Internal marketing: a review and future research agenda

Asia Pacific Business Review

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Internal marketing: a review and future research
agenda
Fatima Saman Qaisar & Nazlida Muhamad
To cite this article: Fatima Saman Qaisar & Nazlida Muhamad (2021): Internal marketing: a review
and future research agenda, Asia Pacific Business Review, DOI: 10.1080/13602381.2021.1858590
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ASIA PACIFIC BUSINESS REVIEW
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Internal marketing: a review and future research agenda
Fatima Saman Qaisar and Nazlida Muhamad
School of Business and Economics, University Brunei Darussalam, Gadong, Brunei Darussalam
ABSTRACT

ARTICLE HISTORY

Internal marketing is a method of cultivating high-level employee performance. However, the concept is marred with confusion due to the wide
range of definitions and consequent implementation challenges. We

reviewed the literature on internal marketing published between 1980
and 2020, using a theory, context and method framework. We found that
scholars have not paid attention to the utilization of an established framework for construct operationalization. We advocate for the application of
self-determination theory as a framework for operationalizing internal
marketing. In addition, based on the identified research gaps, we propose
several ideas for future research directions.

Received 1 April 2020
Accepted 25 November 2020
KEYWORDS

Internal market; internal
marketing; relationship
marketing; market
orientation

1. Introduction
Organizations today face intense competition due to the volatile and dynamic nature of the
business environment, which is driven by a technology revolution, globalization, market
deregulation, the changing needs of customers and investors, changing career dynamics, and
new employee expectations (Becker and Gerhart 1996; Muthuveloo, Shanmugam, and Teoh
2017). Achieving and maintaining competitive positioning and sustainability has become
a challenge for managers, forcing them to seek strategies that emphasize performance for
survival. Much of the literature on organizational performance and competitive advantage has
adopted an external focus on customers and competitors (increasing customer base, market
share, and sales and profitability). Though this external focus is essential, internal attention is
equally required to meet the challenges of competition. Ignoring the contributions of internal
human resources to organizational outcomes cannot drive competitive advantage in the
modern market. Employees are responsible for the production and delivery of goods and
services; therefore, organizations must incorporate both internally and externally focused

marketing to ensure an effective response to their competition. The term that describes this
internal focus is ‘internal marketing’.
The notion of internal marketing, though introduced in the late 1970s, gained prominence in
the 1990s (Berry 1995; George 1990; Grönroos 1995; Gummesson 1987; Varey 1995). It is a blend
of marketing philosophy and human resource management practices, intended to enhance
external marketplace performance (Paul and Sahadev 2018). It parallels an organization’s
external marketing programme, which targets the external marketplace of customers and
competitors (Rodrigues and Pinho 2012). Piercy and Morgan (1990, 1991) suggest that marketing mix elements of product, price, communication, and distribution should be used to develop
CONTACT Fatima Saman Qaisar



© 2021 Informa UK Limited, trading as Taylor & Francis Group


2

F. S. QAISAR AND N. MUHAMAD

appropriate internal marketing programmes, directed to segments of the internal marketplace
with their varying needs and characteristics. This targeted internal marketing, in turn, affects
employee outcomes, leaving employees better prepared to respond to and deliver on the
external marketing programmes (Ferdous, Herington, and Merrilees 2013). Ballantyne (2000,
2003) provides another perspective for adopting internal marketing principles: an inward
approach to relationship marketing methods. This reflects the relationship development
process based on value exchanges between internal suppliers and internal customers. The
internal network of relationships improves the cross-functional flow of information that creates
learning, thereby generating knowledge that is critical for improving external market performance. Internal marketing adopts methods and principles of marketing to develop a customerorientation among employees, which is an important condition for ensuring the success of
external marketing approaches (Bell, Mengỹỗ, and Stefani 2004; Ferdous, Herington, and
Merrilees 2013; Piercy and Morgan 1991).

An organization’s dedication to satisfying its employees’ needs provides value to the
firm-employee relationship (Papasolomou 2006). This is characterized by conditions of
interdependency, support, and reciprocity between the organization and its employees.
The creation of harmonious exchanges between the two parties motivates the employees
to reciprocate with positive attitudes and behaviours. These rewards support the organization’s marketing objectives and strengthen its competitive position in the external
market (Ahmed, Rafiq, and Saad 2003; Lings and Greenley 2009). For instance, internal
marketing practices have been found to enhance job satisfaction and performance
(Huang and Rundle-Thiele 2014), positively influence employees’ happiness at work
(Tang et al. 2020), and ensure a more effective approach to handling customers, which,
in turn, induces positive word of mouth, repeat purchase behaviour, and long-term
relationships with customers (Park and Tran 2018). Thus, internal marketing practices
can yield significant benefits for the organization by enhancing employees’ organizational
commitment (Awwad and Agti 2011; Bailey, Albassami, and Al-Meshal 2016; Narteh and
Odoom 2015), customer-orientated behaviour (Nart et al. 2019), and job performance
(Ieong and Lam 2015), which together ultimately improve organizational performance
(Kanyurhi and Akonkwa 2016; Shiu and Yu 2010).
Despite more than four decades of discussion of internal marketing, its application in
organizations remains limited. This is perhaps due to its diverse conceptualizations, which has
resulted in operationalization issues, due to a lack of clarity on its functionality (Gounaris 2006).
These varied interpretations have meant a diverse range of activities being grouped together as
internal marketing practices (Rafiq and Ahmed 2000), creating confusion and leading to
measurement issues (Lings 2004). Another challenge is that while internal marketing may
seem to be a simple concept, it is unusually slippery when it comes to implementation. It is
socially constructed, meaning the socio-cultural context in which employees and management
are operating is important. Successful implementation of internal marketing is contingent upon
its participants and their understanding, interpretations, and orientations. Internal marketing, as
a holistic concept, calls for integration and coordination of functions, which requires unified
organizational effort, guided by understanding and appreciation of the objectives of internal
marketing. These challenges call for a review of the existing literature on internal marketing.
The aim of this review article is two-fold. First, it re-visits the concept of internal marketing to

analyse and synthesize the literature on the relevant conceptual developments and application.
It examines the theoretical frameworks that have been previously applied to this topic, the


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3

methodologies used, and the variables of interest, with a focus on research from the Asian
region. Second, this article identifies the limitations of the previous studies and proposes
directions for future research.
This study is structured as follows. The following section discusses the methodology
chosen for the paper. Section three presents the synthesis of the conceptual development
of internal marketing and its underlying theories and frameworks. Section four describes
the outcomes of internal marketing. Section five discusses the research gaps identified
from the findings of the review, section six outlines future research directions, and section
seven presents theoretical and practical implications. Finally, section eight presents the
concluding remarks.

2. Method
There are several types of systematic review paper. There is the structured review, which
focuses on widely used methods, theories, and constructs (Canabal and White 2008;
Kahiya 2018; Rosado-Serrano, Paul, and Dikova 2018); framework-based reviews (Paul
and Benito 2018); the hybrid-narrative form, with a framework for setting a future
research agenda (Kumar, Paul, and Unnithan 2019; Paul, Parthasarathy, and Gupta
2017); theory-based reviews (Gilal et al. 2020a, 2019b; Paul and Rosado-Serrano 2019);
meta-analyses (Knoll and Matthes 2017); bibliometric reviews (Randhawa, Wilden, and
Hohberger 2016); and reviews for model or framework development (Paul 2019; Paul
and Mas 2019).
Following a brief consideration of the various styles of systematic review paper,

a structured review style was chosen for this paper to highlight issues in the conceptualization of internal marketing and to synthesize its theoretical, contextual, and methodological utilization. A structured literature review aligns with the objectives and aims of this
study. A structured literature review maintains a tight focus on the subject area and
supports more rigorous thought processes. It offers a strategy for dealing with fragmented ontological and epistemological diversity (Armitage and Keeble-Ramsay 2009; Hart
1998). A well-crafted structured review synthesizes and conveys the collective wisdom
from the existing body of research. It enhances scholars’ understanding of the topic; helps
to illuminate gaps in the knowledge of methods, theories, and constructs; and signals
future research avenues (Paul and Criado 2020).
The authors conducted a thorough systematic search for theoretical and empirical research
papers, using numerous electronic databases, including Science Direct, Emerald Insight, Jstor,
Wiley-Blackwell, Springer, and Taylor & Francis, as well as an article reference list to identify
relevant publications. This strategy of using multiple sources ensured that all important and
relevant studies were included in the review. The keywords used were internal marketing,
internal market, internal market orientation, and internal relationship marketing. The studies that
mention any of these keywords in their titles, abstracts, or author-specified keywords were
reviewed. The search was restricted to academic articles from journals registered in the business
and management discipline. Book chapters and research reports were not considered.
The review focused on articles published in well-recognized journals between 1980
and 2020. This timeframe was chosen because internal marketing was introduced in 1976
and research on the topic – especially theoretical research – saw rapid growth from the
beginning of the 1980s. The search yielded more than 200 relevant articles. Articles


