The Effect of Internal Marketing on Organizational Commitment: The Case of Cooperative Bank of Oromia
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Date
2015-06
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Addis Ababa University
Abstract
In today’s highly competitive business environment, the major sources of competitive advantage will lie not only in the adoption of new technology but in the dedication, the quality of the commitment and competence of the workforce. The results of the human capital energy and creativity are the company’s most important resources. The important and deterministic role of organizations’ internal customers (employees) in achieving organization to its aims has been cleared up more than before by addressing two concepts: internal marketing and organizational commitment. Related studies show that internal marketing activities have improved competitiveness in organization and promoted competencies through influence and motivation- creating commitment in employees. The purpose of this study was to investigate the effects of aspects of internal marketing on organizational commitment of employees of the Cooperative bank of Oromia. In order to achieve the purpose, five hypotheses have been formulated that link the dimensions of internal marketing to organizational commitment. A structured questionnaire on five Likert scale basis was used to collect data from 140 sampled employees of the bank. Both descriptive (frequency distribution) and inferential (correlation and regression) statistics were utilized using SPSS version 21 to analyze the data. The findings of the study indicated that understanding and differentiation, motivation, and training in the given order are found to be the most important factors influencing organizational commitment among employees of CBO. As a result of which the bank is recommended to give more emphasis to these dimensions in order to enhance commitment among its employees.
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business environment, commitment, internal marketing