This study investigates the mediation effect of motivation (MO) between internal marketing (IM) and service innovation (SI) using a hierarchical model. It adopts Bahman Group Corp of the automobile industry in Iran as a case study. This paper aims to examine the effect of internal marketing (IM) on service innovation (SI) by the mediation effect of motivation (MO). It develops a theoretical hierarchical multi-component model and analyses through a two-step approach of higher-order model by using PLS on 171 clean data. This research uses a survey method to collect data from the employees of Bahman Group Corp. The results indicate that motivation (MO) has a partial mediation effect between internal marketing (IM) and service innovation (SI). This study illustrates that internal communication (IC) and a New Organizational Delivery system (NOD) have the most substantial effect on internal marketing (IM) and service innovation (SI). Moreover, this research highlights to the service-based organisation to pay more attention to enhance internal marketing dimensions, especially in terms of service innovation to improve competitiveness. The results recommend further studies to examine the correlation between each indicator. The findings conclude with two main contributions and managerial implication to the research area that impactful to the subject of study.
This paper aims aimed to present the trends of the literature review in internal marketing and service innovation between 1990 and 2016. The significant reason to conduct this research is that significant variables of internal marketing to link with service innovation are not clearly defined. This research yielded 22 systematic reviews of articles in the Scopus library and adopted a thematic analysis to analyze the data collected. This study provides provided answers to research questions by elaborating on overall trends, objectives, theoretical framework, methodologies, and potential variables that strongly connect between internal marketing and service innovation. While sample sizes are limited to this paper, it suggests suggested fruitful recommendations for future research to overcome this limitation. This research has had two practical implications for managers to redefine their roles and the relationship between members of the organization and to help managers and the firms to consider internal marketing efforts towards motivation, organizational culture, and organizational learning.
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