4

F. S. QAISAR AND N. MUHAMAD

published in languages other than English were removed from this initial list. The selection criteria were then refined to limit the review to journals with a B, A, or A* ranking from
the Australian Business Deans Council (ABDC). Studies that mentioned internal marketing
as a tool but did not claim to have used it in the study were also removed from the final
list. We retained highly cited publications conducted from the theoretical perspective of

internal marketing. Ultimately, our search yielded a total of 85 articles from 39 journals
(see Table 1).
The sample consists of two types of research paper: non-empirical (25 studies) and
empirical (60 studies). Figure 1 shows the historical trend among articles published from
1981 to 2020. In the 1980s, the studies primarily adopted a theoretical approach, and
empirical research saw rapid growth only during the latter half of the 1990s. A stronger
emphasis on empirical research was seen in the last two decades (2000–2020), with a focus on
the Asian region (see Figure 2). The empirical research conducted in the last two decades
provides an overview of the most recent applications of internal marketing, including the
contexts and methods. Our literature search was primarily intended to locate studies on the
Table 1. List of journals included in the sample.
Journal Name
International Journal of Bank Marketing
Journal of Services Marketing
European Journal of Marketing
International Journal of Hospitality Management
Journal of Business Research
Journal of Marketing Management
Health Marketing Quarterly
Tourism Management
Journal of Strategic Marketing
Anatolia: An International Journal of Tourism and Hospitality Research
Services Marketing Quarterly
The Service Industries Journal
Journal of Hospitality, Marketing & Management
Journal of Marketing Communications
Journal of Air Transport Management
Business Research Quarterly
International Journal of Retail and Distribution Management
International Journal of Contemporary Hospitality Management

Journal of Service Management
Journal of Business and Industrial Marketing
Journal of Consumer Marketing
Journal of Marketing Practice: Applied Marketing Science
European Management Journal
Journal of Retailing and Consumer Services
Journal of Academy of Marketing Science
Academy of Marketing Science
Journal of Business Logistics
Journal of Public Affairs
Psychology & Marketing
Journal of Financial Services Marketing
Journal of Non-Profit & Public Sector Marketing
Journal of Relationship Marketing
Asia Pacific Business Review
Journal of Global Scholars of Marketing Science: Bridging Asia and the world
Human Resource Management Journal
Journal of Vacation Marketing
Journal of human resources in hospitality and tourism
Marketing Intelligence and Planning
Human Resource Management
Total

No. of Articles
10
9
7
5
5
4

3
2
3
2
2
2
2
2
2
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

1
1
1
85


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Distribution of publication (1981 – 2020)
No. of Articles - Non-empirical

No. of Article - Empirical

7
6
5
4
3
2
1
0
1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

2014

2017

2020

Figure 1. Distribution of sample studies from 1981–2020.

Coverage of Research Region (1987 -2020)
25
20
15
10
5
0

Figure 2. Coverage of research region for empirical studies from 1987–2020.

conceptual development of internal marketing and to identify possible areas for future
research that have either not been addressed or received only limited attention from scholars.

3. Conceptualization and theoretical models
3.1. Conceptual definitions and synthesis
Numerous definitions of internal marketing have been proposed since the inception of this
concept 30 years ago (Berry, Hensel, and Burke 1976). The concept is typically defined in terms
of organizational outcomes. It has evolved from a purely managerial perspective on satisfying the
needs of customer-contact employees for external customer satisfaction (Berry 1987; Berry, Hensel,
and Burke 1976), to incorporate the management of the service value chain and the motivation of
customer consciousness and sales mindedness (George 1990; Grönroos 1990; Gummesson 1987),
ultimately becoming a complex and holistic concept of developing customer priority throughout
the organization to manage change (Ahmed & Rafiq, 2003; Varey 2000) (see Table 2).


6

Table 2. Theoretical research on internal marketing.

3

(George 2015) – (original work
published in 1984)
MacStravic (1985)

4

Berg (1986)

5

Jones (1986)

6

Flipo (1986)

7
8

Tansuhaj, Randall, and Mccullough
(1988)
George (1990)

9

Piercy and Morgan (1990)

10

Grönroos (1990)

11

Rafiq and Ahmed (1993)

12

Greene, Walls, and Schrest (1994)

13

Hales (1994)

14
15

Piercy (1995)
Cahill (1995)

16

Grönroos (1995)

17

Varey (1995)

2

Key Findings
Service firms should use marketing research to understand internal customers’ needs better, modify and improve job-products, segment
employee markets, using advertising and personal selling to attract employment candidates.
Internal marketing focuses on the exchange process between the organization and its employee publics – employment opportunities as
products and employees as customers.
Internal marketing is a systematic approach to achieve a positive relationship with employees that will contribute to the external marketing
objectives as well as quality, productivity and efficiency.

Internal marketing is a shift in management focus from the management of human resource to the management of symbolic resources.
Internal marketing could help management to create and manage unifying symbols that give meaning to the organization members and
impel them to take action according to the overall strategy of the company.
Internal marketing facilitates interaction and collaboration between different functions for total service delivery system. Internal marketing
exists at the strategic as well as tactical level.
Internal marketing is for customer-contact personal. The marketing function has to deal at the same time with internal and external markets,
and success in the latter is highly dependent on success in the former.
Internal marketing is oriented to employee development through recruitment, training, communication, motivation and retention to inculcate
positive employee attitudes and behaviours such as job satisfaction, commitment, involvement and work motivation.
Internal marketing is a mechanism for developing and maintaining service-minded and customer-conscious employees
Internal marketing programmes alone are not sufficient in developing service culture and need a continued partnership with organizational
behaviour such as organizations personality, structure, leadership etc.
Internal marketplace should be segmented into different groups with different needs and characteristics, and the internal marketing
programme developed around these segments.
Internal Marketing a pre-requisite for successful external marketing. Its purpose is to motivate and retain customer-conscious employees.
Internal marketing is a means to develop and maintain service culture.
Internal Marketing is implemented through the application of marketing techniques, along with human resource management practices to
facilitate the implementation of the company’s market objectives.
Internal marketing must originate at the top and communicate down to the very bottom of the firm.
Internal marketing results in satisfaction and motivation of employees to improve service performance.
The conceptual basis of Internal marketing is riven with contradictions and problems. Its individualistic approach to managing human
resources clashes with its emphasis on teamwork and commitment.
Internal Marketing helps to remove internal barriers such as politics, corporate culture, credibility, cost barrier for customer satisfaction.
Internal marketing is a good human resource management to satisfy external customers.
Learning organization is a necessary step in the correct performance of internal marketing.
Internal marketing is a thorough and ongoing internal marketing process that requires cooperation between marketing, operations and
human resource functions.
Internal Marketing is a process of ‘selling’ the concept of customer service to employees.
Internal Marketing is for customer orientation and quality culture.

(Continued)

F. S. QAISAR AND N. MUHAMAD

Sr. No.
Study
1
Berry (1981 1987)


Table 2. (Continued).
Sr. No.

