Internal Market Orientation Research Articles

A Study on the Effect of Benefits Recognition of Employees on Organizational Citizenship Behavior: The Mediating Role of Internal Market Orientation and Identification with Organization

본 연구에서는 그동안 상대적으로 연구가 부족한 마케팅 차원에서 복리후생의 하위요인(자금지원, 문화지원, 시설지원, 생활지원)이 내부시장지향성, 조직동일시 그리고 조직시민행동에 미치는 영향을 실증 분석하고자 하였다. [연구방법] 연구를 수행하기 위해 수도권과 충청지역에 소재한 중소기업의 종업원 310명을 대상으로 LISREL 8.75를 이용하여 자료를 분석하였다. [연구결과] 첫째, 중소기업의 복리후생 가운데 자금지원과 시설지원은 내부시장지향성에 정(＋)의 영향을 미치는 것으로 나타났다. 그러나 문화지원과 생활지원은 내부시장지향성에 정(＋)의 영향을 미치지 않는 것으로 나타났다. 둘째, 중소기업 종업원이 내부시장지향성을 높게 지각할수록 조직동일시에 정(＋)의 영향을 미치는 것으로 나타났다. 셋째, 중소기업 종업원이 조직동일시를 높게 지각할수록 개인지향적 조직시민행동과 조직지향적 조직시민운동에 정(＋)의 영향을 미치는 것으로 나타났다. [연구의 시사점] 본 연구에서는 조직구성원의 복리후생의 영역에 처음으로 내부시장지향성이란 개념을 제시하고, 복리후생과 내부시장지향성의 관계에 대한 이해를 확장하여 실증함으로써 이론적, 실무적 시사점을 제공하였다.

The Effects of Internal Marketing and Entrepreneurial Orientation on Innovation in Family Businesses

The purpose of this paper is to examine the effect of internal marketing and entrepreneurial orientation on innovation in family businesses. By reviewing related literature, the relationships among internal marketing, entrepreneurial orientation, and innovation were hypothesized. The developed conceptual model is tested using structural equation modeling (SEM) using a sample of 288 family businesses. The result of the SEM model shows that both internal marketing and entrepreneurial orientation act as a basis for innovation in family businesses. Further, it was revealed that internal marketing is key determinant of entrepreneurial orientation in the context of family business. The study has contributed to the literature by demonstrating the routes through which internal marketing and entrepreneurial orientation impact on innovation in the case of family businesses.

The impact of internal and external market orientation on the performance of non-conventional Islamic financial institutions

PurposeThe purpose of this study was to explore the impact of internal and external market orientations on monetary and non-monetary performances of non-conventional Islamic financial institutions. This study further aimed at proposing a conceptual framework, testing it and examining relationships among the variables.Design/methodology/approachData for this study were collected from 132 branches of 11 non-conventional financial institutions in Bangladesh using a closed-ended questionnaire. The study considered a structural equation modeling approach for testing the proposed model. A two-step procedure was used for this purpose. First, a measurement model was analyzed through a confirmatory factor analysis; second, the structured model was evaluated to examine relationships between the constructs. Data used in this study confirmed the adequate reliability, convergent and discriminant validity.FindingsThe results of the study met the expectations and provided an evidence that both monetary and non-monetary business performances are functions of internal and external market orientations’ efforts. As the results are reported, all three components of internal market orientation, e.g. internal intelligence generation, dissemination and responsiveness, were found to be statistically significant and positively related to monetary and non-monetary performances, except internal intelligence responsiveness with employees’ team spirits. The study also revealed a significant relationship between all three external market orientation components, and business performance, except external intelligence responsiveness, was not found to have a significant relationship with team spirit and customer retention. The results, however, imply that the performance of non-conventional financial institutions is an integrated effort of both internal and external orientations rather than using a single approach.Originality/valueFindings of this study support the theoretical arguments that non-conventional financial institutions can be successful in attaining all types of performances by initiating and adopting internal and external market-oriented activities. The study further argues the importance of the activities under each market orientation component and suggests non-conventional financial institutions to promote such an initiative if they are to be consistent in their performances.

The impact of internal marketing and market orientation on performance: an empirical study in restaurant industry

PurposeThe purpose of this paper is to investigate the effects of internal marketing and market orientation on organizational performance based on the balanced scorecard (BSC).Design/methodology/approachA cross-sectional research design, drawing upon a questionnaire survey, was used to collect data from a sample of restaurants. Structural equation modeling was performed to test the relationship among the research variables using findings from the 164 participants.FindingsThe results revealed that internal marketing positively influenced market orientation and performance. In addition, market orientation was a direct antecedent of performance.Originality/valueThe findings provide important academic, practical and political implications for restaurant industry.

