Joint Business-to-Business recovery management: the moderating role of locus of failure
¹Tallinn University of Technology, School of Business and Governance, Department of Business Administration, Akadeemia Tee 3, EE19086 Tallinn, Estonia
²Tallinn University of Technology, School of Business and Governance, Department of Business Administration, Akadeemia Tee 3, EE19086 Tallinn, Estonia
Agricultural machinery manufacturers and services providers increasingly experience failure in core products and service deliveries. Despite the importance of recovery management in context, scant research exists on studying recovery management, collaborative recovery activities, and the impact of joint recovery management on post-recovery relationship quality. More pressing is the lack of research on the impact of relationship quality on the customer’s intention of future co-recovery activities. Using an experimental design with data from 30 agronomy machinery and equipment manufacturers and service providers in Iran, we investigate how customers’ perception of relationship quality is influenced by the interplay of locus of failure and supplier recovery tactics (non-co-creation of recovery vs co-creation of recovery). The results reveal the locus of failure, interacts with the supplier recovery tactics to impact the customers’ perceptions of relationship quality. Finally, all three dimensions of relationship quality (satisfaction, trust, and commitment) positively impact the customers’ intention for future co-recovery activities.