Antecedents and outcomes of service recovery performance: an empirical study of frontline employees...

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Antecedents and outcomes of service recovery performance: an empirical study of frontline employees in Turkish banks Ugur Yavas East Tennessee State University, Johnson City, Tennessee, USA Osman M. Karatepe Eastern Mediterranean University, Gazimagusa, Turkish Republic of Northern Cyprus Turgay Avci Eastern Mediterranean University, Gazimagusa, Turkish Republic of Northern Cyprus Mehmet Tekinkus Gaziantep 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 (e.g. 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 solutions/responses to failures collectively called service recovery strategies, among others, include refunds, discounts, free gifts, reengineering company policies and procedures, apology, manager/employee 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 http://www.emeraldinsight.com/researchregister The current issue and full text archive of this journal is available at http://www.emeraldinsight.com/0265-2323.htm [ 255 ] International Journal of Bank Marketing 21/5 [2003] 255-265 # MCB UP Limited [ISSN 0265-2323 ] [DOI 0.1108/02652320310488439 ] Keywords Banking, Service operations, Employees’ attitudes, Job satisfaction, Turkey Abstract This study investigates the potential impact of organizational variables on the service recovery performance of frontline employees, and the impact of successful service recovery on frontline employees’ job satisfaction and intensions to resign. Data obtained from a survey of frontline employees working in several banks in two cities in Western Turkey serve as the study setting. Results and their implications are discussed. Revised November 2002 Accepted February 2003

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

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` Structural equation modeling in practice a

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Journal of Marketing Vol 54 January

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Ugur YavasOsman M KaratepeTurgay Avci andMehmet TekinkusAntecedents and outcomes ofservice recovery performancean empirical study of frontlineemployees in Turkish banks

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the potential impact of internal marketingrsquorsquo

International Journal of Service Industry

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evaluate the relationships among

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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

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Bowen DE and Lawler EE (1992) ` The

empowerment of service workers what why

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Vol 33 Spring pp 31-9

Bowen DE and Schneider B (1988)

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The Service Encounter Managing

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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

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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

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` Customization of the service experience the

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` Critical service encounters the employeersquos

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Journal of Marketing Vol 54 January

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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

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the potential impact of internal marketingrsquorsquo

International Journal of Service Industry

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Boshoff C and Mels G (1995) ` A causal model to

evaluate the relationships among

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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

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Bowen DE and Lawler EE (1992) ` The

empowerment of service workers what why

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Vol 33 Spring pp 31-9

Bowen DE and Schneider B (1988)

` Boundary-spanning-role employees and the

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Solomon MR and Suprenant CF (Eds)

The Service Encounter Managing

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Lexington MA pp 25-47

Brown SP and Peterson RA (1994) ` The effect

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satisfactionrsquorsquo Journal of Marketing Vol 58

April pp 70-80

Conger JA and Kanungo RN (1988) ` The

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Fornell C and Larcker DF (1981) ` Evaluating

structural equation models with

unobservable variables and measurement

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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

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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

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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

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Parasuraman A (1987) ` Customer-oriented

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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

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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

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failures on their recovery evaluations and

satisfaction judgmentsrsquorsquo Journal of the

Academy of Marketing Science Vol 30 No 1

pp 5-23

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cross-cultural assessment of the satisfaction

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Vol 8 No 6 pp 421-5

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` Role conflict and role ambiguity integration

of the literature and directions for future

researchrsquorsquo Human Relations Vol 34 No 1

pp 43-71

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(1975) ` Organizational determinants of the

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January pp 32-9

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customer orientation of service delivery

systems an integrative frameworkrsquorsquo

Managing Service Quality Vol 9 No 3

pp 198-203

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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

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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

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the potential impact of internal marketingrsquorsquo

International Journal of Service Industry

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Boshoff C and Mels G (1995) ` A causal model to

evaluate the relationships among

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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

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Industry Management Vol 10 No 2 pp 118-31

Bowen DE and Lawler EE (1992) ` The

empowerment of service workers what why

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Bowen DE and Schneider B (1988)

` Boundary-spanning-role employees and the

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The Service Encounter Managing

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Lexington MA pp 25-47

Brown SP and Peterson RA (1994) ` The effect

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Conger JA and Kanungo RN (1988) ` The

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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

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Journal of Business Research Vol 20 No 1

pp 3-11

Gronroos C (1990b) Service Management and

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Lexington MA

Hart CWL Heskett JL and Sasser WE Jr

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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

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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

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McGorry SY (2000) ` Measurement in a

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translation issuesrsquorsquo Qualitative Market

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Goffin RD and Jackson DN (1989)

` Organizational commitment and job

performance itrsquos the nature of the

commitment that countsrsquorsquo Journal of Applied

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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

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Rust RT Stewart GR Miller H and

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pp 293-98

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of the cultural malaise of yesteryearrsquorsquo

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pp 5-23

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` Role conflict and role ambiguity integration

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pp 43-71

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customer orientation of service delivery

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Managing Service Quality Vol 9 No 3

pp 198-203

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customer-contact personnel in retail banking

services an empirical studyrsquorsquo in

Contemporary Developments in Marketing

ESKA Soup de Co Montpellier pp 547-55

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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

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Quality Vol 7 No 4 pp 198-203

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organizational performance in banks a

systematic approachrsquorsquo Journal of Services

Marketing Vol 15 No 6 pp 444-53

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` Organizational gaps in delivering banking

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of International Marketing and Marketing

Research Vol 20 No 1 pp 3-13

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` 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

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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

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International Journal of BankMarketing215 [2003] 255-265

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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

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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

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pp 23-42

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Quality Management Strategies and

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Gronroos C (1990a) ` Relationship approach to

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pp 52-70

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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

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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

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` Structural equation modeling in practice a

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Bettencourt LA and Gwinner K (1996)

` Customization of the service experience the

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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

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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

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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

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Nunnally JC (1978) Psychometric Theory

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Parasuraman A (1987) ` Customer-oriented

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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

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satisfaction measurement approachrsquorsquo

International Journal of Service Industry

Management Vol 7 No 5 pp 62-80

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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

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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

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` Role conflict and role ambiguity integration

of the literature and directions for future

researchrsquorsquo Human Relations Vol 34 No 1

pp 43-71

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(1975) ` Organizational determinants of the

industrial salesmanrsquos role conflict and role

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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

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` 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