The contingent nature of service recovery system structures

Purpose – The purpose of this paper is to examine to what extent the factors of the operating environment influence the structural dimensions and subsequent performance of a firm's recovery system. Design/methodology/approach – Using contingency theory and a sample of 158 service firms, this research tests for structural differences in service recovery systems based on Schmenner's widely‐cited taxonomy, the service process matrix. To conduct the analysis, both multiple analysis of variance (MANOVA) and analysis of variance (ANOVA) models were tested to assess overall system differences and to detect individual dimensional differences. Findings – The results indicate that differences in the structure of service recovery systems do exist across divergent operating environments. Additionally, differences in performance measures were found only in capability improvements, while customer‐oriented performance did not vary across operating environments. Originality/value – The paper is believed to be the first to empirically investigate how differences in operating environments increase the likelihood that firms will employ divergent recovery system configurations. This work yields valuable insights into how organizations can design their systems to more appropriately respond to the demands of the environments in which they operate. The results also lend credence to the concept of equifinality, which suggests similar ends are attainable through multiple means.