Over 20 years ago internal marketing was first proposed as a solution to the problem of delivering consistently high service quality. However, despite the rapidly growing literature, very few organisations actually implement the concept in practice as there does not, as yet, exist a single unified concept of what is meant by internal marketing. Critically examines the internal marketing concept and delineates its scope by tracing the major developments in the concept since its inception. The literature review suggests three major phases in the development of the concept, namely an employee motivation and satisfaction phase, a customer orientation phase, and a strategy implementation/change management phase. Proposes a definition and a set of core criteria that are essential features of an internal marketing program. Also explores the interrelationship between the proposed criteria and suggests a framework for empirical investigation of the IM concept in the context of services marketing. Discusses managerial implications arising from the proposed definition and model of internal marketing.

Contextual ambidexterity is of paramount importance for new product innovation and organizational success, particularly in high-tech firms operating in a dynamic environment. Whilst it is recognized that contextual ambidexterity is grounded in organizational culture, existing research has not crystallized what kind of organizational culture enables contextual ambidexterity and consequently new product innovation. In this paper, drawing on data from 150 UK and 242 Chinese high-tech firms, we conceptualize ambidextrous organizational culture as a higher-order construct consisting of organizational diversity and shared vision, and examine its impacts on contextual ambidexterity and consequently on new product innovation outcomes. Using structural equation modelling, we find significant relationships between ambidextrous organizational culture, contextual ambidexterity and new product innovation outcomes; contextual ambidexterity mediates the relationship between ambidextrous organizational culture and new product innovation outcomes. Our findings also suggest that the above relationships are robust in the UK-China comparative research context, and that contextual ambidexterity and new product innovation outcomes are dependent on business unit level heterogeneity (i.e. ambidextrous organizational culture and research and development strength) rather than industry or cross-cultural differences.

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This commentary discusses the key issues and challenges that face internal marketing research and for the future development of the concept and philosophy. Issues addressed include: the link between employee satisfaction and organisational performance; the need for research on how inter-functional co-ordination can be achieved for the effective implementation of marketing strategies; the need for relationship marketing perspective in internal marketing; the need for research in internal communication strategies; and the role of internal marketing for developing organisational competences.

Dynamic capabilities (DCs) are fundamental to the understanding of differential firm performance. However, the question remains why some firms are better at developing and applying DCs than others. In particular, successful firms have been warned against the tendency to fall into a success or competence trap, where success reinforces exploitation of existing competences and crowds out exploration of new competences, hindering the development of DCs. Therefore, this study examines the effects of success traps on DCs and consequently firm performance, taking into account firm strategy and market dynamism. To facilitate this, our study also identifies the commonalities of DCs across firms. Drawing on survey data from 113 UK high‐tech small and medium‐sized firms, we find that success traps have a significant, strong negative effect on DCs, which in turn have a weak positive effect on firm performance; DCs are manifested through absorptive and transformative capabilities as two common features across firms. We also find that the development and application of DCs is related to internal factors (such as success traps) rather than external factors (such as market dynamism).

Metadata onlyThe paper proposes and empirically evaluates a new internal marketing (IM) implementation model as a framework for implementing marketing strategies. The paper proposes the concept of IM mix or a set of controllable instruments inside the organisation that can be used effectively to influence employees so that they are motivated and act in a customer-oriented fashion. In the model organisational competencies mediate the relationship between IM mix and business performance. Additionally, the model postulates that application of marketing-like philosophy and marketing-like tools internally moderates the relationship between IM mix and organisational competencies. All the major hypotheses were supported by the empirical research. In particular the IM mix was shown to be a reliable measure and strongly related to business performance. The research supports the view that organisational competencies mediate the relationship between the IM mix and business performance

We introduce the concept of knowledge management orientation (KMO) -the degree to which a firm demonstrates behaviors of organized and systematic knowledge management (KM) implementation. Based on an extensive review of the KM literature, the KMO concept is operationalized as a second-order latent construct consisting of four main component factors: organizational memory, knowledge sharing, knowledge absorption, and knowledge receptivity. We then validate the KMO construct using data from 213 United Kingdom firms. The findings provide strong support for the unidimensionality, reliability, discriminant validity, and convergent validity of the KMO construct. We also test the impact of KMO on firm performance and find a significant, positive relationship, providing support for the predictive validity of the KMO construct. Our findings suggest that KMO is an effective measure of the firm-level KMoriented behaviors. The theoretical, methodological, and practical implications of the KMO construct are also discussed.

This paper examines the challenge of building customer loyalty in the e-tailing environment. It examines the role of relationship quality (RQ) in the formation of customer loyalty in Internet retailing. In a departure from existing research, RQ is treated as a disaggregated, multidimensional construct, rather than a global one, consisting of relationship satisfaction (RS), trust, and commitment. Based on an online survey of 491 Internet grocery shoppers, structural equation modelling is used to test the influence of the different dimensions of RQ on e-loyalty. Results show that RS, perceived relational investment, and affective commitment have a strong and positive impact on e-loyalty. Trust also has a strong effect but works via RS. The results suggest that the disaggregated model of RQ provides a better prediction of e-loyalty than the aggregated model of RQ.