Study
Mitchell and Taylor (1997)

19

Varey and Lewis (1999)

20

Rafiq and Ahmed (2000)

21

Ahmed & Rafiq (2003)

22

Ballantyne (2003)

23

Lings (2004)

24

Ferdous, Herington, and Merrilees
(2013)
Boukis (2019)

25

Internal marketing can be used for a successful volunteer programme within the non-profit sector through allowing self-expression,
developing skills and abilities through training, providing challenge and recognition, role clarity and autonomy and two-way feedback
system.
Internal marketing must apply marketing principles within the total corporation as a social system which operates as a free market’.
Internal marketing focus on social values provides for a richer range of exchanges, both economic and non-economic values.
Internal marketing is a planned effort to achieve customer satisfaction through motivated and customer-oriented employees using marketing
like approach.
Internal marketing creates an environment in which quality enhancing behaviours become a reflexive part of employee action.
Internal marketing is used to manage internal relationships and generates commitment and involvement in organizational performance.
Internal marketing requires a process of learning activity for knowledge renewal to achieve market orientation and market-based
performance.
Internal market orientation has a direct positive impact on the internal aspects of organizational performance – employee satisfaction,
retention and commitment and these internal aspects, in turn, affect external market orientation and external performance that is customer
satisfaction, retention and profit.
Firms having higher levels of Internal market orientation are likely to develop internal marketing programs that are relationship-oriented.
Internal market orientation (IMO) is a value creation mechanism for the firm’s internal market.

Organizations develop superior reciprocal value propositions for employees through internal market orientation.

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Key Findings

7


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F. S. QAISAR AND N. MUHAMAD

The most popular definition of internal marketing originates in the managerial viewpoint originally presented by Berry (1981). Adopting the behavioural approach, Berry
(1981) defines internal marketing as the idea of jobs as internal products offered to
internal customers (employees), who deliver product and service value and external
customer satisfaction. However, Grönroos (1981) postulates that internal marketing
aims to obtain and retain motivated customer-conscious staff at all organizational levels
by improving communication and coordinating tasks between customer service staff and
support staff (Grönroos 1981).
In line with Grönroos (1981), George (1990) suggests that internal marketing is a philosophy
that considers employees to be a group of internal stakeholders, whose needs must be met so
that they can meet the needs of the external customers. Piercy and Morgan (1991) recommend
that internal marketing strategies use external marketing techniques (4Ps) to handle problems
and opportunities within the organization. Gummesson (1987) introduced the term ‘internal
customer’. He defines internal marketing as a process for integrating all employees and
functions into a customer-supplier relationship as part of the service value chain. This internal
network of customers and suppliers creates interdependence between individuals, serving

external customers and improving service quality and customer satisfaction. Based on the
mechanistic approach of Gummesson (1987), Ballantyne (2003) defines internal marketing as
a method of channelling staff commitment and teamwork to enhance external marketplace
performance. In a similar vein, albeit in the context of the service value chain, Roberts-Lombard
(2010) argues that the purpose of internal marketing is to motivate, retain, and attract employees to serve business objectives. This is achieved by understanding employees’ emotional and
intellectual needs, providing customized products and services, and focusing on the building of
long-term relationships (Roberts-Lombard 2010).
The essence of the above definitions is that internal marketing recognizes employees as the
first market of the organization, and managers must first identify and tend to their needs. Since
employees are the crucial part of the equation of organizational success, firms should work hard to
provide a work environment that motivates, satisfies, and retains the best people (Ahmed & Rafiq,
2003; Vasconcelos 2008). It emphasizes the importance of treating employees as customers and
their jobs as products. As they do with external customers, organizations should determine the
needs of their internal customers and design jobs that meet those needs. Internal marketing
practices signal that the company values its employees, thereby encouraging the growth of trust
and commitment to the organization (Abzari, Ghorbani, and Madani 2014; Ahmed & Rafiq, 2003)
and a motivated and satisfied workforce (Ahmed, Rafiq, and Saad 2003; Gordillo-Benavente,
Domínguez-Valdez, and Vega-Sosa 2015; Gummesson 1987; Romani, Grappi, and Bagozzi 2013;
Tansuhaj, Randall, and Mccullough 1988).
Rafiq and Ahmed (2000) take a holistic view of internal marketing, proposing interdepartmental integration that improves a company’s coordination, overcomes resistance to
organizational change, and motivates employees to engage in the organizationally desired
behaviour. They define five essential components of internal marketing: (1) achieving customer
satisfaction through (2) effective implementation of customer-orientated strategies by virtue of
(3) managing and coordinating cross-functional efforts within a process of (4) motivating and
(5) satisfying employees (Ahmed & Rafiq, 2003; Ahmed, Rafiq, and Saad 2003). Varey and Lewis
(1999) and Varey (1995) also seem to be aligned with this approach. Internal marketing
represents the convergence of discrete management technologies, such as human resource
development, quality management, strategic management, employee relations, corporate

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communications, and macro-marketing into a complete system (Varey and Lewis 1999).
Gilmore and Carson (1995) state that, ‘internal marketing management could be considered
and redefined as a more holistic, systematic, and organisation-wide concept’ (Gilmore and
Carson 1995, p. 308).
Departing from the traditional, firm-driven, internal marketing perspective, Lings
(2004) and Gounaris (2006, 2008) propose a value-driven perspective that they term an
‘internal market orientation’. The firm-driven view advocates for marketing approaches in
the internal market that motivate employees to align their efforts with the firm’s objectives (Boukis 2019). In contrast, an internal marketing orientation enhances and sustains
the value created for internal stakeholders. It consists of managerial behaviours by which
the firm identifies employees’ needs, generates value for them, and ensures that employees’ competences and performance remain aligned with the company’s marketing objectives (Boukis and Gounaris 2014; Boukis et al. 2015).

3.2. Theories and models of internal marketing
Theories utilized in the field of internal marketing include the marketing mix model,
relationship marketing, social exchange theory, transaction cost theory, service profit chain,
and the resource-based view.

3.2.1. Internal marketing mix model
The traditional marketing mix (4Ps) is the most commonly used approach that emerged
from early discussions of the concept of internal marketing (Grönroos 1981). It often
appeals to managers due their familiarity with the marketing mix concepts of product,
price, place, and promotion. The 4Ps promotes the notion of ‘selling the job’ to employees
via internally directed elements of external marketing programmes to elicit the desired
behaviour. Using this approach, internal marketers regard their employment opportunities as their principal products and their employees as their most important customers.
Managers analyse the wants and needs of their internal customers and tailor a marketing
mix to suit their employees’ skills, expertise, and experience.
A primary concern when adopting the internal marketing mix model is that employees

cannot be treated as a customer in the same way that an external customer can. The power
dynamics between an organization and its employees differ from those that arise between an
organization and its customers. Organizations have coercive power over their employees that
they do not have over their customers, and so employees may derive negative utility from
unwanted work. Second, treating employees as customers may dilute the organization’s focus
on its external markets. Ahmed and Rafiq (2003) suggest that internal marketing should be
secondary to a commitment to the external market – namely, customers and competitors.
(Ahmed & Rafiq, 2003; Bell 1998; Roy et al. 1995; Varey and Lewis 1999). However, we suggest
that organizations must determine a balance between their commitments to the external
marketplace and the internal market, as the development of meaningful relationships with
external customers will prove difficult without committing to the development of similar
relationships within the organization.
There are four components of the internal marketing mix. Internal product refers to the
job itself or its characteristics that are provided to the internal customers (employees) to
satisfy their needs. The job plays a vital role in the exchange process between the


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F. S. QAISAR AND N. MUHAMAD

employee and the organization. Organizations must design jobs that offer valuable
experiences to employees and increase their satisfaction. Satisfied employees are more
motivated and reciprocate with organizationally desired behaviours. The indexes of
internal products may be practices such as training and development, job autonomy,
career development, and growth opportunity. Internal price is the cost and resources that
the employer expends to turn inputs into outputs when developing and delivering jobs to
internal customers. This includes a reward system, incentives, and benefits. Internal
promotion refers to the use of means to communicate positive messages that instil
productive attitudes, openness, and interest in the workplace. The purpose of internal

promotion is to create knowledge and skills so that employees understand what is
expected of them and can perform their jobs well. Internal place, or ‘internal distribution’,
refers to the strategic and operational activities that take place during the delivery of
products (jobs) to employees. This includes practices related to internal market research
and the work environment (Jones 1986; Piercy and Morgan 1990, 1991; George 2015).

