This study examines the effect of internal marketing (IM) on salespeople's in-role and out-of-role behaviours and how these behaviours affect customer satisfaction and sales performance. It also tests the mediating role of job satisfaction as an emotional response and adopts survey design. Data from 322 companies in Daegu and Gyeongbuk Province in the Republic of Korea are collected and used to test the conceptual model using structural equation modelling. The findings reveal that organisations’ IM strategy for motivating employees positively affects salespeople's job satisfaction and out-of-role behaviour. The results also indicate that the salespeople's out-of-role behaviour enhances customer satisfaction and sales performance. This study suggests that organisations should provide guidelines and create an organizational culture that supports various IM activities to encourage employees’ spontaneous behaviours. It is among the very few, if not the first, studies that demonstrate how companies’ IM strategies could be leveraged to enhance job satisfaction and in-role and out-of-role behaviours in employees and how these behaviours could enhance customer satisfaction and sales performance.
Small and medium-sized enterprises (SMEs) are important in the economic and social development of countries (Pereira et al., 2022; Hessels and Parker, 2013). According to McKinney (2020), SMEs account for 45% of all employment in emerging countries, 60–70% of all employment in the organisation of economic cooperation and development (OECD) countries, more than 95% of all businesses, and a significant share of new job creation.
Although SMEs create jobs, aid in the production and development of entrepreneurship, and drive export growth in almost every country worldwide (Zhu et al., 2022), many SMEs, including those in South Korea, have struggled to recruit and retain long-term employees. Consequently, the South Korean government has implemented various systems and regulations (e.g. limiting bonus payments to long-term employees) in an attempt to help SMEs. However, SMEs must fundamentally transform themselves to ensure both employee retention and long-term competitiveness. Internal marketing (IM) which is a marketing-like approach and an application of marketing-like efforts, can most effectively motivate an organisation's ‘internal market’ (i.e. its employees) to be more customer-conscious, market-oriented, and sales-minded (Grönroos, 1982).
However, most IM-related studies have focused on relationships with outcome variables, such as employee satisfaction, commitment, and customer orientation (Chiu et al., 2019; Park and Tran, 2018), and this highlights a gap in the extant literature. To address this gap, research on the relationship between IM and the voluntary activities of SME employees (which, as previously stated, account for the majority of jobs in an economy and have an increasing need for IM) should be conducted. Therefore, this study aims to empirically demonstrate whether employee roles change due to IM.
The attitude theory proposed that attitude influences intention, and thus affects behaviour. Bagozzi (1992) reformulated the attitude theory to address the limitations of previous research: attitudes and subjective norms are insufficient to stimulate intention and something else is required to play a motivating role. He also proposed that intention alone is insufficient to elicit behaviour, highlighting the need for strategic interventions, such as IM, to be used to shape and stimulate employee behaviours.
To bridge this gap, this study uses Bagozzi's (1992) reformulated theory as a theoretical lens to delve deeper into how, and to what extent, appraisal processes (e.g. IM) are strongly related to customer-oriented behaviours. According to existing research, corporate motivational activities and IM influence a wide range of employee behaviours. Therefore, we contend that job satisfaction particularly affects two types of employee behaviour: in-role and out-of-role.
Another gap that we have identified is that the majority of relevant existing research used pro-social behaviours as representative variables, such as organizational citizenship behaviour (OCB; Abzari and Ghujali, 2011; Chow et al., 2015). Nonetheless, Bettencourt et al. (2005), stated that because OCB is applied uniformly across jobs and situations, using it to explain pro-social behaviours that are limited to specific jobs and situations is difficult. They also distinguished between customer-oriented boundary-spanning behaviours (COBSBs), which are more likely to be perceived as role-prescribed, and those perceived as out-of-role. Project duration, business type, and firm size influence the business management of SMEs. Because of the steadily increasing number of SMEs and start-ups in Korea, using standardised manuals to manage all SMEs becomes challenging. Consequently, employee boundary-spanning and customer-oriented behaviours must be based on customer satisfaction and performance. However, very few studies have been conducted on SMEs’ COBSBs (Lee et al., 2019), resulting in a critical research gap that poses numerous challenges to SME managers and researchers. Thus, this study investigates COBSBs as out-of-role employee behaviours to address the limitations of previous pro-social–behavioural studies.
Prior research has examined task performance as an outcome of job satisfaction; however, researchers have yet to find a clear link between these two variables. Job satisfaction is argued to have an effect on in-role and out-of-role behaviours in this study. Particularly, in-role behaviour refers to employee behaviours that must meet the minimum performance standards to complete a task and is closely related to the compensation system in organisations (Cohen and Blecher, 2022; Van Dyne and LePine, 1998). Employee abilities, skills, and knowledge, for example, have a significant impact on in-role behaviour (Borman and Motowidlo, 1993). Conversely, out-of-role behaviour refers to positive and voluntary employee behaviours that can occur only when employees are satisfied with their jobs or when organisation members trust each other. Accordingly, we contend that IM activities can reinforce employees’ out-of-role behaviour more effectively than in-role behaviour can. This study aims to find relevant advanced knowledge by investigating the differential effects of IM on job satisfaction and employees’ in-role and out-of-role behaviours while assessing the effects of these two behaviours on marketing performance.
The rest of this paper is organised as follows. Section 2 reviews the literature on IM and COBSBs. Section 3 discusses our study's sample collection and measurement procedures, overall methodologies, and empirical findings. Finally, we present a discussion and conclusion of the paper with implications for future research in Section 4.