Factors influencing organization commitment

PurposeThe purpose of this paper is to investigate the effects of internal marketing orientation, external marketing orientation, and subjective well-being on the affective organizational commitment of frontline employees.Design/methodology/approachPrevious research was used to develop hypotheses and develop a questionnaire for this project. An online survey was completed by 108 frontline employees.FindingsThe hypothesized model of all three variables having positive effects on organization commitment was supported. Internal marketing orientation, external marketing orientation, and subjective well-being were significant predictors of affective organizational commitment.Research limitations/implicationsA key limitation of this study is the cross-sectional, data collection design. A longitudinal study would allow for increased confidence when evaluating causal inferences with this type of data.Practical implicationsThis paper identifies how managers may be able to use internal marketing orientation, external marketing orientation, and subjective well-being as potential tools to increase the affective organizational commitment of frontline employees.Social implicationsThis paper demonstrates the importance of subjective well-being as an important component of life for an employee and success of the organization.Originality/valueThis paper extends current research on affective organizational commitment by testing a new model that includes internal marketing orientation, external marketing orientation, and subjective well-being as predictor variables.

중국 제조업 수출기업의 국제기업가지향성과 국제시장지향성이 수출성과에 미치는 영향 : 국제화정도의 조절효과를 중심으로

중국 제조업 수출기업의 국제기업가지향성과 국제시장지향성이 수출성과에 미치는 영향 : 국제화정도의 조절효과를 중심으로

Empirical Analysis of the Effects of International Entrepreneurial Orientation and International Market Orientation on the Export Performance of Chinese Manufacturing Companies: Moderating Effects of Market Dynamism

Empirical Analysis of the Effects of International Entrepreneurial Orientation and International Market Orientation on the Export Performance of Chinese Manufacturing Companies: Moderating Effects of Market Dynamism

Internal market orientation determinants of employee brand enactment

PurposeThis study aims to explore how the adoption of internal market orientation (IMO) can enhance front-line employee brand enactment within an interpersonal service setting. Insights from equity theory and the person – environment paradigm are drawn upon to develop a theoretical model describing the impact of IMO on employee – organization fit, employee – supervisor fit and employee – job fit and the consequences of IMO on employee brand knowledge and brand identification. Second, the role of various types of fit and brand knowledge/identification for front-line employee brand enactment is confirmed.Design/methodology/approachThis study draws from service employees in a high-contact customer setting.FindingsResults uncover two mechanisms for successful internal branding: increasing employee fit with the service environment and enhancing employee brand knowledge.Practical implicationsThe study contributes to practice in that the findings outline a realistic understanding of how managerial actions facilitate employees’ alignment with the firm’s brand promise within the realm of the broader organizational context in which service delivery takes place.Originality/valueThe present study contributes in the extant literature as it enables a more holistic view of the drivers of brand-congruent behaviors among front-line employees. Moreover, it has a significant contribution for future researchers as it lays the ground to further examine how employees’ perceptions of internal marketing strategies shape their fit levels with different aspects of their working environment which also affect the internal branding efforts of service organizations.

Enhancing firm performance through internal market orientation and employee organizational commitment

Considering the importance of retaining key staff and managing the negative impact of high labor turnover on firm performance, this study investigates the notion of internal market orientation (IMO) as an employee management tool for helping companies retain employees and leverage performance via their organizational commitment. Drawing on data from three different managerial respondents in 275 companies based in China, the findings demonstrate the precedential effect of IMO on corporate performance through employees’ organizational commitment and retention. Interdepartmental relationship and interdepartmental communication, together with ownership types are identified as potential moderating variables, which may vary IMO’s effectiveness in the framework. This study provides scholars and practitioners with empirical evidence of IMO’s contribution to different industries and markets. Building on a western perspective, this study extends the literature in an emerging market context and specifically has implications for managing Chinese employees.

The meaning and relevance of internal market orientation in nonprofit organisations

ABSTRACTA large number of nonprofit organisations (NPOs) deliver welfare services in developing countries. Many find it difficult to retain their staff and to increase beneficiary satisfaction, which negatively affect their mission achievement activities. This research shows that internal market orientation (IMO) can help field-based NPOs address the managerial challenges. Towards this end, this research validates Lings and Greenley’s [(2005). Measuring internal market orientation. Journal of Service Research, 7(3), 290–305.] scale to measure IMO in field-based NPOs and establishes IMO’s relevance for them. Data from 370 NPOs were analysed using confirmatory factor analysis to validate the IMO construct in the nonprofit context, and structural equation modelling to show that IMO improves beneficiary satisfaction and staff retention rates in NPOs. The study enhances our understanding of IMO in NPOs and offers important managerial implications.

