How perceptions of service failure stability, service recovery justice and e-service quality affect value co-creation intentions in two-sided e-retail platforms

Purpose This study aims to examine the impact of service failure stability perceptions on customers’ value cocreation intentions in two-sided e-retail platforms, alongside the roles of service recovery justice dimensions and e-service quality, with satisfaction as a mediator. Design/methodology/approach A total of 254 responses were collected from an e-retail platform, and a partial least squares-structural equation modeling approach was used to test the hypothesized relationships between failure stability, recovery justice, e-service quality, satisfaction and co-creation intentions. Findings The findings reveal that while failure stability perception negatively impacts value cocreation intentions, recovery emerges as a key driver, both directly and through enhanced customer satisfaction. Surprisingly, e-service quality, a traditionally pivotal factor, showed no significant influence on cocreation intentions in cases of failure stability perceptions. Originality/value Despite extensive research on value cocreation and service recovery, a critical gap remains in exploring the influence of service failure stability perception on cocreation in two-sided e-retail platforms. This study fills a critical gap by highlighting the overlooked role of failure stability perceptions in shaping cocreation intentions in two-sided platforms. It also incorporates e-service quality into the model under the novel context of failure stability perceptions, revealing its unexpected insignificance. The findings provide actionable insights for managing service recovery and sustaining customer relationships in competitive e-retail ecosystems.