Abstract
The objective of this paper is to assess the predictive influence of internal marketing on employee job satisfaction and turnover intention of frontline employees of travel agencies in Sabah. Specifically, the study aims to investigate the extent to which each of the four dimensions of internal marketing (internal communication, reward system, working condition and training) affects employee job satisfaction and the intention to leave the organization.Conceptually, this study extends the concept of Internal Marketing by re framing it as a formative hierarchical construct and modeling its impact on job satisfaction and turnover intention. The two-stage approach was adopted in partial least square structural equation modeling to examine the hierarchical modeling of internal marketing. The findings suggest that internal marketing is a significant predictor of job satisfaction and indirectly influences employees‟ turnover intention. The conceptualization of internal marketing as reflective formative type of second order model was justified in this study. Other than the conceptual and empirical contribution, this study also offers an alternative method in modeling internal marketing of which could be adopted in future research.
Highlights
The businesses in the tourism industry rely heavily on their manpower
The results show that square roof of average variance extracted (AVE) for each of the constructs is larger than the bivariate correlations
This study had found that working condition as the most important contributor to the internal marketing in the travel agencies that led to better job satisfaction of their employees
Summary
The businesses in the tourism industry rely heavily on their manpower. Saridakis and Cooper (2016) stated that „retaining talented, educated and skilled personnel can positively affect productivity and performance, and improve efficiency, growth and prosperity‟ of an organisation. The important findings by AlBattat and Mat Som (2013) and AlBattat, Som, and Helalat (2014) through their review of the extant literatures on hospitality and tourism employment had revealed that one of the persistent problems facing the Malaysian tourism and hospitality industry is the high employee turnover. High degree of employee turnover is an indicator of instability in the organisation. Their findings concured that job dissatisfaction forces employee‟s intention to leave the organisation. This is consistent with previous studies (such as Richardson and Butler, 2011) that suggested the presence of strong relationship between employee satisfaction and employee retention, both of which were found to have direct effect on customer satisfaction and service quality.
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