INTERNAL SERVICE QUALITY, EMPLOYEE SATISFACTION AND LOYALTY IN THE NIGERIAN OIL & GAS SECTOR

Abstract

This study examined the mediating role of employee satisfaction in the relationship between internal service quality and employee loyalty in the Nigerian oil and gas sector with focus on the Nigerian National Petrroleum Company Exploration and Production. The study investigated the effect of internal service quality on employee satisfaction and loyalty as well as the influence of satisfaction on loyalty and the mediating role of satisfaction between these two variables. A cross sectional research design was adopted and executed through a survey. Data were collected through census method with all tenured employees of the organization invited to participate in the study. A total of 357 employees responded to the online survey. The data were analyzed using descriptive analysis and hierarchical regression on the Jamovi platform. The findings indicated that internal service quality had significant influence on both employee satisfaction and loyalty. Also, employee satisfaction played a significant role in fostering loyalty and served as partial mediator between internal service quality and employee loyalty. The study concluded that employees as internal customers contribute to a cycle that ultimately impacts external customer satisfaction and performance. Based on the findings the study recommended implementation of actionable strategies that support internal service quality and consequently contribute to higher employee satisfaction and loyalty. The practical implications are that managers can enhance employee loyalty by upgrading internal service quality through proactive and responsive supervisory support, proven internal communication techniques, provision of adequate work resources, and fair employee recognition practices. Employee satisfaction levels should be periodically measured as a mechanism to help identify service gaps. Appropriate specific interventions that contribute to resolving these gaps and support employee satisfaction and loyalty should be embraced.