||The Relationships among Internal Marketing, Job Satisfaction, Relationship Marketing, Customer Orientation, and Organizational Performance: An Empirical Study of TFT-LCD Companies in Taiwan
||The Relationships among Internal Marketing, Job Satisfaction, Relationship Marketing, Customer Orientation, and Organizational Performance: An Empirical Study of TFT-LCD Companies in Taiwan
||Institute of International Management (IIMBA--Master)(on the job class)
TFT-LCD industry has become one of the domain industries in Taiwan. It is expected that the TFT-LCD industry can achieve an annual production value of one trillion NTD in 2007. However, relevant studies regarding how internal marketing, relationship marketing, and customer orientation influence on the success of the firms operation is limited. In this research, we take Taiwan TFT-LCD industrial companies as the research objects and try to identify the interrelationship among internal marketing, job satisfaction, relationship marketing, customer orientation and organizational performance. Although these companies are classified to manufacturing industry, it is suggested that the service components could be applied for the success of business operations. Specifically, the influences of internal marketing, job satisfaction and customer orientation on relationship marketing and organizational performance are evaluated. A research model is developed based on a series of literature reviews and hypotheses developments. The research results include: (1) there are significant relationships between internal marketing, customer orientation, and relationship marketing; (2) relationship marketing has significant influences by internal marketing, job satisfaction, and customer orientation; (3) organizational performance has significant influences by job satisfaction, relationship marketing, and customer orientation.
TABLE OF CONTENTS IV
LIST OF TABLE IX
LIST OF FIGURES XI
CHAPTER ONE INTRODUCTION 1
1.1 RESEARCH BACKGROUND AND MOTIVATION 1
1.2 RESEARCH OBJECTIVES 5
1.3 RESEARCH PROCEDURES 6
1.4 RESEARCH STRUCTURES 7
CHAPTER TWO LITERATURE REVIEW 9
2.1 INTERNAL MARKETING 9
2.1.1 The Concepts of Internal Marketing 9
2.1.2 Three phases of Internal Marketing 12
2.1.3 The Implementations of Internal Marketing 14
2.2 JOB SATISFACTION 18
2.2.1 The Concepts of Job Satisfaction 19
2.3 RELATIONSHIP MARKETING 21
2.3.1 The Concepts of Relationship Marketing 21
2.3.2 The Level of Relationship Marketing 23
2.4 CUSTOMER ORIENTATION 24
2.4.1 The Concepts of Customer Orientation 24
2.4.2 The Implementation of Customer Orientation 26
2.5 ORGANIZATIONAL PERFORMANCE 27
2.6 INTERRELATIONSHIP AMONG RESEARCH CONSTRUCTS AND HYPOTHESES DEVELOPMENTS 28
2.6.1 Relationship between Internal Marketing and Job Satisfaction 28
2.6.2 Relationship between Internal Marketing and Customer Orientation 29
2.6.3 Relationship between Internal Marketing and Relationship Marketing 31
2.6.4 Relationship between Job satisfaction and Customer Orientation 32
2.6.5 Relationship between Job Satisfaction and Relationship Marketing 34
2.6.6 Relationship between Job Satisfaction and Organizational Performance 34
2.6.7 Relationship between Customer Orientation and Relationship Marketing 35
2.6.8 Relationship between Relationship Marketing and Organizational Performance 37
2.6.9 Relationship between Customer Orientation and Organizational Performance 39
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 41
3.1 THE CONCEPTUAL MODEL 41
