The influence of internal marketing on job satisfaction in the Romanian public sector and the mediating role of empowerment
Abstract
The public sector has made significant innovations in its contemporary operations. Beyond digitisation, enhancing the processes involving public servants is necessary to provide effective service to citizens. This study examines the connection between internal marketing strategies and job satisfaction among public sector employees in Romania. Through quantitative analysis and a questionnaire-based approach, the research explores various internal marketing dimensions such as communication, training, rewards, and empowerment. Using robust statistical methods, particularly partial least squares structural equation modelling (PLS-SEM), the study explores the complex relationships between these dimensions and job satisfaction. Aligned with the principles of new public management (NPM), this research pioneers the investigation of internal marketing in the public sector. The findings reveal nuanced dynamics, demonstrating that while internal communication indirectly influences job satisfaction by empowering employees, training has a direct impact. Additionally, fair reward systems directly contribute to satisfaction, while empowerment emerges as a significant standalone factor. The study emphasises the importance of strategic programme design in communication, training and rewards, recognizing empowerment as a key driver of job satisfaction among public sector employees.
Keyword : internal marketing, job satisfaction, PLS-SEM, empowerment, new public management, public sector, communication, training, rewards
How to Cite
Bunea, O.-I., Popescu, R.-I., Corboș, R.-A., Sabie, O.-M., & Trușcă, M. I. (2025). The influence of internal marketing on job satisfaction in the Romanian public sector and the mediating role of empowerment. Journal of Business Economics and Management, 26(1), 145–163. https://doi.org/10.3846/jbem.2025.23371
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Crick, J. M. (2021). The dimensionality of the market orientation construct. Journal of Strategic Marketing, 29(4), 281–300. https://doi.org/10.1080/0965254X.2019.1677747
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Hair, J. F., Astrachan, C. B., Moisescu, O. I., Radomir, L., Sarstedt, M., Vaithilingam, S., & Ringle, C. M. (2021). Executing and interpreting applications of PLS-SEM: Updates for family business researchers. Journal of Family Business Strategy, 12(3), Article 100392. https://doi.org/10.1016/j.jfbs.2020.100392
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Huang, Y. T. (2020). Internal marketing and internal customer: A review, reconceptualization, and extension. Journal of Relationship Marketing, 19(3), 165–181. https://doi.org/10.1080/15332667.2019.1664873
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Iliopoulos, E., & Priporas, C.-V. (2011). The effect of internal marketing on job satisfaction in health services: A pilot study in public hospitals in Northern Greece. BMC Health Services Research, 11(1), 1–8. https://doi.org/10.1186/1472-6963-11-261
Johnson, D. S. (2020). Public versus private employees: A perspective on the characteristics and implications. FIIB Business Review, 9(1), 9–14. https://doi.org/10.1177/2319714519901081
Khan, M., Raya, R. P., & Viswanathan, R. (2022). Enhancing employee innovativeness and job performance through a culture of workplace innovation. International Journal of Productivity and Performance Management, 71(8), 3179–3204. https://doi.org/10.1108/IJPPM-09-2020-0466
Kjeldsen, A. M., & Van der Voet, J. (2021). Leading change in a complex public. In Managing for public service performance: How people and values make a difference (pp. 199–218). Oxford Academic. https://doi.org/10.1093/oso/9780192893420.003.0011
