“Examining the Mediating Role of Recognition and Appreciation in the Relationship between Transformational Leadership and Internal Customer Satisfaction”

“Examining the Mediating Role of Recognition and Appreciation in the Relationship between Transformational Leadership and Internal Customer Satisfaction”

Kaulungombe Bernadette, Nsenduluka Evaristo, Banda K. Matthew

Copperbelt University, School of Graduate Studies and Northrise University

DOI: https://dx.doi.org/10.47772/IJRISS.2025.906000405

Received: 14 June 2025; Accepted: 01 July 2025; Published: 19 July 2025

ABSTRACT

This study examined the relationships among transformational leadership (TFL), Quality of work life – recognition and appreciation and internal customer satisfaction (ICS) based on evidence from academic staff in Zambian universities. Adopting a positivist deductive approach and a survey design, data was collected from 404 lecturers (67.5% response rate) using a structured questionnaire. Employing a variance-based partial least squares structural equation modelling (PLS-SEM), results demonstrate strong construct validity (composite reliability = 0.927–0.941; AVE > 0.5), discriminant validity (HTMT < 0.90), and excellent model fit (SRMR = 0.039). The findings reveal that TFL significantly enhanced recognition and appreciation (β = 0.483, p < 0.001), which in turn strongly predicted ICS (β = 0.482, p < 0.001). While TFL also had a direct, albeit smaller, effect on ICS (β = 0.148, p = 0.001), recognition mediates 61% of this relationship (VAF = 61%). The model explains 33.1% of ICS variance (R² = 0.331), with predictive relevance confirmed (Q² > 0). The study suggested and empirically validated QWL as a critical mediator between TFL and ICS. Methodologically, it demonstrates the robustness of PLS-SEM in analysing complex mediational models with high predictive accuracy. Practical implications highlight the need for leadership training programs that emphasise employee recognition to enhance workplace satisfaction. Organisations should institutionalise appreciation mechanisms, such as peer recognition systems, to amplify the impact of leadership behaviours.

Keywords: Transformational leadership, recognition, internal customer satisfaction, PLS-SEM, mediation, higher education, Zambia.

INTRODUCTION

Employees are the most valuable assets in any organisation, and the higher education sector is no exception. In today’s increasingly competitive environment, where numerous universities operate within the same market space, the ability of universities to effectively recruit and retain students is fundamental to their long-term sustainability (Leih & Teece, 2016; Salvioni et al., 2017). To achieve this, higher education institutions (HEIs) must be equipped to meet the dynamic needs of their primary customers, the students (Gryshova et al., 2019). Central to this process are academic staff, who serve as the primary point of contact between the institution and its student body. Empowering academic staff to meet and exceed customer expectations is essential, with leadership playing a pivotal role in recruiting, retaining, and motivating the right employees (Wirtz & Jerger, 2016).

This study investigates the mediating role of recognition and appreciation in the relationship between leadership styles and ICS within Zambian Universities. It theorizes that effective leadership not only inspires and motivates staff, particularly academic staff, but also fosters an enabling work environment where employees can meet both internal and external customer needs (Ned & Umesi, 2023). This area of inquiry is timely given the significant transformations in Zambia’s higher education sector over the past two decades, particularly the university sub-sector.

Higher education in Zambia officially commenced in 1965 with the establishment of the University of Zambia as the country’s first public university, followed by the Copperbelt University in 1987. Despite these developments, the growing demand for university education soon outstripped the capacity of these institutions. In response, the enactment of the University Act in 1992 facilitated the establishment of additional universities, particularly through private sector participation, in line with the country’s economic liberalisation policies. By the end of 2021, Zambia was home to 63 universities, nine (9) public and fifty-four (54) private, while student enrolments grew exponentially from 3,000 in 1966 to 126,726 in 2021. Academic staff numbers also increased from 4,187 in 2019 to 5,256 in 2020 (HEA, 2019).

As the higher education sector becomes increasingly competitive, customer satisfaction, in this case, student satisfaction, has emerged as a key performance indicator for universities. Institutions must therefore not only attract new students but also retain existing ones by delivering consistently high levels of service quality. A growing body of research suggests that the consistent performance and commitment of employees in service delivery are critical determinants of customer satisfaction, loyalty, and advocacy (Ul Hassan et al., 2020; Van Tonder & De Beer, 2018; Wali et al., 2015). According to the HEA Report (2022), Zambia’s universities face a shortage of qualified academic staff. As universities proliferate, attracting and retaining competent lecturers becomes crucial for institutional competitiveness and service quality (Damayanti et al., 2023). Existing studies have established that leadership styles can influence organisational outcomes such as QWL and employee satisfaction. However, much of this research has been conducted outside the Zambian context, with studies in Malaysia (Abolnasser et al., 2023; Ebrahim et al., 2022; Nanjundeswaraswamy et al., 2022) and Pakistan (Pahi et al., 2022a, 2022b; Zehra, 2016) exploring limited sets of leadership styles about QWL. Similarly, other studies have examined the relationship between QWL and job performance (Rahman et al., 2024; Katamine et al., 2022) or employee commitment (Ansari, 2021; Mahfouz et al., 2022), without incorporating leadership as a determinant variable.

