Pursuing student satisfaction in polytechnics: the roles of perceived service quality, perceived employability and perceived value

Purpose This study aims to explore the relationship between perceived service quality, perceived employability, perceived value and student satisfaction. The study proposes a conceptual model linking these constructs by employing signalling theory and expectancy disconfirmation theory. Design/methodology/approach Data were collected through a cross-sectional survey of 356 final-year students from four state polytechnics in East Java, Indonesia. This study tested the hypotheses using partial least squares-structural equation modelling. Referring to the multidimensional concept of all constructs, the structural equation model built in this study is a higher-order construct commonly called a hierarchical component model, with Type I (reflective-reflective) model classification. Findings The findings reveal that perceived service quality positively influences student satisfaction directly and indirectly via perceived employability and perceived value, both serving as complementary mediators. This dual pathway underscores the compounded impact of service quality on student satisfaction. Moreover, perceived employability significantly affects student satisfaction, highlighting its importance in educational service evaluation. Practical implications The implications for higher education institutions are practical and actionable, emphasising the need to enhance service quality and employability-related initiatives to improve student satisfaction. Social implications This research contributes to the theoretical discourse on student satisfaction by incorporating a psychological perspective, providing valuable insights for the design and delivery of educational services in polytechnics. Originality/value The study’s originality lies in integrating perceived employability into the student satisfaction model, offering a broader understanding of the psychological and contextual factors that influence student satisfaction in vocational higher education.