3.2.2. Transaction cost theory
Transaction cost theory is built on the principles of maximizing the efficiency of economic
exchange. It assumes that employee-employer interactions occur in the same way as
customer-company transactions. The attributes of the transactions give rise to the cost,
therefore organizations must attempt to identify the governance mechanism that will
maximize the efficiency of exchange between the organization and the employee. This
takes a tactical view of internal marketing, as the emphasis is on the transactional nature
of the relationship, rather than creating value for the employee-organization relationship
(Gounaris 2008). This may be interesting from an economic perspective, but it ignores the
social, psychological, and emotional dimensions of the relationship.
Pitt and Foreman (1999) applied the transaction cost perspective to internal marketing in
their theoretical research to define the context in which internal marketing would be
applicable. The goal incongruence and performance ambiguity were considered the sources
of cost. They propose that the extent to which internal marketing is practised in organizations is a function of goal incongruence and performance ambiguity in the employment
situation. An organization with goal congruence but a high level of performance ambiguity
will consider internal marketing to be mandatory (Pitt and Foreman 1999).
3.2.3. Theory of relationship marketing
While Berry introduced relationship marketing in 1983 (Berry 1983), exploration of the
concept only began to develop substantially in the latter half of the 1990s. Initially, the
literature on relationship marketing focused on customer relationships and ignored the
importance of building long-term relationships with other stakeholders. Sheth (1996)
argues that the domain of relationship marketing should be limited to satisfying the
needs of customers (Sheth 1996). However, scholars such as Ballantyne (2000); Ballantyne,
Christopher, and Payne (1995); George (1990); and Gummesson (1987) argue that the

boundaries of relationship marketing should be opened to other stakeholders, including
suppliers, influencers, referral sources, and internal markets (Ballantyne 2000; Ballantyne,
Christopher, and Payne 1995; George 1990; Gummesson 1987). Since the turn of the
millennium, this broader perspective has gained momentum, and considerable advances
have been seen (Payne and Frow 2017).


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The relational view of internal marketing involves ongoing relationship management. It
emphasizes value-focused internal marketing that extends beyond economic exchange
(transactions) to include social processes and relationships within the organization.
A relational approach to internal marketing stresses that profitability and competitive advantage comes through building and managing successful relationships, rather than just transactions (Chaston and Mangles 2003). The discrete transaction is short-term and manipulative.
Relationships, on the other hand, are much more than just exchange. A relationship is a longterm notion, implying an ongoing association between two parties, based on trust, commitment, and mutual understanding (Grönroos 1995; Morgan and Hunt 1994).

3.2.4. Social exchange theory
The relational approach to internal marketing views the employee-organization relationship from a social exchange perspective. Social exchange theory emerged in sociology
and social psychology, provides a theoretical explanation for the exchange relationship
between employees and their organization (Bell 1998). It suggests that the actions of
individuals are motivated by the organization’s treatment of them, with the expectation
that such treatment should bring returns. The nature and extent of these returns are
a function of personal obligation, gratitude, and trust in the organization (Emerson 1976;
Gould-Williams 2007). Employees working in organizations in which a high level of social
exchange occurs will reciprocate through discretionary effort and display positive workrelated attitudes and behaviours.
Internal marketing practices work to satisfy employee needs and communicate the
organization’s care and concern for its employees, as well as its belief in their significance.
An employee’s perception that their organization values them and cares about their
wellbeing is vital for creating reciprocal obligations. Employees that perceive a high

level of social exchange will use behaviours valued by the organization as a currency to
reciprocate the organization’s benevolent treatment (Gould-Williams 2007; Hoffman and
Ingram 1992; Tang and Tang 2012; Tortosa, Moliner, and Sánchez 2009). In this way,
internal marketing practices create high-quality exchange relationships that lead to
a productive work environment and mindset.
3.2.5. Service-profit chain (SPC) model
The service-profit chain is a causal chain that links employee satisfaction to the firm’s
financial performance, through mediating variables such as customer satisfaction and
customer loyalty. It is presented as follows: employee satisfaction → customer-orientation
→ customer satisfaction → customer loyalty → profits. At one end of the chain is
employees, followed by customers in the middle, and the organization is at the other
end. This is an important model that guides service firms’ operations for employee
satisfaction and customer satisfaction, which are the consequences of internal and
external service quality (Herington and Johnson 2010; Homburg, Wieseke, and Hoyer
2009). Organizational activities such as job design, training, reward, and recognition, and
so on, have a direct effect on internal service quality.
The service-profit chain model (SPC) recognizes the impact of organizational practices
on employee perceptions and attitudes, and it calls for caring about and valuing employees
and customers through relationship-building. Herington and Johnson (2010) propose the
application of internal marketing – grounded in relationship theory – to the SPC, for internal


12

F. S. QAISAR AND N. MUHAMAD

service quality that ultimately benefits external service quality and organizational performance. Paul and Sahadev (2018) applied internal marketing to the SPC model to improve
the performance of caregivers at a nursing home and to increase customer satisfaction.

3.2.6. Resource-based view

The resource-based view posits that an organization improves performance by building
superior internal capabilities. These core capabilities are related to organizing work for the
learning and coordination of employee skills across different business units and hierarchical levels, deep commitment, communication, and involvement, as well as delivering
value to the customer. According to Prahalad and Hamel (1990), core capabilities operate
like the root system of a tree, providing nourishment, sustenance, and stability to the
organization. Unlike tangible or physical assets, core competencies do not diminish with
use; instead, they enhance when applied and shared (Prahalad and Hamel 1990).
In the resource-based theory, internal marketing is a critical competence implemented
to build and enhance core capabilities for sustained competitive advantage (Ahmed,
Rafiq, and Saad 2003). These competencies and capabilities are embodied in the form
of attitudes and behaviours, such as employee satisfaction and engagement, motivation
and company loyalty, citizenship behaviour, market orientation, and knowledge renewal,
which ultimately bestow the firm with economic rents (Becker and Gerhart 1996). ÁlvarezGonzález et al. (2017) adopted this theoretical framework as a critical competence for
non-profit organizations to enhance their HRM capabilities to positively affect non-profit
performance (Álvarez-González et al. 2017).

4. Internal marketing research
4.1. Outcomes
4.1.1. Internal marketing and employee-related benefits
Organizations implement internal marketing practices to improve their employees’ comprehension of their roles and their contribution to organizational performance (see Figure 3).
Through internal marketing, the organizations’ beliefs, values, and objectives are passed to their
employees via internal communications, ensuring that everybody is working in the same
direction and exhibiting attitudes and behaviours consistent with the values of the organization. The organization also generates intelligence about the internal market, collecting information on the needs of internal customers, their expectations, and their level of satisfaction. When
the employees’ needs are attended to, this makes them feel valued and supported, which, in
turn, increases their level of satisfaction and identification with the organization. The employees
then desire to be loyal to the organization and to remain with it for the long-term (DomínguezFalcón, Martín-Santana, and De Sấ-Pérez 2017). Domínguez-Falcón, Martín-Santana, and De
Sấ-Pérez (2017) conducted empirical research in four- and five-star hotels in Gran Canaria,
Spain, and found that internal marketing leads to job satisfaction and affective commitment
among managers and market-oriented behaviour among managers and supervisors.
Internal marketing practices such as internal communication, reward, empowerment,

and internal market research create positive work environments, characterized by trust,
enthusiasm, and happiness. These positive perceptions of the work environment are
reflected in employee behaviour in terms of improved coordination and communication


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Figure 3. Summary of outcomes in internal marketing research.

and quality of tasks performed. Employees feel motivated to develop capabilities and
skills that enhance their performance and their organization’s performance (DomínguezFalcón, Martín-Santana, and De Sấ-Pérez 2017). Martin and To (2017) found a positive
link between internal marketing and organizational performance, job satisfaction, perceived customer satisfaction, and competitive positioning of the organization. They found
that internal marketing is an essential tool for aligning employees to a service vision and
mission and inducing positive work attitudes (Martin and To 2017).
Ieong and Lam (2015) found a significant relationship between internal marketing and
employee satisfaction and perceived job performance. They explain that internal marketing
practices – solicit employee loyalty and commitment and identification with the organization’s
vision, leading to satisfaction and improved service for customers. Implementing proper
communication channels increases perceptions of internal service quality and enhances
employee self-efficacy, which increases self-esteem and job satisfaction (Bailey, Albassami,
and Al-Meshal 2016; Gounaris 2008; Ieong and Lam 2015). Training and development improve
employee skills and knowledge and create a common perception of the vision of the organization, which leads to improved customer service (Ottenbacher 2007). Well-defined reward and
compensation structures enhance employee morale and increase employee retention in the
organization, thereby reducing turnover (Ieong and Lam 2015; Kim, Song, and Lee 2016).

