Effects of Internal Marketing on Organizational Performance in Ethio Telecom, Head Office Addis Ababa, Ethiopia

Abstract

Internal marketing stress the importance of the Marketing concept, internally, within the firm, by focusing on the employees and providing a source of competitive advantage. Empowered and satisfied employees will provide excellent service and highly contribute for the success of a business. This research examined the effects of internal marketing on organizational performance at Ethio telecom at Addis Ababa. To achieve the objectives of this study descriptive survey and explanatory research design was used. Data was collected through questionnaire from a sample of 293 employees that were selected using simple random sampling method. The data collected from the questionnaire were analyzed using statistical tools such as mean, standard deviation, correlation, and multiple regression analysis. The results of this study indicate that, internal marketing practice dimensions such as (motivation, training, empowerment, and communication) have positive and significant relationship with organizational performance. The finding of the study indicates also that employees were moderately satisfied with the internal marketing dimension and organizational performance. The results also indicate that, the four internal marketing dimensions (motivation, training, empowerment, and communication) have positive and significant effect on organizational performance. Furthermore, the aforementioned internal marketing dimensions significantly contribute 49.2% to organizational performance. Based on the findings of the study, the researcher forwards sound recommendations which have to be done before, during and after assessment of internal marketing.