Internal marketing and the mediating role of organisational competencies

Abstract The paper proposes and empirically evaluates a new internal marketing (IM) implementation model as a framework for implementing marketing strategies. The paper proposes the concept of IM mix or a set of controllable instruments inside the organisation that can be used effectively to influence employees so that they are motivated and act in a customer‐oriented fashion. In the model organisational competencies mediate the relationship between IM mix and business performance. Additionally, the model postulates that application of marketing‐like philosophy and marketing‐like tools internally moderates the relationship between IM mix and organisational competencies. All the major hypotheses were supported by the empirical research. In particular the IM mix was shown to be a reliable measure and strongly related to business performance. The research supports the view that organisational competencies mediate the relationship between the IM mix and business performance.