Academic journal article International Journal of Business and Management Science

The Relationship between Internal Marketing and Implementation of Strategic Orientations in Malaysian Service Industry

Academic journal article International Journal of Business and Management Science

The Relationship between Internal Marketing and Implementation of Strategic Orientations in Malaysian Service Industry

Article excerpt

Abstract:

The purpose of this study is to assess the influence of internal marketing on job satisfaction and organizational commitment. Furthermore, it examines the relationship between job satisfaction, organizational commitment and implementation of strategic orientations. Data were gathered by means of survey from 102 managers of various service organizations in the northern region of Malaysia. The findings of the study reveal that internal marketing has a significant positive relationship with job satisfaction and organizational commitment. Job satisfaction also positively affects the implementation of strategic orientations, but the relationship between organizational commitment and implementation of strategic orientations is insignificant. The findings also show that job satisfaction and organizational commitment mediate the relationship between internal marketing and implementation of strategic orientation. The results of this study have several implications for service organizations on how to implement strategic orientations by practicing and implementing internal marketing.

Keywords: Internal Marketing, Job Satisfaction, Organizational Commitment, Strategy Implementation, Malaysia

INTRODUCTION

Successful implementation of strategy requires cooperation of all players in the company (Crittenden, 1991). If manufacturing does not talk with research and development, research and development does not talk with marketing, marketing does not talk with manufacturing, and sales does not talk with anyone in the organization, it creates functions empty of responsibility and void of interaction. Dating back to the late 1700s, this 'division of labor' was the basis for much departmentalization because of the commonsense appeal of having departments consisting of experts in particular fields. Traditionally, each functional area performed specialized portions of the organizational tasks. Practitioners and academics tackle such 'vertical activities' more easily since the activities require expertise in only one functional area. However, functional strategies at individual level resulting from this departmentalization are the centre of much intraorganizational conflict and the source of many strategy implementation problems.

It has been mentioned that strategy implementation is operational and depends on a sequence of activities that need to be done by employees' at all organizational levels (Hrebiniak and Joyce, 1984; Webster, 1997). Kotier claims that "the marketing department's effectiveness depends on how well its personnel are selected, trained, directed, motivated, and evaluated" (1991: 71). Thus, the integration of marketing and HR functions represent the arrangement of workforce capabilities with customer focused marketing strategies (Gratton, 1994; Piercy, 1997). It has also been discussed in the existing literatures that internal marketing is a process that can integrate many functions of an organization in order to achieve customer consciousness (George, 1990). Kotier (2000) explains that internal marketing is more important than conventional external marketing. In addition, Greene et al., (1994) point out that internal marketing is the key to excellent service and successful external marketing. Furthermore, internal marketing has seen implemented as a mechanism for reducing departmental isolation (Martin, 1992), reducing inter-functional friction, and overcoming resistance to change (Darling and Taylor, 1989; Rafiq and Ahmed, 1993). These propositions have led internal marketing to be advocated as a general tool for the implementation of any organizational strategy, whether it is internal or external (Rafiq and Ahmed, 1993).

The main objective of internal marketing practices is to ensure that employees feel that management cares about their needs and tries to meet it. Therefore, successful application of internal marketing practices transform into positive employee attitudes toward their work, including enhancing job satisfaction and organizational commitment relationship with market orientation (Tansuhaj, Randall and McCullough, 1991). …

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