Kuknor, S., & Kumar, V. V. R. (2024). Impact of training and development interventions for diversity & inclusion: Proposing an organizational schema. Development and Learning in Organizations, 38(1), 16–19. https://doi.org/10.1108/DLO-11-2022-0233
Legate, A. E., Hair Jr, J. F., Chretien, J. L., & Risher, J. J. (2023). PLS‐SEM: Prediction‐oriented solutions for HRD researchers. Human Resource Development Quarterly, 34(1), 91–109. https://doi.org/10.1002/hrdq.21466
Mainardes, E. W., Rodrigues, L. S., & Teixeira, A. (2019). Effects of internal marketing on job satisfaction in the banking sector. International Journal of Bank Marketing, 37(5), 1313–1333. https://doi.org/10.1108/IJBM-07-2018-0190
Martirosyan, N. M., Bustamante, R. M., & Saxon, D. P. (2019). Academic and social support services for international students: Current practices. Journal of International Students, 9(1), 172–191. https://doi.org/10.32674/jis.v9i1.275
Naz, S., Li, C., Nisar, Q. A., Khan, M. A. S., Ahmad, N., & Anwar, F. (2020). A study in the relationship between supportive work environment and employee retention: Role of organizational commitment and person–organization fit as mediators. Sage Open, 10(2). https://doi.org/10.1177/2158244020924694
Nguyen, C. M. A., & Ha, M. T. (2023). The interplay between internal communication, employee engagement, job satisfaction, and employee loyalty in higher education institutions in Vietnam. Humanities and Social Sciences Communications, 10(1), 1–13. https://doi.org/10.1057/s41599-023-01806-8
Perez-Truglia, R. (2020). The effects of income transparency on well-being: Evidence from a natural experiment. American Economic Review, 110(4), 1019–1054. https://doi.org/10.1257/aer.20160256
Podsakoff, P. M., Bommer, W. H., Podsakoff, N. P., & MacKenzie, S. B. (2006). Relationships between leader reward and punishment behavior and subordinate attitudes, perceptions, and behaviors: A meta-analytic review of existing and new research. Organizational Behavior and Human Decision Processes, 99(2), 113–142. https://doi.org/10.1016/j.obhdp.2005.09.002
Profiroiu, A. G., Sabie, O. M., Brişcariu, R., & Nastacă, C. C. (2021). Work motivation and satisfaction of civil servants from Romania’s senate. Management Research and Practice, 13(4), 17–25.
Qin, Y. S., & Men, L. R. (2023). Exploring the impact of internal communication on employee psychological well-being during the COVID-19 pandemic: The mediating role of employee organizational trust. International Journal of Business Communication, 60(4), 1197–1219. https://doi.org/10.1177/23294884221081838
Rafiq, M., & Ahmed, P. K. (1998). A customer‐oriented framework for empowering service employees. Journal of Services Marketing, 12(5), 379–396. https://doi.org/10.1108/08876049810235423
Raiu, C., & Mina-Raiu, L. (2022). How to cope with counter-performance in public administration. The case of freedom of religion or belief during the pandemic. Transylvanian Review of Administrative Sciences, 18(66), 81–98. https://doi.org/10.24193/tras.66E.5
Ringle, C. M., Wende, S., & Becker, J. M. (2022). SmartPLS 4. Oststeinbek: SmartPLS. Retrieved January, 7, 2024, from https://www.smartpls.com
Roberson, L., Kulik, C. T., & Tan, R. Y. (2012). 19 Effective diversity training. In Q. M. Roberson (Ed.), The Oxford handbook of diversity and work. Oxford University Press. https://doi.org/10.1093/oxfordhb/9780199736355.013.0019
Rodrigues, A. P., & Pinho, C. M. J. (2010). Market orientation, job satisfaction, commitment and organisational performance: the specific case of local public sector. Transforming Government: People, Process and Policy, 4(2), 172–192. https://doi.org/10.1108/17506161011047398
Rodrigues, A. P., & Pinho, C. J. (2012). The impact of internal and external market orientation on performance in local public organisations. Marketing Intelligence & Planning, 30(3), 284–306. https://doi.org/10.1108/02634501211226276