3.2 CONSTRUCT MEASUREMENT 42
3.2.1 Internal Marketing 42
3.2.2 Job Satisfaction 43
3.2.3 Relationship Marketing 44
3.2.4 Customer Orientation 45
3.2.5 Organizational Performance 46
3.2.6 The Basic Information of Respondents 46
3.3 HYPOTHESES TO BE TESTED 47
3.4 QUESTIONNAIRE DESIGN 48
3.5 SAMPLING PLAN 49
3.6 DATA ANALYSIS PROCEDURES 49
3.6.1 Descriptive Statistic analysis 49
3.6.2 Purification and Reliability of the Measurement Variable 49
3.6.3 The Method to Compare the Difference among Variables 51
3.6.4 Canonical Correlation Analysis. 51
3.6.5Linear Regression Analysis 52
3.6.6 Structure Equation Model (SEM) 52
CHAPTER FOUR DESCRIPTIVE AND RELABILITY ANALYSIS 53
4.1 DESCRIPTIVE ANALYSIS 53
4.1.1 Characteristic of Respondents 53
4.1.2 Measurement Results for Research Variables 55
4.2 FACTOR ANALYSIS AND RELIABILITY TEST 57
4.2.1 Internal Marketing 57
4.2.2 Job Satisfaction 60
4.2.3 Relationship Marketing 60
4.2.4 Customer Orientation 63
4.2.5 Organizational Performance 64
4.3 THE COMPARISON AMONG DIFFERENT AGE, EDUCATION LEVEL, POSITION, TENURE, DEPARTMENT, AND COMPANY 65
4.3.1 The Comparison among Different Age 65
4.3.2 The Comparison among Different Education Levels 66
4.3.3 The Comparison among Different Positions 67
4.3.4 The Comparison among Different Tenure 68
4.3.5 The Comparison among Different Departments 69
4.3.6 The Comparison among Different Company 70
CHAPTER FIVE RESEARCH ANALYSIS AND RESULTS 72
5.1 INTERRELATIONSHIPS AMONG INTERNAL MARKETING, CUSTOMER ORIENTATION AND RELATIONSHIP MARKETING 72
5.2 THE RESULTS OF LINEAR REGRESSION 75
5.2.1 The Influence of Internal Marketing on Job Satisfaction 75
5.2.2 The Influence of Job Satisfaction on Organizational Performance 76
5.2.3 The Influence of Relationship Marketing on Organizational Performance 77
5.3 THE RESULTS OF STRUCTURAL EQUATION MODEL 78
CHAPTER SIX CONCLUSIONS AND SUGGESTIONS 83
6.1 RESEARCH CONCLUSIONS 83
6.2 MANAGERIAL IMPLICATIONS AND SUGGESTIONS 88
6.3 LIMITATIONS AND FUTURE RESEARCH DIRECTIONS 89
APPENDIX-1 SURVEY QUESTIONNAIRE 98
Agarwal, S., Erramilli, M. K., & Dev, C. S. (2003). Market orientation and performance in service firms: role of innovation. Journal of Service Marketing, 17(1), 68-82.
Ahmed, P. K., & Rafiq, M. (2003). Commentary internal marketing issues and challenges. European Journal of Marketing, 37(9), 1177-1186.
Allen, R. S., & Helms, M. M. (2002). Employee perceptions of the relationship between strategy, rewards and organizational performance. Journal of Business Strategies, 19, 115-139.
Armstrong, G., & Kolter, P. (2005). Marketing: An introduction. (7th ed.). Upper Saddle River, NJ: Pearson/Prentice hall.
Baker, W. E., & Sinkula, J. M. (1999). The synergistic effect of market orientation and learning orientation on organizational performance. Journal of Academy of Mar-keting Science, 27(4), 411-427.
Berry, L. L. (1980). Services marketing is different. Business, 30(3), 24-29.
Berry, L. L. (1981). The employees as customer. Journal of Retail Banking, 3(1), 33-40.
Berry, L. L. (1983). Relationship marketing. In L. L. Berry, G. L. Shostack, & G. D. Upah (Eds.), Emerging perspectives on services marketing (pp. 25-28). Chicago: American Marketing Association.
Berry, L. L., & Parasuraman, A. (1991). Marketing services: Competing through quality. New York: the Free Press.
Berry, L. L., Hensel, J. S., & Burke, M. C. (1976). Improving retailer capability for effec-tive consumerism response. Journal of Retailing, 52(3), 3-14.
