Impact of Internal marketing on Firm performance in Manufacturing industries

Shibrie Jorga Tessema and Sun Jin
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Shibrie Jorga Tessema: Business School, University of International Business and Economics, Chaoyang District, Beijing, China.
Sun Jin: Business School, University of International Business and Economics, Chaoyang District, Beijing, China

International Journal of Science and Business, 2022, vol. 11, issue 1, 104-120

Abstract: Internal marketing (IM) is the thinking of treating personnel as customers and job as a product. The aim of this study is to explore practice of Internal Marketing in non-service organizations especially textile manufacturing firm and to investigate the relationship of IM with employee motivation, customer orientation, industrial service quality and business performance. Cross sectional survey was conducted among randomly selected 280 employees of Chinese textile industries in Ethiopia. Questionnaire was useto collect the survey data by adapting from prior study. SPSS (23) and AMOS used for data analysis. This empirical research provides a strong support of the relationship of major variables in this study. IM had positive and statistically significant impact on employee motivation, customer-oriented behavior, industrial service quality and business performance. However, the mediation effect of employee motivation and customer-oriented behavior, in between IM and industry service quality was not supported. Whereas, industry service quality had strong positive impact on industry performance, and mediates the relationship of IM with business performance significantly. Based on this result practice of IM in non-service industry leads to get motivated and customer-oriented employees and improve industry service quality as well as business performance. Future researchers can undertake studies on IM in non-service industries with other IM elements, regions and industries context.

Keywords: Internal marketing; employee customer orientation; employee motivation; industrial service quality and business performance (search for similar items in EconPapers)
Date: 2022
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