2Theoretical Background and Literature2.1Internal MarketingIM uses marketing principles and practices to stimulate employees to complete specific tasks (Greene et al., 1994; Palmer, 2001). George and Gronroos (1989) note that IM is an effort geared toward an organisation's ‘internal customers’ (employees) rather than external customers and that it assists them in becoming service- and customer-oriented. Similarly, Berry et al. (1991) suggest that IM aims to motivate employees within an organisation to efficiently execute strategies by creating an environment that supports them in satisfying their needs, consequently achieving customer satisfaction. Furthermore, Longbottom et al. (2006), argue that IM regards employees as internal customers and their jobs as products, and the employees’ needs are met through the companies.
Organisations use IM to meet the needs of their employees and continuously improve customer service. Employees are more motivated and committed to organisations that engage in IM activities using marketing and human resource management approaches, leading to better service to external customers (Bastida et al., 2022; Simwanza and Mabagala, 2022; Barnes et al., 2004). IM is important in organisations’ operations because it assists them in developing service- and customer-oriented employees, consequently achieving customer satisfaction and loyalty. Numerous studies found that IM improves organizational commitment, customer satisfaction, and financial performance through employee satisfaction (Awwad and Agti, 2011; Panigyrakis and Theodoridis, 2009).
Therefore, this study adopts a comprehensive approach to determine the relevant IM factors. Neither behavioural–instrumental nor mechanistic approaches can sufficiently explain the relationship between IM and out-of-role behaviour, which entails employees spending extra time and effort when they are in a special environment, either internally or externally. The validity of our study's data was ensured by the fact that the IM items were optimised for our purposes by first evaluating them holistically.
2.2Role TheoryThe roots of role theory can be traced back to the social penetration theory (Altman & Taylor, 1973), social interaction approaches to sociological thinking (Simmel, 1908), and dyadic elements of social exchange theory (Homans, 1961; Kelley & Thibaut, 1978). According to role theory, the behaviours of individuals in a social encounter primarily determine both the boundaries of social exchange and its future possibilities. An assumption underlying the use of a role-theoretical perspective for service encounters is that service provision success is contingent on the mastery of such role behaviours. A prerequisite for providing a good service experience is an actual mutual understanding of role expectations at both the client interface and organizational levels. Thus, successful salesperson–customer interactions in a professional sales environment may depend on the salesperson's understanding of how customers expect them to behave and what specific behaviours influence the customer's ability to participate in the role script (e.g. information exchanged, level of reassurance offered). Sheth (1967) used these concepts in his proposals regarding expectation formation in buyer behaviours.
Two key areas in which selling defines itself are the focus on dyadic interactions between salespeople and customers. A role-theoretical perspective, with emphasis on interactive marketing elements within service encounters, parallels this shift away from a transactional focus, which requires salespeople to go beyond the script and, at times, offer out-of-role activities to ensure a positive sales/service experience. From a research standpoint, role theory contributes to the relationship between marketing frameworks through both its contribution to our understanding of marketing exchange and the framework it provides for analysing degrees of interactivity in service performance. It also provides categories for analysing both in-role and out-of-role behaviours and how these are influenced by IM and job satisfaction.
2.3In-role and Out-of-role Behavioural PerformanceSome authors (Boateng et al., 2022; Deckop et al., 1999; MacKenzie et al., 1998) regard in-role and out-of-role performance as distinct performance metrics. Katz and Kahn (1978) coined the term ‘in-role performance’ to describe core job behaviour that directly or indirectly improves individual and organizational performance. Salespeople engage in in-role behaviours because these are specifically mentioned in job descriptions (Yap et al., 2009; Organ, 1990). An inverse relationship was found between role ambiguity and in-role performance in a meta-analysis, in which both satisfaction and performance led to organizational commitment (Brown & Peterson, 1993). In their study of 672 salespeople, MacKenzie et al. (1998) found that in-role performance was a predictor of organizational commitment and job satisfaction.
Out-of-role performance, introduced by Katz (1964), extends beyond clear-cut role requirements and is proposed to be the same as OCB by Organ (1988) and Smith et al. (1983). Out-of-role behaviours go beyond the general role requirements and hence are not explicitly specified in job descriptions (Yap et al., 2009; Organ, 1990). According to MacKenzie et al. (1998), job satisfaction is a significant predictor of out-of-role performance. Similarly, Organ (1988) asserted that job satisfaction induces out-of-role performance. In their study of sales associates, Yap et al. (2009) concluded that reward programs stimulate in-role performance at the expense of out-of-role performance. Hence, this study proposes that IM promotes job satisfaction and thus triggers salespeople's in-role and out-of-role behaviours, resulting in customer satisfaction and sales performance.
2.4Conceptual FrameworkThis study adopts Bagozzi's (1992) conceptual framework for attitude theory to create a research model. To expand on previous attitude theory, he introduced the concept of self-regulatory processes, which proceed in the following order: appraisal processes, emotional reactions, and coping responses. Accordingly, this paper proposes a conceptual framework wherein we regard IM as an appraisal process, job satisfaction as an emotional response, and in-role and out-of-role behaviours as coping responses/behaviours. Consequently, we propose that IM influences in-role and out-of-role behaviours through emotional responses (job satisfaction). Fig. 1 shows the proposed and tested models.
3Research Hypotheses
IM is a promotional campaign that communicates an organisation's vision, mission, and objectives to its employees. It was initially introduced as a human resource management practice. This concept has been developed as a marketing element (Qiu et al., 2022). Consequently, IM is considered a crucial element of a holistic marketing philosophy. Additionally, according to the relationship-mediated theory, IM is regarded a mediator in the relationship between an organisation and its customers. Further, it is rapidly being developed and enriched with management and marketing concepts. IM is now regarded a strategic operation that combines marketing and human resource management to help employees provide better service to customers (de Bruin et al., 2021).
