From Ethical Leadership to Guest Delight: The Mediating Role of Employee Engagement in Shaping Customer Experience in Hospitality

Abstract

The hospitality industry increasingly recognises that memorable customer experiences are shaped not only by service delivery but also by the leadership practices and engagement of employees who interact with guests. This study investigates the relationships among ethical leadership, employee engagement, and customer experience in the hospitality sector, with particular focus on the mediating role of employee engagement. A quantitative, cross-sectional research design was employed, and data were collected through a structured questionnaire from respondents associated with hospitality organisations. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) through SmartPLS. The measurement model was evaluated for reliability, convergent validity, and discriminant validity, while the structural model was assessed through path analysis and bootstrapping. The findings indicate that ethical leadership significantly enhances employee engagement, while employee engagement significantly contributes to customer experience. Ethical leadership also demonstrated a significant direct relationship with customer experience. Furthermore, employee engagement significantly mediated the relationship between ethical leadership and customer experience, indicating partial mediation. The findings highlight the interconnected roles of leadership practices, employee engagement, and customer experience in hospitality organisations. The study contributes to hospitality and leadership literature by linking an organisational-level leadership factor with an employee-level mechanism and a customer-level outcome. Practically, the findings emphasise the importance of ethical leadership, employee engagement, and supportive employee-management practices in creating positive and memorable customer experiences.

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