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The Effect of Internal Marketing on Job Satisfaction and Organizational Commitment an Emp

The Effect of Internal Marketing on Job Satisfaction and Organizational Commitment an Emp

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Published by: sabrinasihombing on Mar 05, 2008
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04/18/2013

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The 1
st 
PPM National Conference on Management Research “ Manajemen di Era Globalisasi” Sekolah Tinggi Manajemen PPM, 7 November 2007 
 
The Effect of Internal Marketing on Job Satisfaction and OrganizationalCommitment: An Empirical Study in a University Setting
Sabrina O. SihombingMaredo GustamUniversity of Pelita HarapanKarawaci
 Abstract
The competition in higher education institutions becomes more competitive than ever. To winthe competition, the institutions need to satisfy the customer (i.e., students and potentialstudents). Satisfied customer can be achieved if the employees are satisfied. Internalmarketing is a concept which emphasizes that employees are internal customers and jobs asinternal products. Jobs should be developed and to motivate employees in order to satisfyemployees’ needs and wants. Therefore, internal marketing relates to job satisfaction. Jobsatisfaction itself is one of important factors that explain organizational commitment. The purpose of this article is to test the effects of internal marketing on job satisfaction and organizational commitment. The data for this research was obtained through self-administered questionnaire from lecturers in a private university in West Java. Structuralequation modeling (SEM) was used to analyze the data. The findings show that internalmarketing was a significant predictor of organizational commitment. This article provideslimitations of the study, and directions for future research.Key words: internal marketing, job satisfaction, organizational commitment 
Background to the research problem
The competition in higher education institutions becomes more competitive than ever. To winthe competition, the institutions need to satisfy the customer (i.e., students and potentialstudents). Satisfied customer can be achieved if the employees are satisfied (Schultz 2002;Kotler 2000; Pitt, Bruwer, Nel, and Berthon 1999).Internal marketing is a concept which emphasizes that employees are a first market(Gronroos 2001; Ewing and Caruana 1999). According to Kotler (2000), internal marketingshould be as a priority before external marketing. As stated in the beginning, excellentservices to customers are resulted from satisfied employee. Therefore, in relating with to wincompetitions, successful marketing can be achieved if the firms are involved both in externaland internal marketing (Caruana and Calleya 1998).According to Berry and Parasuraman (1991 cited by Caruana and Calleya 1998), theconcept of internal marketing focus on employees are internal customers and jobs as internalproducts. Jobs should be developed and to motivate employees in order to satisfy employees’needs and wants. Therefore, internal marketing relates to job satisfaction. Job satisfactionitself is one of important factors that explain organizational commitment (Mathis and Jackson2003).
 
The purpose of this article is to test the effects of internal marketing on job satisfaction andorganizational commitment. Specifically, the aim of this research is to examine the effects of internal marketing on lecturers’ satisfaction and commitment.This article is organized as follows. First, the research questions are presented. Next, justifications for the research are provided. Then, the theoretical framework and hypothesesare presented. Research method is provided in the next section. This article concludes with adiscussion of results, limitations of the study, and directions for future research.
Research Questions
Three research questions are considered in this study.1. Does internal marketing positively impact on lecturers’ job satisfaction?2. Does internal marketing positively impact on lecturers’ commitment toward theirorganization?3. Does lecturers’ job satisfaction positively impact on organizational commitment?
Justifications for the Research
This research can be justified on these there grounds as follows: (1) the importance of internalmarketing, job satisfaction, and organizational commitment, (2) the interdisciplinary approachto assess the relationship between internal marketing, job satisfaction, and organizationalcommitment, and (3) limited research of internal marketing in a university setting.
The importance of internal marketing, job satisfaction, and organizational commitment.
 
Successful marketing can be achieved if the firm is involved in external and internalmarketing (Caruana and Calleya 1998). External marketing is marketing directed at peopleoutside the company, whereas internal marketing is the task of hiring, training, and motivatingable employees who want to serve customers (Kotler 2003).Internal marketing is important for organization. This is because the concept of internalmarketing connected with other concepts such as job satisfaction and organizationalcommitment. Specifically, internal marketing has positive impact on employee jobsatisfaction (Hwang and Chi 2005). Internal marketing has also positive impact onorganizational commitment (Caruana and Calleya 1998).It can be stated that researching and understanding the relationship between internalmarketing, job satisfaction, and organizational commitment would support institutions of higher education. The institution can better understand factors that influence their employees’commitment. These understanding would support their lecturers.
The interdisciplinary approach to assess the relationship between internal marketing, jobsatisfaction, and organizational commitment 
. This research applies an interdisciplinaryapproach to examine the relationship between internal marketing, job satisfaction, and2
 
organizational commitment. In the specific, the internal marketing concept is based onmarketing field where job satisfaction and organizational commitment are based onorganizational studies. The interdisciplinary research is a research which focus onunderstanding people behavior more comprehensively and it is a tool to improve socialscience research (Deshpande 1999; Murray and Evers 1989; Horton 1984).
 Limited internal marketing research in a university setting
 .
Internal marketing is a criticalissue facing marketing professions, HR managers, and executives in general (Pitt
et al
., 1999).This is because internal marketing expresses the relations between management andemployees (Lee and Chen 2005). Despite internal marketing has been examined inmanagement fields such as public sector (Ewing and Caruana 1999), life assurance (Ahmedand Rafiq 1995), international airlines (Frost and Kumar 2001) and manufacturer (Lee andChen 2005; Piercy 1995), there is a gap exists in a university setting. Specifically, the lack of internal marketing research in a university setting triggers our curiosity. Since the aim of auniversity is to prepare students for the real world (Comm and Mathaisel 2003), a betterunderstanding in internal marketing as one important factor that influence job satisfaction andorganizational commitment is a must.
Literature ReviewInternal marketing
Internal marketing was originally derived from the notion of the employee are first market.The major point of the concept is ensured that employees feel that management cares aboutthem and their needs (Ewing and Caruana 1999).Besides internal marketing emphasize s on employee are first, internal marketing alsoinclude several aspects (Schultz 2002; Gronroos 2000). First, internal marketing as an active,coordinated, and goal oriented approach to all employee-oriented efforts. Second, internalmarketing emphasizes on the need to understand employee as people. In the specific, humanresources manager in a firm should understand the people so they can motivate and satisfy theemployee. In order to motivate and satisfy employee, firm should have marketing-likeapproach to the employee. In other words, a firm should threat employees as customers.Finally, internal marketing also includes the implementation of specific corporate orfunctional strategies.Foreman and Money (1995 cited by Preston-Broady and Steel 2002) observe that someresearchers believe that internal marketing is synonym with human resources management(HRM) concept. On the other hand, other researchers (e.g., Gronroos 2000; Rafiq and Ahmed2000; Ewing and Caruana 1999) support that the concept of internal marketing has much incommon with HRM concept but they are not the same.In short, internal marketing emphasizes on the need to view people as internal customers.As internal customers, employees should be treated as the way firm treats customer.3

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Hi Sabrina, do you have the questionnaire to this?
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