3.1Internal Marketing and Job SatisfactionSeveral studies (Arıkan and Öztürk, 2022; Rihayana et al., 2021; Naude et al., 2003; Berry, 1981) have suggested that IM-related factors are predictors of job satisfaction. Similarly, Bansal et al. (2001) found that job satisfaction is influenced by IM factors, such as the reward system, internal communication, training, empowerment, and job security.
According to the theory of reciprocity, IM fosters a sense of job security among employees and makes them more focused on their work, which can lead to higher levels of job satisfaction (Almaslukh et al., 2022; Guest and Conway, 1999; Tsui et al., 1997). Furthermore, implementing IM through training is linked to overall job satisfaction. Job satisfaction is a significant concept in management that refers to evaluations of workplace elements, such as working conditions and career prospects (Salas-Vallina, 2018). Consequently, in this study, we argue that IM enhances employees’ job performance and accordingly propose the following hypothesis:
H1a Internal Marketing has a significant positive effect on job satisfaction.
IM factors are job resources that motivate organizational members. Employees’ active voluntary attitudes in their workplace are required for effective customer service, and IM plays a critical role in engineering these attitudes (Gronroos, 1981). IM activities, such as rewards given to employees by organisations, can influence the employees’ behaviour and increase motivation, as these activities make them feel appreciated and valued (Malik et al., 2015).
IM plays a positive role in enhancing employee emotionality in the organisation (Keller et al., 2006). Employees are actively oriented towards work roles based on their capabilities, self-determination, and the impact and meaning of their roles (Amenuvor et al., 2019; Spreitzer, 1995). If an organisation recognises its employees as internal customers and continues to carry out and promote IM activities (e.g. communication, training, and welfare), they are more motivated to execute the behaviours assigned to them by the organisation those related to their job. Therefore, we propose the following hypotheses:
H1b Internal Marketing has a significant positive impact on in-role behaviour.
IM is crucial in influencing employees’ attitudes and behaviours. According to Syptak et al. (1999), organisations can foster a sense of meaning and interest in their employees’ work by demonstrating how well they contribute to the bottom line.
Employees who participate as decision-makers in an organisation gain a psychological sense of empowerment; hence, they feel that they are valued members of ‘the team’ (Yi and Amenuvor, 2022; Kim, 2002; Eskildsen and Nussler, 2000). When employees have a strong sense of belonging to an organisation and identify with it, they believe that they can contribute to organizational productivity (Kudo et al., 2006). Employees can use IM activities to improve their organizational adaptability and work quality (Hill, 1982). Hence, they are more likely and willing to accept special responsibilities, such as anticipating problems and initiating initiatives to effect positive change (Morrison and Phelps, 1999).
Organisations first satisfy their employees through training and then incentivise those employees to satisfy customers by striving to improve the quality of their work (Mehra et al., 2011). Employees can understand the organisations’ environmental situations and social contexts surrounding task performance based on job-related knowledge systematically accumulated during the training process; thus, they can then engage in appropriate out-of-role behaviours in these situations (Borman and Motowidlo, 1993). Employees with a wealth of experience can assist newly-hired colleagues in learning about the organisation's activities, which can increase the overall efficiency and productivity (Organ et al., 2005). As IM influences employee attitudes and behaviours and promotes a higher level of customer service (Goodale et al., 1997; Morgan and Piercy, 1998), we propose the following hypothesis:
H1c Internal Marketing has a significant positive impact on out-of-role behaviour.
Previous research suggests that IM can increase in-role and out-of-role behaviours in organizational members through various motivations (e.g. empowerment, training, rewards, communication, and top management support) (Lings and Greenley, 2005; Wieseke et al., 2009; Awan et al., 2015). Consequently, if IM increases employee motivation, this motivation has an arguably greater impact on out-of-role behaviour than on in-role behaviour (Gounaris, 2008; Yang, 2010).
This position could be premised on the argument that out-of-role behaviour benefits the firm and goes beyond the formal requirements (e.g. extra hours, altruistic behaviour, and donations), whereas in-role behaviour is defined by formal job descriptions (Tastan et al., 2015; Allen et al., 2004). Other schools of thought conceptualise in-role behaviour as role requirements or activities associated with formal and explicit job descriptions, whereas out-of-role behaviour is described as discretionary and spontaneous behaviour that goes beyond the recognised and required job duties (Rafiq and Ahmed, 2000; Awwad and Agti, 2011; Organ, 1988; Pond et al., 1997). This implies that employees have some autonomy to apply their experience and additional skills acquired through IM in out-of-role behaviour rather than in-role behaviour. As IM motivates employees to perform more activities outside work, they can apply it in their out-of-role behaviour more than in their in-role behaviour, which is more conventionally used to measure job and task performance to evaluate employees’ activities that are related to formal job requirements (Piercy and Morgan, 1990; Asiedu et al., 2014; Motowidlo, 2000).
Employees are motivated to give their best in-role and out-of-role behaviours because IM is an effort aimed at helping employees become service- and customer-oriented (Lings and Greenley, 2005; George and Gronroos, 1989), thorough training and incentives, among other things. Nonetheless, this study argues that IM has a greater influence on employees’ out-of-role behaviours because employees can think outside the box and engage in discretionary customer-directed behaviours that exceed the existing role expectations (in-role behaviour) and directly benefit customers by better satisfying their needs (in-role behaviour; Rafiq and Ahmed, 2000).
Furthermore, employees exhibit citizenship behaviour when they are not in their roles (Chan and Wan, 2012), which characterizes the nature and form that IM aims to achieve.
Therefore, the following hypothesis is proposed:
H1d Internal Marketing has a stronger impact on out-of-role behaviour than in-role behaviour.
