Does digital transformation and customer agility help to control online return frequency for improving customer service quality?

Vollständiger Abstract

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Purpose This article examines the relationship between digital transformation (DT) and customer agility (CA) to lower the high product return frequency (RF) for improving customer service quality, including customer satisfaction (CS) and repurchase intention (RPI). This study also aims to explore the moderating effect of market turbulence on the relation between DT and CA. Design/methodology/approach A structural equation model analysis is formulated and validated by the theory of dynamic capability view (DCT), with consideration of sample responses from online service firms, including exploratory factor analysis, confirmatory factor analysis and endogeneity test with multicollinearity, and a moderation analysis was conducted to investigate the robustness of the relationships and the moderating role of market turbulence. Findings The current study adopted the dynamic capability theory to address digitally transforming dynamic market conditions, with market turbulence as a moderating factor and its effect on CA in controlling product return frequency. The present study reveals that DT and CA have a positive effect on lowering online return frequency, which improves customer service quality through CS and RPI. Research limitations/implications The results are combined with theoretical and practical implications, offering key insights for society, academic researchers, policymakers, global online retailers and customers. The study shows that while developing company adaptability through real-time analysis and responsive decision-support technologies, managers should constantly track shifts in dynamic market conditions and customer needs. The study also suggests that academics should offer training programs for the product regulatory framework to handle product return management. These approaches satisfy customers and increase purchase retention. This study was limited to the Indian context, focusing on customers and the technical setup of Indian e-commerce markets. Originality/value The study's findings offer recommendations for providing high-quality services to customers by reducing online return rates through the direct relationship between DT and CA, moderated by market turbulence, as per the application of DCT.