Investigating internal market orientation: is context relevant?

2020 ◽  
Vol 23 (3) ◽  
pp. 523-539 ◽  
Author(s):  
Qionglei Yu ◽  
Bradley R. Barnes ◽  
Yu Ye

Purpose Through undertaking qualitative research within different industrial contexts, the study aims to address the following: How do practitioners in non-service organisations interpret internal market orientation (IMO); How is IMO practiced within an eastern cultural context; and What are the outcomes of its implementation? Design/methodology/approach The study examines three organisations from three different industries and draws on nine in-depth interviews with people across various levels within each organisation. Findings The study reveals that: a) senior management commitment should be included in the design of IMO at the strategic level; b) effective responsiveness to internal information collected is crucial to its success; c) creative ways to meet internal customers’ needs and expectations are contextualised; and d) cultural nuances need to be considered when applying IMO. Research limitations/implications Choosing a multiple-case study approach provides in-depth explanations; however, such an approach may lead to less generalisability. Practical implications The study advocates that a) some degree of resources are needed to ensure that IMO can be fully implemented and employee welfare enhanced; b) creativity is required for each organisational context responding to employees’ needs, expectations, complaints or ideas; and c) removing unnecessary barriers can help to foster better interdepartmental relationships and, thus, improve work procedures and employee satisfaction. Originality/value This study contributes to the literature by developing a framework to signal the importance of IMO as a facilitator for better firm communication and performance. Contextualised IMO practices from the cases may shed further light on specific best practice.

2019 ◽  
Vol 33 (2) ◽  
pp. 233-244 ◽  
Author(s):  
Achilleas Boukis

PurposeThis paper aims to re-examine the nature, aim and scope of internal market orientation (IMO) and introduce it as a value creation mechanism for the firm’s internal market. A service-dominant logic (SDL)-based perspective of the IMO notion is advanced, and the key steps and phases for value creation in the internal market are outlined.Design/methodology/approachThis conceptual paper bridges the IM discourse with the SDL literature, and the latter’s implications for internal marketing theory and practice are discussed.FindingsDrawing on the premises of the SDL, IMO re-surfaces as an interconnected operant resource that can be enacted through performing three sets of activities central in the value creation process for internal stakeholders (i.e. value-identifying, value-generating and value-enhancing activities). These groups of relevant value-enabling activities required for IMO enactment are extensively discussed and their role in the value creation process is scrutinized.Originality/valueThis conceptual paper aspires to provide a managerially relevant understanding of value creation in the firm’s internal market. An SDL-driven understanding of IMO is advanced setting it as a value creation mechanism appealing to a wider range of organizations.


2017 ◽  
Vol 31 (7) ◽  
pp. 690-703 ◽  
Author(s):  
Achilleas Boukis ◽  
Spiros Gounaris ◽  
Ian Lings

Purpose This study aims to explore how the adoption of internal market orientation (IMO) can enhance front-line employee brand enactment within an interpersonal service setting. Insights from equity theory and the person – environment paradigm are drawn upon to develop a theoretical model describing the impact of IMO on employee – organization fit, employee – supervisor fit and employee – job fit and the consequences of IMO on employee brand knowledge and brand identification. Second, the role of various types of fit and brand knowledge/identification for front-line employee brand enactment is confirmed. Design/methodology/approach This study draws from service employees in a high-contact customer setting. Findings Results uncover two mechanisms for successful internal branding: increasing employee fit with the service environment and enhancing employee brand knowledge. Practical implications The study contributes to practice in that the findings outline a realistic understanding of how managerial actions facilitate employees’ alignment with the firm’s brand promise within the realm of the broader organizational context in which service delivery takes place. Originality/value The present study contributes in the extant literature as it enables a more holistic view of the drivers of brand-congruent behaviors among front-line employees. Moreover, it has a significant contribution for future researchers as it lays the ground to further examine how employees’ perceptions of internal marketing strategies shape their fit levels with different aspects of their working environment which also affect the internal branding efforts of service organizations.


2013 ◽  
Vol 38 (3) ◽  
pp. 51-66 ◽  
Author(s):  
Gurjeet Kaur ◽  
R D Sharma ◽  
Nitasha Seli

There has been a lot of research on implementation of the concept and examination of the link between market orientation and business performance. In these offerings, scales such as MARKOR, introduced by Kohli, Jaworski, and Kumar (1993), and MKTOR, introduced by Narver and Slater (1990) have been frequently employed without further investigation. Analogous to this academic endeavour, few marketing researchers have raised doubts regarding the reliability and validity of the extant scales and have also shown concern towards the definition of the concept. Apropos, the present study has been planned to examine the degree of market orientation from management perspective and also to develop a scale for measuring market orientation in the selected public and private sector banks, viz., State Bank of India (SBI), Punjab National Bank (PNB), and The Jammu and Kashmir Bank Pvt. Ltd. (JKB). The study finds: Significant difference between the responses of management with respect to Internal Market Orientation (IMO) and External Market Orientation (EMO). The management of all the three major banks, viz., PNB, SBI, and JKB is more optimistic with regard to the three dimensions of EMO than that of IMO. Significant impact of internal market orientation on the overall market orientation as compared to external market orientation. Positive and significant relationship between internal customers' and external customers' satisfaction; internal customers' satisfaction and business performance, and external customers' satisfaction and business performance. For improving market orientation in the banking sector, managers are suggested to take the following initiatives: Initiate crucial steps towards developing a healthy work environment — delineating employee expectations; discussing goal achievement, tracking performance and feedback; and devising an appropriate mechanism for follow-up and employee appraisal. Employees should be made the root cause identifiers and solvers whereas managers must be problem eradicators. Ensure parallel inter- and intra-departmental communication. An open door policy can be encouraged to communicate through various formal and informal channels so that inter-departmental work teams can perform efficiently. Conduct internal market research once a year to generate information pertaining to the job requirements of internal customers. Retain its employees through the successful implementation of internal marketing strategies which in turn demands proper understanding of employees' work-related needs, feelings, emotions and intellect, proper treatment as an individual, open and free communication with the management, and establishing and managing effective long-term employee-management relationships.