The Impact of Strategic Attributes on Organizational Performance in Pakistan Banking Sector: A Review and Suggestions for Future Research

In recent years, the business environment of banking sector has become very dynamic and highly competitive due to the globalization and massive developments in this sector. Also, the banking organizations have faced a lot of challenges. In order to deal with the business challenges and to attain the superior organizational performance, the banking organizations need to be strategically positioned, market oriented (both internally and externally) and to develop and encourage strong organizational culture. Drawing from the resource-based view (RBV) theory, this study aims to propose the novel conceptual model representing the impact of strategic attributes such as, strategic orientation, organizational culture and organizational internal market orientation on the organizational performance. This study also highlighted the critical role of these strategic attributes in the organizations and need to study them at the organizational level in the banking organization. Based on the review of relevant literature, three research propositions have been proposed. The proposed conceptual model would hopefully lead to very useful insights for the bank management, policy makers and future researchers.

The Impact of Internal Marketing on Customer Orientation in the Banking Industry

The connectivity between internal marketing and customer orientation especially in a banking industry cannot be over emphasized. The unsatisfactory output of some banks’ employees cannot be divergent from the input of the affected banks. The present paper explores neglect of customer orientation often displayed by many Nigerian banks’ employees with a view to analysing its impact on internal marketing practices of those banks. In other words, this paper therefore seeks to determine the relationship between internal marketing and customer orientation. Relevant data were gathered from Banks’ Frontline Employees and the Management Staff from four (4) branches of the existing banks in major business areas in Lagos State, South-West Nigeria. These areas include Victoria Island, Ikeja, Ikoyi, Apapa, Idumota, Yaba, Isolo/Oshodi and such other business areas. Meanwhile, the paper computed the required sample size for the two groups of population using the Yamane’s (1968) sample size determination method leading to an estimate of sample sizes 341 and 253 from the frontline employees and management staff of the banks respectively. The data obtained are subjected to statistical analysis using Partial Least Square-Structural Equation Modelling (PLS-SEM). The PLS-SEM which is an alternative technique for covariance based SEM is confirmatory statistical analysis software adopted to analyse the relationship between the internal marketing and customer orientation. The outcome of this paper reveals that internal marketing has a statistically and practically significant effect on customer orientation which therefore suggests that internal marketing has great impact on customer orientation. The contribution of this paper to the body of knowledge and research is that more than ever before the bank management should take into cognizance the roles played by employees thereby putting all effort in place to increase job satisfaction.

A Review of the Relationship Between Internal Marketing and Customer Orientation

The role of internal marketing on customer orientation especially in service industry such as banking cannot be over emphasized. It goes further to substantiate the fact that self-sufficient employees would go extra mile in taking active and pragmatic approach towards contributing to the success and accomplishment of their employers’ businesses and organizations. Thus, when effective Internal Marketing system is operational, the employees tend to reciprocate by not only giving their best to the organization but also reflect in the ways customers are treated. However, a serious concern to most employers is attracting and retaining employees who can deliver superior value to customers. Being a qualitative and library-based research, the present paper applies the content analysis method to unravel the impact of Internal Marketing on Customer Orientation by surveying the extant literature on the subject. In other words, the paper employs library method to gather information and analyze it by way of comparative and inductive methods. The paper establishes that Internal Marketing impacts positively and significantly on Customer Orientation of banking employees.

Linking internal marketing orientation to balanced scorecard outcomes in small businesses: the case of travel agencies

PurposeThe purpose of this paper is to examine how internal marketing orientation affects balanced scorecard outcomes (financial performance, customer, internal process, learning and growth) in a small service businesses context.Design/methodology/approachDrawing from the small businesses, the relationship between internal marketing orientation and performance is hypothesized and tested. A structural equation modeling (SEM) test with maximum likelihood estimation was performed to test the relationship between the research variables.FindingsThe results obtained from the SEM analyzes revealed that internal marketing orientation positively impacts the levels of financial and non-financial performance. The results also indicate that non-financial performance measures (that is, customer, internal process, learning and growth) directly affect financial performance.Originality/valueThis study unpacks the mechanism between internal marketing orientation and balanced scorecard outcomes and contributes to the academic research of internal marketing orientation in the context of small businesses.

The Impact of Internal Marketing Activities on Customer Service Performance in Healthcare Industry

A look at the situation of competition in healthcare industry indicates that it is very important to provide high quality services in this industry, something which can be regarded as a success factor. Therefore, hospitals are more successful if they pay more attention to internal marketing in order to maintain their customers. Thus, this study is an investigation about the relationship between internal marketing plans and measures based on human resources, employee perception of the internal marketing strategy and employee job performance in healthcare industry. For this purpose, 249 subjects were selected from the personnel and administration department as a sample. To answer the research questions, a questionnaire was then used for data collection. All of the 11 research hypotheses were confirmed. In addition, research variables and their relationships were analyzed and investigated in SPSS 22 and PLS. According to the research findings, internal marketing and internal market orientation plans had both direct and indirect impacts on the customer-oriented behavior.

