The Effects of Selected Antecedents onthe Service Recovery Performance

of Frontline Employees

OSMAN M. KARATEPE

The purpose of the present study is to examine the effects of selected

antecedents on the service recovery performance of frontline employees

using data from frontline bank employees in Turkey. The results of the

path analysis indicate that trait competitiveness, intrinsic motivation,

and role ambiguity are significant antecedents of frontline employees’

service recovery performance. Results also suggest that the significant

consequences of service recovery performance are job satisfaction and

intention to leave. The results of the other hypothesised linkages

demonstrate that intrinsic motivation, emotional exhaustion, and role

ambiguity are significantly associated with frontline employees’ job

satisfaction. In addition, the current empirical findings provide

support for the notion that role ambiguity and emotional exhaustion

are significant predictors of intention to leave. Limitations of the

study, managerial implications, and implications for future research

are discussed.

INTRODUCTION

In an increasingly global competitive environment, service firms focus on delivering

exceptional quality to their customers. However, mistakes and failures are inevitable

in service encounters. Service failures may lead to positive outcomes such as custo-

mer satisfaction and repurchase intentions, if they are resolved effectively. Unless

service failures are resolved satisfactorily, they may have detrimental outcomes

such as customer dissatisfaction, negative word-of-mouth, and loss of customers

[cf. Babakus et al., 2003].

Although it is acknowledged among researchers and practitioners that service

quality depends on the performance of frontline employees, research indicates that

more than 60 per cent of service failures are initiated with frontline employees

[Tax and Brown, 1998], and a few service firms learn from their mistakes [Johnston

Dr. Osman M. Karatepe, Assistant Professor of Marketing, School of Tourism and HospitalityManagement, Eastern Mediterranean University, Gazimagusa, Turkish Republic of Northern Cyprus,Via Mersin 10, Turkey. Email: osman.karatepe@emu.edu.tr

The Service Industries Journal, Vol.26, No.1, January 2006, pp.39–57ISSN 0264-2069 print=1743-9507 onlineDOI: 10.1080=02642060500358795 # 2006 Taylor & Francis

and Mehra, 2002]. In addition, frontline employees are the lowest paid members of

service firms, and are susceptible to high levels of role stress [Weatherly and

Tansik, 1993] and emotional exhaustion in the workplace [Boles et al., 1997]. It is

obvious that frontline employees working under stress and experiencing high levels

of emotional exhaustion may not be able to perform service recovery efforts success-

fully. In a work environment where frontline employees are expected to deal with a

wide variety of customer requests and complaints [Boshoff and Allen, 2000], com-

petitive and intrinsically motivated frontline employees are more likely to resolve

customer complaints effectively and receive positive evaluations from their custo-

mers and managers.

With this realisation, the current study develops and tests a research model

which aims to measure the effects of selected antecedents on the service recovery

performance of frontline employees. In the current study, service recovery perform-

ance is conceptualised as ‘frontline service employees’ perceptions of their own

abilities and actions to resolve a service failure to the satisfaction of the customer’

[Babakus et al., 2003: 274]. The present study set out to address four important

research issues. First, there is still a paucity of empirical research regarding the

factors that may influence job-related outcomes of frontline employees [Netemeyer

et al., 2004], and specifically service recovery performance [Babakus et al., 2003;

Boshoff and Allen, 2000]. Second, based on the results of a large-scale Gallup

survey, Brewer [1994] reports that trait competitiveness and intrinsic motivation

are two significant talents that the best salespeople (frontline employees) have.

However, little is known about the effect of trait competitiveness on the

performance of frontline employees [cf. Brown et al., 1998]. Third, many studies

consider emotional exhaustion as the first stage of the burnout syndrome [e.g.,

Cordes and Dougherty, 1993]. Although this is the case, there is a lack of empirical

research concerning the effects of emotional exhaustion on frontline employees’

affective and performance outcomes [Babakus et al., 1999; Boles et al., 1997].

Finally, the results of the current empirical study may provide useful implications

for managers to enhance the service recovery performance of their frontline

employees.

RESEARCH MODEL AND HYPOTHESES

The hypothesised relationships are shown in Figure 1. Specifically, the research

model aims to measure the effects of trait competitiveness, intrinsic motivation,

emotional exhaustion, role conflict, and role ambiguity on the service recovery per-

formance of frontline employees. In the research model, job satisfaction and intention

to leave are treated as the consequences of frontline employees’ service recovery per-

formance. Although several studies have investigated the effects of selected antece-

dents on service recovery performance [Yavas et al., 2003; Boshoff and Allen,

2000], they have not incorporated trait competitiveness, intrinsic motivation, and

emotional exhaustion into their conceptual models. Each of the constructs and the

hypothesised relationships in Figure 1 are discussed next.

40 THE SERVICE INDUSTRIES JOURNAL

The Hypothesised Relationships

As indicated above, competitiveness is one of the personality traits that the best sales-

people possess [Brewer, 1994]. Trait competitiveness is conceptualised as an aspect

of personality relating to the ‘enjoyment of interpersonal competition and the desire to

win and be better than others’ [Brown and Peterson, 1994: 72]. Wang and Netemeyer

[2002] convincingly discuss that traits associated with achievement motivation are

posited to have stronger correlations with performance than other personality vari-

ables. With this realisation, highly competitive individuals are more likely to focus

on exceeding the performance of others that will lead them to winning performance.

