Local Culture, Internal Marketing and Employee Satisfaction in Improving Financial Performance: A Case Study of Microfinance Institutions in Bali

2018 ◽  
Vol 3 (2) ◽  
pp. 90-95
Author(s):  
I Putu Astawa ◽  
Tjokorda Gde Raka Sukawati
Keyword(s):  
Organizational Culture ◽  
Financial Performance ◽  
Employee Satisfaction ◽  
Structural Equation ◽  
Phenomenological Approach ◽  
Jel Classification ◽  
Internal Marketing ◽  
Internal Communication ◽  
Local Culture ◽  
Microfinance Institutions

Objective - Local culture acts as a bridge in empowering the resources owned by a firm so they can operate harmoniously. This research tests the theory of local culture, internal marketing, and employee satisfaction in an effort to improve financial performance. Methodology/Technique - The research is supported by the existing phenomenon of increasing credit issues. The data is obtained from 1,364 questionnaires and is quantitatively analyzed through Structural Equation Modelling. A qualitative analysis is used to deepen the anomaly relationship through a phenomenological approach. Findings - The result show that local culture becomes the organizational culture, but has no direct influence on the improvement of performance. Indicators related to the environment have a very low contribution to the development of organizational culture. Internal marketing indicators, such as recruitment processes and internal communication, have a significant contribution on the achievement of financial performance. Further, employee satisfaction has a significant impact on the achievement of financial performance. Novelty - This study develops a new model that can be used to enhance financial performance. The integration of local culture into internal marketing and employee satisfaction is a relatively novel invention. Type of Paper: Empirical Keywords: Local Culture; Internal Marketing; Employee Satisfaction; Financial Performance; Microfinance Institutions; Bali. JEL Classification: Z1, Z10, Z19.

Enhancing Textile Industry’s Employee Satisfaction through Market Sensing Capability and Internal Marketing Practice

Bina Teknika ◽  
2021 ◽  
Vol 17 (1) ◽  
pp. 23
Author(s):  
Rizqi Wahyudi ◽  
Muhammad Iqbal ◽  
Sunarti Sunarti
Keyword(s):  
Textile Industry ◽  
Employee Satisfaction ◽  
Structural Equation ◽  
Equation Model ◽  
Internal Marketing ◽  
Quantitative Methodology ◽  
Cultural Congruence ◽  
Marketing Practice ◽  
Web Based ◽  
The Relationship

Recognize the importance of employee satisfaction in any organization, this study is piloted to forestall the effect of Internal Marketing Practice and Market Sensing capability on employees’ satisfaction in the context of the Indonesian textile industry as one of the fast-growing industry criteria in Asian markets. The drive behind this study is to examine the relationship between Internal marketing practice, Market Sensing Capability, and Employee Satisfaction. Furthermore, this study plans to see that how Cultural congruence moderates the relationship between Employee Satisfaction through Internal Marketing Practice along with Market Sensing Capability by advancing a research model. According to this study’s requirement, the quantitative methodology is chosen, with purposive method of 323 employees was selected and analyzed.  By using a web-based survey approach was selected for data, entailing of structured questionnaire. A structural equation model was operated for results on AMOS that supported the hypothetical relationship between all hypotheses. This study will guide the managers of textile firms to recognize that how important is employee satisfaction and how they can improve their practices to strengthen employee satisfaction. This study also contributes in cultural Congruence and market sensing capability literature. It is not free from limitations specifically in terms of sample size and variables that can be addressed in the future.

scholarly journals Organizational Culture and Open Innovation Performance in Small and Medium-sized Enterprises (SMEs) in Poland

2016 ◽  
Vol 51 (1) ◽  
pp. 104-138 ◽  
Author(s):  
Jolanta Mazur ◽  
Piotr Zaborek
Keyword(s):  
Organizational Culture ◽  
Financial Performance ◽  
Open Innovation ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Knowledge Exchange ◽  
Positive Association ◽  
Positive Influence ◽  
Main Hypothesis ◽  
Innovative Culture

AbstractThis study investigates the links between organizational culture, the use of open innovation sources and the performance of SMEs. The main hypothesis of the study is that a special type of organizational culture (termed innovative culture), which fosters creativity, learning and inter-employee cooperation – will correspond with a greater scope of open innovation sources and higher levels of innovative, operational and financial performance. The study was based on a representative CATI survey of 473 SMEs operating in manufacturing and services industries in Poland. Our statistical analysis relied on building and testing structural equation model with the AMOS software. The findings confirmed a positive association between innovative culture and the scope of open sources of innovation. However, innovative culture had no direct effect on the percentage of sales from new and modified products, which is often used as a metric of innovativeness, but did show a positive influence on an index of operational performance and ROI. Such statistical patterns suggest that fostering innovative culture is beneficial to a company, though probably not through an increased number of product innovations, but rather via process, administrative and marketing innovations, as well as other gains in efficiency attained due to more streamlined employee cooperation and knowledge exchange. The study adds to the existing body of knowledge in management science by providing a better understanding of mechanisms underlying innovative culture’s impacts on open innovation practices and metrics of operational and financial performance in the context of small and medium enterprises.

