A Study of How the Internal-Service Quality of International Tourist Hotels Affects Organizational Performances: Using Employees’ Job Satisfaction as the Mediating Variable

The purpose of this study is to explore the influence of internal-service quality on organizational performance of international tourist hotels in Taiwan with employee’s job satisfaction as the mediating variable. The target population in this study consists of employees of the rooms, catering and management departments at the existing 105 Taiwan-based international tourist hotels, selected using convenience sampling. The linear Structural Equation Modelling (SEM) was adopted to verify the goodness-of-fit effects among the overall model, structural model and measurement model. This study focuses on the path coefficients between “implicit/latent variables” (a.k.a. unobservable variables) of the structural model, with the Bayesian Estimation used to test the significance of the model’s direct effect, mediating effect and total effect. Findings from this study include: (1) internal-service quality has a positive, significant and direct influence on organizational performance; and (2) internal-service quality has a significantly positive influence on an employee’s job satisfaction, which in turn affects the organizational performance in a significant and positive manner. In summary, the employee’s job satisfaction has a “partially” mediating effect.