Is Internal Market Orientation Still a Good Strategy to Promote Business Performance? : Evidence from Taiwan

Internal market orientation, equivalent to market orientation that is known to precede the effective implementation of marketing strategies, may increase the effectiveness of market-oriented company’s response to market conditions because it allows the company’s management to better align market objectives with internal capabilities, and it can help enterprise to build managerial capabilities. The purpose of this paper is to examine the impact of internal market orientation on the application of internal performance, market orientation and external performance. We also verify the mediate effect of market orientation and internal performance on the relationship between internal market orientation and external performance. The theoretical model is tested with the linear structured equation which is consistent with partial least squares (PLS) path modeling assumptions. Data were collected from 142 dyads effective questionnaires. The research findings contribute to marketing theory by providing empirical evidence to support assumption that internal marketing has an impact on marketing success and offers an explanation by which this influence operates. Finally, according to the conceptual framework and research findings, this study is presented with implications for managers and recommendations for future research.

Key Words: Internal market orientation, Market orientation, Internal performance, External performance, PLS.

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