To date, no comprehensive study has been undertaken in Zambia to investigate the interplay between leadership styles, QWL, and ICS within universities. Scholars call for research that answers the question: “What is the role of the leaders and colleagues in enhancing employees’ responsiveness to internal marketing initiatives and their consequences on organisational performance? Furthermore, there is limited research that tests direct or indirect relationships between internal customer service and its antecedents and outcomes,” (Qiu et al., 2022). Similarly, another systematic review by Sethibe & Steyn, (2015) observe that empirical studies on the relationships between leadership styles and organisational performance outcomes are based on conceptual models that are too simplistic and do not consider mediator variables. “These limits understanding of the underlying mechanisms of how leadership styles influence organisational outcomes,” (Sethibe & Steyn, 2015). To partly address this gap, this research explores whether there is a mediating role of one of the elements of QWL, i.e., recognition and appreciation, on the relationship between leadership styles and ICS. Particularly, this study focuses on TFL and its influence on ICS in the Zambian university context. The rest of the paper is structured as follows: first literature is reviewed and hypotheses are developed; then the methods are highlighted before presentation and discussion of results. Lastly, conclusions and future directions are provided.

LITERATURE REVIEW AND HYPOTHESES

While scanty research across developed and developing countries reveals some significant relationships between leadership styles and some aspects of QWL, there is no focus on recognition and appreciation as well as no focus internal customer satisfaction i.e. ICS (Mahmood et al., 2024).

TFL

In terms of transformation leadership, studies in Lithuania and the U.S. demonstrate that transformational leadership positively impacts job engagement (Jakavonytė-Staškuvienė & Barkauskienė, 2023; Skopak & Hadzaihmetovic, 2022). In Zambia, limited studies explore leadership styles and QWL, with findings suggesting that transformational leadership dominates educational institutions (Wanjuan & Muyunda, 2023), while work-life balance policies improve employee performance (Siziba & Barnard, 2023). Despite growing recognition of ICS’s importance in sectors like banking and telecoms (Mwiya et al., 2019; Perera et al., 2015), no research examines its connection to leadership and QWL in higher education. Systematic reviews (Qiu et al., 2022; Sethibe & Steyn, 2015) emphasise the need for studies integrating these variables, particularly in developing nations, to clarify mediating mechanisms and inform organisational strategies in competitive academic environments.

QWL

Employees’ perception of how favourable or unfavourable the work environment is known as QWL (Kooze, 2005). Prior research in India and Malaysia highlights QWL’s role in enhancing employee commitment and performance (Azman et al., 2023; Nayak et al., 2018). This finding resonates with what has been established in the European context (Weller et al., 2019). However, some aspects of QWL are usually neglected such as motivation aspects of recognition and appreciation (Aruna & Prakash, 2018). QWL components of recognition and appreciation have been identified as an essential factor influencing employee motivation, satisfaction, and organisational commitment (Syamsuddin et al., 2021). It encompasses dimensions such as supervisory style, job security, fair remuneration, opportunities for growth, responsibility, democratic participation, and workplace flexibility (Davidescu et al., 2020). Empirical studies in the higher education sector have demonstrated that employees experiencing higher QWL tend to report greater job satisfaction and contribute positively to organisational performance (Alown et al., 2020; Khan et al., 2021; Yadav et al., 2019).

Internal Customer Satisfaction

In service-oriented organisations such as universities, employee-driven service quality is vital for maintaining a competitive advantage (Kandampully et al., 2023). The Service-Profit Chain theory emphasises that internal service quality, the quality of services provided by internal departments to one another, is a precursor to external customer satisfaction, loyalty, and organisational profitability (Jyoti et al., 2017; Yu et al., 2019). This highlights the importance of fostering favourable internal interactions and collaborative work environments where employees are equipped and motivated to meet both internal and external customer expectations (Santos-Vijande et al., 2016; Wang et al., 2015).

However, as demand for skilled service professionals continues to outpace supply in Zambia’s higher education sector, attracting and retaining qualified academic staff has become increasingly challenging (HEA, 2021). This presents a significant obstacle to universities, especially considering the link between employee satisfaction and organisational performance. Consequently, HEIs must develop proactive strategies to promote employee satisfaction through effective leadership and improved QWL initiatives (Jabbar & Hussin, 2019).

The growth of universities in Zambia has increased the significance of service quality as a differentiating factor for student retention and institutional competitiveness. With students now having more options in selecting their preferred institutions, universities must distinguish themselves by offering superior service experiences (Binder et al., 2016).