FIGURE 1

RESEARCH MODEL

SERVICE RECOVERY PERFORMANCE OF FRONTLINE EMPLOYEES 41

There is empirical support which shows the significant positive relationship between

trait competitiveness and employee performance. For example, Brown and Peterson

[1994] found evidence that competitiveness positively influenced salesperson per-

formance. Menguc [1996] also reported that an increase in trait competitiveness

resulted in an increase in salesperson performance. Recently, Wang and Netemeyer

[2002] showed that trait competitiveness had a significant positive influence on real

estate sales agents’ performance.

Therefore, it is hypothesised that:

H1: Frontline employees’ trait competitiveness will exert a significant positive

influence on their perceptions of service recovery performance.

Intrinsic motivation refers to an individual’s ‘feeling of challenge or competence

derived from performing a job’ [Keaveney, 1992: 151]. As is the case with trait com-

petitiveness, intrinsic motivation is also reported to be one of the key talents that the

best salespeople have [Brewer, 1994]. As convincingly discussed by Thomas [2000],

intrinsic motivation is a key to increase employee performance. This is also supported

by other conceptual evidence that intrinsically motivated employees are innovative

and produce more in the workplace [Miller, 2002]. There is also empirical evidence

to support the premise that intrinsic motivation is positively related to employee per-

formance. For example, in an empirical study of 94 salespeople, Tyagi [1985] found

that intrinsic motivation had a significant positive effect on salesperson work per-

formance. Oliver and Anderson [1994] reported that intrinsic motivation was signifi-

cantly correlated with salesperson relative performance. Babakus et al. [1996] found

evidence in a sales force context that intrinsically motivated salespeople displayed

high levels of performance.

This prompts the hypothesis that:

H2: Frontline employees’ intrinsic motivation will have a significant positive

effect on their perceptions of service recovery performance.

The job burnout construct developed by Maslach and Jackson [1981] consists of

three major components named as emotional exhaustion, depersonalisation, and

diminished personal accomplishment. While emotional exhaustion refers to the

lack of energy and depletion of emotional resources due to excessive psychological

demands, depersonalisation refers to a tendency to evaluate oneself negatively, and

diminished personal accomplishment is related to the negative feelings and attitudes

towards one’s customers and co-workers [Maslach and Jackson, 1981; Cordes and

Dougherty, 1993; Boles et al., 2000]. Researchers agree that emotional exhaustion,

the first dimension of burnout examined in this study, is the initiator of burnout syn-

drome [e.g., Maslach and Jackson, 1981; Babakus et al., 1999; Gaines and Jermier,

1983], occurs in high-stress work environments, such as the ones where employees

work in boundary-spanning positions [Cordes and Dougherty, 1993], and has signifi-

cant implications for the quality of work life in organisations [Wright and Cropan-

zano, 1998]. Emotional exhaustion leads to detrimental outcomes such as being

used up, frustration, and general loss of feeling and concern [Gaines and Jermier,

1983]. Once employees’ emotional resources are depleted, employees may not be

42 THE SERVICE INDUSTRIES JOURNAL

able to perform job-related tasks successfully. Empirical studies demonstrated that

emotional exhaustion had a detrimental impact on employee performance. For

instance, Wright and Bonett [1997] reported that emotional exhaustion was a signifi-

cant predictor of work performance in the public sector. In a study of social welfare

workers, Wright and Cropanzano [1998] found that emotional exhaustion was nega-

tively related to job performance. Recently, Babakus et al. [1999] also found evidence

in a sales force setting that emotional exhaustion had a significant negative influence

on salesperson performance.

Therefore, the following hypothesis is proposed:

H3: Frontline employees’ emotional exhaustion will have a significant negative

effect on their perceptions of service recovery performance.

A number of empirical findings reveal that the major components of role stress

(role conflict and role ambiguity) are posited to influence employee job performance

[e.g., Jackson and Schuler, 1985]. Although the relationship between the major com-

ponents of role stress and job performance has been investigated in boundary-

spanning studies, most of the empirical studies have produced mixed findings.

More specifically, there are empirical studies which indicate that role conflict is not

significantly associated with employee performance [e.g., Brown and Peterson,

1993]. While some studies report that role conflict decreases employee performance

[Sohi, 1996], other studies demonstrate that role conflict leads to high levels of per-

formance [Babin and Boles, 1996, 1998; Behrman and Perreault, 1984]. The current

study concurs with Behrman and Perreault [1984], who report that role conflict

enhances employee performance, since frontline employees confront high levels of

conflicting demands from managers, customers and co-workers, and role conflict

may be a prerequisite for successful service recovery efforts in the workplace.

Therefore, the following hypothesis is proposed:

H4: Frontline employees’ role conflict will have a significant positive influence

on their perceptions of service recovery performance.

