Evaluating the Influence of the Work Environment on the Service Quality–Customer Retention Nexus in Ugandan Guesthouses
Abstract
The hospitality sector in developing economies relies heavily on service quality as a strategic mechanism for retaining customers. In Uganda, guesthouses play a critical role in tourism and local economic development, yet they face persistent challenges related to employee working conditions, service consistency, and customer loyalty. This study examines how the work environment shapes the relationship between service quality and customer retention in Ugandan guesthouses. Grounded in service management theory and the service–profit chain framework, the study adopts a quantitative explanatory approach. Data were collected from employees and customers of selected guesthouses in Uganda and analyzed using moderated regression techniques. The findings reveal that service quality has a significant positive effect on customer retention, and that the work environment significantly moderates this relationship. A supportive, safe, and empowering work environment strengthens employees’ service delivery, leading to enhanced customer satisfaction and repeat patronage. The study contributes to hospitality management literature by emphasizing the strategic importance of internal work conditions in sustaining customer relationships in small-scale accommodation establishments.
Keywords
Work Environment, Service Quality, Customer Retention, Uganda, Hospitality IndustryHow to Cite
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Copyright (c) 2026 Samuel K. Obote
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