Job satisfaction is important for increasing organizational competitiveness and can be achieved by instilling positive attitudes and behaviours in employees (Freund, 2005; Meyer et al., 2002). Specifically, employees who are satisfied with their jobs are more efficient and creative and can help increase organizational productivity (Bockerman and Ilmakunnas, 2012; Schneider et al., 2003). The literature highlights a positive relationship between job satisfaction and training (Celma et al., 2018). Moreover, internal promotions and practices that encourage employee participation in decision-making processes can help increase job satisfaction (Celma et al., 2018). Because job satisfaction enhances employee effectiveness and promotes positive behaviour, the behaviour of satisfied employees can impact the activities of an organisation's business and its overall institutional functioning (Bettencourt et al., 2001). Employees who are more satisfied with their jobs have more positive feelings about their jobs and a more enjoyable work life, resulting in their loyalty to the organisation and facilitating smoother interpersonal relationships (Bettencourt et al., 2001; Rhoades and Eisenberger, 2002). The positive effect of job satisfaction allows employees to concentrate their efforts on the specific tasks assigned to them. Accordingly, we propose the following hypothesis:
H2a Job satisfaction has a significant positive impact on in-role behaviour.
Several studies have investigated the impact of job satisfaction on employees' out-of-role behaviour (Nikolaou, 2003; MacKenzie et al., 1998). Job satisfaction is crucial for increasing employee efficiency and productivity. Employees who are satisfied with their jobs are more likely to behave in service-oriented ways than those who are dissatisfied, according to reciprocity norms (Bettencourt et al., 2001; Netemeyer et al., 1997). Additionally, employees who are satisfied with their jobs are more likely to engage in out-of-role behaviour to express their appreciation for the organisation (MacKenzie et al., 1998). Conversely, in disruptive or dissatisfying workplaces, employees tend to be less willing to use their time to solve tasks that are not within the confines of their jobs (Cropanzano et al., 2001). Thus, employees’ job satisfaction can positively influence their out-of-role behaviours, and the following hypothesis is proposed:
H2b Job satisfaction has a significant positive impact on out-of-role behaviour.
Employees’ attitudes and behaviours may reflect the quality of the service they provide to customers (Rua and Santos, 2022; Takeda et al., 2005). Therefore, for an organisation to thrive in today's rapidly changing and competitive external environment, it must ensure that its employees faithfully perform their formally assigned roles. Particularly, employees’ abilities, skills, and knowledge have a significant impact on their in-role behaviour (Amenuvor et al., 2022; Williams and Anderson, 1991). As their abilities and knowledge levels are fixed and cannot be changed immediately, they must often increase their overall effort to achieve better results (Shin et al., 2021; Sujan et al., 1994). The quality of employees’ work increases with their commitment to their jobs, resulting in improvement in customer satisfaction (Anderson and Mittal, 2000) and sales performance (Huang, 2023; Sujan et al., 1994).
However, organisations may find it difficult to exhaustively describe the tasks that employees must perform to meet their objectives. Although this activity is not required for the employees’ essential job roles, they can contribute to organizational performance, and consequently, the development and/or success of the organisation, through their spontaneous behaviours. To achieve organizational goals in a complex and dynamically changing environment, spontaneous behaviour and activity that go beyond officially fixed job requirements should be encouraged and even (to the extent possible) institutionalised (Griffin et al., 2007). In other words, employees in such an environment must engage in innovative and voluntary out-of-role behaviours, rather than only those compelled by employment contracts, organizational coercion, or other forms of external pressure (George and Brief, 1992). Employees who engage in out-of-role behaviour can meet customer expectations and are likely to even exceed them (Koys, 2001; Maxham and Netemeyer, 2003).
When employees show their customers spontaneous attention and behaviour that goes beyond their officially delineated work, the customers are likely to notice and remember their attitude and behaviour for a long time (Maxham et al., 2008). Specifically, customer satisfaction is directly related to improvements in customer perceptions of quality (Anderson and Mittal, 2000). Therefore, we argue that, employees can think outside the box and engage in discretionary customer-directed out-of-role behaviours that exceed their existing role expectations (in-role behaviour) and directly benefit customers by better satisfying their needs than in-role behaviour, wherein employees engage in expected and prescribed behaviours in providing service to the organisations’ customers. These employee behaviours also encourage repeat customers (Mensah & Amenuvor, 2021; Cooil et al., 2007) and satisfied customers to recommend the organisation to others via word of mouth, which has a positive effect on sales performance (Yi et al., 2021; Fornell et al., 2006; Lee and Hwan, 2005). We can also argue that employees’ out-of-role behaviours has a greater impact on sales performance than their in-role behaviours. Therefore, we propose the following hypotheses:
H3a In-role behaviour has a significant positive impact on customer satisfaction.
H3b Out-of-role behaviour has a significant positive impact on customer satisfaction.
H3c Out-of-role behaviour has a greater impact on customer satisfaction than in-role behaviour.
H4a In-role behaviour has a significant positive impact on sales performance.
H4b Out-of-role behaviour has a significant positive impact on sales performance.
H4c Out-of-role behaviour has a greater impact on sales performance than in-role behaviour.
To test this study's hypotheses, a quantitative survey approach using structured questionnaires was used on empirical data, allowing actual measures to be calculated for the responses obtained from the respondents. The variables in the questionnaire are out-of-role behaviour, IM, in-role behaviour, job satisfaction, customer satisfaction, and sales performance. Except for demographic information, all constructs were evaluated using a five-point Likert-type scale, anchored on ‘1=strongly disagree’, ‘5=strongly agree’, and ‘3=neutral’. Reflective measures were used to conceptualise all directional constructs (dependent and independent).In the conceptualization of variables, the items for IM were adapted from Gounaris (2006; 2008), Jaworski and Kohli (1993), and Kaur and Sharma (2015); those for job satisfaction and sales performance were adapted from Piercy et al. (2006); those for customer satisfaction were adapted from Agnihotri et. al. (2016); and those for out-of-role and in-role behaviours were adapted from Williams and Anderson (1991) and Bettencourt et al. (2005).
