The source of competitive advantage: Internal marketing

Abstract

The paper investigates how an organization gains the competitive advantage through internal marketing (IM) for hospital sectors in Korea. In addition, this article analyzes the moderating role of CSR authenticity between EM and internal customer satisfaction. A confirmatory factor analysis validated the measurement model, and subsequently, structural equation modeling tested the proposed model by using SPSS 20.0 and AMOS 18.0. The results of paper showed that internal marketing is a good indicator for internal customer satisfhction. Customer satisfaction also has a positive effect on competitive advantage. Furthermore, the moderating role of CSR authenticity between lM and internal customer satisfaction is supported. Based on the results, this study makes a contribution to the internal marketing literature because it confirms that five sub-dimensions of TM (internal communication, training & education, reward system, empowerment, and leadership) are the essential factors to satisf' internal customer. In addition, we proposed that internal customer satisfaction through effective IM mix is more likely to be in a competitive advantage. In the view of management, we find out that one of the privileged means of developing competitive advantage is to practice the effective mix of IM with top or middle managers' understanding of the value of implementing an lM program. A limitation on the study is its focus on several public hospital centers. En the future, additional research is needed to examine another sub-dimensions of IM related to organizational performance as well as difference between public and private hospital sectors. ? 2017 International Information Institute.