Binter, M. J. (1995). Building service relationship: It’s all about promises. Journal of Academy of Marketing Science, 23(4), 246-251.
Boles, J. S., Babin, B. J., Brashear, T. G., & Brooks, C. (2001). An examination of the relationships between retail work environment, salesperson selling orientation-customer orientation and job performance. Journal of Marketing Theory and Practice, 9(1), 1-13.
Brown, T. J., Mowen, J. C., Donavan, D. T., & Licata, J. W. (2002). The customer orien-tation of service workers: personality trait influences on self and supervisor per-formance ratings. Journal of Marketing Research, 39(1), 110-119.
Cahill, D. J. (1996). The managerial implication of the learning organization: A new tool for internal marketing. Journal of Services Marketing, 9(4), 43-51.
Chang, C. C. (2006). The research on the relationship among government authority’s in-ternal marketing orientation, employee’s job satisfaction and job performance: A case study of the national tax bureau. Unpublished Master’s thesis, Tamkang University, Taipei county, Taiwan.
Chen, W. C. (2002). The relationship among organizational culture, leadership behavior, job satisfaction and organization commitment –the empirical of banks in southern Tainan. Unpublished master’s thesis, National Cheng Kung University, Tainan, Taiwan.
Christy, R., Oliver, G., & Penn, J. (1996). Relationship marketing in consumer markets. Journal of Marketing Management, 12, 175-188.
Conduit, J., & Mavondo, F. T. (2001). How critical is internal customer orientation to market orientation. Journal of Business Research, 51(1), 11-24.
Deshpande, R., Farley, J. U., & Webster Jr, F. E. (2000). Triad lessons: generalizing re-sults on high performance firms in five business-to-business market. International Journal of Research in Marketing, 17(4), 353-362.
Donovan, T. D., Brown, T. J., & Mowen, J. C. (2004). Internal benefits of service-worker customer orientation: job satisfaction, commitment and organizational citizenship behaviors. Journal of Marketing, 68, 126-146.
Dupont, R. (1998). Relationship marketing: a strategy for consumer-owned utilities in a restructured industry. Management Quarterly, 11-16.
Esteban, A., Millan, A., Molina, A., & Martin-Consuegra, D. (2002). Market orientation in service. A review and analysis’. European Journal of Marketing, 36(9), 1003-1021.
Favalgi, R. G., Whipple, T. W., Ghosh, A. K., & Young, R. B. (2005). Market orientation, strategic flexibility, and performance: implications for services providers. Journal of Service Marketing, 212-221.
George, W. R. (1977). The retailing of services – a challenging future. Journal of Retail-ing, 53(3), 85-98.
George, W. R. (1990). Internal marketing and organizational behavior: A partnership in developing customer –conscious employees at every level. Journal of Business Research, 20, 63-70.
George, W. R., & Gronroos, C. (1989). Developing customer –conscious employee at every level: Internal marketing. New York: Amacom.
Glassman, M., & McAfee, B. (1992), Integrating the personnel and marketing functions. Business Horizons, 35(3), 52-59.
Greene, W. E., Walls, G. D., & Schrest, L. J. (1994). Internal marketing: the key to exter-nal marketing success. Journal of Services Marketing, 8(4), 5-13.
Gronroos, C. (1981). Internal marketing – an integral part of marketing theory. In J. H. Donnelly & W. R. George (Eds.), Marketing of Services (pp. 236-238). Chicago: American Marketing Association.
Gronroos, C. (1983). Strategic management and marketing in the service sector. MA: Marketing Science Institute.
Gronroos, C. (1990). Marketing defined. Management Decision, 28, 5-9.
Gronroos, C. (1994). From marketing mix to relationship marketing: towards paradigm shift in marketing. Management Decision, 32(2), 4-22.
Gronroos, C. (1995). Relationship marketing the strategy continuum. Journal of the Academy of Marketing Science, 23(4), 252-255.
Gronroos, C. (1996). Relationship marketing logic. Asia-Australia Marketing Journal, 4(1), 7-18.
