The impact of leadership styles on service quality and customer satisfaction: A comparative analysis between foreign and domestic capital banks in Kosovo

Abstract

This study measured the impact of leadership styles on service quality and the impact of service quality on customer satisfaction. In addition, it analyzed whether there is a difference in service quality and customer satisfaction between banks by categorizing them by capital types. The quantitative method was used to achieve the objectives. The sample comprised 360 employees of Kosovo banks, where 99 employees were from banks with domestic capital, and 261 were from foreign capital banks. According to the OLS model, the authoritarian style has a more significant impact on the service quality in banks with foreign capital. In contrast, in banks with domestic capital, a transactional style significantly impacts service quality. According to the t-test, there is a statistically significant relationship between consumer satisfaction and banks with foreign and domestic capital, with the greatest consumer satisfaction in banks with foreign capital. However, considering the service quality, the t-test showed a non-significant result, which means that there is no difference in the service quality between the two categories of banks. This paper found that the leadership style has a higher effect on the service quality of the two categories of banks, recommending that banks fill the gap between the style used and the one that affects the service quality best. Banks also received feedback on customer satisfaction to strengthen SERVQUAL model components, improving service quality and increasing customer satisfaction.