IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i12p4548-d187194.html
   My bibliography  Save this article

Fair or Unfair: The Moderating Effect of Sustainable CSR Practices on Anticipatory Justice Following Service Failure Recovery

Author

Listed:
  • Yuan-Shuh Lii

    (College of Business Department of Marketing, Feng Chia University, 40724 Taichung, Taiwan)

  • May-Ching Ding

    (College of Business Department of Marketing, Feng Chia University, 40724 Taichung, Taiwan)

  • Chih-Huang Lin

    (College of Business Department of Marketing, Feng Chia University, 40724 Taichung, Taiwan)

Abstract

This paper investigates the relative effect of anticipatory justice on organizational legitimacy and consumer trust that further leads to consumer citizenship behavior following service failure recovery in Taiwan. Further, the moderating role of sustainable corporate social responsibility (CSR) practices is explored. A causal relationship and survey design with a valid sample of 269 respondents was applied. Findings indicated that organizational legitimacy and consumer trust can be restored through anticipatory justice, in particular interpersonal justice and then further mediated consumer citizenship behavior. As a moderator, a high level of sustainable CSR practices had a significantly stronger effect on anticipatory justice and organizational legitimacy than the low level one but only had an effect on interpersonal justice and consumer trust after service recovery. Practical implications are provided for service providers. The value of this research proposes an integrated model with organizational legitimacy and sustainable CSR practice that has not yet been tested in the model of service recovery. In addition, sustainable CSR practice is proposed as a moderator (high and low) that is compared in the level of strength of the relationships. This moderation effect has not been found previously in the process of service recovery.

