Journal of Applied Structural Equation Modeling, Volume 2 Issue 1 – Published online: January 2018

HIERARCHICAL MODEL OF INTERNAL MARKETING TO PREDICT EMPLOYEE SATISFACTION AND TURNOVER INTENTION 
Athanasia An Nointin, Arshad Ayub Graduate Business School Universiti Teknologi MARA Sabah, Kota Kinabalu, Sabah, Malaysia
Corresponding Author: Athanasia An Nointin | Email: [email protected]
ABSTRACT
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 reframing 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 squares 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 a 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.
Keywords: PLS-SEM, higher order model, internal marketing, job satisfaction, turnover intention
Citation: Nointin (2018), Hierarchical model of internal marketing to predict employee satisfaction and turnover intention. Journal of Applied Structural Equation Modeling. 2(1), 44-58.

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