Enhancing firm performance through internal market orientation and employee organizational commitment

Abstract

Considering the importance of retaining key staff and managing the negative impact of high labor turnover on firm performance, this study investigates the notion of internal market orientation (IMO) as an employee management tool for helping companies retain employees and leverage performance via their organizational commitment. Drawing on data from three different managerial respondents in 275 companies based in China, the findings demonstrate the precedential effect of IMO on corporate performance through employees' organizational commitment and retention. Interdepartmental relationship and interdepartmental communication, together with ownership types are identified as potential moderating variables, which may vary IMO's effectiveness in the framework. This study provides scholars and practitioners with empirical evidence of IMO's contribution to different industries and markets. Building on a western perspective, this study extends the literature in an emerging market context and specifically has implications for managing Chinese employees.

The Effect of Job Satisfaction on Employee Performance Through Loyalty at Credit Union (CU) Corporation of East Kutai District, East Kalimantan

“…According to Yu et al, (2017) loyalty is an employee who views positively in identifying company values and strategies that can be traced beyond commitment to attitude, then demonstrated in behavioral loyalty. According to Poerwopoespito (2014) employee loyalty to work is reflected in the attitude of employees who devote their abilities and expertise, carry out duties and responsibilities, be disciplined, and honest at work.…”

Model kinerja koperasi

“…Nilai ini menjelaskan semakin meningkatnya komitmen organisasi memiliki kecenderungan meningkatkan kinerja koperasi. Hasil ini sesuai dengan Rameshkumar (2019); Yu et al (2019) yang menemukan bahwa komitmen organisasi memiliki kontribusi dalam meningkatkan kinerja organisasi, serta menolak hasil Khunsoonthornkit & Panjakajornsak (2018) yang menemukan komitmen organisasi tidak berpengaruh terhadap kinerja. Hal ini ditunjukkan dengan komitmen normatif karyawan menjadikan karyawan enggan untuk keluar dari koperasi dan karyawan memilih untuk bertahan dan bertanggung jawab terhadap koperasi dengan pertimbangan norma, nilai dan keyakinan yang dimiliki.…”

Internal market orientation, frontliners' organizational commitment and customer-oriented behavior: A study of airport service in Vietnam

“…Moreover, employees who are highly satisfied with their work, supervision, co-workers, pay and acquire a high level of overall satisfaction are more likely to be committed to their organization (Karia & Asaari, 2006). A number of empirical studies have also provided evidence to support a positive relationship between IMO and organizational commitment via employee satisfaction (e.g., José, Bermúdez-González, Rodríguez-Molina, & Blanca, 2014;Yu et al, 2017). Therefore, applying this thread of analysis to the case of service frontliners at airports, it is hypothesized that: H1: Internal market orientation has a positive relationship with airport frontliners' organizational commitment.…”

“…It promotes the idea that satisfying the wants and needs of service employees, especially frontliners, is a prerequisite to their job commitment and also ensures a good service to customers (Lings, 2004). In other words, the implementation of internal marketing in a firm, which is termed internal market orientation -IMO (Lings, 2004;Yu, Yen, Barnes, & Huang, 2017) is a promising measure to satisfy both (internal) employees and (external) customers.…”

“…As such, it is essential that IMO facilitates favorable attitudes and behaviors of frontliners towards the firm as well as its customers. Literature has shown a number of studies to validate such role of IMO (e.g., Bae, Kim, & Kim, 2017;Gounaris, 2006;Lings & Greenley, 2005;Yu et al, 2017). However, the majority of these studies were conducted in developed countries.…”