Internal Marketing and Firm Performance in Hotel Businesses: The Role of Market Orientation

Abstract

The purpose of this study is to determine the role (impact) of market orientation in (on) the relationship between internal marketing practices of 3- 4- and 5-star hotels in Nevşehir and firm performance. To test the determining factors of businesses’ market orientation in various levels and to determine the strength and direction of the relationships between these factors and internal marketing dimensions are among the main purposes of this study. To examine the relationships between internal marketing and firm performance, internal marketing and market orientation, and market orientation and firm performance are the other purposes of the study. Data collected from 185 high rank and middle rank managers and department supervisors were tested through structural equation modeling and regression analyses. Findings indicate that there are direct positive relationships between market orientation and internal marketing (H₁), market orientation and firm performance (H₂), and internal marketing and firm performance (H₃). Another finding of the study is that market orientation has a mediating role in the relationship between internal marketing practices and firm performance (H₄).

Keywords: Market orientation, internal marketing, firm performance, internal customer, Nevsehir, hotel business