Effects of Customer Complaint Management Quality on Business Performance in Service Businesses

This study investigates the effects of customer complaints management quality dimensions, interest&transparency, empowerment&authorization and process standardization, on overall performance of service businesses. They are hypothesized to improve service businesses performances through three alternative paths: increased customer loyalty, improved organizational learning and direct effects on overall firm performance. This study aims to explore the relative importance of each path for superior firm performance. To test the hypothesized relationships, 200 questionnaires were collected from four banks in Turkey. The results indicate that process standardization influences customer loyalty and organizational learning negatively, while having a positive direct effect on firm performance. The empowerment&authorization seems to influence customer loyalty and organizational learning positively, while having no direct effect on firm performance. Interest& transparency, exerts positive effects on customer loyalty and organizational learning, while having a negative direct effect on firm performance.