Internal Marketing Issues in Service Organizations in Malaysia Norbani Che Ha, Raida Abu Bakar & Syed Izzaddin Syed Jaafar* Internal marketing is an important concept where firms apply marketing tools to attract and retain the best employees, which will later affect business performance. The study has identified constructs (interfunctional coordination & intergration, customer orientation, marketinglike approach, job satisfaction, empowerment, employee motivation, quality of service, employee development, vision of the organization, strategic reward, internal communication, senior leadership) of internal marketing which are tested against business performance. The study’s implication is to help organizations design its own internal marketing plan by outlining the important elements and to improve the business performance of organizations.
Field of Research : Human Resource Practices, Marketing, Strategic Management
Internal marketing comes from the basic understanding of marketing. The term internal marketing is defined as viewing employees as internal customers, viewing jobs as internal products that satisfy the needs and wants of these internal customers while addressing the objectives of the firm (Berry, 1981). This study will add to the body of knowledge by showing how internal marketing concept is applied in Malaysia. By illustrating the effect of the concept, it hoped to provide a basis for organizations to design its internal marketing strategies in order for them to obtain the very best out of their main resource, their employees. It will also help managers to realize the importance of having internal marketing competencies which can be essential for Malaysian business organizations to improve its performance. Further, there is not much research being done in the field of internal marketing, specifically in Malaysia. This fact justified why this subject is chosen for the study. Proponents of this concept believed that having a sound internal marketing strategy is more important than external marketing strategy (Kotler & Armstrong, 2004).
2. Literature Review
Internal marketing act as part of the marketing strategy with the employee’s themselves whom are termed internal customers. It is used as a philosophy for managing the firm’s human resources based on a marketing perspective to build internal competencies for external success (George, 1990). It is a strategy that aims for the creation of highperformance work systems by managing the interdependent elements of the internal Faculty of Business & Accountancy, University of Malaya, Malaysia email@example.com / firstname.lastname@example.org *
marketing concepts to achieve greater firm’s competencies. Consequently, these variables will influence a firm’s competitive advantage. Rafiq & Ahmed (2000) expands the idea of internal marketing and define them as, “…a planned effort using a marketing-like approach to overcome organizational resistance to change and to align, motivate and interfunctionally coordinate and integrate employees towards the effective implementation of corporate and functional strategies in order to deliver customer satisfaction through a process of creating motivated and customer oriented employees”. From various literature reviews, 12 constructs that make up the core structure of the research are derived. The constructs are inter-functional, coordination & integration, customer orientation, marketing-like approach, job satisfaction, empowerment, employee motivation, quality of service, employee development, vision of the firm, strategic rewards, internal communication and senior leadership. The theoretical framework as follows : Theoretical Framework Inter-functional Coordination & Integration Customer Orientation
Job Satisfaction Empowerment Service Quality Employee Motivation Development Vision Strategic Reward Senior Leadership Internal Communication
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