Transformational Leadership and Work Environment Effects on Employee Engagement and Customer Service Quality

This study examines the relationships between transformational leadership, work environment, and employee engagement and customer service quality at PT Anak Tuha Abadi, including the mediating role of employee engagement. A quantitative cross-sectional study was conducted with 73 employees selected through saturated sampling. Eligible respondents were permanent employees with at least one year of service who were willing to participate; inactive employees and those submitting incomplete questionnaires were excluded. Data were collected using a five-point Likert-scale questionnaire and analyzed using multiple linear regression, path analysis, and the Sobel test. Transformational leadership (β = 0.303, p = 0.008) and work environment (β = 0.251, p = 0.028) were positively associated with employee engagement. Transformational leadership (β = 0.231, p = 0.044), work environment (β = 0.240, p = 0.034), and employee engagement (β = 0.232, p = 0.047) also showed significant positive direct associations with customer service quality. However, the indirect effects through employee engagement were not statistically significant for transformational leadership (0.070, Z = 1.629) or work environment (0.058, Z = 1.512). These findings distinguish significant direct relationships from unsupported mediation effects. Although the variables were positively associated, the cross-sectional design and self-reported data do not establish causality. The study provides context-specific evidence that employee engagement does not necessarily constitute a significant mediating pathway between organizational factors and customer service quality.