How Work Environment, Leadership Style, and Career Development Shape Employee Performance in Service Sector Companies

Vola Winestya () and Wardhani Hakim
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Vola Winestya: Hasanuddin University
Wardhani Hakim: Hasanuddin University

A chapter in Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), 2026, pp 2170-2186 from Springer

Abstract: Abstract This research investigates the effects of working environment, leadership style and career development on employees’ performance in service sector organizations. A structured questionnaire was used to gather data from 210 employees working in hospitality, retail and consulting organizations. The result indicated that a conducive work environment has a strong positive effect on employee performance (β = 0.568, p = 0.000) followed by good leadership style to be too contributing positively but less strongly (β = 0.235, p= 0.001). Performance is significantly affected by career development opportunities (p = 0.000, β = 0.446). These findings bring to the fore the need for creating supportive work climate, adopting transformational leadership and offering career progression opportunities in order to improve employee performance. This study provides managerial implications for managers of service sector organizations on how to enhance motivating employee engagement and promoting service quality. Yet the study has limitations involving its geographical scope and reliance on self-report data, thus prompting for future research to enlarge the sample size in longitudinal terms to provide a more comprehensive understanding of this phenomenon.

Keywords: Work environment; Leadership style; Career development; Employee performance; Service sector (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-709-5_151

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