Abstract:
In the hotel industry, strong leadership is vital for retaining skilled customer-contact employees who
are essential to delivering high-quality service. This study examines the relationship between servant leadership
and key job outcomes - employee engagement, organizational commitment, and adaptive performance among
customer-contact employees in Sri Lanka's hotel industry. Drawing from the Social Exchange Theory (SET), the
research investigates the direct effects of servant leadership on these job outcomes and examines the mediating
role of employee engagement in the relationship between servant leadership and both organizational commitment
and adaptive performance. A multi-source, multi-wave field study was conducted across seven three-star hotels
in Northern Province, Sri Lanka, collecting data from 220 subordinates and 23 supervisors in supervisor subordinate dyads. A judgmental sampling approach was used to select participants for this study. Data were
analyzed using SPSS. Correlation analysis revealed that servant leadership positively correlates with employee
engagement (r = 0.408, p < 0.01), organizational commitment (r = 0.222, p < 0.05), and adaptive performance (r
= 0.207, p < 0.01). Furthermore, employee engagement was found to positively mediate the relationship between
servant leadership and both organizational commitment (r = 0.464, p < 0.05) and adaptive performance (r = 0.452,
p < 0.01). This study contributes to both theory and practice by extending the application of Social Exchange
Theory (SET) in the hospitality sector and enriching the body of literature on servant leadership. This study
emphasizes the importance of servant leadership in enhancing employee engagement, organizational commitment,
and adaptive performance. When hotels prioritize a leadership, culture based on service and support, they can
create a more motivated workforce, reduce staff turnover, and enhance service quality. For Sri Lanka’s hotel
industry, these insights are especially valuable as it works to raise service standards and stay competitive in the
tourism sector. By applying Social Exchange Theory (SET) to hospitality and contributing to research on servant
leadership, this study bridges theory and practice. Moreover, Servant leadership helps hotels build a more
committed and engaged workforce, leading to better service and a stronger industry overall.
