The Mediating Effect of Customer Satisfaction on the Relationship between Service Recovery Performance Factors and Business Growth among Bangladesh Garment Manufacturers

Abstract

As of late, business growth is sensed as one of the greatest challenges for Bangladesh garment industry in order to gain competitive advantage because many garment factories have been shutting down since last few years. However, the owners of garment factories are deeming intensely regarding the impact of service recovery phenomenon on the most topical and imperative issue- company business growth. The purpose of this opportune study is twofold; firstly to examine the relationship between influential factors of service recovery performance (SRP) and company business growth, secondly to examine the mediating effect of customer satisfaction on relationship between SRP factors and business growth in context of Bangladesh garment industry. Based on literature review, a conceptual model has been developed for a cross-sectional sample survey study. Primary data were collected following simple random sampling method from 354 different garment factories in Bangladesh. The partial least squares path modeling (PLS-SEM) approach was used by Smart PLS 3.2 software for data analysis and necessary hypothesis inferences. The results revealed that top management commitment, organizational & technical support, training, role ambiguity, job satisfaction and customer’s characteristics directly influence company business growth. Also, customer satisfaction plays mediating role on relationship between following SRP factors and business growth; top management commitment, role ambiguity, job satisfaction and customer’s characteristics. The findings of this research contribute by presenting an integrative new conceptual model encompassing influential SRP variables and business growth. The results append the knowledge how garment factories can formulate new strategy and management practice to ensure sustained business growth.

Keywords: Service recovery performance (SRP), customer satisfaction, business growth.

DOI: 10.7176/EJBM/14-8-07

Publication date: April 30^th 2022