To ensure the content validity of the measurements, we used initial survey questions from previous studies and modified them to fit the setting of this study. Subsequently, three marketing professors and consultants evaluated the modified measurement questions by three marketing professors and consultants before being sent to the sales representatives.
Nomological validity refers to the extent to which a study's findings fit with the existing theory. To assess the nomological validity, the relationship between a scale and the precursors and/or consequences of the constructs measured by the scale can be investigated. We tested whether first-order sub-constructs could build a second-order construct at a statistically significant level (Bollen 1989). The results of the confirmatory factor analysis (CFA) in Table 2 confirm that all the constructs’ standardised factor loadings were greater than 0.6 at a significance level of p<0.05. Therefore, the nomological validity of all the constructs was confirmed.
Part two of the questionnaire focused on the respondents’ demographic information. Consistent with DeVellis Robert (2003), we used scale generation and purification processes to purify scale items through CFA. We also used structural equation modelling (SEM) to evaluate the various hypotheses stated earlier. According to Bagozzi and Yi (2012), SEM is a better modelling approach because it allows researchers to control measurement errors and provide information on the degree of fit of the tested constructs.
4.2Sample and DataThis study was conducted in South Korea, where the number of SMEs is the highest among the OECD countries. A survey was conducted targeting SMEs with business sites in the Daegu–Gyeongbuk region. The results of the 2021 census on establishments conducted by Statistics Korea (2022) indicate that Korean SMEs account for 99.9% of all establishments. In the case of the Daegu–Gyeongbuk region, these figures are similar to those for South Korea. Specifically, 99.9% of businesses are SMEs, accounting for 90.9% of all employment and 99.8% of manufacturing businesses (including manufacturing and wholesaling/retailing).
The data were collected from the survey conducted among companies in Daegu and Gyeongbuk Province, Republic of Korea. A total of 400 questionnaires were distributed, 322 of which were returned and used for hypothesis testing. The survey was conducted both online and offline, with responses from 228 companies obtained via the online survey and responses from 94 companies obtained via the offline survey. Table 1 presents the respondents’ statistics. The manufacturing industry had the highest composition ratio of the sample surveyed (68.9%). Among the manufacturing industries, companies producing goods such as automobile parts, household goods, food processing, and electronics/semiconductors occupied the largest share, reflecting the industrial characteristics of Daegu and Gyeongbuk. In terms of company history, companies existing for less than 20 years accounted for 20.5%, and those existing for less than 10 years accounted for 19.9%. Regarding sex, 74.5% of the respondents were male, which was significantly higher than females. the most common job type was business management (50.0%), followed by sales (17.1%) and manufacturing (12.1%).
Descriptive Statistics of Respondents.
We determined whether a difference exists in the value of the variables used in the study according to the age and sex of the respondents. We confirmed that no statistically significant difference exists (p<0.05) in all variables.
Only 17.1% of the respondents worked in sales departments. However, SMEs generally and experience labour shortages. Hence, one employee has to perform various tasks in addition to their main job, and therefore, they are well-aware of the operations of the sales department. When the respondents were divided into two groups and the average differences in the variables used in this study were compared, no statistically significant difference exists in the other variables except for sales performance (F-value of 5.687, p<0.05).
4.3Test for Non-response BiasConsistent with Armstrong and Overton (1977), we tested for non-response bias by comparing early and late respondents in terms of the number of employees, industry type, and respondent sex. We also determined the differences in the variables used in the online and offline surveys and found no statistically significant differences (P <0.05) in either case.
4.4Common Method BiasBecause we collected data from the same source using a self-report questionnaire, there could be common method variance. For each item, we assessed the potential problems of the single-factor analysis (Podsakoff and Organ, 1986). As predicted, a single factor accounted for 39.8%, which was less than the cut-off of 50.0%, confirming the absence of common method bias. Furthermore, we used the full variance inflation factor (VIF) statistics to perform a multicollinearity test among the variables. The VIF value should be less than 3.3 to alleviate concerns about multicollinearity. Consequently, the analysis revealed that all VIF values ranged from 1.8 to 3.2.
4.5Reliability and Validity of VariablesA CFA was used to validate the measurement items because they were adapted from prior research. Regarding internal consistency, the Cronbach's alpha values for the six constructs ranged from 0.868 to 0.972, whereas the standard estimates ranged from 0.761 to 0.945. Therefore, the constructs were sufficiently reliable psychometrically (Nunnally and Bernstein, 1978). For this analysis, the fit indices listed below were used to assess model fitness (model fit: χ2=1563.365, df =997, χ2/d. f.=1.568, RMR=0.034, RMSEA=0.042, CFI=0.835, NFI=0.917, IFI=0.968, TLI=0.965, CFI=0.968). All items were loaded on their respective constructs (Table 2), and each loading coefficient was greater than 0.5 and significant at the 0.01 level, indicating that all measurement scales have acceptable convergent validity (Anderson and Gerbing, 1988). We also performed a correlation analysis to ensure discriminant validity, and the constructs’ AVEs exceeded the squared inter-construct correlations (Fornell and Larcker, 1981) (Table 3).
Measurement Model.
Descriptive Statistics and Correlations.