Contrary to the mixed findings regarding the relationship between role conflict

and job performance, as convincingly discussed by Behrman and Perreault [1984],

the existing research findings are more consistent in suggesting that role ambiguity

is negatively related to employee performance. Specifically, Dubinsky et al. [1992]

found evidence in three different samples that an increase in salespeople’s role ambi-

guity had a significant negative effect on their perceptions of job performance. In their

empirical study of 180 frontline bank employees, Yavas et al. [2003] found evidence

in the Turkish bank environment that role ambiguity influenced frontline employees’

service recovery performance deleteriously. In their cross-national study, Netemeyer

et al. [2004] reported that an in increase in role ambiguity resulted in a decrease in

salesperson performance.

In light of the aforementioned findings, the following hypothesis is proposed:

H5: Frontline employees’ role ambiguity will have a significant negative influ-

ence on their perceptions of service recovery performance.

SERVICE RECOVERY PERFORMANCE OF FRONTLINE EMPLOYEES 43

Job satisfaction is defined as ‘the pleasurable emotional state resulting from the

appraisal of one’s job as achieving or facilitating the achievement of one’s job

values’ [Locke, 1969: 316]. Miller [2002] cogently discusses that intrinsically motiv-

ated employees have high levels of job satisfaction. There is empirical support that

intrinsic motivation is linked to job satisfaction. In an empirical study of 305

buyers for retail organisations, Keaveney and Nelson [1993] indicated that intrinsic

motivation was positively related to job satisfaction. In a study of 300 home-

interviewed working adults, Lu [1999] showed that intrinsic motivation exerted a

strong positive effect on job satisfaction. Grant et al. [2001] reported that intrinsically

motivated employees had high levels of satisfaction with their jobs.

Accordingly, the following hypothesis is proposed:

H6: Frontline employees’ intrinsic motivation will have a significant positive

effect on their perceptions of job satisfaction.

There is empirical evidence to support the premise that emotional exhaustion

influences employees’ job satisfaction deleteriously. Specifically, Lee and Ashforth

[1996], in their meta-analytic study, showed that emotional exhaustion had a signifi-

cant negative correlation with job satisfaction. Iverson, Olekalns and Erwin [1998]

reported that emotional exhaustion exerted a significant negative impact on employ-

ees’ job satisfaction in a health care setting. Recently, Babakus et al. [1999] found

that salespeople facing high levels of emotional exhaustion reported low levels of

job satisfaction.

The above findings lead to the following hypothesis:

H7: Frontline employees’ emotional exhaustion will exert a significant

negative effect on their perceptions of job satisfaction.

A careful examination of the literature indicates that the relationship between the

major components of role stress and job satisfaction has received considerable empiri-

cal attention [Jackson and Schuler, 1985]. Specifically, research demonstrates that

both role conflict and role ambiguity are posited to be negatively associated with

job satisfaction [e.g., Siguaw et al., 1994; Sohi, 1996; Van Sell et al., 1981; Brown

and Peterson, 1993]. However, there are empirical findings which provide support

for the notion that only one component of role stress (role conflict or role ambiguity)

has a significant negative impact on salesperson job satisfaction [e.g., Hartline and

Ferrell, 1996; Teas, 1983; Netemeyer et al., 1990]. In addition, several research find-

ings report that role conflict and role ambiguity are not significantly related to sales-

people job satisfaction [e.g., Naumann et al., 2000]. Although there are different

views concerning the association between the major components of role stress and

job satisfaction, the weight of the evidence supports the notion that increases in

both role conflict and role ambiguity will lead to low levels of job satisfaction.

Consistent with the weight of the evidence, the following hypotheses are

proposed:

H8: Frontline employees’ role conflict will have a significant negative effect on

their perceptions of job satisfaction.

44 THE SERVICE INDUSTRIES JOURNAL

H9: Frontline employees’ role ambiguity will have a significant negative effect

on their perceptions of job satisfaction.

A synthesis of the related literature indicates that there are intriguing findings regard-

ing the relationship between job performance and job satisfaction. For example, Brown

and Peterson [1993], in their meta-analytic inquiry, reported that performance did not

exert any significant positive effect on salesperson job satisfaction. However, in a

service recovery study, Boshoff and Allen [2000] indicated that frontline bank employ-

ees’ effective service recovery performance increased their job satisfaction. In a recent

service recovery study, Yavas et al. [2003] found that effective service recovery

performance by frontline bank employees led to an increase in their job satisfaction.

More recently, in their cross-national study, Netemeyer et al. [2004] found that perform-

ance depicted a significant positive relationship with salesperson job satisfaction.

The following hypothesis is proposed, since the effect of performance on job

satisfaction requires further testing [Netemeyer et al., 2004]:

H10: Frontline employees’ effective service recovery performance will have a

significant positive effect on their perceptions of job satisfaction.

Intention to leave is a significant and immediate precursor of actual turnover

[Johnston et al., 1988], and is an important consequence in the research model

depicted in Figure 1. Emotional exhaustion is posited to influence employees’ turn-

over intentions. In a study of salespeople, Boles et al. [1997] investigated the relation-

ship between emotional exhaustion and propensity to leave and found that salespeople

experiencing high levels of emotional exhaustion had high levels of intentions to

leave the organisation. In another study, Wright and Cropanzano [1998] indicated

that emotional exhaustion was a significant predictor of employee voluntary turnover.

In an empirical study, Moore [2000] reported that emotional exhaustion exerted a

significant positive effect on employees’ intentions to leave the organisation.

