Linking leadership styles to customer satisfaction of Palestinian insurance sector: Mediating role of employees’ performance

Abstract

This study aims to examine the impact of leadership styles on customer satisfaction, in particular, transactional and transformational leadership styles. Furthermore, it examines the mediating role of employees' performance between leadership styles and customer satisfaction in the Palestinian context. Using data from a survey of 258 employees of insurance companies who have direct dealing with customers, this study tests a structural equation model that relates to leadership styles (i.e., transactional, and transformational), employees' performance and customer satisfaction. The evidence suggests that neither transactional, nor transformational leadership style impact customer satisfaction directly. On the other hand, the relationship between leadership styles and customer satisfaction is mediated partially by employees' performance. (C) 2016 The Authors. Published by IASE.