Abstract

Internal market orientation focuses on employees’ strategic thinking and increases the effectiveness of the company’s response to any changes in the market. This orientation also allows the company’s management team to align its market objectives with internal capabilities in order to enhance the managerial performance. The goal of this study was to construct an integrative framework and explore the effects of internal market orientation, market orientation, employee satisfaction and customer satisfaction within the organization. The authors also verified the mediating role of market orientation on the relationships among internal market orientation, employee satisfaction (ES) and customer satisfaction. This proposed theoretical model was tested with the linear structured equation model (SEM), as being consistent with the partial least squares (PLS) path modeling assumptions. A total of 82 valid and dyadic questionnaires were collected. The results revealed that internal market orientation positively affects market orientation, employee satisfaction and customer satisfaction; market orientation positively affects employee satisfaction. Employee satisfaction has positive effects on customer satisfaction, but market orientation does not significantly affect customer satisfaction. Furthermore, employee satisfaction is the mediator for internal market orientation and customer satisfaction. Finally, according to the conceptual framework and research findings, this study concluded with some suggestions in terms of academic and practical implications for future studies.

Key words: Internal market orientation, market orientation, employee satisfaction, customer satisfaction.