Tales of service failure are quite common in B2C markets, but it is the B2B markets that lose the most from such service woes. Service recovery (SR) follows a service failure (SF) and has to be very effective in order to avoid further spill over or double deviation. Even in cases where service providers (SPs) intentionally make attempts for an effective SR, these efforts may not be successful owing to unforeseen barriers that exist at the organizational level (i.e., strategic level), inter- and intra-departmental level and the employee level, that interact with each other and create inefficiencies in the system, often leading to negative consequences. Although this is a generic problem applicable across markets, it becomes critical in B2B markets, as they deal with high impact and corporate customers. Thus, one of the objectives of this study is to identify these SR barriers in B2B markets and explore their linkages toward identifying the key driving barriers. A four-phased methodology to address this call in the IT services industry was used. First, the identification phase led to the selection of 27 barriers based on literature. Second, in the prioritization phase, 12 salient barriers were prioritized with the help of an expert panel. Third, in the modelling phase, the total interpretive structural modelling (TISM) technique was used to examine the mutual influences among these barriers toward modelling their linkages using a digraph. Finally, in the classification phase, these barriers were graphically plotted and classified into four quadrants based on their dependence and driving powers by using Matriced Impacts Croises Multiplication Appliquee a un Classement (MICMAC) analysis. Two strategic barriers, namely, technology obsolescence and poor top management commitment, presented the strongest challenges against effective SR, as they were least dependent on other barriers and exerted strong influence over the operational barriers to executing SR. Because the strategic level barriers, exerting strong influence against effective SR, arise from the strategic choices of board and the C-suite, this study helps them anticipate the recovery-related after effects of their choices, thus helping them in making better decisions. This study contributes to research as it is first of its kind to explore and link SR barriers in B2B markets.

From the above study we pick one of the barriers viz., SR strategies and investigate it in detail, as it is also of interest to the B2B service or account managers and personnel, who strive to maintain and strengthen customer relationships in event of such episodes. Given the scattered and limited research of service failure and recovery (SFaR) in B2B markets, a systematic review of literature was conducted using the Morphological analysis (MA). The MA not only gave a complete picture of SFaR in B2B markets (say SF modes, outcomes, contingency factors etc), but also enabled the visual identification of research gaps, that helped construct the hypothesized research model. The final model comprised of 6 SR mechanisms, studying its influence of the service recovery paradox (SRP) and relationship constructs (relationship maintenance (RMT) and strengthening (RST)), in the presence of 4 contextual variables (Locus (LOR), Severity of SF (SEV), Attributions of stability (ATS) and controllability (ATC)). 283 usable responses were collected from B2B customers whose SPs belonged to the IT business services industry and their perceptions of SP was captured and used for final analysis. The model was tested using SEM AMOS 22. A total of 28 hypotheses was tested (8 direct effects, 12 indirect effects, 4 moderation and 4 moderated mediation). No support was found for response speed and exploration of root cause throughout.

Results showed same four strategies viz., restoration, empathy, pro-active approach and monitoring contributed to both RMT and RST for LOR, SEV and ATC. However, examination of the β co-efficients showed that, these SR strategies contributed more strongly to RST than RMT for all these three moderators. In the case of ATS, only restoration hypothesis found support and it also contributed more significantly to RST. The B2B customers who experience RST post SF are likely to increase their share-of-wallet, cross-buy newly developed solutions with the SPs. In B2B technology domain, SPs often come out with new service offerings, which need pilot customers for proofing. Increased trust generated due to satisfactory SR encounters, might encourage customers into offering themselves as pilot customers for such new offerings, which are yet unproven, giving the SPs a real time feedback on the product/ services portfolio.