Organisational effectiveness hinges on coordinated internal processes and collaborative inter-departmental relationships that ultimately enhance external service delivery. Strong internal customer relationships are essential for achieving service excellence, customer retention, and long-term financial success (Cosa et al., 2021). While numerous studies have focused on external customer satisfaction as a measure of organisational effectiveness (Asian et al., 2019; Author et al., 2017; Rashid et al., 2022). There has been surprisingly limited research on the internal dimensions of service quality, particularly ICS, within the Zambian higher education context (Mwiya et al., 2019).

In service sectors, ICS is indirectly linked to employee satisfaction, with studies in Jordan and the Netherlands showing that satisfied employees deliver better customer service (Al-Ababneh et al., 2018; Bruin et al., 2021). However, gaps persist in understanding how leadership and QWL jointly influence ICS, particularly in higher education and African contexts, where empirical evidence remains scarce.

Theoretical Background

This section focuses on the theoretical underpinnings and contexts of this study’s conceptualisation, highlighting the most relevant and underpinning theories.

The Full Range Leadership Model (FRLM)

This model was developed by Bernard Bass and Bruce Avolio (1991), is a framework that categorizes leadership behaviors into three styles: transformational, transactional, and laissez-faire leadership.

Transformational leadership

Transformational leadership, as conceptualised by Bass and Avolio, involves inspiring followers to transcend personal interests for the collective good of the organisation. This leadership style encompasses four key components: Idealised Influence, Inspirational Motivation, Intellectual Stimulation, and Individualised Consideration. Pawar (2016) emphasises that transformational leaders motivate followers to set aside personal interests for the sake of the organisation. In the context of higher education, Mishra & Aithal, (2023) highlight that academic leaders employing transformational leadership can enhance institutional effectiveness by inspiring faculty and staff to achieve organisational objectives. Alsolami et al., (2016) note that characteristics such as charisma, inspiration, intellectual stimulation, and individualised consideration are instrumental in influencing followers. Furthermore, Zehra (2016) found that transformational leadership is associated with higher QWL and is often the preferred leadership style in private institutions aiming for organisational excellence.

Transactional Leadership Theory

Transactional leadership emphasises structured exchanges, using rewards and corrective measures to ensure goal achievement Tahar & Abdillah, (2021). It suits stable environments where maintaining order is key (Byrne et al., 2017), with leaders offering incentives for productivity (Breevaart et al., 2015). While distinct from transformational leadership. Baškarada et al., (2017) suggest combining both styles enhances leadership effectiveness. Studies by Odetunde, (2017) and Kim et al., (2022) reveal transformational leadership yields better employee performance and QWL. Additionally, Nanjundeswaraswamy, (2023) found that leadership style directly impacts job satisfaction and organisational commitment.

Laissez-faire leadership                                                                  

Laissez-faire leadership, often termed the passive-avoidant style, is characterised by leaders evading decision-making and responsibility, leading to a lack of direction and reduced employee motivation (Saadi et al., 2023). While it offers academic staff the autonomy to work independently, Norzam et al., (2022) caution that it can result in the total neglect of leadership duties. (Abiddin, 2024; Buch et al., 2015; Thanh & Quang, 2022). Abiddin, (2024), collectively observes that this style negatively impacts job satisfaction, motivation, and productivity, branding avoidant leaders as absentee and ineffective in organisational contexts.

The Theory of Quality of Work Life (QWL)

Quality of Work Life (QWL) refers to conditions and practices inside an organisation that enable employees to perceive that they are safe, satisfied and have better chances of growth and development as individuals (Aruldoss et al., 2021). QWL as a theory evolved in the 1970s with Walton (1973) identifying key dimensions such as adequate compensation, safe working conditions, and career development. The research has expanded to include psychological well-being and employee engagement. QWL focuses on the holistic overall work experience, ensuring job satisfaction, well-being, and productivity Nanjundeswaraswamy, (2023). It integrates psychological, social, and organisational factors to create a balanced and fulfilling work environment. Thus, the key aspects of QWL include: work environment, safe, healthy, and supportive conditions; job satisfaction – meaningful work, fair compensation, and career growth; work-life balance– policies that support personal and professional harmony; employee involvement – participation in decision-making and autonomy; organizational culture – positive relationships, leadership, and ethical practices (Nair, 2023).

Service Profit Chain Theory

The Service Profit Chain Theory, introduced by Schlesinger and Heskett (1991), highlights the critical link between employee satisfaction, customer satisfaction, and organisational profitability. Challenging the traditional industrial model that prioritised machinery over people, the theory treats employees as internal customers whose needs must be prioritised to drive business growth. Heskett et al. (1994) formalised this concept, arguing that satisfied employees enhance customer experiences, thereby improving financial outcomes. Subsequent studies, including Hogreve et al., (2017) and Hauret et al., (2020), confirmed that HRM practices fostering employee satisfaction led to better ICS and external service delivery Qiu et al. (2022) expanded on this by linking internal marketing, treating jobs as products to satisfy employees, to improved customer outcomes. Despite its significance, Qiu et al. (2022) noted a lack of a unified theoretical framework in existing literature on internal marketing and ICS, with most research being descriptive and reliant on frameworks like Social Exchange Theory, Equity Theory, and Social Identity Theory.

