Local Culture, Internal Marketing and Employee Satisfaction in Improving Financial Performance: A Case Study of Microfinance Institutions in Bali

I Putu Astawa ()
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I Putu Astawa: Tourism Business Management, State Polytechnic of Bali, Jimbaran 80361, Bali, Indonesia Author-2-Name: Tjokorda Gde Raka Sukawati Author-2-Workplace-Name: Faculty of economics and Business, Udayana University, Jimbaran 80361 Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:

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Abstract: Objective � Local culture acts as a bridge in empowering the resources owned by a firm so they can operate harmoniously. This research tests the theory of local culture, internal marketing, and employee satisfaction in an effort to improve financial performance. Methodology/Technique � The research is supported by the existing phenomenon of increasing credit issues. The data is obtained from 1,364 questionnaires and is quantitatively analyzed through Structural Equation Modelling. A qualitative analysis is used to deepen the anomaly relationship through a phenomenological approach. Findings � The result show that local culture becomes the organizational culture, but has no direct influence on the improvement of performance. Indicators related to the environment have a very low contribution to the development of organizational culture. Internal marketing indicators, such as recruitment processes and internal communication, have a significant contribution on the achievement of financial performance. Further, employee satisfaction has a significant impact on the achievement of financial performance. Novelty � This study develops a new model that can be used to enhance financial performance. The integration of local culture into internal marketing and employee satisfaction is a relatively novel invention.

Keywords: : Local Culture; Internal Marketing; Employee Satisfaction; Financial Performance; Microfinance Institutions; Bali. (search for similar items in EconPapers)
JEL-codes: Z1 Z10 Z19 (search for similar items in EconPapers)
Pages: 6
Date: 2018-06-02
New Economics Papers: this item is included in nep-mfd and nep-sea
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Published in Journal of Management and Marketing Review, Volume 3, Issue2

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