Author(s):  
Gurjeet Kaur ◽  
Shruti Gupta

This chapter proposes that internal intelligence generation and dissemination are significantly correlated and have substantial impact on responsiveness. In addition, responsiveness determines the success of internal market orientation and its effect on various employee-related outcomes. The study examines the extent of internal market orientation in Indian banking and its consequences as perceived by the employees of a highly successful private bank that has a wide network of branches in a northern city of India. Structural model was proposed and structural equation modelling was used to test the research hypotheses. The findings reveal that internal intelligence generation and dissemination are correlated to the extent of 0.89 and have significant impact on a bank’s responsiveness to employees’ needs and wants. Results of the study reveal that internal market orientation ought to be considered as an important strategy for retaining internal customers. Internal market orientation has an indirect significant impact on service innovations in terms of new product/service development, technology advancement, and process innovation through greater staff compliance, strong team work, and greater moral responsibility.


2015 ◽  
Vol 25 (4) ◽  
pp. 486-523 ◽  
Author(s):  
Vicent Tortosa Edo ◽  
Jaume Llorens-Monzonís ◽  
Miguel Ángel Moliner-Tena ◽  
Javier Sánchez-García

Purpose – The purpose of this paper is to analyse the possible influence of internal marketing (represented by internal market orientation (IMO)) on external customer outcomes (perceived service quality and customer satisfaction) through the mediating role of employees’ attitudes (job satisfaction, trust and commitment) that comprise relationship quality. Design/methodology/approach – The authors employ a dyadic methodology, with 244 dyads (employee-the average of his/her three patients) at the outpatient services of five Spanish hospitals. The authors use structural equation modelling (EQS6.1) to test the relationships of the model. Findings – The results corroborate the hypotheses proposed in the model, with the exception of the influence of IMO on commitment. Significant differences in some relationships, depending on the experience of the employee, are also corroborated. Research limitations/implications – The paper analyses one service activity in the same region. Only perceptual data are used to measure the variables of the model. Practical implications – Service companies should consider IMO because it contributes to creating an excellent customer experience. Furthermore, managers should bear in mind their employees’ needs when taking decisions. Originality/value – This paper contributes to the literature by demonstrating, for the first time, the mediating role of relationship quality in the influence of IMO on external outcomes. It is also the first paper in internal marketing to analyse the differences in the consequences of IMO according to employee tenure.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sergey Kazakov ◽  
José L. Ruiz-Alba ◽  
María M. Muñoz

PurposeThe present study examines the concept of internal market orientation (IMO) and its effects on organisational performance comprising job satisfaction and employees' loyalty in the small and medium enterprises (SMEs) research context. Rooted in administrative theory, human relations theory, conventional theories of IMO and internal marketing, this study develops a novel iIMO theoretical framework that evinces the proliferation of ICTs in SMEs.Design/methodology/approachThe proposed concept was empirically investigated by means of surveying 316 SME employees with the application of a multi-stage sampling procedure.FindingsResearch findings confirmed the viability of the ICT-supported iIMO framework, its positive effects on SMEs' organisational performance, and exhibited ample empirical evidence for the proficiency of the iIMO concept and its suitability for operationalisation by SMEs.Originality/valueThis study introduces ICTs as a novel IMO dimension which considers the undergoing holistic digitalisation of businesses. In addition, the present research posits the plausibility and confirms the benefits that arise following iIMO implementation in SMEs.


2014 ◽  
pp. 1004-1030
Author(s):  
Gurjeet Kaur ◽  
Shruti Gupta

This chapter proposes that internal intelligence generation and dissemination are significantly correlated and have substantial impact on responsiveness. In addition, responsiveness determines the success of internal market orientation and its effect on various employee-related outcomes. The study examines the extent of internal market orientation in Indian banking and its consequences as perceived by the employees of a highly successful private bank that has a wide network of branches in a northern city of India. Structural model was proposed and structural equation modelling was used to test the research hypotheses. The findings reveal that internal intelligence generation and dissemination are correlated to the extent of 0.89 and have significant impact on a bank's responsiveness to employees' needs and wants. Results of the study reveal that internal market orientation ought to be considered as an important strategy for retaining internal customers. Internal market orientation has an indirect significant impact on service innovations in terms of new product/service development, technology advancement, and process innovation through greater staff compliance, strong team work, and greater moral responsibility.


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