Impact of IM Programs on Fle’s Perception of IMO and Performance Outcomes

Abstract

Frontline employees (FLEs) are one of the key sources of competitive advantage (CA) for firms, as consumer experiences and perceptions of firms are influenced by how effectively FLEs deliver services. Firms have adopted internal market orientation (IMO) to ensure FLEs needs and wants are well understood and appropriate ’job products’ are delivered. Recent studies have depicted IM programs as encompassing-i) actions (empowerment and participative decision making) and, ii) words/communications (i.e., the formalization of communication between employees and management), and these programs have been argued to improves employees’ perception of organization’s strategies (i.e. IMO). However, FLEs are not always positively disposed towards IMO and IM programs, but rather, sometimes believe they are designed to increases the firm’s demands on its employees. Therefore, it is critical for organizations to understand how FLEs’ experience specific IM programs and whether, their experience in turn impact on FLEs’ customer oriented behavior (COB) and performance. This paper develops and tests a conceptual framework investigating; i) the relationship between FLEs experience of three types of IM programs and employees’ perception of IMO, ii) the relationship between employees perception of IMO and FLE customer oriented behavior and, iii) the relationship between FLE COB and employee performance.