The Causal Relationship on Quality‐centered Organizational Culture and Its Impact on Service Failure and Service Recovery

Abstract

The purpose of TQM (Total Quality Management)‐centered organizational culture is to enhance the efficiency of business through the proper allocation and concentration of restricted resources. In order to maximize the corporate profitability through customer satisfaction, what kind of, when and how many resources should be allocated and managed to the preventive TQM activities and corrective TQM activities have become a very important decision making factors at the point of high management. This study aims to identify the causal relationships of quality‐centered organizational culture on service quality and customer satisfaction relating to service failure in food service industry. And this study is intended to discover the factors of quality‐centered organizational culture which impacts on service recovery justice after service failure happens, and it can be helpful for the top managers to make a decision to how to form corporate structural culture.

Remedy or cure for service failure?

“…The importance of such customer evaluations comes from the impact that satisfaction is posited to have on consumer behaviours such as loyalty. Independent of theoretical platform, it has become a truism today that service quality is key to customer satisfaction (Bae Suk et al , 2009). However, few if any companies manage to deliver services of expected quality all the time, resulting in negative disconfirmation of expectations or the perception of inequity.…”

“…Service recovery also facilitates the tracking of failures and the development of databases, to gain insight into failures in order to deal with them and try to prevent them from happening again. Other advantages of a good service recovery system are: increased opportunities for cross‐selling to retained customers (Bae Suk et al , 2009), the reduction of perceived risk for new customers, and enhancement of company image for both its employees and customers. Service failure is determined by elements such as the nature of the service encounter, the cause of the problem, and the psychographics of the individuals involved (Du et al , 2010).…”

“…Thus, commercial banks have embarked on different management strategies to promote customer loyalty (Bahia and Nantel, 2000; Jamal and Naser, 2002). Loyalty refers to a deeply held commitment to re‐buy or repatronize a preferred product or service consistently in the future (Oliver et al , 1997; Bae Suk et al , 2009). A loyal customer feels an obligation to persevere with a personal relationship through good and bad times (Reynolds and Arnold, 2000).…”