Rodrigues, A. P., Barreira, M., Madeira, C. R., & Vieira, I. (2023). The impact of internal marketing on employee attitudes and behaviours in local public sector organisation. Tourism & Management Studies, 19(3), 41–57. https://doi.org/10.18089/tms.2023.190303
Salamoura, M., Ntamposis, V., & Gaki, E. (2020). The implementation of internal marketing in public sector organizations: The case of job satisfaction at chios police department. In A. Kavoura, E. Kefallonitis, & P. Theodoridis (Eds.), Strategic innovative marketing and tourism (pp. 861–870). Springer International Publishing. https://doi.org/10.1007/978-3-030-36126-6_95
Salem, K. M. O. (2013). The relationship between internal marketing orientation and employee job satisfaction in public sector. International Journal of Learning and Development, 3(5), 111–120. https://doi.org/10.5296/ijld.v3i5.4485
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In C. Homburg, M. Klarmann, & A. Vomberg (Eds.), Handbook of market research (pp. 587–632). Springer International Publishing. https://doi.org/10.1007/978-3-319-57413-4_15
Schmidt, S. W. (2007). The relationship between satisfaction with workplace training and overall job satisfaction. Human Resource Development Quarterly, 18(4), 481–498. https://doi.org/10.1002/hrdq.1216
Seppälä, E., & McNichols, N. K. (2022, June 21). The power of healthy relationships at work. Harvard Business Review. https://hbr.org/2022/06/the-power-of-healthy-relationships-at-work
Shiu, Y. M. & Yu, T. W. (2010). Internal marketing, organisational culture, job satisfaction, and organisational performance in non-life insurance. Service Industries Journal, 30(6), 793–809. https://doi.org/10.1080/02642060701849840
Sypniewska, B., Baran, M., & Kłos, M. (2023). Work engagement and employee satisfaction in the practice of sustainable human resource management–based on the study of Polish employees. International Entrepreneurship and Management Journal, 19, 1069–1100. https://doi.org/10.1007/s11365-023-00834-9
Tetzlaff, L., Schmiedek, F., & Brod, G. (2021). Developing personalized education: A dynamic framework. Educational Psychology Review, 33, 863–882. https://doi.org/10.1007/s10648-020-09570-w
Thai, T. D. H., Nguyen, T. T., Chen, W. K., & Tang, A. D. (2023). The roles of internal marketing and person-organization fit in hospitality employees’ life satisfaction: An integration of work and nonwork domains. Baltic Journal of Management, 18(2), 173–189. https://doi.org/10.1108/BJM-06-2022-0240
Weerakoon, C., & McMurray, A. (2021). The introduction: An overview to workplace innovation research. In A. McMurray, N. Muenjohn, & C. Weerakoon (Eds.), The Palgrave handbook of workplace innovation, (pp. 3–21). Palgrave Macmillan. https://doi.org/10.1007/978-3-030-59916-4_1
White, P. (2017). How do employees want to be shown appreciation? Results from 100,000 employees. Strategic HR Review, 16(4), 197–199. https://doi.org/10.1108/SHR-06-2017-0037
Yu, Q., Barnes, B. R., & Ye, Y. (2022). Internal market orientation, interdepartmental relationships and market performance: The pivotal role of employee satisfaction. European Journal of Marketing, 56(5), 1464–1487. https://doi.org/10.1108/EJM-11-2020-0800
Ahmed, P. K., & Rafiq, M. (2013). Internal marketing. Routledge. https://doi.org/10.4324/9780080509037
Almaslukh, F. M. O., Khalid, H., & Sahi, A. M. (2022). The impact of internal marketing practices on employees’ job satisfaction during the COVID-19 pandemic: The case of the Saudi Arabian banking sector. Sustainability, 14(15), Article 9301. https://doi.org/10.3390/su14159301
Basford, T. E., & Offermann, L. R. (2012). Beyond leadership: The impact of coworker relationships on employee motivation and intent to stay. Journal of Management & Organization, 18(6), 807–817. https://doi.org/10.5172/jmo.2012.18.6.807
Berry, L. L., Hensel, J. S., & Burke, M. C. (1976). Improving retailer capability for effective consumerism response. Journal of Retailing, 52(3), 3–14.
