Impact of Internal Marketing on Organizational Performance: Mediating Role of Organizational Culture

Abstract

This study aimed to explore the linkage of internal marketing and organizational culture with organizational performance. The services sector is human-intensive, and therefore employee's workplace culture impacts organizational performance. The organizational culture has been used as a moderator and mediator with different variables in multiple contexts. This study is focused on the role of organizational culture as a mediator between internal marketing and organizational performance, which was not previously studied. The data for this cross-sectional study were collected from 511 respondents of the telecom sector through non-probability (convenience) sampling. The results from structural equation modeling reveal that organizational culture plays the role of mediator between internal marketing and organizational performance and that organizational performance can be enhanced through internal marketing. Social exchange theory supports the positive exchanges between employees, employers, and customers for high performance. Similarly, the resource-based view supports the orientation of organizational culture as an equity-based and valuable resource for an organization. The research further explains and discusses the implications for research and practice generally for all the services and manufacturing sectors.