Gruen, T. W., Summers, J. O., & Action, F. (2000). Relationship marketing activities, commitment, and membership behaviors in professional associations. Journal of Marketing, 64(3), 34-49.
Gummesson, E. (1991). Marketing –orientation revisited: The crucial role of the part –time marketer. European Journal of Marketing, 25(2), 60-75.
Gummesson, E. (1996). Relationship marketing and imaginary organizations: a synthesis. European Journal of Marketing, 30(2), 31-44.
Hair, J. F., Black, W. C., Babin, B., Anderson, R., & Tatham, R. (2006). Multivariate Data Analysis. Upper Saddle River, NJ: Prentice.
Hartline, M. D., & Ferrell, O. C. (1996). The management of customer-contact service employees: an empirical investigation. Journal of Marketing, 60(4), 52-70.
Hartline, M. D., Maxham, J. G., III, & McKee, D. O. (2000). Corridors of influence in the dissemination of customer-oriented strategy to customer contact service em-ploys. Journal of Marketing, 64(2), 35-50.
Hoggman, K. D., & Ingram, T. N. (1992). Service provider job satisfaction and customer-oriented performance. The Journal of Service Marketing, 6(2), 68-78.
Holmlund, M., & Kock, C. (1996). Relationship marketing: the importance of customer-perceived service quality in retail banking. The Service Industries Journal, 16(3), 287-304.
Hong, J. (2005). The effects of sport property relationship marketing on consumer spon-sorship evaluation. Unpublished doctoral dissertation. University of Massachu-setts Amherst.
Horng, J. H. (2003). A study of the effects of relationship marketing on marketing per-formance of airlines’ cargo business. Unpublished master’s thesis, National Tai-wan Ocean University, Keelung, Taiwan.
Huang, H. H., Chiu, C. K., & Kuo, C. (2006). Exploring customer satisfaction, trust, and destination loyalty in tourism. Journal of American Academy of Business, Cam-bridge, 10(1), 156-159.
Huang, W. L. (2005). A thesis submitted to department of marketing and distribution management. Unpublished master’s thesis. National Kaohsiung First University of Science and Technology, Kaohsiung, Taiwan.
Hwang, I. S., & Chi, D. J. (2005). Relationships among internal marketing, employee job satisfaction and international hotel performance: An empirical study. Interna-tional Journal of Management, 22(2), 258-293.
Hwang, P. C. (2005). Internal marketing and its effects on hospitality service employees: from the perspectives of organization-based self-esteem and customer orientation. Journal of Tourism Research, 11(2), 89-112.
Ian, N. L. (1999). Balancing internal and external market orientations. Journal of Market-ing Management, 15, 239-263.
Jayawardhena, C., Souchon, A. L., Farrell, A. M., & Glanville, K. (2007). Outcomes of service encounter quality in a business-to-business context. Industrial Marketing Management, 36, 575-588.
Joseph, W. B. (1996). Internal marketing builds service quality. Journal of Health Care Marketing, 16(1), 54-59.
Kale, S. H. (2007). Internal Marketing: An antidote for Macau’s labor shortage. Gaming Research & Review Journal, 11(1), 1-11.
Keller, S. B., Lynch, D. F., Ellinger, A. E., Ozment, J., & Calantone, R. (2006). The im-pact of internal marketing efforts in distribution service operations. Journal of Business Logistics, 27(1), 109-137.
Kim, S. (2005). Individual-level factors and organizational performance in government organizations. Journal of Public Administration Research and Theory, 15(2), 254-261.
Kolter, P. (2006). Marketing management (12th ed.). Upper Saddle River, NJ: Prentice Hall.
Kolter, P.,& Kellter, K. L (2007). A framework for marketing management (3rd). NJ: Upper Saddle River.
Kuo, H. Y. (2002). The relationship among job characteristic, work attitude, work per-formance—an empirical study administration employees work on one national university. Unpublished master’s thesis, National Cheng Kung University, Tainan, Taiwan.
