Servant leadership effects on service climate and employee engagement: a multi-level analysis

Purpose This study examined the multi-level relationships between servant leadership, service climate, and employee engagement. It investigated how store manager servant leadership cultivated group trust at the store level, consequently affecting service climate and influenced employee engagement through perceived supervisor support. Design/methodology/approach This study employed a multi-level design to investigate the relationships. Data were collected in two waves from a total of 1,409 restaurant employees in Thailand, with usable responses obtained from 801 individuals across 120 restaurants who completed both waves of the survey in full. On average, teams had 6.68 members. A multi-level structural equation modeling approach was employed to account for the nested structure of employees within restaurant, enabling simultaneous testing of individual-level and store-level relationships. Findings Store manager servant leadership indirectly influenced employee engagement through perceived supervisor support. Additionally, servant leadership cultivated group trust at the store level, which, in turn, positively impacted service climate. Practical implications Organizations can significantly improve employee engagement by fostering leaders who value empathy, humility, and the well-being of their teams. Additionally, by prioritizing employee growth and creating a supportive environment built on trust, organizations can also build a positive work climate. Originality/value This study enhances our understanding of servant leadership by demonstrating its indirect influence on employee engagement. The multi-level approach provides a more refined view of how this leadership style shapes organizational dynamics. Specifically, it highlights the importance of servant leadership in building trust and fostering service climate.