How positive psychological capital promotes service recovery performance through mental health and work engagement: Does service climate matter?

Purpose This study aims to examine the contribution of positive psychological capital (PsyCap) to service recovery performance (SRP) through the mediating roles of mental health (MH) and work engagement (WE). Additionally, it considers the moderating role of service climate (SC). Design/methodology/approach The research utilized a self-report questionnaire completed by a sample of 391 Vietnamese Airlines flight attendants. Partial least squares structural equation modelling (PLS-SEM) was employed to test the proposed hypotheses. Findings The results indicated that PsyCap does not directly influence SRP; instead, the effect of PsyCap on SRP is fully mediated by MH and WE. Furthermore, when flight attendants perceive their organization as fostering a favorable service climate, the impact of WE on SRP is strengthened. Practical implications The author proposes practical strategies to enhance service recovery among Vietnamese Airlines flight attendants. These insights provide valuable information for the sector, empowering decision-makers. Originality/value This research makes a significant contribution to the limited academic literature on the subject by providing statistical evidence of the relationships among a set of variables. While PsyCap is recognized as a crucial personal resource in service industries, there is a lack of research on its impact within the airline sector. This study highlights the importance of PsyCap for MH, WE, and SRP. Additionally, it addresses the gap in existing literature by demonstrating the moderating role of SC between WE and SRP.