**p<0.01; *p<0.05
The analysis was performed using AMOS version 20.0. Using structural equation modelling techniques, the hypothesised model was evaluated in relation to sample data (Bentler and Dudgeon, 1996). In the analysis, each latent variable's parameter estimate was limited to one with respect to the observed item (Arbuckle and Wothke, 1999). The maximum likelihood estimate was used to streamline the analyses. Table 4 presents the final model version and standardised path coefficient estimates. Each path is statistically significant (p<0.01, two-sided test). Consistent with Hair et al. (2020), the model fit indices for the structural model provide evidence of an acceptable model fit (χ2=1575.4, df =1001, χ2/d. f.=1.574, RMR=0.035, RMSEA=0.042, GFI=0.834, NFI=0.917, IFI=0.968, TLI=0.965, CFI=0.968).
Results of the Hypothesis Test.
**p<0.01; *p<0.05
We found a significant positive effect of IM on job satisfaction, supporting H1a (γ=0.818, p<0.01). Contrary to H1b, we found an insignificant effect of IM on in-role behaviour (γ =0.122, p>0.01). In support of H1c, we found a significant positive effect of IM on out-of-role behaviour (γ =0.436, p<0.01). To test whether IM has a stronger effect on out-of-role behaviours than in-role behaviours, we used a path coefficient value difference analysis to test the hypothesis. We found that the difference in the path coefficient values between the constrained and unconstrained models of IM, out-of-role behaviour, and in-role behaviour was significant with a ∆χ2 value of 10.922, supporting H1d. Additionally, consistent with H2a and H2b, we found a significant positive relationship between job satisfaction and both in-role (γ =0.398, p<0.01) and out-of-role (γ =0.462, p<0.01) behaviours. Moreover, contrary to the expected outcome for H3a, we found an insignificant relationship between in-role behaviour and customer satisfaction (γ =0.018, p>0.01). However, we also found a significant positive effect of out-of-role behaviour on customer satisfaction (supporting H3b; γ =0.738, p<0.01).
To test whether out-of-role behaviours have a greater impact on customer satisfaction than in-role behaviours, we used a path coefficient value difference analysis to test the hypothesis. We found that the difference in the path coefficient values between the constrained and unconstrained models of out-of-role behaviours, in-role behaviours, and customer satisfaction was significant with a ∆χ2 value of 24.533, supporting H3c. Contrary to H4a, we found an insignificant relationship between in-role behaviours and sales performance (γ =0.013, p>0.01). However, we also found a significant positive effect of out-of-role behaviours on sales performance (γ =0.581, p<0.01). Finally, to test whether out-of-role behaviours have a greater impact on sales performance than in-role behaviours, we used a path coefficient value difference analysis to test the hypothesis. We found that the difference in the path coefficient values between the constrained and unconstrained models of out-of-role behaviours, in-role behaviours, and sales performance was significant with a ∆χ2 value of 13.559, supporting H4c. Overall, except for H1b, H3a, and H4a, all hypotheses were supported. Table 4 summarises the findings.
4.7Additional AnalysisWe also used the Sobel test in this study to determine whether job satisfaction serves as a mediator. We found that job satisfaction had a significant mediating effect on the relationship between IM and in-role behaviours (Sobel's z=4.322, SE=0.075, p<0.01) and between IM and out-of-role behaviours (Sobel's z=5.462, SE=0.070, p<0.01).
5Discussion, Limitations, and Conclusions5.1DiscussionThis study investigated the relationships among IM, job satisfaction, in-role behaviours, out-of-role behaviours, customer satisfaction, and sales performance based on attitude theory (Bagozzi, 1992). The analysis yielded outcomes with theoretical and practical implications.
First, as predicted, IM has a positive effect on job satisfaction. As an organizational activity in which employees actively respond to offers or requests, IM can improve their work concentration and confidence and their sense of job satisfaction.
Second, we hypothesised that IM has a positive effect on out-of-role behaviour. If employees feel that their value is recognised by the organisation during the course of IM activities, they will further identify with the organisation, and consequently, perform their responsibilities more actively. We also hypothesised that IM has a positive effect on in-role behaviour; however, this hypothesis was not supported possibly because in-role behaviour is closely related to reward, which is a component of IM (Organ, 1988; Van Dyne and LePine, 1998). IM is more strongly influenced by factors that increase motivation for work than by factors that increase knowledge, skills, and abilities in job performance (Williams and Anderson, 1991).
Third, we hypothesised that job satisfaction has a positive effect on both in-role and out-of-role behaviours. Furthermore, job satisfaction has an important mediating effect on the relationship between IM and both in-role and out-of-role behaviours. Employees who are satisfied with their jobs are more likely to engage in both in-role and out-of-role behaviours because job satisfaction plays a role in eliciting positive emotions and building loyalty to the organisation.
Fourth, we hypothesised that out-of-role behaviour improves both customer satisfaction and sales performance. Out-of-role employees strive to provide services that exceed customer expectations while devoting more time to meet customer needs. Hence, out-of-role behaviours can help improve customer satisfaction and sales performance. We also hypothesised that in-role behaviours improve both customer satisfaction and sales performance. However, neither hypothesis is supported possibly because in-role behaviours are limited to a specific role within a specific organisation and its regulations, and it is difficult to predict whether it will lead to spontaneous or customer-oriented behaviours. However, according to Katz and Kahn (1966), if an organisation comprises employees who exhibit only limited behaviours in relation to their formally specified and structured tasks, it can be easily disrupted.