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

2016 ◽  
Vol 34 (5) ◽  
pp. 773-796 ◽  
Author(s):  
Eddy Balemba Kanyurhi ◽  
Déogratias Bugandwa Mungu Akonkwa
Keyword(s):  
Job Satisfaction ◽  
Organizational Performance ◽  
Significant Relationship ◽  
Employee Satisfaction ◽  
Internal Marketing ◽  
Structural Equations ◽  
Microfinance Institutions ◽  
Content Type ◽  
Employee Job Satisfaction ◽  
Qualitative Survey

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.

Extending understanding of the internal marketing practice and employee satisfaction relationship: A budget Chinese airline empirical examination

2018 ◽  
Vol 25 (1) ◽  
pp. 88-98 ◽  
Author(s):  
Yu-Ting Huang ◽  
Sharyn Rundle-Thiele ◽  
Yen-Heng Chen
Keyword(s):  
Competitive Advantage ◽  
Employee Satisfaction ◽  
Structural Equation ◽  
Internal Marketing ◽  
Flight Attendants ◽  
Future Research ◽  
Marketing Practice ◽  
Empirical Examination ◽  
Future Research Directions ◽  
The Relationship

Enhanced internal marketing (IM) practice may deliver a competitive advantage for budget airline operators through increased employee satisfaction. This study examines the relationship between IM practice and employee satisfaction in a budget airline setting. A survey was administered to 252 flight attendants to investigate and analyse their perceptions of IM practice and current satisfaction with their employer. Data were analysed via structural equation modelling. The results indicate that IM practice impacted significantly on an employee's satisfaction with the budget airline. The findings suggest IM practice can be used by budget airline managers to deliver increased employee satisfaction, which in turn will enhance competitive advantage. Limitations and future research directions are outlined.

scholarly journals Social Sustainability Practices on Small Businesses in Developing Economies: A Case of South Africa

2019 ◽  
Vol 11 (12) ◽  
pp. 3257 ◽  
Author(s):  
Reginald Masocha
Keyword(s):  
South Africa ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Small Businesses ◽  
Employee Satisfaction ◽  
Structural Equation ◽  
Developing Economies ◽  
Social Sustainability ◽  
Limpopo Province ◽  
Study Results

This study makes a significant contribution towards theory and knowledge of small and medium enterprises (SMEs) within the social sustainability discourse. The study focused on investigating if SMEs in developing economies directly benefit from practising social sustainability through examining the relationship between social sustainability and financial performance, customer satisfaction as well as employee satisfaction. A total of 238 SMEs from the Limpopo province of South Africa were surveyed through a self-administered questionnaire at the hand of convenience sampling technique. The hypotheses in the study were assessed through structural equation modelling (SEM) through AMOS software version 25. The study results revealed that all three postulated hypotheses were supported. Thus, social sustainability was found to be positively and significantly associated with financial performance, customer satisfaction performance as well as employee satisfaction performance. The findings in this study indicate that by practising social sustainability, SMEs potentially benefit on a broader performance spectrum.

scholarly journals Effect of Internal Marketing on Organizational Silence Mediated by Organizational Culture: the Case of Ferdowsi University Employees

2019 ◽  
Vol 4 (2) ◽  
pp. 30-40
Keyword(s):  
Organizational Culture ◽  
Negative Correlation ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Significant Negative Correlation ◽  
Internal Marketing ◽  
Significance Level ◽  
Organizational Silence ◽  
Research Population ◽  
Average Variance

