA
Rust RT Stewart GR Miller H and
Pielack D (1996) ` The satisfaction and
retention of frontline employees a customer
satisfaction measurement approachrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 62-80
Shemwell DJ and Yavas U (1998) ` Seven best
practices for creating a sales culture
transitioning from an internally-focused
transaction-oriented culture to a customer-
focused sales-oriented culturersquorsquo International
Journal of Bank Marketing Vol 16 No 7
pp 293-98
Shemwell DJ and Yavas U (1999) ` Bringing
banks out of darkness eliminating remnants
of the cultural malaise of yesteryearrsquorsquo
Journal of Financial Services Marketing
Vol 3 No 4 pp 334-43
Smith AK and Bolton RN (2002) ` The effect of
customersrsquo emotional responses to service
failures on their recovery evaluations and
satisfaction judgmentsrsquorsquo Journal of the
Academy of Marketing Science Vol 30 No 1
pp 5-23
Spreng RA and Chiou J-S (2002) ` A
cross-cultural assessment of the satisfaction
formation processrsquorsquo European Journal of
Marketing Vol 36 Nos 78 pp 829-39
Spreng RA Harrell GD and Mackoy RD
(1995) ` Service recovery impact on
satisfaction and intentionsrsquorsquo Journal of
Services Marketing Vol 9 No 1 pp 15-23
Tabachnick BG and Fidell LS (1996) Using
Multivariate Statistics 3rd ed HarperCollins
Publishers New York NY
Takan M (2001) Bankacilik Teori Uygulama ve
Yonetim Nobel Yayin Dagitim Ankara
Tschohl J (1998) ` Empowerment plusmn the key to
quality servicersquorsquo Managing Service Quality
Vol 8 No 6 pp 421-5
Van Sell M Brief AP and Schuler RS (1981)
` Role conflict and role ambiguity integration
of the literature and directions for future
researchrsquorsquo Human Relations Vol 34 No 1
pp 43-71
Walker OC Churchill GA Jr and Ford NM
(1975) ` Organizational determinants of the
industrial salesmanrsquos role conflict and role
ambiguityrsquorsquo Journal of Marketing Vol 39
January pp 32-9
Yasin MM and Yavas U (1999) ` Enhancing
customer orientation of service delivery
systems an integrative frameworkrsquorsquo
Managing Service Quality Vol 9 No 3
pp 198-203
Yavas U (1998) ` Service quality sentiments as
correlates of behavioral intentions and
satisfaction a study of Turkish consumersrsquorsquo
Journal of Customer Service in Marketing and
Management Vol 4 No 1 pp 31-45
Yavas U (1999) ` Correlates of satisfaction among
customer-contact personnel in retail banking
services an empirical studyrsquorsquo in
Contemporary Developments in Marketing
ESKA Soup de Co Montpellier pp 547-55
Yavas U and Shemwell D (1997a) ` Analyzing a
bankrsquos competitive position and appropriate
strategyrsquorsquo Journal of Retail Banking Services
Vol 19 No 4 pp 43-51
Yavas U and Shemwell D (1997b) ` Meeting the
service quality challenge structural
problems and solutionsrsquorsquo Managing Service
Quality Vol 7 No 4 pp 198-203
Yavas U and Yasin MM (2001) ` Enhancing
organizational performance in banks a
systematic approachrsquorsquo Journal of Services
Marketing Vol 15 No 6 pp 444-53
Yavas U Arsan N and Dilber M (1995)
` Organizational gaps in delivering banking
services a study of bank employeesrsquorsquo Journal
of International Marketing and Marketing
Research Vol 20 No 1 pp 3-13
Yavas U Bilgin Z and Shemwell DJ (1997)
` Service quality in the banking sector in an
emerging economy a consumer surveyrsquorsquo
International Journal of Bank Marketing
Vol 15 No 6 pp 217-23
Appendix Questionnaire items
Customer service orientation of the firm(CSO) (Cronbachrsquos alpha = 087)
This bank measures customer satisfaction
on a regular basis
This bank understands its customersrsquo
needs
This bank sets objectives in terms of
customer satisfaction
This bank attempts to create value for the
customer
This bank is totally committed to serving
its customers well
Employee rewards (REW) (Cronbachrsquosalpha = 093)
If I improve the level of service I offer
customers I will be rewarded
The rewards I receive are based on
customer evaluations of service
Employees in this bank are rewarded for
serving customers well
Employees of this bank are rewarded for
dealing effectively with customer
problems
I am rewarded for satisfying complaining
