Firms Reap what they Sow: The Effects of Shared Values and Perceived Organizational Justice on Customers’ Evaluations of Complaint Handling

Abstract

Employing elements of organizational theory and service recovery research, the authors examine how employees’ perceptions of shared values and organizational justice can stimulate customer-directed extra-role behaviors when handling complaints. They also investigate how these extra-role behaviors affect customers’ perceptions of justice, satisfaction, word of mouth, and purchase intent. The authors capture and match employee and customer perceptions regarding the relevant constructs following a complaint and recovery experience. The results indicate that employees’ perceptions of shared values and organizational justice affect customer-directed extra-role behaviors. Furthermore, the authors find that extra-role behaviors have significant effects on customers’ perceptions of justice and that these behaviors mediate the effects of shared values and organizational justice on customer justice perceptions. Their study reveals that customer ratings of justice affect the customer outcomes of satisfaction with recovery, overall firm satisfaction, purchase intent, and word of mouth. Finally, the authors show that customers’ perceptions of justice mediate the effects that extra-role behaviors have on customer outcomes.