4.1.2. Internal marketing and customer-related benefits
Internal marketing originated in the service context as a means of improving service
quality for customers. Service is a human factor, thus it must be nurtured through internal

systems of the organization that satisfy, motivate, and train employees to become
customer-conscious and to increase the level of service quality. Positive employee outcomes translate into positive customer outcomes. Berry signifies internal marketing as


14

F. S. QAISAR AND N. MUHAMAD

a means to an end; that is, effective internal marketing is essential for effective external
marketing (Berry 1981). Therefore, to establish a long-term relationship with its customers, the organization must focus on constructive relationships with its internal employees, as high turnover transforms into high churn rates. Conceptual and empirical research
has strongly emphasized the relevance of internal marketing for customer satisfaction,
customer service quality (Boukis et al. 2015; Richardson and Robinson 1986), and market
orientation (Domínguez-Falcón, Martín-Santana, and De Saá-Pérez 2017).

4.1.3. Internal marketing and organization-related benefits
Ballantyne (2000, 2003) states that internal marketing practices are the means by which knowledge
can be shared, challenged, and renewed. The theory of internal marketing draws strong connections between learning activity and knowledge management. Internal marketing creates a series of
motivating activities to derive knowledge from individual tacit levels to the group-wide explicit
level (Hume and Hume 2015). Internal communication and training have emerged as capable
vehicles for knowledge acquisition and retention (Yang 2015). Training provides employees with
the opportunity to learn; and as individuals learn, they create knowledge that transforms them
from touch labour to knowledge workers. These knowledge workers form the foundation for
organization-level learning and knowledge accumulation (Youndt and Snell 2004). Under the
umbrella of internal marketing, cross-functional coordination and collaboration create the opportunity for the flow of information, tapping into experience-based individual knowledge from
varied resources (Ballantyne 2003). This access to job-related knowledge helps employees to
meritoriously perform their jobs and ensures that organizational strategies are effectively implemented in the organization. Lee and Chen (2005) found that internal marketing significantly affects
knowledge management in high-tech industry in Taiwan (Lee and Chen 2005). Yang (2015), in an
empirical study, found that the promotion component of internal marketing leads to knowledgesharing that significantly influences organizational effectiveness (Yang 2015).

4.2. Research studies from Asia

Research studies on internal marketing in the Asian context are limited, coming primarily from
a small number of countries in East and South-East Asia such as China, Taiwan, and Vietnam.
Most of these studies have been conducted in the last decade (17 studies). Table 3 presents
a summary of the types of research adopted and the industries investigated in the Asian and
non-Asian studies in our sample. The majority are quantitative studies (e.g. Ahmed, Rafiq, and
Saad 2003; Chow, Lai, and Loi 2015; Kim, Song, and Lee 2016). There are two exploratory
studies; one qualitative case study used interviews (Ng, Fang, and Lien 2016) and the other used
triangulation (Budhwar et al. 2009). The use of quantitative methods implies that, among the
Asian studies, the primary emphasis is testing the strength and persistence of relationships
Table 3. Comparison of research type and industry across asia and rest of the world.
Region
Asia
N
Non-Asia
N

Research Type

Sector/Industry

Quantitative
19

Qualitative
1

Mix
1

Service

20

Manufacturing
0

Multi-sectoral
2

27

12

0

34

2

2


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between internal marketing and other constructs, hence providing a broader and macro-level
understanding of the concept. However, qualitative approach has received more attention in
the non-Asian context (12 studies), capturing the richness and depth of contextual meaning
and providing a more informed basis for theory building. Therefore, more qualitative research is
needed for the Asian context to obtain a more micro-level and detailed picture of experiences,

practices, and motives involved in the internal marketing phenomenon.
The majority of the data acquired by both Asian and non-Asian studies come from the
service sector. In Asia, the most frequently investigated industries in the service sector are
finance (6 studies) and hospitality (5 studies), and there is a similar pattern in the nonAsian studies. Two studies from Asia used cross-sectoral data (see Table 3) to investigate
the influence of internal marketing on business performance (Ahmed, Rafiq, and Saad
2003), knowledge-sharing (Tang, Chang, & Cheng, 2017), and organizational competitiveness (Jahanshahi and Bhattacharjee 2019). However, these studies used aggregated
samples for their investigations and did not draw any comparison between service and
manufacturing firms in terms of the role and impact of internal marketing.
Ahmed, Rafiq, and Saad (2003) researched manufacturing (80% of the sample) and services
(20% of the sample) organizations in Malaysia. They adopted resource-based theory and
propose that the result of the internal marketing programme is organizational competencies
that include market-oriented behaviour, employee satisfaction and individual competencies.
The study found that organizational competencies mediate the relationship between internal
marketing programmes and organizational performance, without drawing conclusions on
cross-sector context. Tang, Chang, and Chen (2017) applied social exchange theory in their
investigation of the relationship between internal marketing practices and the knowledgesharing behaviour of expatriates working at various enterprises in Ho Chi Minh City, Vietnam. In
their study sample, 35% of the participants were from the manufacturing sector, and the
remainder were from the services sector. The findings indicate that internal marketing activities
positively influence knowledge-sharing behaviour.
There are two cross-sectoral studies in a non-Asian context. One used cross-sectoral data for
the development of an internal marketing instrument (Foreman and Money 1995); and
the second (Podnar and Golob 2010) sampled an equal number of manufacturing and service
organizations to investigate the implementation and role of internal marketing (as flexible work
practices). The findings show that service organizations are more aware of internal marketing in
relation to friendly flexible work practices, and it is more widely used to create a supportive
environment. Manufacturing companies, on the other hand, predominantly use higher proportions of unfriendly forms in their work arrangements. This comparative analysis is missing
among cross-sectoral Asian studies and provides opportunities for future research.
Table 4 presents the key findings from studies conducted in Asia. These studies show
that internal marketing positively influences employee job satisfaction (Chiu, Cho, and
Won 2014; Ieong and Lam 2015; Shiu and Yu 2010; Turkoz and Akyol 2008), which leads to

positive customer outcomes (Park and Tran 2018; Tansuhaj, Wong, and McCullough 2007;
Turkoz and Akyol 2008). Ng, Fang, and Lien (2016) explored the role of trust and
commitment in internal marketing effectiveness. They found that both trust and commitment moderate the relationship between internal marketing practices (training, motivation, company vision and goals, co-optation, and communication) and internal marketing
effectiveness. Kim, Song, and Lee (2016) studied employees at a casino company in Seoul,
South Korea, and report that internal marketing practices improve desirable employee


16

F. S. QAISAR AND N. MUHAMAD

Table 4. Empirical research on internal marketing in Asia.
Sr. No.
Study
Findings
1
Ahmed, Rafiq, and Saad (2003) Internal marketing mix strongly related to business
performance.
Organizational competencies mediate the relationship
between the internal marketing mix and business
performance.
2
Tansuhaj, Wong, and
Domestic banks perceived as having better practices of
McCullough (2007)
internal marketing by their employees than foreign banks.
Domestic banks received a higher level of customer
satisfaction than the foreign bank.
Internal marketing improves the quality of service.
3

Karasa et al. (2008)
Internal marketing improves employee satisfaction, that
4
Turkoz and Akyol (2008)
consequently increases customer satisfaction.
5
Budhwar et al. (2009)
Well-structured and rationalized internal marketing
approach can significantly improve employee relations
with management and overall organizational
competitiveness and performance.
6
Shiu and Yu (2010)
Organizations with high levels of customer-oriented culture
have a high implementation of internal marketing.
Internal marketing positively influences job satisfaction
and organizational performance.
Internal marketing has a positive direct effect on market
7
Awwad and Agti (2011)
orientation.
Internal marketing indirectly affects market orientation
through organizational commitment and organizational
citizenship behaviour.
8
Fu (2013)
Surface acting and deep acting reveals a partially mediating
effect on the relationship between internal marketing and
customer-oriented behaviour.
9

Ferdous and Polonsky (2014) Front line employees’ organizational identification and job
satisfaction mediate the relationship between their
perceived internal market orientation and customeroriented behaviour.
10
Chiu, Cho, and Won (2014)
Internal marketing positively influences employee job
satisfaction, that leads to employee organizational
commitment.
The internal marketing orientation is positively associated
11
Chow, Lai, and Loi (2015)
with travel agents’ customer service behaviour only when
the leader-member exchange is low.
Management commitment to internal marketing positively
12
To, Martin, and Yu (2015)
affects employee work attitudes.
Internal marketing practices partially mediates the
relationship between Management commitment to
internal marketing and employee work attitudes.
13
Ieong and Lam (2015)
Internal marketing has a positive effect on employee job
satisfaction that in turn, will positively influence job
performance.
Employees’ perceptions of internal marketing are positively
14
Kim, Song, and Lee (2016)
related to their organizational commitment and
negatively to their turnover.