customers
Staff training (TRA) (Cronbachrsquosalpha = 094)
Employees in this bank receive continued
txaining to provide good service
Employees in this bank receive extensive
customer service training before they
come into contact with customers
[ 264]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Boshoff C and Tait M (1996) ` Quality
perceptions in the financial services sector
the potential impact of internal marketingrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 5-31
Boshoff C and Mels G (1995) ` A causal model to
evaluate the relationships among
supervision role stress organizational
commitment and internal service qualityrsquorsquo
European Journal of Marketing Vol 29 No 2
pp 23-42
Bowen DE and Johnston R (1999) ` Internal
service recovery developing a new
constructrsquorsquo International Journal of Service
Industry Management Vol 10 No 2 pp 118-31
Bowen DE and Lawler EE (1992) ` The
empowerment of service workers what why
how and whenrsquorsquo Sloan Management Review
Vol 33 Spring pp 31-9
Bowen DE and Schneider B (1988)
` Boundary-spanning-role employees and the
service encounter some guidelines for
management and researchrsquorsquo in Czepiel JA
Solomon MR and Suprenant CF (Eds)
The Service Encounter Managing
EmployeeCustomer Interaction in Service
Businesses 4th ed Lexington Books
Lexington MA pp 25-47
Brown SP and Peterson RA (1994) ` The effect
of effort on sales performance and job
satisfactionrsquorsquo Journal of Marketing Vol 58
April pp 70-80
Conger JA and Kanungo RN (1988) ` The
empowerment process integreating theory
and practicersquorsquo Academy of Management
Review Vol 13 No 3 pp 471-82
Fornell C and Larcker DF (1981) ` Evaluating
structural equation models with
unobservable variables and measurement
errorrsquorsquo Journal of Marketing Research Vol 18
February pp 39-50
George S and Weimerskirch A (1994) Total
Quality Management Strategies and
Techniques Proven at Todayrsquos Most Successful
Companies John Wiley amp Sons New York
NY
Gronroos C (1990a) ` Relationship approach to
marketing in service contexts the marketing
and organizational behavior interfacersquorsquo
Journal of Business Research Vol 20 No 1
pp 3-11
Gronroos C (1990b) Service Management and
Marketing Managing the Moments of Truth
in Service Competition Lexington Books
Lexington MA
Hart CWL Heskett JL and Sasser WE Jr
(1990) ` The profitable art of service
recoveryrsquorsquo Harvard Business Review Vol 68
July-August pp 148-56
Hartline MD and Ferrell OC (1996) ` The
management of customer-contact service
employees an empirical investigationrsquorsquo
Journal of Marketing Vol 60 October
pp 52-70
Kelley SW Hoffman KD and Davis MA
(1993) ` A typology of retail failures and
recoveriesrsquorsquo Journal of Retailing Vol 69 No 4
pp 429-52
Kotler P Bowen J and Makens J (1999)
Marketing for Hospitality and Tourism
2nd ed Prentice-Hall Upper Saddle River
NJ
Lewis BR and Gabrielsen GOS (1998)
` Intra-organizational aspects of service
quality management the employeesrsquo
perspectiversquorsquo The Service Industries Journal
Vol 18 No 2 pp 64-89
Lewis BR and Spryrakopoulos S (2001)
` Service failures and recovery in retail
banking the customersrsquo perspectiversquorsquo
International Journal of Bank Marketing
Vol 19 No 1 pp 37-47
Loehlin JC (1987) Latent Variable Models
Lawrence Earlbaum Hillsdale NJ
Lucas GH Babakus E and Ingram TN (1990)
` An empirical test of the job
satisfaction-turnover relationship assessing
the role of job performance for retail
managersrsquorsquo Journal of the Academy of
Marketing Science Vol 18 No 3 pp 199-208
McEnvoy G and Cascio W (1987) ` Do good or
poor performers leave A meta-analysis of the
relationship between performance and
turnoverrsquorsquo Academy of Management Journal
Vol 30 pp 744-62
McGorry SY (2000) ` Measurement in a
cross-cultural environment survey
translation issuesrsquorsquo Qualitative Market
Research An International Journal Vol 3
No 2 pp 74-81
Mattila AS (2001) ` The effectiveness of service
recovery in a multi-industry settingrsquorsquo Journal
of Services Marketing Vol 15 No 7 pp 583-96
Menguc B (1996) ` Evidence for Turkish
industrial salespeople testing the