Thus, the following hypothesis is proposed:

H11: Frontline employees’ emotional exhaustion will have a significant

positive influence on their intentions to leave the organisation.

Frontline employees who do not have adequate information about job-related tasks

experience uncertainty in the workplace. In this case, role ambiguity may have detri-

mental impact on employees’ affective outcomes. Specifically, in their meta-analytic

research, Brown and Peterson [1993] found a significant positive relationship between

role ambiguity and propensity to leave. Singh, Verbeke and Rhoads [1996] reported

that high levels of role ambiguity increased marketing boundary-spanners’ turnover

intentions. Recently, Grant et al. [2001] pointed out that role ambiguity had a signifi-

cant positive influence on salespeople’s intention to leave the sales force.

Based on the above information, the following hypothesis is proposed:

H12: Frontline employees’ role ambiguity will exert a significant positive effect

on their intentions to leave the organisation.

In the current empirical study, service recovery performance is posited to reduce

frontline employees’ intentions to leave the organisation. In their meta-analytic study,

SERVICE RECOVERY PERFORMANCE OF FRONTLINE EMPLOYEES 45

McEvoy and Cascio [1987] showed that employees performing their jobs effectively

were likely to continue their employment. Lance [1988] reported that job performance

was negatively correlated with employees’ turnover intentions. Recently, Boshoff and

Allen [2000] found that a decrease in frontline bank employees’ service recovery

performance led to an increase in their intentions to leave the organisation.

Accordingly, the following hypothesis is proposed:

H13: Frontline employees’ effective service recovery performance will have a

significant negative effect on their intentions to leave the organisation.

There is also empirical support for the notion that job satisfaction is negatively

associated with intention to leave [Martin, 1979]. Past research revealed that sales-

people having low levels of satisfaction with their jobs had intentions to leave the

sales force [Boles et al., 1997]. A recent study indicated that higher levels of job

satisfaction had a significant negative impact on their intentions to leave the sales

force [Grant et al., 2001]. A more recent study demonstrated that job satisfaction

had a significant negative influence on salesperson turnover intent [Netemeyer

et al., 2004].

Consistent with these findings regarding the relationship between the two

constructs, the following hypothesis is proposed:

H14: Frontline employees’ job satisfaction will exert a significant negative

influence on their intentions to leave the organisation.

METHODOLOGY

Sample

The hypothesised relationships depicted in Figure 1 were tested using data collected

from frontline bank employees in one of the cities of the south-eastern region of

Turkey. After operating for years in a regulated and protected environment,

Turkish banks are now aware of the fact that that their survival in the future will

depend on the delivery of quality service [Babakus et al., 2003].

Managements of 23 banks in the research location were requested to give per-

mission for the research team to collect data from frontline employees. After receiv-

ing permission, the research team was informed that there were 450 frontline

employees in 23 banks. These frontline bank employees had boundary-spanning

roles (i.e., customer service representatives and sales or credit staff) and spent most

of their time dealing directly with customers’ requests and complaints. At the

outset of the research, frontline bank employees were given an assurance of anonym-

ity and confidentiality. Respondents were requested to self-administer the question-

naires. The research team personally distributed 450 questionnaires to these

frontline employees (50 frontline employees were used for pre-testing the question-

naires). By the cut-off date for data collection, 363 usable surveys were personally

retrieved from the employees for a response rate of 81 per cent.

Of those who responded, about 50 (50.4) per cent of the respondents were

between the ages of 28 and 37 and roughly 22 (22.4) per cent were between 38

46 THE SERVICE INDUSTRIES JOURNAL

and 57 years old. The majority of the respondents (58.7 per cent) were male. More

than 70 (78.6) per cent of the respondents had university education. About 18

(17.9) per cent of the respondents had a tenure less than one year and more than 60

(67.6) per cent of the respondents had tenures between one and 14 years.

Measurement

Multiple item indicators from past writings were used to measure trait competitive-

ness, intrinsic motivation, emotional exhaustion, role conflict, role ambiguity,

service recovery performance, job satisfaction, and intention to leave. Responses to

the items in trait competitiveness, intrinsic motivation, emotional exhaustion, role

conflict, role ambiguity, service recovery performance, and intention to leave were

elicited on five-point scales ranging from ‘5 ¼ strongly agree’ to ‘1 ¼ strongly

disagree’. Responses to the items in job satisfaction were elicited on five-point

scales ranging from ‘5 ¼ extremely satisfied’ to ‘1 ¼ extremely dissatisfied’. The

survey was originally prepared in English and then translated into Turkish by using

the back-translation method [McGorry, 2000].

Trait Competitiveness. Trait competitiveness was measured using four items from

Brown et al. [1998].

Intrinsic Motivation. Four items from Low et al. [2001] were used to measure

intrinsic motivation.

Emotional Exhaustion. Research indicates that the item ‘working with people

directly puts too much stress on me’ seemed to correspond to depersonalisation

instead of emotional exhaustion [Boles et al., 2000]. Therefore, this item was not

included in the emotional exhaustion scale. Finally, eight items from Maslach and

Jackson [1981] were used to measure emotional exhaustion.

