Leadership Style and Market Orientation: The Mediating Role of Internal Marketing

Abstract

This study aims to investigate the impact of path-goal leadership styles (directive, participative, supportive, and achievement-oriented) on the market orientation of Jordanian commercial banks and the role of internal marketing as a mediating variable. A quantitative survey methodology was used to collect data from 630 branch managers of thirteen commercial banks listed on the Amman Stock Exchange in Jordan. Only 196 branch managers fully responded to the questionnaire. The measurement model fit and the significance of the theoretical relationship between variables were determined using structural equation modeling. The results confirmed that supportive, participative, and achievement-oriented styles have a positive impact on internal marketing, while directive styles have a negative impact. Internal marketing has a positive direct impact on market orientation. The impact of path-goal leadership styles on market orientation was indirect through internal marketing, which means that internal marketing fully mediates the relationship between path-goal leadership styles and market orientation. Commercial banks should integrate internal marketing as a strategy into their core operations and systems to meet employees’ demands and the bank’s goals. This integration shall make employees show their sincere organizational commitment so that they can express the attitude of organizational citizenship behaviors that are beneficial for the banks’ operations and survival.