applicability of a conceptual model for the
effect of effort on sales performance and job
satisfactionrsquorsquo European Journal of Marketing
Vol 30 No 1 pp 33-51
Meyer JP Paunonen SV Gellatly IR
Goffin RD and Jackson DN (1989)
` Organizational commitment and job
performance itrsquos the nature of the
commitment that countsrsquorsquo Journal of Applied
Psychology Vol 74 No 1 pp 152-6
Mowday RT Steers RM and Porter LW
(1979) ` The measurement of organizational
commitmentrsquorsquo Journal of Vocational
Behavior Vol 14 pp 224-47
Nunnally JC (1978) Psychometric Theory
McGraw-Hill New York NY
Parasuraman A (1987) ` Customer-oriented
corporate cultures are crucial to services
marketing successrsquorsquo Journal of Services
Marketing Vol 1 No 1 pp 39-46
Parasuraman A Berry LL and Zeithaml VA
(1990) An Empirical Examination of
Relationships in an Extended Service Quality
[ 263 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Model Report No 90-122 Marketing Science
Institute Cambridge MA
Rust RT Stewart GR Miller H and
Pielack D (1996) ` The satisfaction and
retention of frontline employees a customer
satisfaction measurement approachrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 62-80
Shemwell DJ and Yavas U (1998) ` Seven best
practices for creating a sales culture
transitioning from an internally-focused
transaction-oriented culture to a customer-
focused sales-oriented culturersquorsquo International
Journal of Bank Marketing Vol 16 No 7
pp 293-98
Shemwell DJ and Yavas U (1999) ` Bringing
banks out of darkness eliminating remnants
of the cultural malaise of yesteryearrsquorsquo
Journal of Financial Services Marketing
Vol 3 No 4 pp 334-43
Smith AK and Bolton RN (2002) ` The effect of
customersrsquo emotional responses to service
failures on their recovery evaluations and
satisfaction judgmentsrsquorsquo Journal of the
Academy of Marketing Science Vol 30 No 1
pp 5-23
Spreng RA and Chiou J-S (2002) ` A
cross-cultural assessment of the satisfaction
formation processrsquorsquo European Journal of
Marketing Vol 36 Nos 78 pp 829-39
Spreng RA Harrell GD and Mackoy RD
(1995) ` Service recovery impact on
satisfaction and intentionsrsquorsquo Journal of
Services Marketing Vol 9 No 1 pp 15-23
Tabachnick BG and Fidell LS (1996) Using
Multivariate Statistics 3rd ed HarperCollins
Publishers New York NY
Takan M (2001) Bankacilik Teori Uygulama ve
Yonetim Nobel Yayin Dagitim Ankara
Tschohl J (1998) ` Empowerment plusmn the key to
quality servicersquorsquo Managing Service Quality
Vol 8 No 6 pp 421-5
Van Sell M Brief AP and Schuler RS (1981)
` Role conflict and role ambiguity integration
of the literature and directions for future
researchrsquorsquo Human Relations Vol 34 No 1
pp 43-71
Walker OC Churchill GA Jr and Ford NM
(1975) ` Organizational determinants of the
industrial salesmanrsquos role conflict and role
ambiguityrsquorsquo Journal of Marketing Vol 39
January pp 32-9
Yasin MM and Yavas U (1999) ` Enhancing
customer orientation of service delivery
systems an integrative frameworkrsquorsquo
Managing Service Quality Vol 9 No 3
pp 198-203
Yavas U (1998) ` Service quality sentiments as
correlates of behavioral intentions and
satisfaction a study of Turkish consumersrsquorsquo
Journal of Customer Service in Marketing and
Management Vol 4 No 1 pp 31-45
Yavas U (1999) ` Correlates of satisfaction among
customer-contact personnel in retail banking
services an empirical studyrsquorsquo in
Contemporary Developments in Marketing
ESKA Soup de Co Montpellier pp 547-55
Yavas U and Shemwell D (1997a) ` Analyzing a
bankrsquos competitive position and appropriate
strategyrsquorsquo Journal of Retail Banking Services
Vol 19 No 4 pp 43-51
Yavas U and Shemwell D (1997b) ` Meeting the
service quality challenge structural
problems and solutionsrsquorsquo Managing Service
Quality Vol 7 No 4 pp 198-203
Yavas U and Yasin MM (2001) ` Enhancing
organizational performance in banks a
systematic approachrsquorsquo Journal of Services
Marketing Vol 15 No 6 pp 444-53
Yavas U Arsan N and Dilber M (1995)
` Organizational gaps in delivering banking
services a study of bank employeesrsquorsquo Journal
of International Marketing and Marketing