Bolfek, B., Milković, V., & Lukovac, M. (2017). The impact of internal communication on employee satisfaction at a workplace. Oeconomica Jadertina, 7(1), 16–27. https://doi.org/10.15291/oec.1348
Chapman, G., & White, P. (2019). The 5 languages of appreciation in the workplace: Empowering organizations by encouraging people. Moody Publishers.
Cho, Y. J., & Park, H. (2011). Exploring the relationships among trust, employee satisfaction, and organizational commitment. Public Management Review, 13(4), 551–573. https://doi.org/10.1080/14719037.2010.525033
Crick, J. M. (2021). The dimensionality of the market orientation construct. Journal of Strategic Marketing, 29(4), 281–300. https://doi.org/10.1080/0965254X.2019.1677747
Eldor, L. (2018). Public service sector: The compassionate workplace – The effect of compassion and stress on employee engagement, burnout, and performance. Journal of Public Administration Research and Theory, 28(1), 86–103. https://doi.org/10.1093/jopart/mux028
Elgoibar, P., Armstrong, R., & Euwema, M. (2022). Conflict management in the workplace. Oxford University Press. https://doi.org/10.1093/obo/9780199828340-0293
Ferlie, E. (2017). The new public management and public management studies. In R. J. Aldag (Ed.), Oxford research encylopaedia of business and management. Oxford University Press. https://doi.org/10.1093/acrefore/9780190224851.013.129
Goris, J. R., Vaught, B. C., & Pettit, J. D. (2003). Effects of trust in superiors and influence of superiors on the association between individual-job congruence and job performance/satisfaction. Journal of Business and Psychology, 17, 327–343. https://doi.org/10.1023/A:1022860224080
Grönroos, C. (1981). Internal marketing – an integral part of marketing theory (pp. 236–238). Marketing of Service, Chicago.
Hair, J. F., Astrachan, C. B., Moisescu, O. I., Radomir, L., Sarstedt, M., Vaithilingam, S., & Ringle, C. M. (2021). Executing and interpreting applications of PLS-SEM: Updates for family business researchers. Journal of Family Business Strategy, 12(3), Article 100392. https://doi.org/10.1016/j.jfbs.2020.100392
Hair, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2024). Advanced issues in partial least squares structural equation modeling (PLS-SEM) (2 ed.). Sage.
Hanaysha, J., & Tahir, P. R. (2016). Examining the effects of employee empowerment, teamwork, and employee training on job satisfaction. Procedia-Social and Behavioral Sciences, 219, 272–282. https://doi.org/10.1016/j.sbspro.2016.05.016
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115–135. https://doi.org/10.1007/s11747-014-0403-8
Huang, Y. T. (2020). Internal marketing and internal customer: A review, reconceptualization, and extension. Journal of Relationship Marketing, 19(3), 165–181. https://doi.org/10.1080/15332667.2019.1664873
Huck, S. W. (2011). Reading statistic and research. Pearson Education Inc.