Lai, C. H. (2003). A study on relationship among leadership, organizational culture, learning organization and job satisfaction. Unpublished master’s thesis, National Cheng Kung University, Tainan, Taiwan.
Langerak, F. (2003). The effect of market orientation on positional advantage and organ-izational performance. Journal of Strategic Marketing, 11, 93-115
Leverin, A., & Liljander, V. (2006). Does relationship marketing improve customer rela-tionship satisfaction and loyalty? Internal Journal of Bank marketing, 24(4), 232-251.
Levins, I. (1998). One-on-one relationship marketing comes of age. Medical Marketing and Media, 33(6), 44-59.
Liao, W. J. (2006). The influences of internal marketing on organization citizenship be-havior. Unpublished master’s thesis, National Cheng Kung University, Tainan, Taiwan.
Maatear, S., Osborne, P., Garrett, T., & Gray, B. J. (2002). How does market orientation contribute to service firm performance? An examination of alternative mecha-nisms’. European Journal of Marketing, 36 (10), 1058-1075.
Matsuno, K., & Mentzer, J. T. (2000). The effects of strategy type on the market orienta-tion-performance relationship. Journal of Marketing, 64(4), 1-16.
McCracken, M. J., McIlwain, T. F., & Fottler, M. D. (2001). Measuring organizational performance in the hospital industry: an exploratory comparison of objective and subjective method. Health services management research, 14, 211-219.
McNaughton, R. B., Osborne, P., Morgan, E., & Kuttwaroo, G. (2001). Market orienta-tion and firm value. Journal of Marketing Management, 17(5), 521-542.
Mittal, V., Ross, Jr. W. T., & Baldasare, P. (1998). The asymmetric impact of negative and positive attribute-level performance on overall satisfaction and repurchase in-tention. Journal of Marketing, 62(1), 33-47.
Munevver, O. C. (2006). The relationship between job satisfaction, occupational and or-ganizational commitment of academics. The Journal of American Academy of Business, Cambridge, 8(1), 78-88.
O’Mallym, L., & Tynan, C. (2000). Relationship marketing in customer markets. Rheto-ric or reality?, European Journal of Marketing, 34(7), 797-815.
Papasolomou, J., & Vrontis, D. (2006). Using internal marketing to ignite the corporate brand: The case of the UK retail bank industry. Journal of Brand Management, 14, 177-195
Payne, S. C., & Webber, S. S. (2006). Effects of service provider attitudes and employ-ment status on citizenship behaviors and customers’ attitudes and loyalty behavior. Journal of Applied Psychology, 91(2), 365-378.
Pettijohn, C. E., Pettijohn, L. S., & Taylor, A. J. (2002). The influence of salesperson skill, motivation, and training on the practice of Customer-Oriented Selling. Psy-chology & Marketing, 19 (September), 743-757.
Pugh, S. D., Dietz, J., Wiley, J. W., & Brooks, S. M. (2002). Driving service effective-ness through employee-customer linkages. Academy of Management Executive, 16(4), 73-84.
Rafiq, M., & Pervaiz, K. A. (2000). Advances in the internal marketing concept: Defini-tion, synthesis, and extension. The Journal of Services Marketing, 14(6), 449-462.
Robbins, S. P., & Judge, T. A. (2006). Organizational behavior (12th ed.). Upper Saddle River, NJ: Prentice Hall.
Robinson, J. P., & Shaver, P. R. (1973). Measures of psychological attitudes. Ann Arbor, MI: Survey Research Center Institute for Social Research, University of Michigan.
Rosenbluth, H. F. (2002). The customer comes second: Ten years later. New York: HarperCollins.
Saxes, R., & Weitz, B. A.(1982). The SOCO scale: A measure of the customer orienta-tion of salespeople. Journal of Marketing Research, 19(3), 343-351.
Schmid, H. (2002). Relationships between organizational properties and organizational effectiveness in three types of nonprofit human service organizations. Public Per-sonnel Management, 31, 377-395.
