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Abstract

Currently, many production facilities are very concerned about the sustainability of their production processes. Generally,   ICS users  need suppliers to maintain production facilities, especially during the operation period. Therefore,  response of supplier  is important to recover the critical equipment of production  facilities such as ICS  in Indonesia. In this study, ORM (Operational Risk Management)  was chosen as one of the independent variables along with Supplier Service Recovery to create customer satisfaction who do not have a service contract with the supplier. Strategy of suppliers is needed to find good after sales service. There is a research gap in this study between the expectations of ICS users and their Satisfaction  without considering long-terms relationship and  long term marketing /business plan. This is conducted  using a quantitative approach. Data collection method  is done by providing a list of questions and  sent to  users maintenance  managers where  are located with in Indonesia. The 20 questionnaires are developed according to each variable. The  5-point Likert scale is used.  The tool of  analyze is using the Structural  Equation Model  with    the WarpPLS   7.0. approach. ORM is found to mediate the relationship between supplier service recovery and customer satisfaction but  supplier service recovery will not give impact to customer satisfaction directly. The ORM and Supplier Service Recovery are proven to bring satisfaction to ICS customers.

Keywords

ICS Operational Risk Management Service Recovery Customer Satisfaction

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Gaffar, I., Agustina, I., Tohiroh, & Wicaksono, A. (2024). The Operational Risk Management and Supplier Service Recovery in Improving Customer Satisfaction. Ilomata International Journal of Management, 5(2), 569-586. https://doi.org/10.61194/ijjm.v5i2.1151

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