Internal marketing, employee job satisfaction, and perceived organizational performance in microfinance institutions

Abstract

Purpose – The purpose of this paper is threefold: first, testing the relationships between internal marketing and employee satisfaction; second, investigating the links between employee satisfaction and perceived organizational performance; and finally, testing the relationship between internal marketing and perceived organizational performance. Design/methodology/approach – Data were collected from 419 employees working in 53 microfinance institutions (MFIs) in Kivu (DR Congo). Data processing was performed using structural equations modeling through LISREL 9.1. Findings – The results revealed that there is a positive and significant relationship between internal marketing and employee satisfaction. The results also revealed that there is a positive and significant relationship between internal marketing and perceived organizational performance. However, no significant relationship between employee satisfaction and perceived organizational performance was identified. Research limitations/implications – There is a need to conduct a large qualitative survey aiming to understand why MFIs apply internal marketing and marketing practices in general. The results from such a study would serve to prepare a global quantitative study, which integrates in the same model internal marketing, external market orientation, employee job satisfaction (EJS), and organizational performance. Practical implications – Results invite MFIs managers to change their mind and focus more on their employees. In fact, employees generate the most cost in general but they can also contribute to sustain growth and profitability. This is possible if they are better rewarded for their efforts. Originality/value – This study links internal marketing, EJS and perceived performance in a sector and country which have been less or not studied in the marketing sector.

Digital banking, customer experience and bank financial performance

“…The SPC model establishes the relationships between service quality, employee job satisfaction (employee retention and productivity), customer satisfaction and loyalty, and organisational performance (revenue growth and profitability). Kanyurhi and Akonkwa (2016) used the SPC model in Congo banks and found a positive relationship between internal marketing and employee satisfaction, and a positive relationship between internal marketing and perceived organisational performance, but not between employee satisfaction and perceived organisational performance. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 The NPS gauges the level of customer satisfaction and loyalty to a firm, using a single question, while SERVQUAL measures service qualities using reliability, tangibles assurance, responsiveness and empathy, without demonstrating their direct relationship to profitability.…”

“…Employees' attributes influence firms' business performance in non-DB environment (Grace and O'Cass, 2004;Karatepe et al, 2005), and customer satisfaction and profit (Yee et al, 2010). Customer satisfaction is largely influenced by service quality, which depends on employee job satisfaction in contact services (Chi and Gursoy, 2009;Kanyurhi and Akonkwa, 2016). However, the relevance of ECE in DB experience is tested:…”

The relationship between internal marketing and employee job satisfaction: A study from retail shops in Bangladesh

“…Furthermore, job satisfaction is influenced by the factors like salary, working environment, autonomy, communication, and organizational commitment; which are also crucial elements of internal marketing (Braimah, 2016;Chi, et.al. 2016;Isik and Altunoglu, 2016;Kanyurhi and Akonkwa, 2016;Lane, et.al. 2010;Vidal, et.al.…”

Strengthening graduate employee commitment through internal marketing in the South African retail banking industry

“…Therefore the positive influence of internal marketing elements such as internal product, collaborative culture, organisational structure, internal people and internal process on the satisfaction of GradDP employees and their affective commitment can empower South African banks with the ability to enhance their employee satisfaction levels, thereby strengthening GradDP employee commitment and their eventual retention. Through this approach, South African retail banks can strengthen their internal stakeholder focus, thereby increasing their ability to enhance external service delivery as a competitive advantage (Kanyurhi & Akonkwa, 2016).…”

“…Therefore, when employee satisfaction is high, employee commitment and loyalty will also be higher (Gibbs & Ashill, 2013). Kanyurhi and Akonkwa (2016) concur and also argue that there is a direct link between employee commitment to the organisation and the level of satisfaction experienced by the employee towards its internal, working environment. Affective commitment is synonymous with loyalty and has been identified as the strongest predictor of employee intention to remain with organisations (Calisir et al, 2011).…”