Hulin, C. L., & Judge, T. A. (2003). Job attitudes. In W. C. Borman, D. R. Ilgen, R. J. Klimoski, & I. B. Weiner (Eds.) Handbook of psychology (Vol. 12, pp. 255–276). John Wiley & Sons. https://doi.org/10.1002/0471264385.wei1211
Iliopoulos, E., & Priporas, C.-V. (2011). The effect of internal marketing on job satisfaction in health services: A pilot study in public hospitals in Northern Greece. BMC Health Services Research, 11(1), 1–8. https://doi.org/10.1186/1472-6963-11-261
Johnson, D. S. (2020). Public versus private employees: A perspective on the characteristics and implications. FIIB Business Review, 9(1), 9–14. https://doi.org/10.1177/2319714519901081
Khan, M., Raya, R. P., & Viswanathan, R. (2022). Enhancing employee innovativeness and job performance through a culture of workplace innovation. International Journal of Productivity and Performance Management, 71(8), 3179–3204. https://doi.org/10.1108/IJPPM-09-2020-0466
Kjeldsen, A. M., & Van der Voet, J. (2021). Leading change in a complex public. In Managing for public service performance: How people and values make a difference (pp. 199–218). Oxford Academic. https://doi.org/10.1093/oso/9780192893420.003.0011
Kuknor, S., & Kumar, V. V. R. (2024). Impact of training and development interventions for diversity & inclusion: Proposing an organizational schema. Development and Learning in Organizations, 38(1), 16–19. https://doi.org/10.1108/DLO-11-2022-0233
Legate, A. E., Hair Jr, J. F., Chretien, J. L., & Risher, J. J. (2023). PLS‐SEM: Prediction‐oriented solutions for HRD researchers. Human Resource Development Quarterly, 34(1), 91–109. https://doi.org/10.1002/hrdq.21466
Mainardes, E. W., Rodrigues, L. S., & Teixeira, A. (2019). Effects of internal marketing on job satisfaction in the banking sector. International Journal of Bank Marketing, 37(5), 1313–1333. https://doi.org/10.1108/IJBM-07-2018-0190
Martirosyan, N. M., Bustamante, R. M., & Saxon, D. P. (2019). Academic and social support services for international students: Current practices. Journal of International Students, 9(1), 172–191. https://doi.org/10.32674/jis.v9i1.275
Naz, S., Li, C., Nisar, Q. A., Khan, M. A. S., Ahmad, N., & Anwar, F. (2020). A study in the relationship between supportive work environment and employee retention: Role of organizational commitment and person–organization fit as mediators. Sage Open, 10(2). https://doi.org/10.1177/2158244020924694
Nguyen, C. M. A., & Ha, M. T. (2023). The interplay between internal communication, employee engagement, job satisfaction, and employee loyalty in higher education institutions in Vietnam. Humanities and Social Sciences Communications, 10(1), 1–13. https://doi.org/10.1057/s41599-023-01806-8
Perez-Truglia, R. (2020). The effects of income transparency on well-being: Evidence from a natural experiment. American Economic Review, 110(4), 1019–1054. https://doi.org/10.1257/aer.20160256
Podsakoff, P. M., Bommer, W. H., Podsakoff, N. P., & MacKenzie, S. B. (2006). Relationships between leader reward and punishment behavior and subordinate attitudes, perceptions, and behaviors: A meta-analytic review of existing and new research. Organizational Behavior and Human Decision Processes, 99(2), 113–142. https://doi.org/10.1016/j.obhdp.2005.09.002
Profiroiu, A. G., Sabie, O. M., Brişcariu, R., & Nastacă, C. C. (2021). Work motivation and satisfaction of civil servants from Romania’s senate. Management Research and Practice, 13(4), 17–25.
