The Effect of Internal Marketing on Employees’ Organaizational Commitmentin (The Case of Komari Beverage Plc)
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Date
2024-09
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Addis Ababa University
Abstract
This study investigates the effects of internal marketing on employees' organizational commitment in Komari Beverage Plc. The research aims to explore the relationship between internal marketing practices and organizational commitment, identify the key factors influencing commitment, and provide recommendations for enhancing employee engagement and satisfaction.
According to the researcher's preliminary study, the turnover rate at Komari Beverage in 2023 was found to be 12%, as reported in the Komari HR Annual Report for that year. This rate exceeds the threshold of 10%, indicating a high turnover rate that is concerning. As a result, it is imperative for the company to focus on internal marketing strategies, which involve treating employees as external customers and allocating similar attention and resources to them. Additionally, the study revealed that Komari Beverage implements the five variables of internal marketing, namely internal communication, internal branding, training, motivation, and leadership. The researcher's objective is to investigate the impact of these variables and identify areas for improvement in order to mitigate the increasing turnover rate and foster continuous enhancement within Komari Beverage.
The study population consisted of 181 employees, and a mixed methods approach was employed, combining surveys, interviews, and observations. The findings reveal that internal marketing is crucial for enhancing employee organizational commitment. Internal branding, internal communication, and leadership/management were identified as the strongest factors influencing commitment.
Multiple regression analysis demonstrated that collectively, these internal marketing dimensions accounted for 42% of the variation in employee organizational commitment. The study also found significant positive relationships between all five internal marketing factors and organizational commitment.
Additionally, the findings will serve as a benchmark for other businesses operating in the beverage industry, providing valuable insights for enhancing internal marketing strategies and practices industry-wide.
This study contributes to the existing literature by providing empirical evidence and insights specific to the beverage industry. The findings highlight the critical role of effective internal marketing in driving positive employee outcomes and fostering a committed and engaged workforce.
Keywords: internal marketing, organizational commitment, internal branding, internal communication, leadership, motivation, training, employee satisfaction, beverage industry.