The relationship between internal marketing and employee commitment: The case of seafood companies in Mekong delta, Vietnam
Nguyen Thi Ngoc Phuong, Vo Kim Nhan/ MICA 2018 Proceedings
International Conference on Marketing in the Connected Age (MICA-2018), October 6th, 2018
Danang City, Vietnam
The Relationship Between Internal Marketing and Employee
Commitment: The Case of Seafood Companies in Mekong
Delta, Vietnam
Nguyen Thi Ngoc Phuonga*, Vo Kim Nhanb
aLecturer, Tien Giang University, Vietnam
aPhD Student, Can Tho University, Vietnam
bLecturer, Tien Giang University, Vietnam
bPhD Student, University of Economics Ho Chi Minh City, Vietnam
A B S T R A C T
Internal marketing is a critical factor in enhancing the attainment of organizational goals and objectives. The
objective of this paper is to examine the relationship between internal marketing via four internal marketing
practices – internal communication (IC), reward system (RS), organizational culture (OC) and training and
development (TD) and the factors of employee commitment to the organization in the seafoods companies at
the Mekong River Delta provinces, Vietnam. Data was collected from 352 employees at seafood companies
and collected through the use of standardized questionnaires measuring internal marketing and employee
commitment. The previous researches are canvassed throughly using for theoretical foundations and the
economictric model is built by Structural Equation Model (SEM). The study’s results will help the managers
find the relationship between internal marketing and employee commitment in the Mekong River Delta
provinces, Vietnam, at the same time understand the employee, employee’s expectations for their
organisation. Therefore, they will propose the orientations to more developmental than human, finding
solutions to improve the level of internal marketing and employee commitment in the case of limited resources.
Beside, this research also creates the competitive advantage over the human resources for enterprises in the
fierce competitive environment and rapid change recently.
Keywords: internal marketing; employee commitment; seafood companies; Mekong Delta.
1. Introduction
Vietnam's fisheries sector is developing into a key economic sector, a major commodity producer, a leader in
the agricultural sector, one of the fastest growing industries with a high value for metals, the largest export of the
country nowadays. Every year, the fisheries sector contributes 4-5% of the country’s gross domestic product
(GDP).; 5-6% of Vietnam's total export turnover and seafoods are the sixth most important export commodities
of Vietnam in 2017 (General Department of Customs, 2017). According to the report of the Directorate
of Fisheries, in 2017, the total output of aquatic products reached over 7.28 million metric tons (MT), up 5.6%
over 2016, including capture production with nearly 3.42 million MT (up 5.7%); aquaculture output with 3.86
million MT (up 5.5%) and the farming area hit 1.1 million ha. So far, in 2017, the total exported turnover value
reached USD 8.3 billion of aquatic products, an increase of 18% compared to the value in 2016 (General
Department of Customs, 2017). The Vietnam fishing products have been exported to 164 countries and
territories, including the important markets such as the European Union (EU), Japan, the United States, South
* Corresponding author. E-mail address: ngocphuongtgu@gmail.com
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Korea and Russia (Dang Lam, Hai Mien, 2017). According to Vietnam Seafood Exporters and Producers
Association (VASEP, 2018), among the six major exported Vietnamese aquatic products, shrimp and catfish
have been the key products and contributed significantly to Viet Nam's export turnover value. The target for
aquatic export turnover for 2020 will be in the order of USD 11 billion with an annual average growth rate of 7-
8%, approximately 50% of fisheries workers will be trained, workers’ average per-capita income will triple the
current amount (VASEP, 2018).
The fishery sector plays an important role in the national economy, contributing to the agricultural and rural
restructuring, povety reduction and improvement in the lives of communities not only in coastal rural areas, but
also in the moutains, midlands and highlands. The Mekong River Delta is known as the “backbone” of the
country, supplying 70% of aquaculture production and 65% of the country's seafood exports. Significant
livelihoods of approximately 17 million people living in 13 provinces and cities, contributing to the stabilization
of social security and development of the country (VASEP, 2018). The value of fishery exports in the Mekong
River Delta in 2013 reached 3.6 billion USD, by 2017 this value reached nearly 6 billion USD. In the period of
2013 - 2017, the Mekong River Delta's seafood export values increase over 6.5%, achieving the growth rate in
terms of value higher than the national average. The country will have USD 6.7 billion in 2013 and USD 1.624
billion in 2017. In terms of the average growth rate of the fisheries sector for 2013 - 2017, it is 6.25% per year,
higher than the increase in output. This confirms the quality of the product is gradually increasing by the value of
the fishery (General Statistics Office of Vietnam, 2017).