Qin, Y. S., & Men, L. R. (2023). Exploring the impact of internal communication on employee psychological well-being during the COVID-19 pandemic: The mediating role of employee organizational trust. International Journal of Business Communication, 60(4), 1197–1219. https://doi.org/10.1177/23294884221081838
Rafiq, M., & Ahmed, P. K. (1998). A customer‐oriented framework for empowering service employees. Journal of Services Marketing, 12(5), 379–396. https://doi.org/10.1108/08876049810235423
Raiu, C., & Mina-Raiu, L. (2022). How to cope with counter-performance in public administration. The case of freedom of religion or belief during the pandemic. Transylvanian Review of Administrative Sciences, 18(66), 81–98. https://doi.org/10.24193/tras.66E.5
Ringle, C. M., Wende, S., & Becker, J. M. (2022). SmartPLS 4. Oststeinbek: SmartPLS. Retrieved January, 7, 2024, from https://www.smartpls.com
Roberson, L., Kulik, C. T., & Tan, R. Y. (2012). 19 Effective diversity training. In Q. M. Roberson (Ed.), The Oxford handbook of diversity and work. Oxford University Press. https://doi.org/10.1093/oxfordhb/9780199736355.013.0019
Rodrigues, A. P., & Pinho, C. M. J. (2010). Market orientation, job satisfaction, commitment and organisational performance: the specific case of local public sector. Transforming Government: People, Process and Policy, 4(2), 172–192. https://doi.org/10.1108/17506161011047398
Rodrigues, A. P., & Pinho, C. J. (2012). The impact of internal and external market orientation on performance in local public organisations. Marketing Intelligence & Planning, 30(3), 284–306. https://doi.org/10.1108/02634501211226276
Rodrigues, A. P., Barreira, M., Madeira, C. R., & Vieira, I. (2023). The impact of internal marketing on employee attitudes and behaviours in local public sector organisation. Tourism & Management Studies, 19(3), 41–57. https://doi.org/10.18089/tms.2023.190303
Salamoura, M., Ntamposis, V., & Gaki, E. (2020). The implementation of internal marketing in public sector organizations: The case of job satisfaction at chios police department. In A. Kavoura, E. Kefallonitis, & P. Theodoridis (Eds.), Strategic innovative marketing and tourism (pp. 861–870). Springer International Publishing. https://doi.org/10.1007/978-3-030-36126-6_95
Salem, K. M. O. (2013). The relationship between internal marketing orientation and employee job satisfaction in public sector. International Journal of Learning and Development, 3(5), 111–120. https://doi.org/10.5296/ijld.v3i5.4485
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In C. Homburg, M. Klarmann, & A. Vomberg (Eds.), Handbook of market research (pp. 587–632). Springer International Publishing. https://doi.org/10.1007/978-3-319-57413-4_15
Schmidt, S. W. (2007). The relationship between satisfaction with workplace training and overall job satisfaction. Human Resource Development Quarterly, 18(4), 481–498. https://doi.org/10.1002/hrdq.1216
Seppälä, E., & McNichols, N. K. (2022, June 21). The power of healthy relationships at work. Harvard Business Review. https://hbr.org/2022/06/the-power-of-healthy-relationships-at-work
Shiu, Y. M. & Yu, T. W. (2010). Internal marketing, organisational culture, job satisfaction, and organisational performance in non-life insurance. Service Industries Journal, 30(6), 793–809. https://doi.org/10.1080/02642060701849840
Sypniewska, B., Baran, M., & Kłos, M. (2023). Work engagement and employee satisfaction in the practice of sustainable human resource management–based on the study of Polish employees. International Entrepreneurship and Management Journal, 19, 1069–1100. https://doi.org/10.1007/s11365-023-00834-9
Tetzlaff, L., Schmiedek, F., & Brod, G. (2021). Developing personalized education: A dynamic framework. Educational Psychology Review, 33, 863–882. https://doi.org/10.1007/s10648-020-09570-w
Thai, T. D. H., Nguyen, T. T., Chen, W. K., & Tang, A. D. (2023). The roles of internal marketing and person-organization fit in hospitality employees’ life satisfaction: An integration of work and nonwork domains. Baltic Journal of Management, 18(2), 173–189. https://doi.org/10.1108/BJM-06-2022-0240
Weerakoon, C., & McMurray, A. (2021). The introduction: An overview to workplace innovation research. In A. McMurray, N. Muenjohn, & C. Weerakoon (Eds.), The Palgrave handbook of workplace innovation, (pp. 3–21). Palgrave Macmillan. https://doi.org/10.1007/978-3-030-59916-4_1
White, P. (2017). How do employees want to be shown appreciation? Results from 100,000 employees. Strategic HR Review, 16(4), 197–199. https://doi.org/10.1108/SHR-06-2017-0037
Yu, Q., Barnes, B. R., & Ye, Y. (2022). Internal market orientation, interdepartmental relationships and market performance: The pivotal role of employee satisfaction. European Journal of Marketing, 56(5), 1464–1487. https://doi.org/10.1108/EJM-11-2020-0800