The impact of internal marketing on the implementation of strategic orientations and product innovation in manufacturing industry
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Date
2005
Authors
Chan, Seow Hong
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Abstract
Recent studies have demonstrated the effects of internal marketing on market orientation and strategic orientations on organizational innovation performance. However, to the best of our knowledge no attempt has yet to be made to empirically test internal marketing framework that formally interrelates internal marketing, strategic orientations and product innovation. Hence, this paper is to investigate the integration model of internal marketing in enhancing strategic orientations and their effects on product innovation. The population of interest in this study consists of manufacturing firms in the Northern Region of Malaysia. Data were collected using survey approach and the analysis was based on 92 returns. The two internal marketing components identified in this research are top management support (senior leadership, rewards and training and development) and cross-functional co-ordination (inter-departmental co-ordination and internal communication). The results indicate that internal marketing positively affect strategic orientations. There are also positive relationships between strategic orientations and product innovation. The evidence implies that market orientation components (i.e. intelligence generation and responsiveness) and learning orientation component (i.e. shared vision) appear to be the pure or partial mediators in the relationship with top management support and product innovation. The findings also show that responsiveness and shared vision mediate the relationship between cross-functional co-ordination. The implication is that, managers should consider the importance of internal marketing in the strategy implementation and make the necessary organization strategic changes to achieve superior product innovation performance.
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Keywords
Business Administration , Internal Marketing , Strategic Orientations , Manufacturing Industry