Investigating the Impact of Service Quality and Expectancy-Disconfirmation on Customer Satisfaction and its Relationship to Staff Turnover in the Hospitality Industry in Phnom Penh, Cambodia

The hospitality industry in Cambodia is one of the major contributors to Cambodia’s economic growth, positioning it as the prominent tourist destination in South East Asia (SEA) (B2B Cambodia, 2024a; GARDE, 2022). Globally, the hospitality industry is thriving, fuelled by increased travel demand and disposable income (Bismart, 2023; EHL Insights, 2023). Phom Penh, a key hub, witnessed an influx of international hotel chains (B2B Cambodia, 2024a; Ministry of Tourism, 2024). The city boasts a concentration of hotels, with a notable presence of luxury and upscale establishments, exemplified by the upcoming opening of The Ritz- Carlton, signifying a significant milestone for Phnom Penh’s hospitality sector (Cambodia Investment Review, 2024d; Khmer Times, 2024). Despite its growing era, the industry is facing critical challenges concerning service quality, skill gaps, and high staff turnover, which hinder its sustainability (B2B Cambodia, 2024b; Cambodia Investment Review, 2024b, 2024c). However, there remains a gap in existing research regarding the compounded effect of service quality on customer satisfaction and high staff turnover, particularly in the context of Cambodia’s rapidly evolving hospitality sector (Goldsmith & Mohd, 1994; Priyo et al., 2019). While prior studies have explored the importance of service quality in the hospitality industry, there is little attention to the developing economy country like Cambodia, specifically Phnom Penh where workforce skill deficiencies and limited access to quality training affect the operational efficiency (Miller, 2020; Nam, 2018; Ung, 2013).

This study investigates the impact of service quality on customer satisfaction with a discussion on the skill gaps and staff turnover in Phnom Penh’s hospitality sector (B2B Cambodia, 2024b; Cambodia Investment Review, 2024c; GARDE, 2022; Horng, 2024b; Pazo, 2024). By examining these interrelated factors, the study seeks to identify the role of workforce skill gaps in influencing service quality and customer satisfaction which leads to staff turnover affecting the overall business operations (Priyo et al., 2019; Rao & Sahu, 2013; Yianna et al., 2023). The study will employ a quantitative research design for analysis (Shorten & Smith, 2017). The quantitative data will be collected through a random sampling e-survey distributed to the hotel guests and employees as this approach will help to reflect a broader range of opinions for analysis (Tushabe & Murimi, 2024). Furthermore, the SERVQUAL model is applied to assess the dimension and its relation to customer expectations and perceived service delivery in the industry (Parasuraman et al., 1988; Priyo et al., 2019; Rao & Sahu, 2013; Wong Ooi Mei et al., 1999). This approach aligns closely with the Expectancy-Disconfirmation Theory (EDT), which posits that customer satisfaction is derived from the comparison of pre-service expectations and post-service perception of performance (Oliver, 1980). By integrating SERVQUAL with EDT, this research comprehensively explains how gaps in service quality dimensions contribute to positive or negative disconfirmation (Hasan et al., 2024).

This research seeks to bridge critical gaps in understanding by integrating the SERVQUAL model and the Expectancy-Disconfirmation Theory (EDT) to examine their combined impact on service quality, customer satisfaction, and staff turnover. The SERVQUAL model identifies gaps in service quality across five dimensions such as tangibles, reliability, responsiveness, assurance, and empathy, providing a structured approach to evaluate both customer expectations and perceived performance (Parasuraman et al., 1988; Rao & Sahu, 2013). Additionally, EDT explains that customer satisfaction is determined by disconfirmation of expectations – whether service delivery meets, exceeds, or substandard of what is anticipated (Hasan et al., 2024; Oliver, 1980). Subsequently, applying both model and theory enables a new aspect of understanding of how gaps in service quality directly impact customer satisfaction. For instance, lack of reliability and responsiveness in service delivery can create negative disconfirmation, lowering customer satisfaction (Priyo et al., 2019). This dissatisfaction often leads to high staff turnover, as some employees leave due to customer complaints, operational inefficiencies, or lack of managerial support (Horng, 2024b; Yianna et al., 2023). This study offers significant contributions theoretically to the literature by linking SERVQUAL and EDT to explore the relationship between service quality, customer satisfaction, and staff turnover in a developing economy context, which remains underexplored (Nam, 2018; Ung, 2013). Practically, the findings will provide actionable insights for industry stakeholders to mitigate the gaps in service quality through targeted training programmes and employment engagement strategies (Pazo, 2024; Tushabe & Murimi, 2024). For policymakers, this research underscores the urgent need for enhanced vocational training systems, improved labour policies, and strategic collaboration between educational institutions and the hospitality industry to foster workforce readiness (Cambodia Investment Review, 2024c; Horng, 2024a).

This research can be applied to address critical challenges within Phnom Penh’s hospitality industry. Hotel operators and HR managers in the organisation can leverage the insights to design training programmes tailored to address the gaps in service quality dimensions. Educational institutions can use the findings to align their curriculum with the industry's needs. By addressing this issue, this research has the potential to accelerate improvements in service delivery and workforce stability, driving long-term growth and competitiveness in Cambodia’s hospitality industry.