Although the performance of services is done at an operative level, service is an important issue for the strategic, tactical, and operative business activities of companies. This paper examines the construct of interactive service quality in service encounters. This is a complex approach that goes beyond the current exploration of the service-quality construct. Interactive service quality requires the simultaneous consideration of the service provider's perspective and the service receiver's perspective. The study was conducted in the Swedish automotive industry and focused on the issues of interactive service quality between a vehicle manufacturer and a selection of its most important suppliers. The major contributions of the research provide an on-the-spot account of interactive service quality. The paper provides theoretical and managerial implications of the construct of interactive service quality in service encounters.