Effects of Internal Marketing on Customer Orientation Behaviour of Selected Hotels’ Employees in Nigeria

This study was carried out to determine the Influence of Internal Marketing on Customer Orientation Behaviour of Hotel Employees in Nigeria. The objectives of the study include: to determine the effect of internal marketing on customer orientation behaviour of hotel employees; to investigate the moderating influence of personality on the relationship between internal marketing and customer orientation behaviour of the hotel employees; and to investigate the moderating influence of job satisfaction on the relationship between internal marketing and customer orientation behaviour of the hotels’ employees. Survey research design method was adopted for the study. 83 and 174 hotel managers and employees respectively were selected for the study from 20 hotels operating in different geo-political zones of Nigeria. Questionnaire was used for collection of data. Convenience sampling method was used for selecting both the hotels’ managers and guest service employees used for the study. The hypotheses were tested using multiple linear regression. It was revealed that internal marketing has significant influence on customer orientation behavior of hotels’ employees; personality significantly moderates the relationship between internal marketing and customer orientation behavior of the hotel employees; and job satisfaction significantly moderates the relationship between internal marketing and customer orientation behavior of the hotels’ employees. It was recommended that hotel managers should give much priority to internal marketing practice while controlling for the personality and job satisfaction of the guest service employees.

Green marketing orientation: Conceptualization, scale development and validation

As green marketing becomes an essential tool for sustainable business strategy, companies are adopting green marketing practices to achieve better business performance. However, no research has yet operationalized all the organizational facets that are necessary to become a green marketing oriented company. To address this omission, following the literature in measurement theory, this investigation reports a series of 4 studies and develops a scale to capture the holistic approach of green marketing. This study introduces the construct of green marketing orientation, which comprises three dimensions: strategic green marketing orientation, tactical green marketing orientation and internal green marketing orientation. The scale shows internal consistency, reliability, construct validity and nomological validity. Directions for future research and managerial implications of the new construct are discussed.

Toward a greater understanding of the market orientation and internal market orientation relationship

The study explores the relationship between market orientation (MO) and internal market orientation (IMO) using the process model of MO development. Data from 370 nonprofit organizations were analyzed using structural equation modeling with maximum likelihood estimation technique. The comprehensive CFA marker method was used to partial out the influence of social desirability bias on the substantive relationships. The study finds that MO works through IMO to elicit desirable employee outcomes, which also contributes to performance outcomes. IMO does not offer direct performance benefits, but it partially mediates the effect of MO on employee-related outcomes. Competing models offering alternative explanations are ruled out empirically by the superior fit of the theoretical model with the data. The study integrates IMO in Kohli and Jaworski’s model of antecedent and consequences of MO and encourages practitioners to embed IMO in their MO development plans.

Predicting market orientation through internal market orientation as culture and behaviour: an empirical application in Spanish hotels

ABSTRACTThe aim of this study is to analyse how the internal market orientation, considered from a dual perspective, cultural and behavioural, affects the development of external market-oriented behaviours by improving the attitudinal results (affective commitment and job satisfaction) of the internal customers. An empirical study was carried out, based on the perceptions of 68 managers and 296 supervisors at four- and five-star hotels in Gran Canaria (Canary Islands, Spain). The findings show that (1) the internal market orientation (IMO) has a positive influence on the effective development of market orientation behaviours in managers and supervisors; (2) the IMO has a positive influence on the affective commitment and job satisfaction of hotel managers, but not supervisors; and (3) greater affective commitment and job satisfaction have no significant effect on market orientation behaviours in hotel managers or in supervisors. Based on the study results, the paper concludes with a discussion and implications for practitioners.

Effect of institutional factors on internal market orientation: a structural analysis

The purpose of this paper was to assess the predictive effect of informal institutional factors on the primary dimensions of internal market orientation. Respondents to the survey were senior executives of public sector organisations in Ghana, and the data was analysed by applying partial least-square approach to structural equation modelling. The findings support the influence of passive cultures, constructive cultures, and 'politics in market-related decision-making', on the primary dimensions of the internal market orientation construct. Thus, the findings provide modest reflection on organisational culture and organisational politics, and expand the stream of research that integrates institutional factors and internal market orientation. This study also provides some insights into application of internal marketing for efficient management of the public sector. Further, this research justifies the development of an all-encompassing instrument that reflects informal institutional factors, for a holistic measurement of internal market orientation of an organisation.