TEGUH, EVELYN DEVINA and Devie, and Wijaya, Serli (2020) Transformational Leadership in The Hotel Industry: A New Look at The Service-Profit-Chain Concept. [UNSPECIFIED]
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Abstract
Employee engagement is essential to the Service-Profit-Chain concept as the factor to produce high- quality service that would meet or exceed customer expectations. However, despite its suggested advantages, limited knowledge is known about what causes employee engagement. This study attempts to compre- hensively understand the Service-Profit-Chain concept by encompassing transformational leadership as the preceding factor to employee engagement. It aimed to examine the role of transformational leadership in shaping employee engagement and service quality, which lead to financial performance. The sample groups taken were among the star-rated hotels located in Surabaya, Indonesia. Each hotel was represented by three groups, namely: hotel managers, staff, and hotel customers. The Partial Least Square-SEM method was applied to evaluate the proposed model. The results revealed that the effect of transformational leadership on financial performance is mediated by employee engagement. However, service quality cannot mediate the effect of transformational leadership on financial performance. It is interesting to note that Service-Profit-Chain has some limitations in practice, depending on its strategy. This study is among a few attempts to better understand the Service-Profit-Chain concept application, with transformational leadership as the factor preceding employee engagement specifically in the hotel industry. The application of the Service-Profit-Chain concept in the hotels has some constraints related to the business strategy that hotels select to penetrate the market.
| Item Type: | UNSPECIFIED |
|---|---|
| Uncontrolled Keywords: | Service-Profit-Chain; Balanced Scorecard; transformational leadership; employee engagement; service quality; financial performance. |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management |
| Divisions: | Graduate Program > Economic Management |
| Depositing User: | Admin |
| Date Deposited: | 24 Dec 2020 04:16 |
| Last Modified: | 06 Mar 2023 09:14 |
| URI: | https://repository.petra.ac.id/id/eprint/18987 |
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