The present research explored the effect of internal marketing on organizational silence mediated by organizational culture among the employees of Ferdowsi University of Mashhad. The present applied research used descriptive data to conduct a survey. The research population was the employees of Ferdowsi University of Mashhad, 968 in total. The data were collected in 2018. Using Cochran’s formula, the required sample size was estimated at 275, and the sampling method was convenient. For data collection, three questionnaires were used: the internal marketing questionnaire (Pournabi, 2015), organizational silence (Mirkamali, Poorkarimi, & Karami, 2017) and organizational culture (Denison, 2000). For descriptive statistics, frequencies, percentages and standard deviations were used. For inferential statistics, first the normality of data was checked through Kolmogorov-Smirnov test. The skewness and kurtosis were also checked. To test the conceptual model, to analyze observations and to explore the concurrent effects of variables within the model, structural equation modelling (SEM) was used. The required analyses were run via SPSS22 and SmartPLS at the significance level of .05. To test convergent and discriminant validity, average variance extracted (AVE) was used and to test the reliability of questionnaires, Cronbach’s alpha test of internal consistency was run (internal marketing=97%, organizational silence=94% and organizational culture=95%) along with the PLS approach. The research findings revealed a statistically significant negative correlation between internal marketing and organizational silence. A statistically significant positive correlation was estimated between internal marketing and organizational culture. A statistically significant negative correlation was found between organizational culture and organizational silence. Organizational culture mediated the correlation between internal marketing and organizational silence.

scholarly journals Internal Marketing: Employee Satisfaction and Word of Mouth in Guilan’s Saderat Bank

2016 ◽  
Vol 8 (2) ◽  
pp. 147 ◽  
Author(s):  
Maryam Haghighikhah ◽  
Mahdieh Khadang ◽  
Masoud Arabi
Keyword(s):  
Structural Equation Modeling ◽  
Employee Satisfaction ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Internal Marketing ◽  
Equation Modeling ◽  
Supervisory Support ◽  
Analytical Results

<p>Internal marketing is too important for all organizations and it’s especially critical for a people intensive industry such as banking. This paper examines the effects of internal marketing on satisfaction of employees and employee’s word of mouth. Dimensions of internal marketing, which were studied are training, supervisory support, empowerment, communication and compensation. The study has been done in Saderat Bank of Iran in Gulian and we used the technique of Structural Equation Modeling to provide a model. The analytical results demonstrate that approximately 88% of the variance Satisfaction (R<sup>2</sup> = 0.88) is explained by Internal marketing and approximately, 82% of the variance word of mouth (R<sup>2</sup> = 0.82) is explained by Satisfaction and Internal marketing.</p>

scholarly journals Non-Financial Performance Measures on Local Culture Basis in Assessing The Health of Microfinance Institutions

2017 ◽  
Vol 2 (3) ◽  
pp. 29-35
Author(s):  
I Putu Astawa ◽  
I Made Sudana ◽  
NGN Suci Murni
Keyword(s):  
Qualitative Study ◽  
Financial Performance ◽  
Performance Measures ◽  
Local Culture ◽  
Microfinance Institutions ◽  
Performance Measurements ◽  
Religious Activities ◽  
Product Model ◽  
Objective Health ◽  
Financial Performance Measures

Objective - Health assessment on microfinance institutions was conducted through non-financial measurements consisted of assessment on general and risk managements. The assessment was commonly used to assess commercial banks. Microfinance institutions, however, are differed to commercial bank in terms of their closeness to the poor. The paper presented the development and analysis of non-financial performance measures using local culture basis that can be applied to properly assess microfinance institutions. Methodology/Technique - Qualitative study with ethnomethodology approach was applied to see cultural activities undertaken. Managers were considered as key informants. Results of qualitative study were analyzed using Fuzzy-Analytic Hierarchy Process method and Weighted Product Model was applied to weight the criteria and sub-criteria as well as the final assessment. Findings - Results showed that local culture activities that could be used to assess general management in microfinance institutions were providing assistance in establishing places of worship, supporting religious activities, supporting the development of facilities and infrastructures in the villages, relief activities of cultural festival, helping in funeral, wedding favors, educational assistance, medical assistance, forming arts groups, and business group. Novelty - This study suggests that non-financial performance measurements can use local culture and facilitate the management of microfinance institutions to perform performance measurement Type of Paper - Empirical Keywords: Non-Financial; Performance Measures; Local Culture; Microfinance Institutions. JEL Classification: G21, G31.

Factors Affecting the Organizational Justice in Ho Chi Minh City, Vietnam

2018 ◽  
Vol 9 (6) ◽  
pp. 523-528
Author(s):  
Vu Ba Thanh ◽  
◽  
Ngo Van Toan ◽  
Keyword(s):  
Organizational Culture ◽  
Quantitative Analysis ◽  
Organizational Justice ◽  
Survey Data ◽  
Internal Communication ◽  
Ho Chi Minh City ◽  
Research Model ◽  
Factors Affecting ◽  
Feedback Training ◽  
Model Research

The study was conducted to examine the factors affecting organizational justice in Ho Chi Minh City. Through quantitative analysis from the survey data for 242 civil servants working in Ho Chi Minh city to evaluate the scale and research model. Research results show that four factors: feedback, training, organizational culture and internal communication affect organizational justice in Ho Chi Minh city.

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