Factors affecting the effects of service recovery from an integrated point of view

This study discusses three aspects of service recovery: the corporate leadership style, employee self-efficacy, and manager-subordinate interaction. Employees of service-oriented industries were selected as the population, and stratified random sampling was adopted to collect samples in four major metropolitan areas in Taiwan: Taipei, Kaohsiung, Taichung and Tainan. Empirical results showed that transformational leadership, compared with paternalistic leadership, has positive and significant effect on the service recovery performance; high self-efficacy employees, compared with low self-efficacy ones, have a positive and significant effect on the service recovery performance; and relationship commitment value has a positive and significant effect on the service recovery performance. The main feature of the study is the combination of linear multivariate analysis with a non-linear fuzzy neural network model in the analysis, an approach rarely found in previous studies. Management implications are also proposed.