HIERARCHICAL MODEL OF INTERNAL MARKETING TO PREDICT EMPLOYEE SATISFACTION AND TURNOVER INTENTION

• Published in: Journal of Applied Structural Equation Modelling Vol. 2; no. 1; pp. 44 - 58
• Main Author: Nointin, Athanasia An
• Format: Journal Article
• Language: English
• Published: Sarawak Research Society (SRS) 01.01.2018
• Subjects: employee satisfaction; internal marketing; turnover intention
• ISSN: 2590-4221; 2590-4221
• DOI: 10.47263/JASEM.2(1)05

The objective of this paper is to assess the predictive influence of internal marketing on employee job satisfaction and turnover intention of frontline employees of travel agencies in Sabah. Specifically, the study aims to investigate the extent to which each of the four dimensions of internal marketing (internal communication, reward system, working condition and training) affects employee job satisfaction and the intention to leave the organization.Conceptually, this study extends the concept of Internal Marketing by re framing it as a formative hierarchical construct and modeling its impact on job satisfaction and turnover intention. The two-stage approach was adopted in partial least square structural equation modeling to examine the hierarchical modeling of internal marketing. The findings suggest that internal marketing is a significant predictor of job satisfaction and indirectly influences employees‟ turnover intention. The conceptualization of internal marketing as reflective formative type of second order model was justified in this study. Other than the conceptual and empirical contribution, this study also offers an alternative method in modeling internal marketing of which could be adopted in future research.