Research Vol 20 No 1 pp 3-13
Yavas U Bilgin Z and Shemwell DJ (1997)
` Service quality in the banking sector in an
emerging economy a consumer surveyrsquorsquo
International Journal of Bank Marketing
Vol 15 No 6 pp 217-23
Appendix Questionnaire items
Customer service orientation of the firm(CSO) (Cronbachrsquos alpha = 087)
This bank measures customer satisfaction
on a regular basis
This bank understands its customersrsquo
needs
This bank sets objectives in terms of
customer satisfaction
This bank attempts to create value for the
customer
This bank is totally committed to serving
its customers well
Employee rewards (REW) (Cronbachrsquosalpha = 093)
If I improve the level of service I offer
customers I will be rewarded
The rewards I receive are based on
customer evaluations of service
Employees in this bank are rewarded for
serving customers well
Employees of this bank are rewarded for
dealing effectively with customer
problems
I am rewarded for satisfying complaining
customers
Staff training (TRA) (Cronbachrsquosalpha = 094)
Employees in this bank receive continued
txaining to provide good service
Employees in this bank receive extensive
customer service training before they
come into contact with customers
[ 264]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Model Report No 90-122 Marketing Science
Institute Cambridge MA
Rust RT Stewart GR Miller H and
Pielack D (1996) ` The satisfaction and
retention of frontline employees a customer
satisfaction measurement approachrsquorsquo
International Journal of Service Industry
Management Vol 7 No 5 pp 62-80
Shemwell DJ and Yavas U (1998) ` Seven best
practices for creating a sales culture
transitioning from an internally-focused
transaction-oriented culture to a customer-
focused sales-oriented culturersquorsquo International
Journal of Bank Marketing Vol 16 No 7
pp 293-98
Shemwell DJ and Yavas U (1999) ` Bringing
banks out of darkness eliminating remnants
of the cultural malaise of yesteryearrsquorsquo
Journal of Financial Services Marketing
Vol 3 No 4 pp 334-43
Smith AK and Bolton RN (2002) ` The effect of
customersrsquo emotional responses to service
failures on their recovery evaluations and
satisfaction judgmentsrsquorsquo Journal of the
Academy of Marketing Science Vol 30 No 1
pp 5-23
Spreng RA and Chiou J-S (2002) ` A
cross-cultural assessment of the satisfaction
formation processrsquorsquo European Journal of
Marketing Vol 36 Nos 78 pp 829-39
Spreng RA Harrell GD and Mackoy RD
(1995) ` Service recovery impact on
satisfaction and intentionsrsquorsquo Journal of
Services Marketing Vol 9 No 1 pp 15-23
Tabachnick BG and Fidell LS (1996) Using
Multivariate Statistics 3rd ed HarperCollins
Publishers New York NY
Takan M (2001) Bankacilik Teori Uygulama ve
Yonetim Nobel Yayin Dagitim Ankara
Tschohl J (1998) ` Empowerment plusmn the key to
quality servicersquorsquo Managing Service Quality
Vol 8 No 6 pp 421-5
Van Sell M Brief AP and Schuler RS (1981)
` Role conflict and role ambiguity integration
of the literature and directions for future
researchrsquorsquo Human Relations Vol 34 No 1
pp 43-71
Walker OC Churchill GA Jr and Ford NM
(1975) ` Organizational determinants of the
industrial salesmanrsquos role conflict and role
ambiguityrsquorsquo Journal of Marketing Vol 39
January pp 32-9
Yasin MM and Yavas U (1999) ` Enhancing
customer orientation of service delivery
systems an integrative frameworkrsquorsquo
Managing Service Quality Vol 9 No 3
pp 198-203
Yavas U (1998) ` Service quality sentiments as
correlates of behavioral intentions and
satisfaction a study of Turkish consumersrsquorsquo
Journal of Customer Service in Marketing and
Management Vol 4 No 1 pp 31-45
Yavas U (1999) ` Correlates of satisfaction among
customer-contact personnel in retail banking
services an empirical studyrsquorsquo in
Contemporary Developments in Marketing
ESKA Soup de Co Montpellier pp 547-55
Yavas U and Shemwell D (1997a) ` Analyzing a
bankrsquos competitive position and appropriate
strategyrsquorsquo Journal of Retail Banking Services
Vol 19 No 4 pp 43-51
Yavas U and Shemwell D (1997b) ` Meeting the
service quality challenge structural