Hypotheses Development and Conceptual Framework

In light of the foregoing theoretical background as well as the identified gaps in the literature, this study proposes a conceptual model reflecting the interrelationships amongst leadership styles, quality of work life component of recognition and appreciation, as well as internal customer satisfaction.

Figure 1: Research Conceptual Model

Leadership Styles and Quality of Work-Life (recognition and appreciation)

Leadership plays a pivotal role in shaping organisational outcomes, particularly through its ability to influence employee attitudes and behaviours toward achieving organisational objectives (Bhatti & Alyahya, 2021). How leaders interact with and manage their subordinates is reflective of their leadership style, which represents a relatively consistent pattern of behaviour across various organisational situations (Gill & Nazim, 2023). Domfeh et al., (2016) describe leadership styles as relatively stable actions demonstrated by a leader when dealing with subordinates over time. Among the various leadership styles, Transformational Leadership is frequently highlighted for its emphasis on inspiring, motivating, and individually considering employees. This leadership approach involves recognising employee efforts and contributions while encouraging personal growth and aligning individual objectives with organisational goals.

Within the broader construct of Quality of Work Life (QWL), recognition and appreciation stand out as critical components, representing the degree to which employees feel valued and acknowledged for their contributions within the workplace (Nair, 2023). Scholars have defined QWL as the quality of the relationship between an employee and their work environment, encompassing various elements such as rewards, recognition, and work conditions (Nanjundeswaraswamy, 2023). Transformational leaders, through their inspirational and supportive behaviours, are particularly well positioned to enhance employees’ perceptions of recognition and appreciation. Empirical evidence from studies by Sanda & Arthur, (2017) in Ghana, Nanjundeswaraswamy & Swamy, (2015) in India, and (Bhatti & Alyahya, 2021) in Saudi Arabia, consistently confirms that Transformational Leadership positively influences employees’ perceptions of being valued and recognised in their organisations, thereby improving their overall QWL. Therefore, the first hypothesis is as follows:

H1: There is a positive relationship between transformational leadership style and QWL.

Quality of Work Life (recognition and appreciation) and ICS

Quality of Work Life (QWL) reflects the perception employees hold regarding how favourable or unfavourable their work environment is. A key element within QWL is recognition and appreciation, which refers to the extent to which employees feel acknowledged and valued for their efforts and contributions. Scholars (Dhamija et al., 2019) suggest that employees who are dissatisfied with aspects such as recognition tend to perceive an overall lower QWL, which can affect their motivation and performance. High QWL, driven by consistent recognition and appreciation, leads to increased job satisfaction, which directly shapes how employees deliver services to both internal and external customers. Transformational leaders, known for their supportive and inspiring behaviours, actively foster environments where employees feel appreciated, valued, and empowered. Through personalised attention and recognition, transformational leaders enhance employees’ morale and job satisfaction, which ultimately improves the quality of internal customer service. Although López-Arellano et al., (2023) found associations between general QWL and customer satisfaction, the specific relationship between recognition and appreciation under transformational leadership and Internal Customer Satisfaction (ICS) remains underexplored.

Organisations aiming for sustained growth and competitiveness must ensure that employees feel consistently recognised and appreciated in their roles. This positive experience strengthens employees’ commitment and encourages a culture of excellence in serving internal customers, which in turn improves overall service delivery. Hence, the second hypothesis is that:

H2: There is a positive relationship between QWL (recognition and appreciation) and ICS.

Leadership Styles and ICS Link Mediated

This study proposes that QWL, particularly the element of recognition and appreciation, mediates the relationship between TFL and ICS. Transformational leaders, through behaviours such as providing individualised consideration and openly recognising employee efforts, play a central role in creating a positive, supportive workplace environment. Such environments foster a culture where employees feel valued and appreciated, which in turn shapes their attitudes and behaviours toward colleagues and internal customers. According to Khuzwayo et al.(2023), positive behaviours like responsiveness and service excellence spread throughout the organisation when leaders actively serve as role models. Transformational leaders influence supervisors, who in turn affect frontline employees, ultimately enhancing the way both internal and external customers are served. Through recognition and appreciation, transformational leadership cultivates motivated and engaged employees who are more committed to delivering high-quality internal customer service.

