Improving Service Recovery Performance through Readiness for Technology Adoption and Structural Empowerment: Evidence from Software Houses of Pakistan

Abstract

In the rapidly evolving global and Pakistani IT sectors, the challenge of integrating technology adoption with effective service recovery mechanisms has become increasingly prominent. This study addresses the gap in understanding how readiness for technology adoption (RTA), structural empowerment (SE), and top management commitment (TMC) collectively influence Service Recovery Performance (SRP) in Pakistani software houses. Utilizing a quantitative approach, the research quantitatively analyses the relationships between RTA, SE, SRP, and the moderating effect of TMC through a survey of employees within the sector. Findings reveal a positive relationship between RTA and SE, and between SE and SRP, affirming the pivotal role of structural empowerment in mediating the impact of technology readiness on service recovery. Moreover, TMC was found to significantly moderate the SE-SRP relationship, enhancing the effectiveness of empowerment practices in service recovery contexts. These results underscore the importance of cohesive strategies that incorporate technology readiness, employee empowerment, and management support to enhance service recovery outcomes. The study contributes to the literature by providing empirical evidence on the interconnected roles of RTA, SE, and TMC in improving SRP, particularly within the context of emerging markets. For policymakers and business leaders, this research highlights the necessity of fostering an organizational culture that supports technological advancements, empowers employees, and is backed by committed leadership to navigate service recovery challenges effectively, thereby sustaining customer satisfaction and competitive advantage.