Effect Of Internal Marketing On Organizational Commitment: The Case Study Of Selected Commercial Banks In Ethiopia

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Date

2017-05-14

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Addis Ababa University

Abstract

Internal marketing is taking employees as the most invaluable asset of an organization and treating them as internal customers because this result in gaining competitive advantage by organization respected. This research paper was conducted to examine the effect of internal marketing on organizational commitment in selected commercial banks in Ethiopia.. The target population of the study was employees of four commercial banks (Commercial bank of Ethiopia, Dashen bank, Bank of Abyssina and Wegagen bank). The most commonly used dimensions of internal marketing were identified and used to attest its impact on organizational commitment. The data collection resulted from 38 feedbacks received from employees’ working at those selected banks and their branches. In addition to correlation analysis, further regression analysis was conducted to examine the effect of internal marketing on organizational commitment. The result indicate that all selected dimensions of internal marketing have significant relation with organizational commitment where communication, motivation, training and development and job satisfaction and significant impact organizational commitment. Therefore, The selected commercial banks is recommended to fully implement internal marketing principles to increase employees’ communication, motivation job satisfaction and training and development to help those employees have an idea of how the organization is committed to them and towards their work and have a positive impact on customer as it is one of the competitive advantages of an organization to remain competitive in such dynamic, ambiguous and turbulent business environment.

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Keywords

organizational commitment, communication, motivation

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