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Service Quality Delivery and Customer Satisfaction in the Hospitality Industry: The Moderating Role of Institutional Context in Southwest Nigeria

Gabriel Sesan Ologundudu, Durotimi Amos Dada PhD, Prof. Timothy Ihinmoyan

Abstract

This study examines the relationship between service quality delivery and customer satisfaction in the hospitality industry of Southwest Nigeria, with particular emphasis on the moderating role of institutional context. Drawing on the SERVQUAL framework and Expectancy– Disconfirmation Theory, the study conceptualizes service quality as a multidimensional construct influenced not only by frontline service interactions but also by broader institutional factors such as ownership structure, location, staffing adequacy, business type, and ownership stability. A survey research design was adopted, and primary data were collected from 422 customers of registered luxury hotels and fast-food outlets across selected state capitals in Southwest Nigeria. Data were analyzed using descriptive statistics and mean score analysis to assess customer perceptions of institutional influences on service quality delivery. The findings reveal consistently high mean scores across institutional variables, indicating that institutional context significantly shapes service quality outcomes. Corporate and franchised ownership structures, proximity to urban centers, adequate employee-to-guest ratios, and stable ownership arrangements were found to enhance service consistency, responsiveness, and reliability. Conversely, ownership instability and inadequate staffing were associated with service inconsistencies and negative expectancy disconfirmation. Based on the empirical evidence, the null hypothesis that institutional context does not significantly influence service quality delivery is rejected. The study contributes to the hospitality literature by extending the SERVQUAL and Expectancy–Disconfirmation frameworks to incorporate institutional dynamics within a developing economy context. It highlights that service quality and customer satisfaction are products of both operational practices and institutional arrangements. The study recommends that hospitality operators and policymakers prioritize institutional reforms, including governance stability, human resource investment, and standardized service systems, to improve customer satisfaction and sustain competitiveness in Southwest Nigeria’s hospitality industry. P-ISSN 2695-186X

Keywords

Service Quality DeliveryCustomer SatisfactionHospitality IndustryInstitutional

References

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