Existing literature has frequently examined the links between leadership styles and QWL (Mariwa et al., 2021; Nanjundeswaraswamy et al., 2020) as well as between QWL and customer service outcomes (Nair, 2023; Fitwi & Abdissa, 2016). However, while studies confirm that employees satisfied with their work environment, including being consistently recognised and appreciated, are more inclined to perform better, the specific mediating role of recognition and appreciation between transformational leadership and ICS remains less explored (Qui et al., 2021). According to Goula et al. (2022), how organisations treat their employees strongly influences how those employees serve internal and external customers. In this regard, transformational leaders who prioritise employee recognition contribute indirectly to improved internal customer satisfaction through enhanced QWL. Therefore, this study proposes that QWL, particularly recognition and appreciation, mediates the relationship between leadership styles and ICS. Therefore, the third hypotheses is as follows:

H3: QWL mediates the relationship between leadership styles and internal customer satisfaction.

RESEARCH DESIGN

Population, unit of analysis, and sample

The study took a positivist deductive approach focusing on objective measurement, hypothesis testing, and generalisable findings to examine relationships between constructs (Gamage, 2025).  Thus, the study utilised the survey method (Creswell, 2013). Primary data were collected using a questionnaire based on a five-point Likert scale. The questionnaire was specifically designed after a literature review and customised to the context of private and public universities in the Zambian context.  All respondents provided informed consent, having understood the research’s objectives and their rights. The study was approved by the ethics committee of the University.

The survey targeted the entire population of academic staff in public and private universities, i.e. 5,533 lecturers (HEA, 2021). The target group also included individuals holding relevant administrative or management responsibilities and therefore involved in leadership roles as deans, heads of departments and other academic administrators.

Despite the online Raosoft calculator indicating a 359-sample size as representative of the population (Bahabri & Zaidan, 2021; Kharaba et al., 2024). The study employed both electronic and hardcopy means to distributing questionnaires to eligible respondents. These respondents ranked diversely in academia, including tutor, lecturer, senior lecturer, associate professor, and full professor, in Zambia’s Lusaka, Central, and Copperbelt provinces; these provinces host over 90% of all universities in Zambia. This comprehensive methodology eliminated potential sampling errors and enhanced the representativeness of the findings.

Based on meta-analyses, scholars suggest that the average response rate for individual surveys is 52.7% and for organisational surveys is 35.7% (Baruch & Holtom, 2008), sometimes ranging as low as between 10% to 20% (Wu et al., 2022).  The current study achieved 404 valid responses achieving a response rate of 67.5% with an estimated response rate of 60%. Park et al., (2023) suggest a formula of adjusted targeted sample = required sample divided by the expected response rate, the latter being a 1 minus drop-out rate. In this case, 359/0.60=598.3. Thus 404 valid responses yielded a response rate of 67.5%, significantly exceeding the average response rate for individual surveys.

This relatively high response rate, coupled with the comprehensive coverage of the target population, substantiates the reliability of our results. It reflects the participants’ strong engagement, and thus the data collected provides a robust basis for examining the proposed research hypotheses. Table 1 reflects the sample profile with 65.6% of the respondents being male compared to 34.4% females, which is expected as there are fewer females in academia in the Zambian context. Moreover, the sample profile shows 70.6% of the lecturers in universities in Zambia are above the age of 40. Yet only 17.8% have a doctoral degree while over 70% have a master’s degree qualification. No wonder, a paltry 4% have attained professorial status while 9% are senior lecturers. The sample also reflects what is happening currently in that 65.8% of the lecturers are in private universities and the rest in public universities (HEA, 2021). This proportion is expected because over 60% of students in Zambian universities are in private universities.

Table 1: Sample Profile

We utilised the variance-based partial least squares structural equation modelling (PLS-SEM) to analyse the data and test the hypotheses. PLS-SEM is especially useful due to its robustness in helping to undertake measurement model assessment while at the same time testing structural models (Hair et al., 2019).   The analysis method is appropriate when dealing with complex models, small samples, and formative constructs where conventional covariance-based SEM (CB-SEM) might not be usable on account of stringent assumptions on data distributions and inadequate sample sizes (Henseler, 2018). There is an increasing tendency by management and social sciences to use PL-SEM seeing that it is flexible in managing unbalanced datasets and latent variables (Subhaktiyasa, 2024).

PL-SEM maintains strong discriminant validity as well as beta coefficients and frequently yields higher composite reliability and convergent validity than CB-SEM (Hair et al., 2019). Furthermore, it facilitates causal-predictive analyses, making it more suitable for developing and evaluating theoretical frameworks intended for explanation and prediction, in contrast to CB-SEM, which is primarily intended for theory confirmation using a covariance approach (Henseler, 2018).

The “10 times rule,” which states that the sample size must be at least ten times the maximum number of path linkages directed at any latent variable in the model, governs the minimum sample size required for PLS-SEM (Hair et al., 2019). Since the latent variable “internal customer satisfaction” in this study has the most indicators (12), a minimum sample size of 120 is needed. With the sample size of 404, our study much outstrips this, guaranteeing the validity and robustness of the PLS-SEM findings.

