Service recovery as a relational and risk-based capability: Evidence from a freight forwarding firm

This study examines how service recovery and operational risk management interact to develop competitive advantage and sustain customer loyalty in the business-to-business (B2B) freight forwarding industry. Employing a qualitative case study approach at PT Antillia Raya Logistics, Indonesia, the research draws on in-depth interviews with seven informants representing internal employees, customers, and vendors. The data were analyzed using thematic analysis to identify patterns in service recovery practices, operational risk management, and business relationship development. The findings reveal that service recovery extends beyond corrective actions and operates through anticipatory communication, immediate problem resolution, and post-incident evaluation. Transparent communication, timely responses, customer education, and collaborative coordination with vendors play essential roles in maintaining trust during operational disruptions. Operational risk management is characterized by adaptive decision-making and experience-based practices, although formal risk documentation remains limited. The integration of service recovery and risk management facilitates organizational learning, strengthens operational responsiveness, and supports the prevention of recurring service failures. These integrated capabilities contribute to competitive advantage through service flexibility, reliability, and relationship quality rather than price-based differentiation alone. Customers and vendors perceive the firm's ability to manage uncertainty and resolve operational challenges as an important foundation for continued business relationships. This study contributes to service management literature by positioning service recovery as a relational and risk-integrated organizational capability that supports competitive advantage and long-term customer loyalty in B2B logistics services.