“…Job stressors make considerable demands on the abilities or resources of employees (Abramis, 1994) and typically involve a lack of predictability, control and understandability of environmental conditions (Cohen, 1980). To date, studies of service recovery performance and job demand stressors have exclusively focused on services such as banking, hospitality and health (Boshoff and Allen, 2000;Yavas et al, 2003;Matilla and Patterson, 2004;Ashill et al, 2005). Although there has been some attention paid to service quality/ service enhancement in the public sector (Lagrosen and Lagrosen, 2003;Chen et al, 2004;Ancarani, 2005), we suggest that it is timely to consider the applicability of service recovery models to settings in which former public sector departments have decentralised into state-owned enterprises, i.e., where former public sector government departments have undergone corporatisation followed by partial deregulation and, by virtue of the range of services on offer, can no longer rely on their former natural or statutory monopoly position.…”