Internal marketing has a positive effect on job satisfaction
15
Bailey, Albassami, and Aland employee commitment to the bank.
Meshal (2016)
Commitment and trust among management and employees
16
Ng, Fang, and Lien (2016)
will moderate the relationship between internal
marketing practices and internal marketing effectiveness
that would lead to improved customer quality and
satisfaction.
17
Tang Chang and Cheng (2017) Internal marketing positively influences knowledge sharing.
Work-role adjustment partially mediates the relationship
between internal marketing and knowledge sharing.
18
Park and Tran (2018)
Internal marketing positively influences employee
performance that partially mediates the relationship
between internal marketing and customer outcomes.

Country
Malaysia

Thailand

Turkey
Turkey
India

Taiwan

Jordan

Taiwan
Bangladesh

Taiwan
Hong Kong –
China
Macao SAR,
China

Macao SAR,
China
South Korea
Saudi Arabia
Taiwan &
Singapore

Vietnam
Vietnam

(Continued)


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Table 4. (Continued).
Sr. No.

Study

19

Jahanshahi and Bhattacharjee
(2019)

20

Tang et al. (2020)

21

Huang, Rundle-Thiele, and
Chen (2019)

22

Nart et al. (2019)

Findings
Internal marketing enhances employee’s positive work
attitudes in the workplace and negatively impacts on
employees’ intention to leave.
Internal marketing directly and positively influences
happiness.
Internal marketing practices influence employees’

satisfaction with the budget airline, which in turn will
enhance competitive advantage.
Internal marketing practices foster customer-contact
employees’ genuine emotions displayed in service
encounters. Internal marketing practices and genuine
emotions boost employees’ customer-oriented
behaviours.

Country
Bangladesh
Asia
China
Turkey

work attitudes in terms of organizational commitment, which decreases turnover intention. Huang, Rundle-Thiele, and Chen (2019) studied a budget airline in China and found
that internal marketing positively influenced flight attendants’ job satisfaction.
Jahanshahi and Bhattacharjee (2019) researched employees from 82 public sector organizations in Bangladesh and conclude that internal marketing positively affects employee
work attitudes and firm competitiveness.

5. Discussion
The literature review has demonstrated that internal marketing offers promising outcomes for the organization, if implemented correctly. Internal marketing has an interdisciplinary approach and requires the integration of both human resource management
principles and marketing practices. Although there is no consensus on the definition of
internal marketing or even an operational definition, its underlying proximal and distal
objectives are clear: a satisfied and motivated workforce; satisfied and loyal customers;
and enhanced organizational performance (sustainable performance and competitive
advantage). The primary beneficiary of internal marketing is the employees, who will
pass down those benefits along the service-profit chain to customers and, ultimately, to
the organization.
There has been considerable debate around the conceptualization of internal marketing. There are almost 43 definitions of internal marketing (Huang 2019; Huang and
Rundle-Thiele 2015) and scholars and academicians are yet to agree on one option.

Scholars have taken three types of approach to these conceptualizations: behaviouralinstrumental, mechanistic, and holistic. Table 5 cites the approaches used to conceptualize internal marketing by the non-empirical studies in the sample. The most common
remains the behavioural-instrumental approach, with internally directed programmes
that organizations implement to satisfy their employees through job products, intended
eventually to achieve external market objectives (Gounaris 2006, 2008). The mechanistic
approach proposed by Gummesson (1987) emphasizes the interdependence of employees in the value-creation chain. Internal marketing is intended to improve the internal
supplier-customer relationship to increase productivity and customer satisfaction. The


18

F. S. QAISAR AND N. MUHAMAD

Table 5. Approaches to internal marketing conceptualization.
Approach
Behavioural-Instrumental

Mechanistic
Holistic

Contributing Studies
(Berry 1981, 1987; MacStravic 1985; Berg 1986; Flipo 1986; Tansuhaj, Randall,
and Mccullough 1988; Grönroos 1990; Piercy and Morgan 1990; Hales 1994;
Piercy 1995; Mitchell and Taylor 1997; Lings 2004; Ferdous, Herington, and
Merrilees 2013; George 2015; Boukis 2019)
(Cahill 1995; Ballantyne 2003)
(Jones 1986; George 1990; Rafiq and Ahmed 1993; Greene, Walls, and Schrest
1994; Grönroos 1995; Varey 1995; Varey and Lewis 1999; Rafiq and Ahmed
2000; Ahmed & Rafiq, 2003)

N

14

2
9

holistic approach combines both the behavioural and mechanistic approaches. Here,
internal marketing promotes the interdepartmental integration to improve the organization’s coordination and achieve its external marketing goals. Greene, Walls, and Schrest
(1994); Varey (1995); and Varey and Lewis (1999) each took this holistic approach to their
conceptualizations of internal marketing.
These differing orientations and diverse viewpoints have led to inconsistencies in the
operational definitions of internal marketing. These inconsistencies have resulted in
a plethora of measures, several of which are commonly used in the literature (see Table 6).
The most commonly used is internal communication (n = 32). Effective management of internal
communication processes provides role clarity to employees for achieving organizational goals,
thus improving employee productivity and relationships with the employer (Boukis et al. 2015;
Kadic-Maglajlic, Boso, and Micevski 2018; Rundle-Thiele 2015). The second most commonly
used measure is training (n = 27). Organizations offer necessary training to develop the skills
and capabilities that their employees’ job descriptions require and to fulfil their growth and
development needs. The third most commonly used dimension is the reward system (n = 25),
followed by empowerment and internal market research (n = 12 each).
This review also synthesizes the themes researched by previous scholars. For example,
to date, research into internal marketing has been conducted in 27 countries (see Table 7).
Studies from Asia account for 35% of these, and most come from East Asian countries:
China (4 studies), Taiwan and Turkey (3 studies each), and Vietnam (1 study). Research
from Europe and North America comprises 48% of the sample. In Europe, most studies
come from the UK (11); and in North America, most are from the USA (7).
Table 8 summarizes the industries and sectors previously investigated in internal
marketing research. The service sector leads the list, with 90% of the total sample.
Within the service sector, the most frequently investigated industries are finance and
banking (18 studies), hospitality (10 studies), and healthcare and retail (5 studies each).

Investigations into other service industries – such as information technology, media,
consultancy, and education – would also be useful. The dearth of studies in the manufacturing area (FMCGs, textiles, and machinery) and of comparative multi-sector studies
opens up opportunities for new avenues of multi-sector and manufacturing research.
Table 9 lists the methods most commonly used in internal marketing research. The
most common approach is quantitative (46 studies), using the survey method. The
statistical methods employed include structural equation modelling, regression, t-test,
ANOVA, and hierarchical linear modelling. Qualitative research, such as single and multiple case studies, and interviews are less common (13 studies). Only one study adopted


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Table 6. Frequently used dimension of internal marketing in empirical studies.
Dimensions
Internal
Communication

N
Studies
32 (Hogg, Carter, and Dunne 1998; Gummesson 1987; Hales and Mecrate-Butcher 1994;
Ahmed, Rafiq, and Saad 2003; Tansuhaj, Wong, and McCullough 2007; Karasa et al.
2008; Turkoz and Akyol 2008; Awwad and Agti 2011; Huang and Rundle-Thiele 2014;
Ferdous and Polonsky 2014; Chiu, Cho, and Won 2014; Narteh and Odoom 2015; Huang
and Rundle-Thiele 2015; To, Martin, and Yu 2015; Ieong and Lam 2015; Kim, Song, and
Lee 2016; Kanyurhi and Akonkwa 2016; Bailey, Albassami, and Al-Meshal 2016; Tang
Chang and Cheng 2017; Kadic-Maglajlic, Boso, and Micevski 2018; Mainardes,
Rodrigues, and Teixeira 2019; Park and Tran 2018; Ali 2012; Tang et al. 2020; Huang,
Rundle-Thiele, and Chen 2019; Nart et al. 2019; Boukis and Gounaris 2014; Gounaris
2006; Gounaris 2008; Tortosa, Moliner, and Sánchez 2009; Lings and Greenley 2010;