Table 1. VietNam seafood export in 2013-2017
(Source: General Statistics Office of Vietnam, 2017).
However, the Mekong River Delta faces many risks such as: environmental pollution; limited resources.
Many export consignments are returned because of the excessive amount of antibiotic residues in the product. In
particular, the conflicts between businesses and employees, one of the evidences of the alarming state of internal
marketing in seafood enterprises, is evident by the rapid increase in number of strikes in the past time. These
risks are largely due to subjective reasons, resulting from a lack of understanding of the company, workers,
tighter management by state management agencies, or a lack of serious internal marketing. The above shows the
importance and urgency of internal marketing because all human behavior is controlled by their consciousness.
Therefore, the current issue is to understand and quantify those problems how theirs might be affected
Vietnamese’s exporters. On this basis, a number of research implications are proposed to promote fisheries.
2. Literature review
The more and more integration of the economy, the increasingly fierce competition, the human resource
problem becomes more and more important. To retain good employees, businesses are using all the ways such as
increased salaries, bonuses, increased training, the allocation of additional powers for employees ... But no one
seems to discuss the use of values of internal marketing to make “weapons” in the “battle for human resources”.
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They do not know that to building a good relationship with customers, the first factor that determines success is
the human factor in the business. That means that customers want to be satisfied with the business, the business
must first meet the needs of employees (Lings, 2004; Kaur, Sharma & Seli, 2009) and make them align with the
organization. That will determine the future prosperity of the business. If lacking of commitment from
employees can be harmful to an organization, resulting in poorer performance arising from inferior service
offerings and higher costs (Caruana and Calleya (2010). One way of achieving such commitment is the
application of internal marketing programs (Cauana and Calleya, 2010; Farzad et al., 2008). In addition, Lings
(2004) suggests that an internal marketing has a direct positive impact on internal aspects of organizational
performance, including employee commitment. However, at present, the movement of human resources among
enterprises is becoming more and more common, causing a lot of headaches for most enterprises. Qualified and
highly qualified employees often move to high-paying, better-paying or better-informed local marketing
practices. Therefore, it is necessary to have an internal marketing strategy so that employees are truly loyal and
committed to sticking with businesses, especially seafood enterprises in the Mekong River Delta. As a result of
the perceived benefits that organisations practising internal marketing is conceived to derive, scholars have
sought to understand its impact on employee commitment (Mishra, 2009; Ting, 2010).
Internal marketing (IM)
Several researchers have identified the importance of internal marketing as a recipe for business success
(Ahmed et al., 2003). Internal marketing has been studied and debated rigorously during the pastimes to
understand its complex problems. The objective of internal marketing is to get motivated and customer
conscious employees in order to achieve service excellence. The use of marketing in internal marketing context
suggests an emphasis on the application of marketing techniques, approaches, concepts, and theories aimed at
achieving customer satisfaction in the context of internal customers, in order to achieve success in the external
market (Gronroos, 1981). Internal marketing was first proposed as the key to satisfying the internal employee as
a means of realising organisational intent (Berry, 1981). For Kotler (1991), internal marketing is the mission of
recruiting, training and motivating staff can serve the customer better. According to George (1990); Berry and
Parasuraman (1991); Gaplin (1997); Davis (2001) also suggests that internal marketing has internal
communications, training, teamwork, empowerment, and reward system. For Ahmed, Rafiq & Saad (2003),
internal marketing contains the factors involved: Strategic rewards, Internal communications, training and
development, organizational structure, senior leadership, physical environment, staffing, selection and
succession, interfunctional coordination, incentive systems, empowerment, operational/process changes. For
Chang and Chang (2009) the dimensions of internal marketing included employee-oriented measures, internal
communication and external activities. Like the previous ones, Huang & Rundle-Thiele (2015), namely these
include Internal communication, training, tnternal market research. Torfeh, Ghadim & Khamisabadi (2015),
internal marketing contains 04 factors involved: internal communication, employee recruitment, employee
training, employee empowerment, enternal market research and segmentation. Clearly, there is no meeting of
minds when it comes to the elements of internal marketing. This gap is a major challenge with current internal
marketing literature. This study however operationalised the constructs of internal marketing scale consists of
four dimensions that include internal communication, reward system, organizational culture and training and
development. This paper will draw on this dimension for in Mekong Delta seafood enterprises in Vietnam.