RESULTS

Data normality and common method bias in SEM

Normality testing of the dataset was essential for this study as it used SEM with maximum likelihood estimates. The values of skewness and kurtosis, which ranged from 1.351 to 0.132 and -0.351 to 1.786, respectively, were within the acceptable limits of −2 to +2 for skewness and −7 to +7 for kurtosis, indicating a normal distribution of data (Benitez et al., 2020; George & Mallery, 2019). These findings support the dataset’s suitability for additional analysis, which is supported by PLS-SEM’s robust handling of both normal and non-normal distributions (Henseler, 2018).

We also addressed possible common method bias by using Harman’s one-factor test, which determines whether a single component accounts for a significant amount of the variance in the data. There was no discernible common technique bias, as the study showed that the maximum variance explained by a single component was only 22.121%, much below the 50% cutoff (Podsakoff et al., 2025). This validates the accuracy of the data for further analyses.

Construct validity test results

The current study evaluated the reliability and convergent validity of constructs using several metrics. Composite reliability values for all constructs ranged from 0.927 to 0.941, indicating acceptable internal consistency. The average variance extracted (see Table 2), which measures convergent validity by the squared loadings of items, displayed values between 0.520 and 0.801 for all variables, exceeding the threshold of 0.5 and confirming sufficient explanatory power of the constructs (Hair et al., 2019).

Table 2: Reliability and Convergent Validity

The final measurement model involved 21 reflective indicators. Before this, and based on factor loadings, some items were pruned to enhance model robustness: two items from internal customer satisfaction, and one item from recognition and appreciation. This refinement process sought to ensure that each item’s loading exceeded the commonly accepted threshold of 0.5 (Benitez et al., 2020), thereby contributing positively to construct validity (see Table 3) since the loadings range from 0.678 to 0.937.

Table 3 Analysis of Outerloadings

The iterative process of refining the SEM models led to improved construct validity and model robustness, as items with weaker loadings were eliminated. This approach aligns with practices noted in the literature, where item reduction is often necessary to achieve a more valid and reliable measurement model (Hair et al., 2019; Henseler, 2018; Magno et al., 2024).

Figure 2 illustrates the measurement model post-refinement, displaying the constructs after adjustments based on the PLS-SEM analysis. This visual representation confirms the structural integrity and validity of the refined model, ensuring that all remaining indicators robustly represent their respective constructs.

Figure 2: Measurement Model TFL QWL Recognition and ICS

Cronbach’s alpha measures the internal consistency of a group of items, indicating how closely related they are to one another. A value between 0.901 and 0.917 is considered valid to ensure internal consistency, since the expected threshold is around 0.70 (Benitez et al., 2020; George & Mallery, 2019). Figure 2 shows the modified model after removing the indicators below the minimum accepted threshold (see Table 2 also).

Furthermore, items and constructs exhibiting a Variance Inflation Factor (VIF) score greater than 5 would indicate potential multicollinearity concerns (Magno et al., 2024). However, as detailed in Table 4, the VIF scores for all constructs remained below the threshold of concern. Specifically, the VIF scores were 1.303 for recognition and appreciation as well as transformational leadership style, both of which were comfortably within the acceptable range, suggesting no significant multicollinearity issues (Hair et al., 2019; Magno et al., 2024).

Table 4 Multicollinearity Test (Inner VIF)

Discriminant validity test results

Discriminant validity measures the extent to which a given construct is distinct from other constructs within the model i.e. it is vital to ensure that a construct uniquely represents specific phenomena not covered by other constructs (Benitez et al., 2020). In this regard, the Fornell-Lacker criterion (Table 5) shows that the squared AVE on each column is consistently higher than the correlations below, signifying discriminant validity (Magno et al., 2024).

Table 5 Discriminant Validity via Fornell-Larcker Criterion

The Heterotrait-Monotrait (HTMT) ratio of correlations is a modern method for evaluating discriminant validity. It compares the correlations between measures of theoretically different constructs (heterotrait) with the correlations of measures within the same construct, i.e. monotrait (Hair et al., 2019). An HTMT value below 0.90 is typically recognised as evidence of discriminant validity (Benitez et al., 2020; Henseler, 2018).

Table 6 outlines the HTMT ratios, which act as indicators of discriminant validity between constructs. The highest HTMT value was 0.595, remaining below the widely accepted cutoff point of 0.90. This result supports the constructs’ uniqueness within the model, confirming their discriminant validity according to the heuristic benchmarks and reinforcing the constructs’ definitional clarity in the research design (see Table 6).

 Table 6 Discriminant Validity via Heterotrait-Monotrait (HTMT)

Lastly, further to the HTMT and Fornell-Lacker criterion in Tables 5 and 6, cross-loadings above 0.10 differences are usually good enough.

Interpretation of hypothesis testing outcomes

The hypothesis testing results, illustrated in Figure 3 and detailed in Table 7, conform to the standard that a hypothesis is supported when the t-value surpasses 1.65 or when the p-value falls below 0.10 (Hair et al., 2019).

