Effect of Internal Marketing on Employees’ Customer Orientation and the mediating role of Job Satisfaction and Organizational Commitment: The case of Commercial Bank of Ethiopia
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Date
2020-09
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Addis Ababa University
Abstract
The purpose of this paper is to explore the relationships among the most commonly used dimensions of internal marketing (i.e. motivation, communication, and training and development), job satisfaction, organizational commitment and employees’ customer orientation. This study tested the effect of internal marketing on employees’ customer orientation as well as the mediating role of job satisfaction and organizational commitment on the relationship between internal marketing and employees’ customer orientation. The research is designed as descriptive and explanatory and structured questionnaire was used to collected data from a sample of 381 employees from the selected branches of the Commercial Bank of Ethiopia by using convenient sampling technique. SPSS was used to conduct the statistical analysis of all data in this study. Multiple regression analyses were conducted to examine the postulated hypothesis and test the direct and mediated relationships among variables. From the study finding, the Pearson correlation coefficient of internal marketing variables shows that there is a positive correlation between Internal marketing variables, job satisfaction, organizational commitment and employees’ customer orientation. In addition to correlation analysis, regression analyses were conducted to examine the direct effect of internal marketing on employees’ customer orientation and the mediation role of job satisfaction and organizational commitment on the relationship between internal marketing and customer orientation. The results indicate that from the selected dimensions of internal marketing Motivation and Communication has significant effect on employees’ customer orientation. However Training and development has a non-significant effect on employees’ customer orientation. In addition, job satisfaction and organizational commitment partially mediates the relationship between internal marketing variables and employees’ customer orientation. Commercial Bank of Ethiopia is recommended to fully implement internal marketing practices to increase employees’ job satisfaction and organizational commitment and to have a significant effect on employees’ customer orientation
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Internal Marketing, Motivation, Communication