Leadership Style Impact on Employee and Customer Satisfaction in the Service Industry

This study explores the relationship between leadership styles, employee, and customer satisfaction in service organizations where face-to-face interactions are crucial for success. Research shows transformational leadership enhances employee satisfaction, reduces turnover, and leads to improved customer experiences (González-Cruz et al., 2019; Krishna et al., 2022), while transactional leadership limits long-term employee engagement (González-Cruz et al., 2019; Krishna et al., 2022). The analysis of seven peer-reviewed studies published between 2014 and 2024 identified key themes related to transformational leadership effectiveness, employee motivation, and the impact of leadership in various cultural contexts. These findings highlight how leadership directly influences employee engagement, subsequently affecting both organizational success and customer satisfaction (Chi & Gursoy, 2009; Dulewicz & Higgs, 2005). The findings underscore effective leadership fosters positive work environments, benefiting both customers and overall business performance. These insights are particularly relevant for service industries, where employee satisfaction translates into better service interactions and financial outcomes. Future studies can focus on the long-term effects of leadership styles using quantitative surveys and qualitative case studies, considering cultural and contextual factors.