Internal communication (IC)
Internal communication is the transmission of information between organizational members or parts of the
organization. It takes place across all levels and organizational units of an organization. Communication is
remarkably important in manufacturing industries, especial seafoods manufacturing industries. It has been shown
to directly effect the bottom line results, effectiveness of change management, corporate culture, organisational
effectiveness and productivity (Sprague & Brocco 2002; Welch & Jackson 2007), as well as the overall
performance of an organisation, work behaviour and employee commitment, increases the competitive
advantage of a company in the severe market environment (Hola, 2007). Thus Beyerlein, McGee, Klein, Nemiro
and Broedling (2003) suggested that management should align support systems that employees can communicate
their needs and frustrations as this will lead to employee satisfaction and effective functioning of the
organization. Highly engaged employees are committed to the success of their organisation. They will
promote their company with lots of other customers, in sharing their ideas, and they exert discretionary effort
above and beyond what is required (Miller, 2014). According to Rafiq and Ahmed, 2000; Lings, 2004; Lings and
Greenley (2005), internal marketing is promote positive employee behavior, namely job satisfaction and
employee commitment. Therefore, the essence of the process is important for understanding.
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Reward system (RS)
Reward systems are two basic types of rewards, financial and non - financial. Both of them can be utilized
positively to enhance employee commitment. Financial rewards relate to the benefits that an organization
provides to its employees and non - financial rewards motivate and enhance commitment of employees
(Armstrong and Murlis, 2007). Jiang et al (2009) argues that rewards systems influence the efficiency of an
organization and it also helps it to achieve its goals by increasing commitment. Zain, Ishak and Ghani (2009)
emphasizes that there is a direct relationship between rewards system and employee commitment. Danish (2010)
argued that effective reward systems leads to increased employee motivation and this may in turn enhance
employee commitment. Armstrong (2012) observes that employees are satisfied with their organizations that
provide competitive rewards and this makes them to want to stay at their organizations thereby leading to high
levels of employee retention. Therefore, organizations should take actions so as to obtain employee commitment
through total reward system. In this regard, a study on the effects of rewards system on employee commitment
can be valuable.
Organizational culture (OC)
According to Nystrom (1993), organizational culture suggests that in the strong institutional culture
employees feel more committed with the organization. Brewer (1993) further suggested that if an organizational
culture is not articulated strongly enough, the subculture may take precedence over the organizational culture for
individual employees and thus gain their commitment (Lok and Crawford, 1999). Samad (2007), organizational
culture influence the commitment of employees, leadership styles and performance of the organization.
Muhammad Suleman Sabir et al., (2010), “organizational culture is compulsory part of the organization on
which organization’s success or failure depends. The organizational culture increases the employee’s
commitment through installing different level (surface level, espoused values, basic assumptions and values) of
culture in the organization”. The culture of an organization has an important impact on its performance (Naicker,
2008). Thus, it is the intention of this study is to investigate the relationship of organizational culture with
commitment of employees.
Training and development (TD)
Training and development is important for every organization to make investments in this programs for the
successful accomplishment of its goals (Bassanini & Scarpetta, 2002). Waris (2005) argues that, when
employees believe employers have invested in them through training and development, they become satisfied
and commitment with the organisation. Employees who have undergone training and develop new skills and
acquire knowledge are competent, secured and confident in service delivery far better than their counterparts
with inadequate training (Martensen and Gronholdt, 2000). Training and development has direct bearing on
performance of an individual and functioning of the organization (Apospori et al.,2008). Few studies have seen
training and development as an instrument to improve performance in the place of work (Lee et al., 2012;
Barzegar & Farjad, 2011). Several studies show that companies that master innovation have invested
considerably in training and development programs. The best way to achieve that is to empower and equip
employees with the necessary knowledge and experiences and build their commitment.
