The influence of perceived forgiveness climate on service recovery performance: The mediating effect of psychological safety and organizational fairness

Service recovery performance has been identified as a key component for positive organizational outcomes and organizational success. Therefore, it is crucial to investigate unique factors that can influence service recovery performance. Although scholars have studied different types of organizational climate, there is no adequate research examining the mechanism between forgiveness climate and organizational outcomes. Linking these two areas of research for the first time, this current study examines the influence of a perceived forgiveness climate on service recovery performance through psychological safety and organizational fairness as mediators. Using quantitative data collected from 431 casino employees, this study revealed that employee perceptions of forgiveness climate was significantly positively related to perceived service recovery performance. More important, the study demonstrated the underlying mechanisms linking the two concepts. Specifically, the results demonstrated the mediating effect of psychological safety and organizational fairness between perceived forgiveness climate and service recovery performance. The findings suggest that organizations should promote a climate of forgiveness to enhance employees’ service recovery performance.