American Journal of Applied Sciences

The Effect of Internal Marketing on Organizational Commitment in Iranian Banks

Atousa Farzad, Nasim Nahavandi and Albert Caruana

DOI : 10.3844/ajassp.2008.1480.1486

American Journal of Applied Sciences

Volume 5, Issue 11

Pages 1480-1486

Abstract

The purpose of this research is to investigate the effects of internal marketing criteria on organizational commitment of employees among Iranian state-owned banks. Internal marketing is a planned effort using a marketing-like approach to overcome organizational resistance to change and to align, motivate and inter-functionally co-ordinate and integrate employees towards the effective implementation of corporate and functional strategies which is growing recognition with the increasing competition and commoditization of products and services. The main criteria of internal marketing were derived from the literature, provided the backbone for the study. A questionnaire survey of managers established that "inter-functional coordination and integration", training and motivation have positive effects on organizational commitment of employees. Therefore if the state-owned banks want to ultimately provide a better service experience for their customers; it is recommended that more attention be directed toward enhancing organizational commitment among personnel, with a focus on the effective criteria of internal marketing. Due to the lack of similar experience, the research findings help managers in state-owned banks network to adopt proper policies in this direction.

Copyright

© 2008 Atousa Farzad, Nasim Nahavandi and Albert Caruana. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.