Service recovery: a method for assessing performance

Abstract

PurposeThe aim of this study is to propose a method for assessing the service recovery performance of a manufacturing company with value‐added services. Service recovery performance is assessed by an index with value ranges from 0 to 100 percent.Design/methodology/approachA tree‐like structure was built to represent service recovery. This structure was weighted according to the degrees of each dimension's relative importance using the analytic hierarchy process (AHP) method. After construction, the dimensions were evaluated by considering how much they were applied during the process; the service recovery index and the gaps between importance and application were determined. The method was tested in a multinational manufacturing company and in two buyer companies.FindingsIt was possible to identify the most important service recovery dimensions from the perspective of a manufacturing company (“speed of recovery”, followed by “empowerment”) and the respective degree of application according to the buyers; the gaps between importance and application were determined, and a set of suggestions for the service recovery process was made.Practical implicationsThe proposed method can be adapted for other companies, including those in other industries. Analysis of the degree of the application of the dimensions of recovery can be extended to other customers, which allows for the measurement of service recovery performance.Originality/valueThe recovery service is an organisational process relevant to manufacturing enterprises with value‐added services, which require measurement of their performance. The authors found no other references to a method that allows organisations to assess their performance in relation to recovery dimensions.