problems and solutionsrsquorsquo Managing Service
Quality Vol 7 No 4 pp 198-203
Yavas U and Yasin MM (2001) ` Enhancing
organizational performance in banks a
systematic approachrsquorsquo Journal of Services
Marketing Vol 15 No 6 pp 444-53
Yavas U Arsan N and Dilber M (1995)
` Organizational gaps in delivering banking
services a study of bank employeesrsquorsquo Journal
of International Marketing and Marketing
Research Vol 20 No 1 pp 3-13
Yavas U Bilgin Z and Shemwell DJ (1997)
` Service quality in the banking sector in an
emerging economy a consumer surveyrsquorsquo
International Journal of Bank Marketing
Vol 15 No 6 pp 217-23
Appendix Questionnaire items
Customer service orientation of the firm(CSO) (Cronbachrsquos alpha = 087)
This bank measures customer satisfaction
on a regular basis
This bank understands its customersrsquo
needs
This bank sets objectives in terms of
customer satisfaction
This bank attempts to create value for the
customer
This bank is totally committed to serving
its customers well
Employee rewards (REW) (Cronbachrsquosalpha = 093)
If I improve the level of service I offer
customers I will be rewarded
The rewards I receive are based on
customer evaluations of service
Employees in this bank are rewarded for
serving customers well
Employees of this bank are rewarded for
dealing effectively with customer
problems
I am rewarded for satisfying complaining
customers
Staff training (TRA) (Cronbachrsquosalpha = 094)
Employees in this bank receive continued
txaining to provide good service
Employees in this bank receive extensive
customer service training before they
come into contact with customers
[ 264]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265
Employees of this bank receive training
on how to serve customers better
Employees of this bank are trained to deal
with customer complaints
Employees of this bank receive training
on dealing with customer problems
Employees in this bank receive training
on how to deal with complaining
customers
Empowerment (EMP) (Cronbachrsquosalpha = 078)
I am encouraged to handle customer
problems by myself
I do not have to get managementrsquos
approval before I handle customer
problems
I am allowed to do almost anything to
solve customer problems
I have control over how I solve customer
problems
Teamwork (TEAM) (Cronbachrsquosalpha = 082)
Everyone in my branch contributes to a
team effort in serving customers
I feel that I am part of a team in my
branch
My fellow branch employees and I
cooperate more often than we compete
Role ambiguity (ROLEA) (Cronbachrsquosalpha = 085)
I have clear planned goals and objectives
for my job
I know exactly what is expected of me
I know what my responsibilities are
I feel certain about the level of authority I
have
Organizational commitment (ORG)(Cronbachrsquos alpha = 082)
I really care about the future of this bank
I am proud to tell others that I work for
this bank
I am willing to put in a great deal of effort
beyond that normally expected in order to
help the bank to be successful
For me this is the best of all possible
organizations for which to work
Service recovery performance (PERF)(Cronbachrsquos alpha = 082)
Considering all the things I do I handle
dissatisfied customers quite well
I do not mind dealing with complaining
customers
No customer I deal with leaves with
problems unresolved
Satisfying complaining customers is a
great thrill to me
Complaining customers I have dealt with
in the past are among todayrsquos most loyal
customers
Intentions to resign (RES) (Cronbachrsquosalpha = 087)
I often think about resigning
It would not take much to make me resign
from the bank
I will probably be looking for another job
soon
Extrinsic job satisfaction (SAI)(Cronbachrsquos alpha = 084)
I am relatively well awarded financially
for my work
I am satisfied with the amount of pay I
receive for the job I do
I am satisfied with my working
conditions
Given the work I do I feel lam paid fairly
Note Reponse to each item is measured on a
five-point scale ranging from 5 = strongly
agree to 1 = strongly disagree
[ 265 ]
Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks
International Journal of BankMarketing215 [2003] 255-265