Role Conflict and Role Ambiguity. Role conflict and role ambiguity were measured

through, respectively, seven and six items from Rizzo, House and Lirtzman [1970].

Several studies indicate that there are problems associated with the validity of the

role conflict and role ambiguity scales [e.g., McGee et al., 1989]. However, the

role conflict and role ambiguity scales have received much empirical attention in

the marketing and organisational behaviour literatures [Babin and Boles, 1998;

Smith et al., 1993], and there is empirical evidence to support the validity of these

scales [Kelloway and Barling, 1990].

Service Recovery Performance. Service recovery performance was operationalised via

five items from Boshoff and Allen [2000]. Research suggests that ‘measurement of

service recovery performance via a self-report measure is justified on the grounds that

frontline employees are in the best position to evaluate performance outcomes and

their perceptions typically converge with those of the customers’ [Babakus et al., 2003:

278]. In addition, there are studies which provide support for the use of self-report

measure of performance [Churchill et al., 1985; Harris and Schaubroeck, 1988].

SERVICE RECOVERY PERFORMANCE OF FRONTLINE EMPLOYEES 47

Job Satisfaction. Job satisfaction was measured using eight items from Hartline and

Ferrell [1996]. The job satisfaction construct evaluates eight facets of job satisfaction

such as overall job, co-workers, supervisor(s), bank’s policies, support given to

frontline employees, pay, opportunities for advancement with the bank, and bank’s

customers. This approach is consistent with that of Brown and Peterson [1993].

Intention to Leave. Three items were adapted from Boshoff and Allen [2000] to

measure intention to leave.

All measures were subjected to confirmatory factor analysis to provide support for

the issues of dimensionality, convergent and discriminant validity. In light of the initial

results of the confirmatory factor analysis, several items were deleted, since their factor

loadings were below .50 and there was no significant correlation among several items.

The scale purification process permits for deletion of items [Netemeyer et al., 2004;

Hartline and Ferrell, 1996]. Consequently, four items from role conflict, three items

from role ambiguity, two items from emotional exhaustion, and one item each from

service recovery performance and job satisfaction were removed from further analysis.

The final results of the confirmatory factor analysis demonstrated a reasonable fit of the

eight-factor model to the data on the basis of a number of fit statistics (x2 ¼ 1047.71,

df ¼ 499; GFI ¼ 0.85; AGFI ¼ 0.83; NFI ¼ 0.83; NNFI ¼ 0.88; CFI ¼ 0.90;

IFI ¼ 0.90; RMSEA ¼ 0.06; SRMR ¼ 0.06). Table 1 demonstrates that all standar-

dised loadings are above .50, and all t-values are significant [Anderson and Gerbing,

1988]. The majority of the standardised loadings are above .70. Model fit statistics as

well as the high standardised loadings provided support for convergent validity

[Anderson and Gerbing, 1988].

In order to provide empirical support for the issue of discriminant validity, we

employed several pairwise confirmatory factor analyses. Specifically, we first tried

to force items representing each construct into a single underlying factor and then

fit a two-dimensional model. On the basis of the results of various fit statistics, the

results suggest that each set of items represents a single underlying construct and

provides evidence for discriminant validity [Anderson and Gerbing, 1988].

Composite scores for each construct were computed by averaging scores across

items representing that construct. Means and standard deviations of the composite

scores are shown in Table 2. Table 2 also indicates that the correlation coefficients

among study variables ranged from .03 (intrinsic motivation and role conflict) to

.73 (emotional exhaustion and intention to leave). None of the correlation coefficients

were equal to and/or higher than .90 [Tabachnick and Fidell, 1996], which provided

further empirical support for the issue of discriminant validity. As demonstrated in

Table 2, all constructs had internal reliability estimates above the cut-off level of

0.70 as recommended by Nunnally [1978].

RESULTS

The abovementioned hypothesised relationships were tested using LISREL 8.30

[Joreskog and Sorbom, 1996] through path analysis. We used the correlation

48 THE SERVICE INDUSTRIES JOURNAL

matrix in Table 2 as input for testing the hypothesised relationships at the same time.

The results of the model fit statistics in Table 3 demonstrate that the research model

fits the data well. Ten of the 14 hypotheses are supported in the present study. The

summary of the path analysis results is shown in Table 3.

TABLE 1

SCALE ITEMS, RELIABILITIES AND CONFIRMATORY FACTOR ANALYSIS RESULTS

(n ¼ 363)

Scale itemsStandardised

loadings T-values

Trait competitiveness (TRAITC)I enjoy working in situations involving competition with others. 0.67 13.19It is important to me to perform better than others on a task. 0.78 16.11I feel that winning is important in both work and games. 0.71 14.45I try harder when I am in competition with other people. 0.75 15.48Intrinsic motivation (INTMOT)When I do work well, it gives me a feeling of accomplishment. 0.66 13.11I feel a great sense of personal satisfaction when I do my job well. 0.76 15.77When I perform my job well, it contributes to my personal growth and

development.0.76 15.80

My job increases my feeling of self esteem. 0.76 15.67Emotional exhaustion (EEXHAUST)I feel emotionally drained from my work. 0.66 13.82I feel fatigued when I get up in the morning and have to face another day on

the job.0.76 16.65

Working with people all day is really a strain for me. 0.69 14.61I feel burned out from my work. 0.88 20.72I feel frustrated by my job. 0.81 18.33I feel like I am at the end of my rope. 0.79 17.63Role conflict (ROLEC)I work with two or more groups who operate differently. 0.52 9.30I receive incompatible requests from two or more people. 0.76 13.61I have to do things that should be done differently. 0.77 13.68Role ambiguity (ROLEA)�

