The Effects of Internal Market Orientation on Service Providers’ Service Innovative Behavior: A Serial Multiple Mediation Effect on Perceived Social Capital on Customers and Work Engagement

Abstract

The purpose of this study is to understand the process through which internal market orientation leads to service innovative behavior via a serial multiple mediator model, with perceived social capital on customers and work engagement. It set and verified perceived social capital on customers and work engagement as serial multiple mediation factors between internal market orientation and service innovative behavior. To achieve this, surveys targeting service providers working in the finance and insurance industries in South Korea were conducted. A total of 270 data were collected and used for analysis. The analysis showed that internal market orientation significantly increased perceived social capital on customers, and that perceived social capital on customers positively improved work engagement. In addition, it appeared that work engagement improved service innovative behavior. Regarding the serial multiple mediation effect, the direct effect of internal market orientation on service innovative behavior was not significant, but the serial multiple effect through perceived social capital and work engagement was significant. Thus, perceived social capital and work engagement fully mediated the relationship between internal market orientation and service innovative behavior.