How Service Climate Drives Job and Customer Satisfaction: Evidence for Mediation Effect from the Hospitality Industry

Purpose: In the context of the hospitality sector, where perceived service climate (SC) and job satisfaction (JS) are key drivers of exceptional customer experiences, the present study investigates the influence of SC on JS and its subsequent impact on customer satisfaction (CS). This research addresses a significant gap in understanding the interconnected dynamics between these variables, particularly the role of JS as a mediator in the SC-CS relationship. Design/methodology/approach: A structured quantitative approach was implemented, utilizing an online ques-tionnaire distributed to frontline employees in five-star hotels in Saudi Arabia. Data from 521 valid responses were analyzed using the PLS-SEM to evaluate the relationships and mediation impact within the proposed model. Findings: The study demonstrates that SC significantly enhances JS and boosts CS. Further, JS substantially acts as a critical predictor for improving CS. In addition, JS plays a statistical intermediary role in linking SC to CS, shedding light on its crucial role in enriching the overall customer experience within hospitality services. Research limitations/implications: This study, focused on frontline employees in Saudi Arabian five-star hotels, may not generalize to other hospitality sectors, roles, or regions. Future research on budget hotels or SMEs could offer broader insights, while comparative studies may uncover sector-specific needs. Instead of JS, examining other mediators or moderators, such as leadership style, employee engagement, or psychological capital, could further clarify the SC-CS relationship in hospitality sectors. Originality/value: The study addresses a significant gap in research by offering real-world evidence from the hospi-tality industry, where studies linking SC, JS, and CS are limited, specifically within the context of five-star hotels in Middle Eastern nations such as Saudi Arabia. Guided by social exchange theory, the study offers new insights into how a positive SC boosts employee satisfaction and customer experience.