Elevating service startup survival through strategic service quality

Purpose The purpose of this paper is to unravel the specific service quality dimensions that significantly influence startup survival, providing actionable insights for service managers and entrepreneurs. Design/methodology/approach Empirical data were collected from 372 service startups over a period of seven years. The Cox proportional hazard model was used to analyze the data. Findings The results indicate that the tangible dimension of service quality emerges as the most critical determinant of startup survival. Additionally, the reliability and responsiveness of the service also significantly affect startup survival. Furthermore, the assurance and empathy dimensions have a positive, albeit modest, influence on the survival prospects of service startups. Research limitations/implications This study contributes to the service literature by investigating the relative importance of each dimension of service quality in relation to the survival of service startups. Practical implications The empirical findings empower service startups to make informed decisions, allocate resources judiciously and prioritize aspects of service quality that have a significant impact on their survival and success. Social implications The social implications indicate the significance of service quality dimensions not only for the success of service startups but also for the overall well-being of customers, local economies and the competitive landscape of the service sector. Originality/value This study contributes to service science by uniquely highlighting the critical role of tangibles in startup survival, challenging conventional beliefs about the primacy of service reliability.