Effect of Internal Market Orientation on Organizational Performance: The Case of Macao's Gaming Industry

Abstract

This study examined the effect of internal market orientation (IMO) on organizational performance, including employee job satisfaction, perceived customer satisfaction, and relative competitive position. Using responses from 220 employees in the gaming industry, a factor analysis was performed to determine the underlying structure of the IMO items and path analyses were used to determine the relationships among variables. The path analysis results showed that IMO was positively related to employee job satisfaction while employee job satisfaction was positively related to perceived customer satisfaction, then to relative competitive position. Moreover, external measures, such as positive reports of corporate reputation in the mass media and positive change in market share, were found to be positively associated with perceived customer satisfaction. Based on the findings, management in the hospitality industry can realize the importance of formal and informal communications—two core elements of IMO and how they are related to organizational performance.

Keywords:

• internal market orientation
• employee job satisfaction
• customer satisfaction
• gaming

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