The Role of Perceived Ethical Leadership in Enhancing Frontline Service Quality and Customer Satisfaction in Multinational Banks

Author

Jemima N. A. A. Lomotey, Anthony K. Apekey

Abstract

 This study examined the role of perceived ethical leadership in enhancing frontline service quality and customer satisfaction within multinational banks operating in Ghana. Using a quantitative cross-sectional design, data were collected from 350 frontline employees and 175 customers across six multinational banks in Ghana's financial services sector. Perceived ethical leadership was measured using the Ethical Leadership Scale, frontline service quality was assessed using the SERVQUAL instrument, and customer satisfaction was measured using the American Customer Satisfaction Index (ACSI). Descriptive statistics, Pearson's correlation, hierarchical regression, and mediation analyses were conducted using SPSS and PROCESS macro. Results revealed significant positive correlations between perceived ethical leadership and frontline service quality (r = 0.57, p < .001), frontline service quality and customer satisfaction (r = 0.63, p < .001), and perceived ethical leadership and customer satisfaction (r = 0.48, p < .001). Hierarchical regression analyses demonstrated that perceived ethical leadership significantly predicted frontline service quality (β = 0.55, p < .001) and customer satisfaction (β = 0.42, p < .001), and frontline service quality mediated the relationship between perceived ethical leadership and customer satisfaction (indirect effect = 0.24, 95% CI [0.17, 0.32]). The findings underscore that employees who perceive their leaders as ethical are more likely to deliver high-quality frontline service, which in turn enhances customer satisfaction. Implications for leadership development, service quality management, and customer relationship strategies in multinational banks are discussed.

Keywords

Ethical Leadership, Frontline Service Quality, Customer Satisfaction, Multinational Banks, Ghana, Service Delivery

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References

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