Gounaris, Vassilikopoulou, and Chatzipanagiotou 2010)
Training
27 (Hogg, Carter, and Dunne 1998; Cooper and Cronin 2000; Ahmed, Rafiq, and Saad 2003;
Tansuhaj, Wong, and McCullough 2007; Karasa et al. 2008; Turkoz and Akyol 2008;
Awwad and Agti 2011; Huang and Rundle-Thiele 2014; Chiu, Cho, and Won 2014;
Narteh and Odoom 2015; Huang and Rundle-Thiele 2015; Ieong and Lam 2015; Kim,
Song, and Lee 2016; Kanyurhi and Akonkwa 2016; Bailey, Albassami, and Al-Meshal
2016; Kadic-Maglajlic, Boso, and Micevski 2018; Mainardes, Rodrigues, and Teixeira
2019; Park and Tran 2018; Tang et al. 2020; Huang, Rundle-Thiele, and Chen 2019; Nart
et al. 2019; Boukis and Gounaris 2014; Gounaris 2006; Gounaris 2008; Tortosa, Moliner,
and Sánchez 2009; Lings and Greenley 2010; Gounaris, Vassilikopoulou, and
Chatzipanagiotou 2010)
Rewards system
25 (Caruana and Calleya 1998; Ahmed, Rafiq, and Saad 2003; Peltier, Nill, and Schibrowsky
2004; Tansuhaj, Wong, and McCullough 2007; Turkoz and Akyol 2008; Panigyrakis and
Theodoridis 2009; Shiu and Yu 2010; Awwad and Agti 2011; Narteh and Odoom 2015;
Joung et al. 2015; Ieong and Lam 2015; Kanyurhi and Akonkwa 2016; Bailey, Albassami,
and Al-Meshal 2016; Frye et al. 2019; Mainardes, Rodrigues, and Teixeira 2019;
Jahanshahi and Bhattacharjee 2019; Park and Tran 2018; Chow, Lai, and Loi 2015;
Foreman and Money 1995; Boukis and Gounaris 2014; Gounaris 2006; Gounaris 2008;
Tortosa, Moliner, and Sánchez 2009; Lings and Greenley 2010; Gounaris,
Vassilikopoulou, and Chatzipanagiotou 2010)
Empowerment
12 (Hales and Mecrate-Butcher 1994; Ahmed, Rafiq, and Saad 2003; Peltier, Nill, and
Schibrowsky 2004; Turkoz and Akyol 2008; Ferdous and Polonsky 2014; Narteh and
Odoom 2015; Kanyurhi and Akonkwa 2016; Bailey, Albassami, and Al-Meshal 2016; Frye
et al. 2019; Mainardes, Rodrigues, and Teixeira 2019; Park and Tran 2018; Ali 2012)
Internal market
12 (Huang and Rundle-Thiele 2014; Huang and Rundle-Thiele 2015; Kadic-Maglajlic, Boso,
and Micevski 2018; Ali 2012; Huang, Rundle-Thiele, and Chen 2019; Nart et al. 2019;

research
Boukis and Gounaris 2014; Gounaris 2006; Gounaris 2008; Tortosa, Moliner, and
Sánchez 2009; Lings and Greenley 2010; Gounaris, Vassilikopoulou, and
Chatzipanagiotou 2010)
Management support/ 11 (Chiu, Cho, and Won 2014; Kim, Song, and Lee 2016; Frye et al. 2019; Park and Tran 2018;
Tang et al. 2020; Boukis and Gounaris 2014; Gounaris 2006; Gounaris 2008; Tortosa,
concern
Moliner, and Sánchez 2009; Lings and Greenley 2010; Gounaris, Vassilikopoulou, and
Chatzipanagiotou 2010)
Development
9 (Caruana and Calleya 1998; Ahmed, Rafiq, and Saad 2003; Turkoz and Akyol 2008; Shiu
and Yu 2010; Joung et al. 2015; Ieong and Lam 2015; Jahanshahi and Bhattacharjee
2019; Chow, Lai, and Loi 2015; Foreman and Money 1995)
Vision
8 (Caruana and Calleya 1998; Shiu and Yu 2010; Awwad and Agti 2011; Joung et al. 2015;
Ieong and Lam 2015; Jahanshahi and Bhattacharjee 2019; Chow, Lai, and Loi 2015;
Foreman and Money 1995)
Physical environment 3 (Ahmed, Rafiq, and Saad 2003; Turkoz and Akyol 2008; Frye et al. 2019)
Senior leadership
2 (Ahmed, Rafiq, and Saad 2003; Turkoz and Akyol 2008)

a mixed methods approach, triangulating interviews and surveys. On this basis, the
current paper makes various propositions for future internal marketing research.


20

F. S. QAISAR AND N. MUHAMAD

Table 7. Coverage of Research Regions/countries in Empirical Studies during 1987–2020.

Region
East Asia
South-East Asia
West Asia
South Asia
Unknown
Asia (Total)
Europe
North America
Australia
Africa
South America
Multi-continental/region
Total

Countries
Taiwan, Hong Kong, China, South Korea
Malaysia, Thailand, Vietnam,
Turkey, Jordan, Saudi Arabia
India, Bangladesh
UK, Malta, Germany, Greece, Spain, France, Sweden
USA, Canada
Australia
Ghana, Egypt, DR-Congo
Brazil
Europe, USA, Canada & New Zealand/Singapore & Taiwan

Frequency
8
4

5
3
1
21
21
8
4
3
1
2
60

Percentage

35
35
13.33
6.66
5
1.66
3.33
100

Table 8. Industry Context of the Study from 1987–2020.
Sector
Services

Industry
Finance
Hospitality

Healthcare
Retail
Travel
Insurance
Inter-sectoral
Professional Services
Education
Sports
Logistics
Call Centre
NPO

Service – Total
Manufacturing
Manufacturing – Total
Cross-sectoral
Total

Telecom
Iron foundry
Services & Manufacturing

Frequency
18
10
5
5
4
3
3

1
1
1
1
1
1
53
1
1
2
4
60

Percentage
30.00
16.67
8.33
8.33
6.67
5.00
5.00
1.67
1.67
1.67
1.67
1.67
1.67
90.00
1.67
1.67

3.33
6.67
100

Table 9. Methods used by Internal Marketing Studies (1981–2020).
Research
Methodology
Quantitative

Qualitative
Mix-Methodology
Theoretical &
Conceptual
Total

Techniques Used
Survey, Descriptive statistics, Correlations, Structural equation modelling, Linear regression,
Multiple regression, Hierarchical regression, OLS regression, Moderated regression
analysis, Factor analysis, Mann-Whitney U test, t-test, Chi-square test, Sobel test, Cluster
analysis, ANOVA, Hierarchical linear modelling, Multi-sample analysis, Hayes’s
bootstrapping process.
Single case study, Multiple case study, In-depth interviews, Semi-structured interviews,
Grounded theory, Thematic analysis, Template analysis, Content analysis, Action research
Triangulation approach, In-depth interviews, content analysis, Survey, Descriptive statistics
Normative, Review, Model development

N
46

13

1
25
85

6. Going forward: future research Agenda
This literature review explores the concept of internal marketing, its evolution and underlying theoretical explanations in the extant literature, and the outcomes achieved.


ASIA PACIFIC BUSINESS REVIEW

21

Though the concept was introduced four decades ago, many areas remain unexplored.
This review employed the ‘theory, context, and method’ framework (TCM) to develop
recommendations for future research (see Figure 4).

6.1. Future directions – theory
Every marketing activity, if carried out with care and caution, will produce positive results.
Just as external marketing is concerned with identifying consumer needs and preferences
and designing products or services to exploit those needs, the same is true for internal
marketing. However, the diversity of conceptual meanings of internal marketing have
resulted in a myriad of activities as dimensions of internal marketing practices (Rafiq and
Ahmed 2000), creating confusion and measurement issues (Lings 2004). Thus, the operationalization of internal marketing remains abstruse. Researchers and practitioners face
challenges to studying and applying internal marketing due to the lack of application of
any established behavioural model to operationalize it.
The objective of internal marketing is to satisfy employee needs to ensure long-term
relationships and improved performance. However, the literature is scant on the mechanisms and frameworks for identifying employee needs to develop internal marketing
practices. This provides an opportunity for further research on improving the internal
marketing mix. To build knowledge about what internal marketing entails and how it
creates value for employees, we recommend following an established model, such as selfdetermination theory (SDT). Adopting an established framework for employee-needs

analysis would help with the crafting of a more comprehensive internal marketing
programme.

