Internal customer orientation and internal supply chain management

Abstract

Internal customer orientation was initiated by the concept of internal marketing. The existence of internal market advocates the fact that internal customers can be motivated and satisfied by certain internal marketing programs. Companies with an internal customer orientation have more power in internal supply chain management and gaining better external market performance. This paper investigates how internal customer orientation can have positive impact on the firm performance with an improvement of internal service quality. A conceptual framework is established and propositions are posited. Two cases are investigated. The research outcome shows a positive relationship between internal customer orientation and the effectiveness of internal supply chain management. Finally, management implications are recommended1.