I know exactly what is expected of me. 0.72 13.48I know what my responsibilities are. 0.76 14.47I feel certain about how much authority I have. 0.62 11.55Service recovery performance (SERPERF)Considering all the things I do, I handle dissatisfied customers quite well. 0.69 13.38I do not mind dealing with complaining customers. 0.63 11.81No customer I deal with leaves with problems unresolved. 0.63 11.92Satisfying complaining customers is a great thrill to me. 0.72 14.09Job satisfaction (JSAT)My overall job. 0.73 15.47My fellow workers. 0.63 12.67My supervisor(s). 0.76 16.42This bank’s policies. 0.82 18.44The support provided by this bank. 0.78 17.17My salary. 0.60 11.89The opportunities for advancement with this bank. 0.64 12.89Intention to leave (INTLEAVE)I often think about leaving this bank. 0.84 18.70It would not take much to make me leave this bank. 0.73 15.20I will probably be looking for another job soon. 0.76 16.10

Notes: Each item is measured on five-point scales. All loadings are significant at the .01 level or better.�Reverse-coded items.

SERVICE RECOVERY PERFORMANCE OF FRONTLINE EMPLOYEES 49

Hypothesis 1 predicts that frontline employees’ trait competitiveness (TRAITC)

exerts a significant positive influence on their perceptions of service recovery per-

formance (SERPERF). The results of the path analysis provide empirical support

for this hypothesised relationship. Therefore, Hypothesis 1 is accepted. Hypothesis

2 suggests that frontline employees’ intrinsic motivation (INTMOT) has a significant

positive effect on their perceptions of service recovery performance (SERPERF). The

path from intrinsic motivation to service recovery performance is both significant and

positive. Thus, Hypothesis 2 is accepted. Hypothesis 3 refers to the significant nega-

tive relationship between emotional exhaustion (EEXHAUST) and service recovery

performance (SERPERF). However, Table 3 shows that frontline employees’

emotional exhaustion does not have any significant negative impact on their percep-

tions of service recovery performance. Hence, Hypothesis 3 is rejected. In addition,

Hypothesis 4 predicts that frontline employees’ role conflict (ROLEC) depicts a sig-

nificant positive relationship with their perceptions of service recovery performance

(SERPERF). The results of the path analysis in Table 3 do not lend any empirical

support for this association. Therefore, Hypothesis 4 is rejected. The significant nega-

tive relationship between role ambiguity (ROLEA) and service recovery performance

(SERPERF) represents Hypothesis 5. The path analytic result for the relationship

TABLE 2

MEANS, STANDARD DEVIATIONS AND CORRELATIONS OF STUDY VARIABLES

Variables 1 2 3 4 5 6 7 8

Traitcompetitiveness(TRAITC)

1.00

Intrinsicmotivation(INTMOT)

0.45�� 1.00

Emotionalexhaustion(EEXHAUST)

20.11� 20.14�� 1.00

Role conflict(ROLEC)

0.06 0.03 0.29�� 1.00

Role ambiguity(ROLEA)

20.26�� 20.31�� 0.26�� 0.09 1.00

Service recoveryperformance(SERPERF)

0.41�� 0.41�� 20.11� 0.08 20.27�� 1.00

Job satisfaction(JSAT)

0.29�� 0.28�� 20.24�� 20.13� 20.38�� 0.26�� 1.00

Intention to leave(INTLEAVE)

20.11� 20.15�� 0.73�� 0.28�� 0.30�� 20.22�� 20.23�� 1.00

Alpha 0.81 0.82 0.90 0.73 0.73 0.76 0.87 0.82Mean 3.90 4.47 2.66 3.18 1.94 3.97 3.43 2.53Standard deviation 0.75 0.59 1.02 0.85 0.68 0.61 0.79 1.08

Notes: Composite scores for each variable were obtained by averaging scores across items representing thatmeasure. The scores range from 1 to 5. Correlations without any asterisks are insignificant.

� Correlation is significant at the .05 level.�� Correlation is significant at the .01 level.

50 THE SERVICE INDUSTRIES JOURNAL

between role ambiguity and service recovery performance is both significant and

negative. Thus, Hypothesis 5 is accepted. Trait competitiveness, intrinsic motivation,

emotional exhaustion, role conflict and role ambiguity jointly explain 25 per cent of

the variance in service recovery performance.