Figure 3 Structural model TFL, QWL-Recognition and ICS

Figure 3 reflects that all t values (in brackets) are greater than 1.65 resonating with the path coefficients reflected in Table 7 that transformational leadership style (TFL) positively influences the quality of work-life phenomenon of recognition and appreciation of employees who do well in the work environment (beta=β= 0.483, t=10.964, p=0.000). Similarly, the relationship between transformational leadership style (TFL) and internal customer satisfaction is statistically significant (β=0.148, t=3.224, p=0.001), and lastly, employees who are appreciated and recognised are likely to report higher internal customer satisfaction (β=0.482, t=10.536, p=0.000).

Table 7: Path Coefficients on Internal Customer Satisfaction

In Table 8, the results reveal model fit statistics. Accompanying measures such as R², f², and Q² values are reported in Table 8, providing further insight into the model’s explanatory power and predictive relevance.

Table 8: R-Squared, F Squared, and Q-Squared

The statistical analysis detailed in Table 8 offers insight into the model’s explanatory power and predictive relevance concerning ICS. The R² value quantifies the variance in dependent variables explained by the independent variables (Hair et al., 2019). Cohen (1988) proposed the rule of thumb indicating that R² =0.26 large, 0.13 moderate and 0.02 weak effect sizes. In the current study, the R-squared value of 0.331 signifies that 33.1% of the variance in the dependent variable is explained by the model, suggesting a large explanatory capacity. This figure is 0.323 in the adjusted R-squared value, which compensates for the number of predictors in the model while confirming its relevance (see Table 8).

Other effect sizes, as measured by f-squared, reveal varying influences of different factors within the model when a particular variable is removed; f^2, as an effect size, measures how the removal of a predictor variable affects R² for an endogenous variable. Usually, 0.02 is small, 0.15 moderate and 0.35 large effect sizes (Cohen, 1988). In the current study, 0.274 was for recognition and appreciation, indicating a significant and robust effect on ICS; 0.028 for transformational leadership style, demonstrating a small and yet significant influence on the relationship with ICS; and a 0.314 for transformational leadership style concerning recognition and appreciation, suggesting a large effect size. These variations highlight the differing roles these elements play within the broader ICS.

Similarly, the Q² values represent predictive relevance, which would be satisfactory if it surpasses zero (0), aligning with the guidance of Hair et al., (2019) and Henseler, (2018). In the current study, the predictive relevance values are both Q²>0 for the endogenous variables; ICS =0.136 and Recognition = 0.226, signifying moderate effects since the guidelines are Q² = 0.02 small, Q² = 0.15 moderate, and Q² = 0.35 large (Hair et al., 2019). The Q-squared values, exceeding the zero threshold, underscore the satisfactory predictive relevance of the model. This indicates that the model has strong predictive capabilities, which is crucial for its practical application. The differentiation in effect sizes among the variables studied underscores the need to consider the specific contributions and limitations of various antecedents.

Lastly, in terms of model fit assessment, the study utilised the SRMR criterion. An SRMR value below 0.05 is considered excellent, while a value between 0.05 and 0.08 indicates an adequate fit (Grosemans et al., 2020; Kyndt & Onghena, 2014). For this study, the SRMR at 0.039 reflects an excellent model fit.

Mediation results

Usually, when a variable affects another, scholars are interested in establishing how the influence is transmitted to the outcome variable. Mediation analysis is meant to establish whether, besides the direct path, an explanatory variable transmits its influence to the consequent variable indirectly through a mediator (Valente et al., 2017).  In this study, it was necessary to establish whether transformational leadership style affects ICS through recognition and appreciation and recognition of employees in the work environment. Based on the bootstrapping procedure for mediation in SmartPLS, Table 9 reveals that total effect was statistically significant (path c i.e. TFL-> ICS, β=0.384, p=0.000, LLCI 0.288 ULCI 0.476), indirect effect was also statistically significant  (path ab i.e. TFL->QWL Recogniton->ICS, β=0.235, p=0.000, LLCI 0.179 ULCI 0.295), with variance accounted for (VAF) at 61% since the direct effect was also statistically significant (path c’ i.e. TFL->ICS, β=0.149, p=0.001, LLCI 0.059 ULCI 0.239), signifying partial mediation. The VAF entails that 61% of the influence of X on Y is transmitted through the indirect effect (i.e. Indirect effect divided by total effect).

Table 9 Mediation Results

DISCUSSION AND IMPLICATIONS

The findings of this study offer strong empirical evidence supporting the proposed relationships between transformational leadership, QWL and ICS. The substantial positive effect of TFL on recognition (β = 0.483) is consistent with earlier studies that emphasise the role of transformational leaders in cultivating a supportive and empowering workplace environment (Ahmad et al., 2022). Interestingly, while TFL has a direct positive impact on ICS (β = 0.148), this effect is relatively modest, suggesting that the influence of leadership is largely transmitted through recognition mechanisms (VAF = 61%). This insight adds to existing scholarship by underscoring recognition as a pivotal psychological pathway linking leadership behaviours to employee satisfaction. (Decuypere & Schaufeli, 2020). The notable effect size of recognition (f² = 0.274) highlights its importance, indicating that initiatives aimed at enhancing employee appreciation may yield stronger improvements in ICS than those focused solely on leadership approaches.

