Proactive Service Recovery Performance in Emerging (vs. Developed) Market-Based Firms: The Role of Clients’ Cultural Orientation
Special Issue in Marketing
Naghmeh Nik Bakhsh
Tallinn University of Technology, Estonia
Linda D. Hollebeek
Vilnius University/Tallinn University of Technology/Umeå University/Lund University/University of Johannesburg
https://orcid.org/0000-0002-1282-0319
Iivi Riivits-Arkonsuo
Tallinn University of Technology, Estonia
https://orcid.org/0000-0002-9567-0386
Moira K. Clark
Henley Business School, University of Reading, Greenlands Campus
https://orcid.org/0000-0002-7123-4248
Ramunas Casas
Vilnius University, Lithuania
Published 2023-07-13
https://doi.org/10.15388/omee.2023.14.92
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Keywords

proactive service recovery
emerging markets
cultural orientation
perceived justice
relationship quality
scenario-based experiment

How to Cite

Bakhsh , N.N. (2023) “Proactive Service Recovery Performance in Emerging (vs. Developed) Market-Based Firms: The Role of Clients’ Cultural Orientation”, Organizations and Markets in Emerging Economies, 14(2(28), pp. 260–285. doi:10.15388/omee.2023.14.92.

Abstract

Though service recovery plays a key role in industrial clients’ post-recovery supplier evaluations, the impact of customers’ cultural orientation on the effectiveness of supplier-instigated proactive recovery (i.e., a supplier’s recovery efforts before clients notice/complain) remains tenuous, particularly in emerging (vs. developed) markets. Addressing this gap, we develop a model that examines (a) the moderating role of clients’ cultural orientation on the association of supplier-instigated proactive recovery and client-perceived recovery-related justice, and (b) the impact of customer-perceived justice on relationship quality in the emerging (vs. developed) market context. To test the model, we deploy a cross-cultural scenario-based experiment using 117 Danish industrial clients (i.e., developed market) and 109 Iranian industrial clients (i.e., emerging market). The results suggest that customers’ cultural orientation partially moderates the relationship of suppliers’ proactive recovery and customer-perceived justice, in turn boosting relationship quality in the emerging/developed market context.

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