Figure 4. Internal marketing research spiral.


22

F. S. QAISAR AND N. MUHAMAD

Self-determination theory (SDT), originally developed by Deci and Ryan (1985), is an
empirically based macro theory of human motivation, development, and well-being. It
classifies motivation into two types: autonomous and controlled. Autonomous motivation
consists of intrinsic motivation and a type of extrinsic motivation in which people
recognize and identify with the value of the activity, integrating it into their sense of
self (Gilal et al. 2019a, 2019b). Controlled motivation, in contrast, consists of external
regulation and introjected motivation. It reflects external pressures, such as rewards and
threats. Introjected motivation involves internal pressures concerned with approval,
image management, and self-esteem maintenance (Deci, Olafsen, and Ryan 2017; Rigby
and Ryan 2018).
Self-determination theory (SDT) suggests that when individuals are autonomously
motivated, they enjoy greater psychological health and more effective performance, as
they engage in activities with a sense of willingness, volition, and choice (Deci and Ryan
1985, 2008; Rigby and Ryan 2018). For example, in a study of 206 volunteers from four
Belgian non-profit organizations (NPOs), Bidee et al. (2013) found that autonomous
motivation was positively correlated with work effort (Bidee et al. 2013). This high quality
(autonomous) motivator affects employees’ job satisfaction, leaving them more trusting
of the organization and displaying more positive work-related attitudes and behaviours
(Gagné and Deci 2005). Hence, for managers to motivate employees to achieve their full
potential and engage in the desired prosocial or extra-role citizenship behaviours, they

must develop an internal marketing programme that enhances employees’ autonomous
motivation.
Proposition 1: An internal marketing programme developed under the framework of selfdetermination theory (SDT) to enhance autonomous motivation will more accurately determine favourable behavioural outcomes.
For organizations to build long-term relationships with their employees, they must
move beyond satisfying only the tangible needs. Satisfying employees is not simply
a matter of providing high salaries (though this is important). The stressful and competitive work environment has led to employee demands for more holistic cultures (Grant,
O’Neil, and Stephens 2004) that attend to both their tangible and non-tangible needs and
interests for their overall well-being (Pawar 2009). Employees do not consider work to be
a simple exchange process between themselves and the organization (Lings 2004).
Employees treat work as a channel, fulfiling themselves through their tasks. Humans are
meaning-seeking, social animals and their life demands extend beyond the materialistic
aspects of their work (Beyer 1999). These employee needs can be addressed through the
basic psychological needs theory (BPNT) of SDT. This suggests that psychological wellbeing and optimal human functioning are predicted by three universal needs: autonomy,
competence, and relatedness. The need for autonomy is related to the experiences of
volition and psychological freedom. The need for competence is satisfied by experiences
of effectiveness, growth, and success. The need for relatedness is concerned with experiences of belonging and connection (Gilal et al. 2020b; Ryan and Deci 2020).
If managers can satisfy employees’ basic psychological needs, this will enhance
employees’ well-being and improve their experiences of the firm. As a result, employees’
value perceptions will be enhanced, giving rise to favourable behavioural intentions


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(Boukis 2019). Organizations can facilitate the satisfaction of basic psychological needs
with internal marketing programmes that include opportunities for growth and development, achievement, recognition, empowerment, feedback, knowledge and mastery,
meaning, and self-fulfilment (Papasolomou-doukakis 2012; Sukati, Abu Bakar, and
Rohaizat 2013). An internal marketing programme that satisfies employees’ psychological
needs will produce a more motivated, satisfied, and competent workforce, which reciprocates with more productive and prosocial behaviours. Based on this discussion, we

propose the following:
Proposition 2: An internal marketing programme that meets employees’ basic psychological
needs for autonomy, competence, and relatedness will improve performance and well-being.
Another area for future research is leadership. Leadership plays an essential part in
the achievement of internal marketing objectives. To, Martin, and Yu (2015) investigated the impact of management commitment to internal marketing on employee
attitudes. They found that managers’ attitudes to internal marketing significantly
affect employee attitudes. Chow, Lai, and Loi (2015) studied the moderating effects
of leader-member exchange on internal-market orientation and customer-service
behaviour. They found that when exchange quality is low, internal-market orientation
becomes mandatory and positively influences the customer-service behaviour of travel
agents.
Leadership is a well-researched area in the organizational behaviour context. However,
its application in relation to internal marketing has received less attention, and there are
calls for replication and advancement from different perspectives. Therefore, it would be
valuable to investigate the role of the leader in the internal service profit chain. Such
research would provide academicians and practitioners with knowledge about leader
behaviours, attitudes, and motivational orientations that could enhance the positive
influence of internal marketing on employee, customer, and ultimately organizational
outcomes.
Proposition 3: Leadership characteristics (behaviours, attitudes, and motivational orientations) are important to the success of internal marketing.
There is a lack of research on the role of organizational characteristics in internal marketing.
Kadic-Maglajlic, Boso, and Micevski (2018) found that cross-functional connectivity moderates
the relationship between internal marketing and cross-functional goal compatibility, which
leads to customer satisfaction. Ng, Fang, and Lien (2016) found that commitment and trust in
the management-employee relationship moderates the relationship between internal marketing practices and internal marketing effectiveness. Papasolomou and Vrontis (2006a), in their
qualitative case study research on banking organizations in the UK, found that mechanistic and
bureaucratic organizational structures hinder the application and potential effectiveness of
internal marketing practices. However, the studies mentioned above cannot be generalized due
to their limited samples and exploratory nature; thus, there is a need for further explanatory
research in this area.

Findings on other organizational characteristics – such as organizational climate,
culture, strategy, and team dynamics – could offer valuable insights in this area, enabling


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F. S. QAISAR AND N. MUHAMAD

scholars to identify the organizational characteristics that are likely to facilitate the
objectives of internal marketing. Internal marketing alone is insufficient to bring about
the desired change (Papasolomou and Vrontis 2006b). A fundamental rethink of organizational systems and structures can influence the productivity and effectiveness of internal marketing.
Proposition 4: Organizational characteristics (climate, culture, structure, strategy, and team
dynamics) influence the effectiveness of internal marketing.

6.2. Future directions – context
This section discusses opportunities for future research into industry type and geographical location. Since the concept of internal marketing emerged from the services
marketing area, most empirical research comes from the services industry. The two
most common service sectors researched are finance (e.g. banks and insurance companies) and hospitality (e.g. hotels, casinos, and restaurants). Most of the studied organizations employed the B2C business model. Despite the interest of scholars, many service
industries remain underexplored, including those associated with information technology, consulting, wellness, and sports. Research into manufacturing and the B2B business
model is minimal. Studies of these two contexts – or cross-sectoral studies – will provide
valuable insights into their differences and similarities in terms of implementation and
outcomes of internal marketing. These gaps lead us to the following proposition:
Proposition 5: An investigation of internal marketing across various sectors would highlight
the similarities and differences between the implementation and effectiveness of their internal marketing.
Another contextual setting that could be considered by future studies is geographical
location. In the reviewed articles, we found that research has primarily been conducted in the
Western cultural context, specifically Europe and North America. The uniformity of the geographical research context provides the opportunity to study a more varied geographical
context. Research in Asia is limited to a small number of countries. Therefore, we suggest
expanding the scope to other Asian countries. Replicating studies across different cultures
would enable the generalization of findings. There is also potential for comparative studies on

internal marketing within specific industries in developed and developing countries, enabling
scholars to make comparisons and determine the similarities and differences. Future research
could use cultural frameworks such as Hofstede’s cultural dimensions to investigate differences
in internal marketing implementations and outcomes.
Proposition 6: The implementation of internal marketing programmes and their outcomes
will vary across different cultures.

6.3. Future directions – method
There are four types of study in our sample: quantitative, qualitative, mixed methods, and
theoretical or conceptual (see Table 9). The majority are quantitative, using cross-sectional