Enhancing firm performance through internal market orientation and employee organizational commitment

Qionglei YU*, Dorothy A. YEN, Bradley R. BARNES, Yu An HUANG

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

46 Citations (Scopus)

Abstract

Considering the importance of retaining key staff and managing the negative impact of high labor turnover on firm performance, this study investigates the notion of internal market orientation (IMO) as an employee management tool for helping companies retain employees and leverage performance via their organizational commitment. Drawing on data from three different managerial respondents in 275 companies based in China, the findings demonstrate the precedential effect of IMO on corporate performance through employees’ organizational commitment and retention. Interdepartmental relationship and interdepartmental communication, together with ownership types are identified as potential moderating variables, which may vary IMO’s effectiveness in the framework. This study provides scholars and practitioners with empirical evidence of IMO’s contribution to different industries and markets. Building on a western perspective, this study extends the literature in an emerging market context and specifically has implications for managing Chinese employees.

Original languageEnglish
Pages (from-to)964-987
Number of pages24
JournalInternational Journal of Human Resource Management
Volume30
Issue number6
Early online date7 Oct 2017
DOIs
Publication statusPublished - 26 Mar 2019
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2017, © 2017 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

Keywords

  • China
  • employee retention
  • firm performance
  • Internal market orientation
  • organizational commitment

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