What Makes Employees Behave Innovatively? Empirical Evidence from South Korea

Although the value of a supportive organizational strategy has been recognized over time, there is a need to better understand its relationship with employees’ psychological and behavioral responses. This study focuses on employees’ innovative behavior as a result of their perceptions of internal market orientation in the organization. It proposes a sequential process model that examines the impact of internal market orientation on employees’ innovative behavior through the ethical climate, psychological ownership, and employee stewardship toward the organization. Using data collected from 310 employees of small and medium-sized enterprises in various industries in South Korea, a linear sequential relationship among the constructs is confirmed. The findings of this empirical study, therefore, suggest that the ethical climate, psychological ownership, and stewardship mediate the effects of internal market orientation on employees’ innovative behavior. The research thus offers a conceptual framework that shows the sequential process of the effect of internal market orientation on innovative behavior. Further, it shows that the perception of an ethical climate can be influenced by management and can develop an employee’s psychological ownership. Implications for managers and directions for future research are also discussed.

More than lip service to internal market orientation: a multilevel investigation of the role of internal service quality

Purpose Drawing on self-determination theory and the service-profit chain, this study aims to expand the current understanding of the internal processes of internal market orientation (IMO) on an organizational commitment by investigating the interactive effect between job (task) satisfaction and internal service quality in the field of hospitality and tourism. Design/methodology/approach This study examines the cross-level effects of internal service quality through a time-lagged field study with multilevel structural equation modeling analysis that involved 667 frontline employees from 40 casino hotels. Findings The results reveal the IMO has an indirect effect on affective and normative organizational commitments through the interaction of job (task) satisfaction with internal service quality, such that internal service quality compensates for relatively low levels of job (task) satisfaction. While no indirect effect is found on continuance organizational commitment. Research limitations/implications This study extends the service-profit chain by integrating self-determination theory and by investigating IMO’s indirect effects on commitment through the interaction between job (task) satisfaction and internal service quality. Practical implications The study provides practical solutions to the employee servicing and employee retention dilemmas faced by casino organizations. Originality/value This study advances the service-profit chain literature by proposing and theorizing an internal process of IMO, through the cross-level buffering effect of internal service quality on the relationship between job (task) satisfaction and organizational commitment. This study further presents the theoretical and managerial implications by understanding how employees’ perceptions and interpretations of IMO affect their commitment.

The impact of information and communication technology and internal market orientation blending on organisational performance in small and medium enterprises

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.

Internal market orientation adoption and new service development (NSD): gearing up the internal performance of NSD teams

Purpose This paper reports on the impact of perceived resource adequacy (PRA) and competence (PRC) on new service development (NSD) teams’ internal performance (IP). This study aims to explore the indirect effect of internal market orientation (IMO) adoption, as a dynamic capability, on both PRA and PRC through the shaping of the emerging dynamics within NSD teams. Design/methodology/approach Using a hierarchical research design, the authors use a meso-theory approach to test a path-analytic framework against 116 NSD managers (offering data at the macro- or organisational level) and 543 NSD team members (offering data at the micro- or team level). Findings Both PRA and PRC are important in explaining NSD teams’ IP at the organisational level, though their explanatory power varies. The adoption of IMO is also an important antecedent to this factor through the (indirect) effect on the team climate and degree of integration. Research limitations/implications IMO is an important dynamic capability that allows management to transform the mindset of employees, even if they do not directly interact with customers. In NSD efforts, this reflects on the team’s perceptions of the adequacy of the resources they have to deliver the project through the managerial interventions at the team level, which (mainly) explains the team’s IP. Practical implications Adopting an IMO allows the development of a dynamic capability that carries wider benefits for the service organisation, as this has positive implications not just for frontline employees. Specifically, NSD efforts are likely to become more resource-efficient as a result of IMO adoption because of the interventions of management during the development effort. Originality/value This empirical study is the first to test the impact of IMO adoption as a dynamic capability and in a context other than frontline employees from a meso-theory perspective. This allows considering the different effects at the appropriate levels (macro and micro), thus enabling a more accurate definition of the mechanism through which companies benefit from IMO adoption.

Internal market orientation, frontliners' organizational commitment and customer-oriented behavior: A study of airport service in Vietnam

This research examines the three-component structure of the concept internal market orientation (IMO) and investigates its impact on frontliners’ organizational commitment (OC) and customer-oriented behavior (COB) in the context of airport service in Vietnam. Based on a sample of 294 frontliners working in various airports, SEM analysis reveals that IMO has a strong impact on OC. It also has direct and indirect impacts on COB. Moreover, the empirical result supports the component structure of IMO. It is, therefore, suggested that IMO is powerful to enhance both internal employee management and external marketing performance in the research context.