Suggested Citation

  • Yuan-Shuh Lii & May-Ching Ding & Chih-Huang Lin, 2018. "Fair or Unfair: The Moderating Effect of Sustainable CSR Practices on Anticipatory Justice Following Service Failure Recovery," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4548-:d:187194
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/12/4548/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/10/12/4548/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aishah Sheikh Abu Bakar & Rashid Ameer, 2011. "Readability of Corporate Social Responsibility communication in Malaysia," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(1), pages 50-60, January.
    2. Katarzyna Bachnik & Robert Nowacki, 2018. "How to Build Consumer Trust: Socially Responsible or Controversial Advertising," Sustainability, MDPI, vol. 10(7), pages 1-21, June.
    3. Ilaria Baghi & Enrico Rubaltelli & Marcello Tedeschi, 2009. "A strategy to communicate corporate social responsibility: cause related marketing and its dark side," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 16(1), pages 15-26, January.
    4. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    5. Grewal, Dhruv & Roggeveen, Anne L. & Tsiros, Michael, 2008. "The Effect of Compensation on Repurchase Intentions in Service Recovery," Journal of Retailing, Elsevier, vol. 84(4), pages 424-434.
    6. Noel Siu & Tracy Zhang & Cheuk-Ying Yau, 2013. "The Roles of Justice and Customer Satisfaction in Customer Retention: A Lesson from Service Recovery," Journal of Business Ethics, Springer, vol. 114(4), pages 675-686, June.
    7. Andrea Pérez & Patricia Martínez & Ignacio Rodríguez del Bosque, 2013. "The development of a stakeholder-based scale for measuring corporate social responsibility in the banking industry," Service Business, Springer;Pan-Pacific Business Association, vol. 7(3), pages 459-481, September.
    8. Muddassar Sarfraz & Wang Qun & Muhammad Ibrahim Abdullah & Adnan Tariq Alvi, 2018. "Employees’ Perception of Corporate Social Responsibility Impact on Employee Outcomes: Mediating Role of Organizational Justice for Small and Medium Enterprises (SMEs)," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    9. Joëlle Vanhamme & Bas Grobben, 2009. "“Too Good to be True!”. The Effectiveness of CSR History in Countering Negative Publicity," Journal of Business Ethics, Springer, vol. 85(2), pages 273-283, April.
    10. Guido Palazzo & Andreas Scherer, 2006. "Corporate Legitimacy as Deliberation: A Communicative Framework," Journal of Business Ethics, Springer, vol. 66(1), pages 71-88, June.
    11. Ambrose, Maureen & Hess, Ronald L. & Ganesan, Shankar, 2007. "The relationship between justice and attitudes: An examination of justice effects on event and system-related attitudes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 103(1), pages 21-36, May.
    12. J. Vanhamme & B. Grobben, 2009. "Too good to be true ! : the effectiveness of CSR History in Countering Negative Publicity," Post-Print hal-00581630, HAL.
    13. Yuan-Shuh Lii & Monle Lee, 2012. "Doing Right Leads to Doing Well: When the Type of CSR and Reputation Interact to Affect Consumer Evaluations of the Firm," Journal of Business Ethics, Springer, vol. 105(1), pages 69-81, January.
    14. Yuan‐Shuh Lii & Kuang‐Wen Wu & May‐Ching Ding, 2013. "Doing Good Does Good? Sustainable Marketing of CSR and Consumer Evaluations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(1), pages 15-28, January.
    15. Shuili Du & C. B. Bhattacharya & Sankar Sen, 2011. "Corporate Social Responsibility and Competitive Advantage: Overcoming the Trust Barrier," Management Science, INFORMS, vol. 57(9), pages 1528-1545, March.
    16. Vikas Gautam, 2011. "Investigating the Moderating Role of Corporate Image in the Relationship between Perceived Justice and Recovery Satisfaction: Evidence from Indian Aviation Industry," International Review of Management and Marketing, Econjournals, vol. 1(4), pages 74-85.
    17. Shuili Du & Edward Vieira, 2012. "Striving for Legitimacy Through Corporate Social Responsibility: Insights from Oil Companies," Journal of Business Ethics, Springer, vol. 110(4), pages 413-427, November.
    18. Maxham, James III, 2001. "Service recovery's influence on consumer satisfaction, positive word-of-mouth, and purchase intentions," Journal of Business Research, Elsevier, vol. 54(1), pages 11-24, October.
    19. del Río-Lanza, Ana Belén & Vázquez-Casielles, Rodolfo & Díaz-Martín, Ana M, 2009. "Satisfaction with service recovery: Perceived justice and emotional responses," Journal of Business Research, Elsevier, vol. 62(8), pages 775-781, August.
    20. Duff, Angus, 2017. "Corporate social responsibility as a legitimacy maintenance strategy in the professional accountancy firm," The British Accounting Review, Elsevier, vol. 49(6), pages 513-531.
    21. Lee, Yoon-Joo & Yoon, Hye Jin & O'Donnell, Nicole H., 2018. "The effects of information cues on perceived legitimacy of companies that promote corporate social responsibility initiatives on social networking sites," Journal of Business Research, Elsevier, vol. 83(C), pages 202-214.
    22. Bowen, David E., 1990. "Interdisciplinary study of service: Some progress, some prospects," Journal of Business Research, Elsevier, vol. 20(1), pages 71-79, January.
    23. Taegoo Kim & Soyon Paek & Chang Choi & Gyehee Lee, 2012. "Frontline service employees’ customer-related social stressors, emotional exhaustion, and service recovery performance: customer orientation as a moderator," Service Business, Springer;Pan-Pacific Business Association, vol. 6(4), pages 503-526, December.
    24. Gustafsson, Anders, 2009. "Customer satisfaction with service recovery," Journal of Business Research, Elsevier, vol. 62(11), pages 1220-1222, November.
    25. Jee Young Chung & Bruce K. Berger & Jamie DeCoster, 2016. "Developing Measurement Scales of Organizational and Issue Legitimacy: A Case of Direct-to-Consumer Advertising in the Pharmaceutical Industry," Journal of Business Ethics, Springer, vol. 137(2), pages 405-413, August.
    26. Se-Yeon Ahn & Dong-Jun Park, 2018. "Corporate Social Responsibility and Corporate Longevity: The Mediating Role of Social Capital and Moral Legitimacy in Korea," Journal of Business Ethics, Springer, vol. 150(1), pages 117-134, June.