5.2Theoretical ImplicationsAn organisation cannot formally list or describe all of its employees’ behaviours that may be required to achieve a given goal. Hence, employees’ in-role behaviours in a changing external environment may not have a significant effect on the organisation's outcome variables. Accordingly, employees’ in-role behaviour is a sufficient, rather than a necessary condition, for achieving customer satisfaction and improving sales performance. Therefore, employees’ in-role behaviour has no direct effect on customer satisfaction and sales performance.
The following theoretical implications were drawn from these findings. First, the research scope should be expanded beyond marketing by incorporating variables previously used primarily in human resources and organizational behaviours. Rather than pro-social behaviours, such as OCBs, in organizational behaviour theory, this study introduced frontline service employee (FSE) behaviours that can be performed in sales environments. Furthermore, this study differs from others as we investigate the effect of out-of-role behaviours as a mediating role between IM and outcome variables using Bettencourt et al.’s (2005) study, which presented COBSBs as FSE out-of-role behaviours.
Specifically, we proposed a new framework based on attitude theory (Bagozzi, 1992) that incorporates IM as an appraisal process, job satisfaction as an emotional response, and in-role and out-of-role behaviours as coping responses. We found that, without job satisfaction, IM had no significant effect on in-role behaviours, but had a significant direct effect on out-of-role behaviours. Consistent with Bagozzi's (1992) research framework, this study empirically demonstrated the effect of IM on out-of-role behaviours via job satisfaction as a representative of an emotional response, modestly advancing the attitude theory thereof.
Finally, this study extends out-of-role behaviour theory (Stoner et al., 2011) by discovering that, when employees are stimulated by IM, their positive emotions toward their organisation can lead to pro-social out-of-role behaviours. This study is unique as we proposed marketing implications for SMEs in terms of the importance and necessity of IM.
5.3Practical ImplicationsAccording to the marketing literature (Gounaris, 2006; Gronroos, 1982), motivated and customer-focused employees are required for efficient service delivery. IM has been shown to be a primary avenue for ensuring that organisations achieve this goal. This is because, when IM is applied correctly, its principles can positively influence employees’ job satisfaction, in-role and out-of-role behaviours, customer satisfaction, and sales performance. The need for dependable, dedicated, and loyal employees has become a strategic imperative for employers in the SMEs sector, emphasising on long-term client retention through relationship marketing.
This study outlines a critical path for accomplishing this goal. We found that top management support, communication, training, reward systems, and empowerment have a significant impact on employees’ job satisfaction and behaviours. This study emphasises the importance of managers focusing on IM factors to ensure employees’ job satisfaction.
We found that IM has a cascading effect on these outcome variables because it improves employees’ job satisfaction, out-of-role behaviours, customer satisfaction, and sales performance. Consequently, the key dimensions of IM must be emphasised when IM is implemented. Hence, SME managers should empower their employees in this area, and this requires management to give employees autonomy in performing their duties. Employees should have control over how their daily tasks are performed. Furthermore, effective reward systems must be designed to motivate them to give their best performance in in-role and out-of-role activities. A few examples include competitive compensation structures, enticing bonuses, and employee welfare programs. When these incentive programs are properly implemented, they can encourage employees to stay with the organisation and give their best.
SMEs also must continuously train their employees to ensure that they possess the skills, knowledge, and competence to perform their job duties and execute their behaviours. Moreover, employees should be given on-the-job training and be required to take courses to improve their overall job performance. Additionally, SMEs must improve their internal employee communication. Clear communication channels (horizontal and vertical) should be open and accessible to all personnel. Suggestion schemes, meetings, and intranets must all be regularly updated so that employees can connect with co-workers and management while staying up-to-date on company development. Management must also show strong dedication to their employees by improving employees’ working and service conditions.
Consistent with previous research (Bitner et al., 1990; Oliver et al., 1997), we also found a significant positive relationship between out-of-role behaviour and customer satisfaction. This finding lends credence to the notion that out-of-role behaviours create a pleasant surprise, because customers perceive a service interaction characterised by small extras that make them feel special. This surprise is reflected in post-purchase evaluations (Söderlund et al., 2014), which increase customer satisfaction with the experience.
While examining how in-role and out-of-role behaviours affect performance indicators, we found that out-of-role behaviour has a greater impact on sales performance and customer satisfaction than in-role behaviour. Organisations cannot achieve significant results solely through the in-role behaviours of their employees in their functions. Job performance has a significant impact on out-of-role behaviours. This situation refers to an employee's impulsive actions that are beneficial to the company and go beyond what is required by the organisation. Consequently, SMEs should seek customised IM consulting in the future, which will aid in encouraging spontaneous employee participation.
Furthermore, companies should provide valuable work characteristics to their employees through effective IM, which can help improve employees’ job satisfaction in the current, volatile environment. Similarly, management should place greater emphasis on internal organizational practices and employee attitudes, thereby influencing behavioural and performance outcomes (Pugh et al., 2002). The findings of this study support this belief and point to managerial actions that can improve the linkage effect: employee behaviour should play a more fundamental role in sales performance than simply increasing employee satisfaction (Pugh et al., 2002). Although in-role behaviour is the most visible, management should strive to encourage out-of-role behaviour among frontline sales employees to improve customer satisfaction and sales performance.
The in-role and out-of-role behaviours of frontline service employees can be improved in various ways. Managerial actions to improve in-role behaviours (e.g. service delivery behaviour) are well-known, and salesperson selection, induction, and training should consider employee behaviours linked to performance outcomes (Baruch et al., 2004). Because the benefits of out-of-role behaviours are not always as evident as those of in-role behaviours (Puffer, 1987), the former is more difficult to improve. However, to achieve desired employee outcomes, creating a service climate that emphasises the importance of high productivity and quality service delivery may be necessary. Several internal management practices are critical for the development of such service climates. Out-of-role behaviours can be encouraged, for example, by appropriate rewards for and recognition of the service provided. Conversely, in-role behaviours can be supported by facilitating employee communication and implementing communication support systems. Managers should remember that out-of-role behaviours primarily involve communication with employees and potential employees, as well as those that are not visible in their daily routines.
