Abstract
<p>The purpose of this study is to identify the extent to which ethical climate, leader–member exchange, and role clarity can be employed as business levers in internal marketing; the relationships among them are investigated using a conceptual model based on the hierarchy of effects model. From several major life insurance firms in Taiwan, 644 life insurance salespeople formed the basis of the empirical analysis in this study. Ethical climate is not only a feasible business practice for implementing internal marketing but also a basis for other managerial activities concerning internal marketing. Managerial activities arousing salespeople's perceptions of ethical climate, leader-member exchange, and role clarity may be useful in enhancing their job satisfaction, and in strengthening the organizational identification and organizational commitment of their salespeople. This study extends the internal marketing literature both by applying the principles of the hierarchy of effects model to internal marketing, and by examining the effects of ethical climate, leader-member exchange, and role clarity on job outcomes within such a context.</p>
Highlights
The concept of internal marketing is applicable to service industries (Cooper & Cronin, 2000)
This study expands the literature of internal marketing by applying the principles of the hierarchy of effects model to internal marketing and by examining the effects of ethical climate (EC), leader–member exchange (LMX), and role clarity (RC) on job outcomes in the context of internal marketing
Has strong direct effect on LMX and RC, which are assumed to be lower-ranking cognitive variables that are directly associated with internal marketing consequences
Summary
The concept of internal marketing is applicable to service industries (Cooper & Cronin, 2000). By treating employees as internal customers and satisfying their needs, employees gain organizational benefits that can encourage them to meet organizational marketing objectives, leading to the development of a more customer-conscious, market-oriented, and sales-minded workforce, thereby enhancing the organization This places the firm in a superior position to deliver high-quality service, satisfying external customers and strengthening its competitive position (Papasolomou & Vrontis, 2006). Life insurance companies expect to develop salespeople who are further qualified and eager to provide a higher level of service quality. This further implies that a steep information asymmetry may be exploited by salespeople and should be addressed by internal marketing. In the internal marketing process, it is critical that managers act to change employee attitudes and behaviors
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