Internal marketing, employee job satisfaction, and perceived organizational performance in microfinance institutions

• Published in: International journal of bank marketing 2016-07, Vol.34 (5), p.773-796
• Main Authors: Kanyurhi, Eddy Balemba, Bugandwa Mungu Akonkwa, Déogratias
• Format: Article
• Language: English
• Subjects: Bank marketing; Competition; Competitive advantage; Customer satisfaction; Customer services; Data processing; Employee retention; Employees; Empowerment; Human resources; Hypotheses; Internal customers; Job satisfaction; Marketing; Marketing strategy/methods; Microfinance; Profitability; Profits; Quality; Quality of service; Quantitative research; Studies
• ISSN: 0265-2323; 1758-5937
• DOI: 10.1108/IJBM-06-2015-0083

Purpose – The purpose of this paper is threefold: first, testing the relationships between internal marketing and employee satisfaction; second, investigating the links between employee satisfaction and perceived organizational performance; and finally, testing the relationship between internal marketing and perceived organizational performance. Design/methodology/approach – Data were collected from 419 employees working in 53 microfinance institutions (MFIs) in Kivu (DR Congo). Data processing was performed using structural equations modeling through LISREL 9.1. Findings – The results revealed that there is a positive and significant relationship between internal marketing and employee satisfaction. The results also revealed that there is a positive and significant relationship between internal marketing and perceived organizational performance. However, no significant relationship between employee satisfaction and perceived organizational performance was identified. Research limitations/implications – There is a need to conduct a large qualitative survey aiming to understand why MFIs apply internal marketing and marketing practices in general. The results from such a study would serve to prepare a global quantitative study, which integrates in the same model internal marketing, external market orientation, employee job satisfaction (EJS), and organizational performance. Practical implications – Results invite MFIs managers to change their mind and focus more on their employees. In fact, employees generate the most cost in general but they can also contribute to sustain growth and profitability. This is possible if they are better rewarded for their efforts. Originality/value – This study links internal marketing, EJS and perceived performance in a sector and country which have been less or not studied in the marketing sector.