Moreover, the study’s methodological robustness demonstrated through solid construct validity (AVE values exceeding 0.5, HTMT ratios below 0.90), an excellent model fit (SRMR = 0.039), and satisfactory predictive relevance (Q² > 0), strengthens the reliability of these results. Nonetheless, the moderate R² value (0.331) suggests that additional factors beyond those examined here, such as organisational culture or job autonomy, might also play a significant role in shaping ICS. This observation echoes long standing critiques within leadership research, which advocate for broader, more integrative models that consider multiple organisational and individual-level variables (Irianti et al., 2024). Future studies would benefit from investigating these potential moderating and contextual influences, particularly across different cultural and industrial environments, to further enrich understanding and improve the generalizability of these findings.

In comparison to prior research, Asia and Europe are studied while Africa and other regions are under researched. In Asia, notwithstanding the exclusion of ICS, scholars in Jordan (Lemoun et al., 2023), Indonesia (Akter et al.,2021), Iraq (Budur and Poturak, 2021) and Bangladeshi (Erwin et al., 201) find that TFL significantly improves QWL in telecom and hospitality companies. In Europe, Weller et al. (2019) find in a multi-country study encompassing UK and Germany, that TFL fosters consensus on high-performance work systems, which reduces job satisfaction and boosts ICS. In terms of research gaps in prior findings, there is limited cross-cultural comparisons since most studies are country-specific and thus there is a lack of comparative research across regions (e.g., Africa vs. Asia vs. Europe). Additionally, the ICS dimension is largely underexplored because while TFL and some aspects of QWL are well-studied, ICS is often treated as a secondary outcome or omitted entirely. Lastly, there appears to be sectoral narrowness in the sense that many studies focus on telecommunications and hospitality industry while public sector, healthcare, and education remain underrepresented in the current literature. Theoretically, these findings underscore the importance of training leaders to cultivate recognition practices, as they serve as a key conduit for enhancing ICS. Organizations should integrate recognition programmes (e.g., peer-to-peer appreciation systems) into HR strategies to complement leadership development initiatives. Recognizing and appreciating employees is key to maintaining morale, motivation, and a positive work environment. Some of the approaches could include organisations hosting regular ceremonies to recognise outstanding performance, mentorship, and service contributions; public acknowledgment in official newsletters or Websites highlighting staff achievements; and, celebrating milestones – acknowledging staff promotions, years of service, retirements, or contributions in departmental gatherings. This way, appreciation would foster a culture of respect and encouragement.

For researchers, the study demonstrates the utility of PLS-SEM in modelling complex mediations and validates recognition as a pivotal mediator in the TFL- ICS relationship. Future studies could adopt longitudinal designs to assess causality or multi-group analyses to examine cultural moderators, further refining this framework.

LIMITATIONS AND FUTURE RESEARCH

Despite the methodological rigour and valuable insights offered by this study, several limitations present opportunities for future research. The study’s focus on the higher education sector in Zambia may restrict the generalizability of its findings to other sectors or countries, suggesting a need for similar investigations across diverse industries to deepen the understanding of how leadership styles and quality of work life influence internal customer satisfaction. Additionally, the use of a cross-sectional design, while effective for examining relationships at a specific point in time, limits the ability to infer causality; future research could adopt designs that help to deepen causes inferences such as multigroup analyses or other experimental designs.  Moreover, expanding the scope to include non-academic staff would offer a more holistic view of internal customer satisfaction within universities, while extending the inquiry to external customer satisfaction could reveal how internal organizational dynamics translate into broader service quality outcomes. Methodologically, complementing quantitative approaches with qualitative methods would provide richer, context-specific insights into the lived experiences of academic staff, particularly within the relatively underexplored Zambian higher education landscape. Lastly, future researchers might consider employing alternative statistical software and analytical techniques to uncover deeper, potentially overlooked patterns in the relationships between leadership, quality of work life, and satisfaction outcomes.

CONCLUSION

An entity must successfully integrate its work systems and procedures throughout the entire organisation to provide superior service to its external consumers. Building strong relationships with both internal and external clients is crucial to providing high-quality services that result in both long-term financial success and customer satisfaction. When members of different departments attend to requests from other departments to do their jobs well, these in turn will be able to provide a good service to the external customers. Hence the ability to accomplish an organisation’s overall customer service goals depends on the efficient collaborations of several departments.

This study has established that the leadership style chosen by managers and supervisors at various levels in a university affects the perception of quality of work life among employees and this in turn affects how employees serve each other within and across other departments. In reciprocity, employees who experience a higher quality of work life are more inclined to serve other employees (their colleagues) better.

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