Hypothesis 6 predicts that frontline employees’ intrinsic motivation (INTMOT)

has a significant positive relationship with their perceptions of job satisfaction

(JSAT). In light of the results of the path analysis, there is empirical support for

this association. Thus, Hypothesis 6 is accepted. Hypothesis 7 refers to the significant

negative relationship between emotional exhaustion (EEXHAUST) and job

TABLE 3

MODEL TEST RESULTS

Hypothesised paths

Standardisedparameterestimates T-values Accepted/Rejected

I. Impact on service recovery performanceH1 TRAITC ! SERPERF 0.26 4.95� AcceptedH2 INTMOT ! SERPERF 0.25 4.71� AcceptedH3 EEXHAUST ! SERPERF 20.04 20.76 RejectedH4 ROLEC ! SERPERF 0.08 1.64 RejectedH5 ROLEA ! SERPERF 20.12 22.47� Accepted

R2 5 0.25

II. Impact on job satisfactionH6 INTMOT ! JSAT 0.13 2.47� AcceptedH7 EEXHAUST ! JSAT 20.11 22.21� AcceptedH8 ROLEC ! JSAT 20.09 21.76 RejectedH9 ROLEA ! JSAT 20.27 25.19� AcceptedH10 SERPERF ! JSAT 0.13 2.45� Accepted

R2 5 0.21

III. Impact on intention to leaveH11 EEXHAUST ! INTLEAVE 0.68 18.26� AcceptedH12 ROLEA ! INTLEAVE 0.09 2.24� AcceptedH13 SERPERF ! INTLEAVE 20.12 23.20� AcceptedH14 JSAT ! INTLEAVE 20.01 20.02 Rejected

R2 5 0.55

Model fit statistics:Chi-square ¼ 13.85, df ¼ 4, p ¼ 0.01GFI ¼ 0.99AGFI ¼ 0.91NFI ¼ 0.98NNFI ¼ 0.89CFI ¼ 0.98IFI ¼ 0.99RMR ¼ 0.02RMSEA ¼ 0.08

Notes: GFI ¼ Goodness of Fit Index; AGFI ¼ Adjusted Goodness of Fit Index; NFI ¼ Normed Fit Index;NNFI ¼ Non-Normed Fit Index; CFI ¼ Comparative Fit Index; IFI ¼ Incremental Fit Index;RMR ¼ Root Mean Square Residual; RMSEA ¼ Root Mean Square Error of Approximation.

�All t-values are significant at the .05 level or better.

SERVICE RECOVERY PERFORMANCE OF FRONTLINE EMPLOYEES 51

satisfaction (JSAT). The results of the path analysis provide empirical support for this

relationship. Hence, Hypothesis 7 is accepted. Hypothesis 8 suggests that frontline

employees’ role conflict (ROLEC) exerts a significant negative influence on their per-

ceptions of job satisfaction (JSAT). As demonstrated in Table 3, role conflict is not

significantly associated with job satisfaction. Therefore, Hypothesis 8 is rejected.

Hypothesis 9 predicts that frontline employees’ role ambiguity (ROLEA) portrays

a significant negative relationship with their perceptions of job satisfaction (JSAT).

This relationship is supported by the results of the path analysis. Thus, Hypothesis

9 is accepted. Additionally, Hypothesis 10 suggests a significant positive relationship

between service recovery performance (SERPERF) and job satisfaction (JSAT). The

path analytic result between the two constructs is both significant and positive. Hence,

Hypothesis 10 is accepted. Intrinsic motivation, emotional exhaustion, role conflict,

role ambiguity, and service recovery performance jointly explain 21 per cent of the

variance in job satisfaction.

The significant positive relationship between emotional exhaustion (EEXHAUST)

and intention to leave (INTLEAVE) represents Hypothesis 11. Table 3 indicates that

this relationship is supported. Thus, Hypothesis 11 is accepted. Hypothesis 12

suggests that frontline employees’ role ambiguity (ROLEA) exerts a significant posi-

tive impact on their intentions to leave the organisation (INTLEAVE). The results of

the path analysis also demonstrate that there is empirical support for this relationship.

Therefore, Hypothesis 12 is accepted. Hypothesis 13 predicts that effective service

recovery performance by frontline employees (SERPERF) has a significant negative

effect on their intentions to leave the organisation (INTLEAVE). The path from

service recovery performance to intention to leave is both significant and negative.

Thus, Hypothesis 13 is accepted. Finally, Hypothesis 14 suggests that job satisfaction

(JSAT) exerts a significant effect on frontline employees’ intentions to leave the

organisation (INTLEAVE). However, this relationship is not supported by the

results of the path analysis. Therefore, Hypothesis 14 is rejected. Emotional exhaus-

tion, role ambiguity, service recovery performance, and job satisfaction jointly

explain 55 per cent of the variance in intention to leave.

DISCUSSION

The results of our study offer significant insights regarding the effects of selected

antecedents on the service recovery performance of frontline employees. Consistent

with the prior empirical findings [e.g., Wang and Netemeyer, 2002; Babakus et al.,

1996; Brown and Peterson, 1993], the results of the path analysis provide support

for the significant effects of trait competitiveness, intrinsic motivation and role ambi-

guity on the service recovery performance of frontline employees. The magnitudes of

the effects of trait competitiveness and intrinsic motivation on service recovery per-

formance are almost the same. As already reported by the results of the Gallup

Management Consulting Group’s survey [Brewer, 1994], trait competitiveness and

intrinsic motivation are among the key talents the best salespeople (frontline employ-

ees) have. Our results provide empirical support for this finding. Although emotional

52 THE SERVICE INDUSTRIES JOURNAL

exhaustion is a critical variable in understanding the attitudes and behaviours of

employees [Babakus et al., 1999], our study does not lend any support to the relation-

ship between emotional exhaustion and service recovery performance. In this study

role conflict has not been found to be one of the significant predictors of service

recovery performance. This finding is not surprising, since various research findings

are not monotonic in support concerning the relationship between the two constructs.

