Value Co-Creation in Service Recovery: A Combination of Systematic Literature Review and Meta-Analytic Research

Abstract

Research on value co-creation in service recovery is increasing, yet existing empirical studies show disagreements in their findings. Based on a systemic literature review, we identified 29 articles that investigated 8401 complaint customers in service recovery after value co-creation in this study. Subsequently, a conceptual framework was developed and analyzed through a meta-analysis of 29 independent samples from 26,334 effect sizes. The findings showed that value co-creation is positively associated with post-recovery performance (satisfaction, repurchase intention, and word of mouth) through perceived justice. Moreover, it was found that additional compensation moderates the impact of value co-creation on perceived justice (including procedural justice, distributive justice, and interactional justice). Additionally, the positive relationship between value co-creation and procedural justice is stronger in process service failure than in outcome service failure. The positive impact of value co-creation on interactional justice is amplified in the online service industry. This study contributes to research on value co-creation in service recovery and provides implications for service firms.