As salespeople spend more time with customers than within their own organisations, communication systems should be adjusted, and information flows should be facilitated. New technologies, such as internet-based communication, can be used to make this possible. Other factors that contribute to this service climate, such as hiring and training, will remarkably improve both in-role and out-of-role behaviours.
This study focused on South Korean SMEs. Although South Korea has the highest number of SMEs among OECD countries, the working environment of the country's SMEs is significantly poorer than those in other OECD countries and large corporations. Therefore, we determine that IM for South Korean SMEs is yet to be properly established. Furthermore, when compared to European countries, South Korea is collectivist and has a high power-distance culture (Lee et al., 2015). Hence, employees will be in charge of tasks other than their own if it is for the organisation or by the team leader's order. Accordingly, we found that this study's findings cannot be applied to developed countries, but can be applied to countries with labour environments similar to South Korea or developing countries in Europe.
5.4Limitations and Future Research DirectionsThis study has some limitations and offers suggestions for future research directions. First, this study investigated the role of emotional response as a mediator between appraisal processes and in-role and out-of-role behaviours. However, it failed to answer the question of which specific psychological states influence IM and employee behaviours. A more robust research model can be achieved if intervening factors were included. For example, psychological empowerment (Taylor, 2013; Chiang and Hsieh, 2012) and feeling of responsibility for change (Campbell, 2018; Fuller et al., 2006) have been used as major variables to explain employee out-of-role behaviour. When these are incorporated in the mediating process between the perception of the work environment and behaviour, a more in-depth and interesting study could be obtained.
Second, situational variables or individual tendencies that may animate employees’ individual characteristics towards constructive change were not considered (Bettencourt, 2004). An important addition to the literature would be future research on how an individual's out-of-role behaviour can be strengthened or weakened based on their character traits or personality under the same environmental conditions. For example, regulatory focus can influence out-of-role behaviour. When all else is equal, a promotion-focused person is more likely to engage in out-of-role behaviour than a prevention-focused one. Consequently, we could gain additional and possibly clearer insights if we further investigate the moderating effects of individual traits.
Third, this study relied on a single data source and collected data at a specific time point, which may have resulted in a common method bias. This bias can be reduced in future research if data is collected from two or more sources (e.g. employees, managers, employees, and archives). Furthermore, people from various job positions were interviewed, but they were analysed all together.
Finally, this study investigated the relationship between role behaviours and performance in SMEs. Although a survey at the company level (one person per company) was conducted, the majority of the respondents in the sample are from departments other than sales. No statistically significant difference exists in the response values of the respondents from other departments and sales departments for most variables. However, in future studies, investigating only salespeople may be necessary.
Internal Marketing (adapted fromGounaris, 2006, 2008; Jaworski and Kohli, 1993; Kaur and Sharma, 2015) - Describe how well your company satisfies you with the items below.
Top Management Support (adaptive fromJaworski and Kohli, 1993)
Creating an organizational environment to participation in important decision-making
Open communication
Participation in the decision-making process
Smoothing of information exchange
Communication (Gounaris, 2008)
Exchange of opinions with the team leader
Communication with colleagues
Securing communication channels to suggest improvements
Free expression
Training (adapted fromGounaris, 2006)
Training frequency
Education and training support
Provision of critical sales information
Provision of education program
Reward System (adaptive fromJaworski and Kohli, 1993)
Various compensation systems
Equal compensation opportunity guaranteed
Use of customer evaluation for compensation
Appropriate compensation policy
Empowerment (adapted fromGounaris, 2008)
Permission to use one's own judgement in solving problems
Encouragement to take initiatives
Allowance for a high degree of initiative
Trust in one to exercise good judgement
Job Satisfaction (adapted fromPiercy et al., 2006)
My work gives me a sense of accomplishment.
My job is exciting.
My work is satisfying.
I am ready doing something worthwhile in my job.
In-role Behaviour (adapted fromWilliams and Anderson, 1991)
I adequately complete assigned duties.
I fulfil responsibilities specified in job description.
I meet formal performance requirements of the job.
I engage in activities that will directly affect my performance evaluation.
Out-of-role Behaviour (adapted fromBettencourt et al., 2005)
External Representation (adapted fromBettencourt et al., 2005)
I tell outsiders this is a great place to work.
I generate favourable goodwill for my company.
I say good thing about my company to others.
I encourage others to use our products/services.
Internal Influence (adapted fromBettencourt et al., 2005)
I make constructive suggestions for service improvement
I share creative solutions to customer problems with other team members.
I share ideas for promotion or customer service within the organization.
I encourage co-workers to contribute ideas and suggestions for service improvement.
Service Delivery (adapted fromBettencourt et al., 2005)
I follow the customer service manual faithfully.
I follow up in a timely manner to customer requests and problems.
Regardless of circumstances, I exceptionally courteous and respectful to customers.
I follow through in a conscientious manner on promises to customers.
Customer Satisfaction (adapted fromAgnihotri et al., 2016)
Overall, my clients feel that my service/behaviour is satisfying them.
My clients feel they have an extremely effective working relationship with me.
Overall, my clients feel our relationship is productive.
My clients feel that they want to continue doing business with me.
Sales Performance (adapted fromPiercy et al., 2006): Describe how well you are performing each activity
Achieving annual sales targets and other goals
Contributing to my sales unit's revenues
Achieving sales targets over the past few years
Achieving sales performance that maintains the top rank within my sales unit
