Assessing the Impact of Internal Marketing Orientation on an Organization’s Performance

In extant literature, although there are a few studies that have investigated impact of internal marketing orientation (IMO) on nonfinancial performance, most IMO studies have focused on how IMO relates to financial performance. Furthermore, even when customer-based performance (e.g., service quality, customer retention, customer satisfaction, customer loyalty) are included in the model, they are generally grouped together with other constructs such as employee competency and willingness to learn and organizational effectiveness and operationalized as an overall nonfinancial performance measure, rather than as a separate customer-based performance measure. Therefore, in order to fill this gap and to understand the impact of IMO on the firm’s customer-based performance as well as financial performance, we developed and empirically tested an integrated model of IMO by comprising not only the financial performance variable but also a customer-based performance variable (customer acquisition and retention, customer loyalty, perceived service quality, customer satisfaction, improving products and services based on customers’ comments, implementing new ideas, and developing new products and services).