    27. Clay M. Voorhees & Michael K. Brady & Roger Calantone & Edward Ramirez, 2016. "Discriminant validity testing in marketing: an analysis, causes for concern, and proposed remedies," Journal of the Academy of Marketing Science, Springer, vol. 44(1), pages 119-134, January.
    28. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
    29. Sparks, Beverley A. & McColl-Kennedy, Janet R., 2001. "Justice strategy options for increased customer satisfaction in a services recovery setting," Journal of Business Research, Elsevier, vol. 54(3), pages 209-218, December.
    30. Grewal, Dhruv & Iyer, Gopalkrishnan R. & Levy, Michael, 2004. "Internet retailing: enablers, limiters and market consequences," Journal of Business Research, Elsevier, vol. 57(7), pages 703-713, July.
    31. Zheng, Qinqin & Luo, Yadong & Maksimov, Vladislav, 2015. "Achieving legitimacy through corporate social responsibility: The case of emerging economy firms," Journal of World Business, Elsevier, vol. 50(3), pages 389-403.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Xing-Xin & He, Ai-Zhong, 2022. "The impact of retailers’ sustainable development on consumer advocacy: A chain mediation model investigation," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alicia Blanco-González & Francisco Díez-Martín & Giorgia Miotto, 2023. "Achieving Legitimacy Through Gender Equality Policies," SAGE Open, , vol. 13(2), pages 21582440231, May.
    2. Lee, Yoon-Joo & Yoon, Hye Jin & O'Donnell, Nicole H., 2018. "The effects of information cues on perceived legitimacy of companies that promote corporate social responsibility initiatives on social networking sites," Journal of Business Research, Elsevier, vol. 83(C), pages 202-214.
    3. Tam Thien Vo & Xinning Xiao & Shuk Ying Ho, 2019. "How Does Corporate Social Responsibility Engagement Influence Word of Mouth on Twitter? Evidence from the Airline Industry," Journal of Business Ethics, Springer, vol. 157(2), pages 525-542, June.
    4. Amal Aouadi & Sylvain Marsat, 2018. "Do ESG Controversies Matter for Firm Value? Evidence from International Data," Journal of Business Ethics, Springer, vol. 151(4), pages 1027-1047, September.
    5. Andrew Crane & Sarah Glozer, 2016. "Researching Corporate Social Responsibility Communication: Themes, Opportunities and Challenges," Journal of Management Studies, Wiley Blackwell, vol. 53(7), pages 1223-1252, November.
    6. Sharifi, Seyed Shahin & Aghazadeh, Hashem, 2016. "Discount reference moderates customers' reactions to discount frames after online service failure," Journal of Business Research, Elsevier, vol. 69(10), pages 4074-4080.
    7. Qiaowen Zhang & Annalien de Vries, 2022. "Seeking Moral Legitimacy through Corporate Social Responsibility: Evidence from Chinese Manufacturing Multinationals," Sustainability, MDPI, vol. 14(9), pages 1-21, April.
    8. Wolter, Jeremy S. & Bacile, Todd J. & Smith, Jeffery S. & Giebelhausen, Michael, 2019. "The entitlement/forgiveness conflict of self-relevant and self-neutral relationships during service failure and recovery," Journal of Business Research, Elsevier, vol. 104(C), pages 233-246.
    9. Gelbrich, Katja & Gäthke, Jana & Grégoire, Yany, 2016. "How a firm's best versus normal customers react to compensation after a service failure," Journal of Business Research, Elsevier, vol. 69(10), pages 4331-4339.
    10. Arli, Denni & Grace, Anthony & Palmer, Janet & Pham, Cuong, 2017. "Investigating the direct and indirect effects of corporate hypocrisy and perceived corporate reputation on consumers’ attitudes toward the company," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 139-145.
    11. Gohary, Ali & Hamzelu, Bahman & Alizadeh, Hamid, 2016. "Please explain why it happened! How perceived justice and customer involvement affect post co-recovery evaluations: A study of Iranian online shoppers," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 127-142.
    12. Derek Moscato & Toby Hopp, 2019. "Natural born cynics? The role of personality characteristics in consumer skepticism of corporate social responsibility behaviors," Corporate Reputation Review, Palgrave Macmillan, vol. 22(1), pages 26-37, February.
    13. Rafael Currás‐Pérez & Consuelo Dolz‐Dolz & María J. Miquel‐Romero & Isabel Sánchez‐García, 2018. "How social, environmental, and economic CSR affects consumer‐perceived value: Does perceived consumer effectiveness make a difference?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 733-747, September.
    14. Yuan‐Shuh Lii & Kuang‐Wen Wu & May‐Ching Ding, 2013. "Doing Good Does Good? Sustainable Marketing of CSR and Consumer Evaluations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(1), pages 15-28, January.
    15. Andersen, Sophie Esmann & Johansen, Trine Susanne, 2021. "Corporate citizenship: Challenging the corporate centricity in corporate marketing," Journal of Business Research, Elsevier, vol. 131(C), pages 686-699.
    16. Veronica Devenin & Constanza Bianchi, 2018. "Soccer fields? What for? Effectiveness of corporate social responsibility initiatives in the mining industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 866-879, September.
    17. Heejung Byun & Tae-Hyun Kim, 2017. "Identity Claims and Diffusion of Sustainability Report: Evidence from Korean Listed Companies, 2003–2010," Journal of Business Ethics, Springer, vol. 140(3), pages 551-565, February.
    18. Rodolfo Vázquez-Casielles & Víctor Iglesias & Concepción Varela-Neira, 2010. "Service recovery, satisfaction and behaviour intentions: analysis of compensation and social comparison communication strategies," The Service Industries Journal, Taylor & Francis Journals, vol. 32(1), pages 83-103, July.
    19. Jean-Pierre Thomassen & Marijke C. Leliveld & Kees Ahaus & Steven Walle, 2020. "Prosocial Compensation Following a Service Failure: Fulfilling an Organization’s Ethical and Philanthropic Responsibilities," Journal of Business Ethics, Springer, vol. 162(1), pages 123-147, February.
    20. Su‐Jung Nam & Hyesun Hwang, 2019. "What makes consumers respond to creating shared value strategy? Considering consumers as stakeholders in sustainable development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(2), pages 388-395, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4548-:d:187194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.