Shen, C. C., Yang, W. C., & Kuo, C. S. (2006). A study of the relationship among inter-nal marketing, organizational commitment, job satisfaction and school effective-ness-elementary schools in Tainan for example. Journal of human resource man-agement, 6(1), 47-74.
Sin, L. Y. M., Tse, A. C. B., Yau, O. H. M., Chow, R. P. M., & Lee, J. S. Y. (2005). Market orientation, relationship marketing orientation, and business performance: the moderating effects of economic ideology and industry type. Journal of Inter-national Marketing, 13(1), 36-57.
Sin, L. Y. M., Tse, A. C. B., Yau, O. H. M., Lee, J. S. Y, & Chow, R. (2002). The effect of relationship marketing orientation on business performance in a service-oriented economy. The Journal of Services Marketing, 16(7), 656-676.
Tagn, C. W. (2004). Research on the relationship among internal marketing practice, EQ, work moral, professional commitment and job performance—based on adminis-trative staff in business of stsipa as example. Unpublished master’s thesis, Nan Hua University, Chiayi, Taiwan.
Thorsten, H. T. (2004). Customer orientation of service employees-Its impact on cus-tomer satisfaction, commitment, and retention. International Journal of Service Industry Management, 15(5), 460-478.
Tomer, J. F. (1998). Beyond transaction markets, toward relationship marketing in the human firm: A socio-economic model. Journal of Socio-Economics, 27(2). 207-222.
Tse, A. C. B., Sin, L. Y. M., Yau, O. H. M., Lee, J. S. Y., & Chow, R. (2004). A firm’s role in the marketplace and the relative importance of market orientation and rela-tionship marketing orientation. European Journal of Marketing, 38(10), 1158-1172.
Wang, C. M. (2005). The relationship among internal marketing, job satisfaction, em-ployee loyalty, trust in management, organizational climate, organizational per-formance. Unpublished master’s thesis, National Cheng Kung University, Tainan, Taiwan
Wang, J. M. (2004). The relationship among leadership, job characteristic, job satisfac-tion and turnover—An empirical studying on hi-tech companies. Unpublished master’s thesis, National Cheng Kung University, Tainan, Taiwan.
Wang, W. H., Liang, C. J., & Wu, Y. D. (2006). Relationship bonding tactics, relation-ship quality and customer behavioral loyalty—behavioral sequence in Taiwan’s information services industry. Journal of Services Research, 6(1), 31-57.
Weiss, D. J., Dawis, R. V., England, G. W., & Lofquist, L. H. (1967). Manual for the Minnesota satisfaction questionnaire. Minneapolis, MN: University of Minnesota Industrial Relations Center.
Williams, M. R., & Attaway, J. S. (1996). Exploring salespersons’ customer orientation as a mediator of organizational culture’s influence on buyer-seller relationships. Journal of Personal Selling & Sales Management, 16(4), 33-52.
Winter, J. P. (1985). Getting your house in order with internal marketing: A marketing prerequisite. Health Marketing Quarterly, 3(1), 69-77.
Wu. W. Y. (2005). Business research methods (2nd ed.). Taipei: Hwatao-Tai publisher.
Yeh, S. M. (2003). The research on the relationship among internal marketing, job satis-faction and customer orientation—a case study of E.Sun commercial bank. Un-published master thesis: Chaoyang university, Taichung County, Taiwan.
Yeung, A. C. L., Cheng, T. C. E., & Chan, L. Y. (2004). From customer orientation to customer satisfaction: The gap between theory and practice. IEEE Transactions on Engineering Management, 51(1), 58-97.
Zontanos, G., & Anderson, A. R. (2004). Relatinoships, marketing and small business: an exploration of links in theory and practice. Qualitative Market Research: an In-ternational Journal, 7(3), 228-236.
Zyl, H. J. C. V., & Mathur-Helm, B. (2007). Exploring a conceptual model, based on the combined effects of entrepreneurial leadership, market orientation and relation-ship marketing orientation on South Africa’s small tourism business performance. South Africa Business Management, 38(2), 17-24.