In addition, job satisfaction and intention to leave are found to be significant conse-

quences of service recovery performance. The significant positive relationship

between service recovery performance and job satisfaction provides further empirical

support for prior findings [e.g., Yavas et al., 2003]. It is apparent in our study that

frontline employees performing their jobs effectively are unlikely to leave the organ-

isation. This empirical finding is consistent with the findings reported by Boshoff and

Allen [2000].

Consistent with the results of the prior studies [Lu, 1999; Babakus et al., 1999;

Grant et al., 2001], intrinsic motivation, emotional exhaustion, and role ambiguity

are reported to be significant predictors of frontline employees’ job satisfaction.

This suggests that intrinsically motivated frontline employees have high levels of

job satisfaction, and frontline employees who are susceptible to high levels of role

ambiguity and emotional exhaustion report decreased job satisfaction. As is the

case with the role conflict ! service recovery performance relationship, role conflict

is not a significant predictor of job satisfaction. Although the weight of the evidence

suggests that role conflict is one of the outcomes of job satisfaction [e.g., Jackson and

Schuler, 1985], our results provide support for those of Boles et al. [1997] and

Naumann et al. [2000].

The result involving the path from job satisfaction to intention to leave is surpris-

ing. Although most of the empirical findings indicate that job satisfaction is one of the

consequences of intention to leave [e.g., Babakus et al., 1996], our results do not lend

any further credence to this relationship. One possible explanation for this unexpected

finding is that the inclusion of emotional exhaustion in the model may have attenuated

the relationship between job satisfaction and intention to leave. On the other hand,

role ambiguity and emotional exhaustion have been found to be positively associated

with intention to leave. The magnitude of the impact of emotional exhaustion on

intention to leave is high, when compared with those of service recovery performance

and role ambiguity. This finding suggests that emotionally exhausted frontline

employees have high levels of intentions to leave the organisation.

Managerial Implications

Our current study points to some useful guidelines for managerial action. First, it is

known among practitioners that frontline employees are expected to deal with a

wide variety of customer requests and complaints and resolve complaints to the sat-

isfaction of the customer. Therefore, managers should establish a work environment

where frontline employees will perceive the importance of competitiveness that is

posited to enhance service recovery performance. Second, in order to raise the

level of intrinsic motivation and thus service recovery performance, managers

SERVICE RECOVERY PERFORMANCE OF FRONTLINE EMPLOYEES 53

should establish high standards for excellence in service delivery, trust in employees

and, when necessary, delegate authority [cf. Thomas, 2000].

Third, George [1990: 64] cogently discusses that if managers want their employ-

ees to do a great job with customers, then they must be ready to do a great job with

their employees. Therefore, it becomes important for managers to minimise role

ambiguity by providing frontline employees with clear guidance regarding their

job-related tasks through the use of ongoing training programmes. By reducing role

ambiguity, managers may enhance service recovery performance, increase job satis-

faction, and decrease turnover intentions. Fourth, managers need to reduce frontline

employees’ emotional exhaustion in the workplace by providing them with time

management programmes.

Finally, the magnitude of the impact of emotional exhaustion on intention to leave

is higher than that of service recovery performance. In some cases, managers may

selectively want to replace emotionally exhausted employees and low performers

with other employees (preferably, competitive and intrinsically motivated employ-

ees) instead of losing time just to reduce their emotional exhaustion and/or tryingto increase their performance. By doing so, several opportunities may be created

for internal advancement and new employees may bring in creative and innovative

ideas for the organisation [cf. Boshoff and Allen, 2000].

Limitations and Implications for Future Research

While interpreting the results and managerial implications of the current study,

several limitations should be taken into consideration. First, the research data

regarding the study constructs depicted in Figure 1 were collected from the

same respondents. This approach may have created common method variance

[Doty and Glick, 1998]. However, in their meta-analytic review, Churchill et al.

[1985] convincingly discuss that the use of self-report measure of performance

does not necessarily lead to biased results. In future studies, customer and/orsupervisor evaluations should also be used to measure the study constructs (e.g.,

service recovery performance).

Second, the current study was undertaken in the Turkish bank environment.

The selection of a single service setting and a single culture may raise concerns

for the issue of generalisability. Although our approach eliminates the problems

that may arise from differences among several industries or cultures, future

studies should select several service settings and/or cultures for the measurement

of study constructs and the provision of empirical support for our results. Third,

our research model has not measured the potential effects of such variables as

effort, self-efficacy, and supervisor support on service recovery performance. In

future studies, the inclusion of these variables in the research model may

enhance our understanding regarding their potential effects on service recovery per-

formance. Finally, the deletion of items, especially from role conflict and role

ambiguity raises questions about the issue of validity. With this realisation,

future studies should use rigorous analyses for the measurement of the psycho-

metric properties of these scales.

54 THE SERVICE INDUSTRIES JOURNAL

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