Employee commitment (EC)
Organizational commitment which is defined as the degree to which an employee identifies with the
organization and wants to continue actively participating in it (Newstrom and Davis, 2002) is an interesting topic
in the field of organizational behaviour. All of them have shown that employee engagement positively influence
on employee performance (Zheng, 2010; Dixit, V. & Bhati, M., 2012). As such, it is important for employers
and managers alike to know how to get the best of their workers. One of the antecedent determinants of workers’
performance is believed to be employee commitment. Armstrong (2012) emphasizes that employee commitment
signifies both the behavioural tendencies and the feelings that employees have towards an organization. Robbins
và Judge (2013), employee commitment is increased when their leader is knowledgeable, friendly, knows how to
give compliments when the employee performs well, hears the opinion of the employee and is interested in the
benefits. Or rather, employee commitment is increased when the company performs well internal marketing.
There are so many researches have been done on the new employee commitment components methods to
how to increase employee commitment in the organization (Porter, Mowday, Steers, 1982). According to Meyer
and Allen (1990) suggested 03 components of employee commitment including: affective commitment,
continuance commitment and normative commitment. Employee commitment to organisation could be based
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upon any one of these three types of commitments, or all of them as all the three sub-components are not
mutually exclusive (Park & Rainey, 2007). Ho Huy Tuu and Pham Hong Liem (2012) emphasizes that employee
commitment measurement by three factors: effort, pride and loyalty. Research results show that employee
commitment is influenced by job satisfaction, organizational alignment, knowledge, organizational support, and
branding. However, among the many components of employee commitment, the results of Meyer and Allen
(1991); Cohen (2007) is widely used. This study is also no exception but the research will adjust to suit the area.
The scale of employee commitment includes: affective commitment (AC), continuance commitment (CC),
normative commitment (NC). Therein, affective commitment refers to an employee’s belief and acceptance of
the goals and values of an organisation (Swailes, 2002); Continuance commitment refers to an employee’s
awareness of the costs associated if they leave their organisation (Narteh, 2012). In normative commitment, the
individual commits to and remains with an association because of approaching the obligation, the last constituent
of managerial commitment. This approach may derive from a strain on a person before and after combination an
association (De Cuyper et al., 2009). Beside, there has not been any study which has shown the relationship
between internal marketing and employee commitment, particularly in Mekong Delta seafood enterprises in
Vietnam. This study introduces a model which relates internal marketing, employee organizational commitment.
Relationship between internal marketing and employee commitment: research hypotheses
The relationship between internal marketing and employee commitment has been demonstrated by the
different research (Chang & Chang, 2007, 2009; Papasolomou - Doukakis, 2014). Thus verifying how employee
commitment improvements represent one consequence of internal marketing strategy. Internal marketing could
be the answer to gaining employee commitment, succeeding where traditional internal communications strategy
have failed. Internal marketing has a positive effect on organizational commitment and development and rewards
has effect on organizational commitment. Papasolomou - Doukakis (2014) recognized the fact that companies
can satisfy external customers effectively, if there is successful exchange with its employees. Internal marketing
can be regarded as employees’s selection that needs to be conversant, urban, and forced in order to elicit their
commitment to managerial target (Papasolomou-Doukakis, 2014).
Based on the relevant stydies, this study adjusts the scales to build a model of the internal marketing factors
affect employee commitment in the seafoods companies at Mekong River Delta. It’s used the four factors scale
of the previous authors about internal marketing and adjust for compatibility with Mekong River Delta
conditions and the three components scale about employee commitment of Meyer and Allen (1991); Cohen
(2007) inherited and perfected for Mekong River Delta enterprises. The proposed model is shown in Figure 1
and the hypotheses of this paper, based on the literature review from the previous section, were placed as :
04 dimensions (IC, RS, OC, TD) and employee commitment concept is measured by 03 dimensions (AC,
CC, NC).
H1: IM of employees at seafood firms affects AC (expectation +)
+ H11: IC of employees at seafood firms affects AC (expectation +)
+ H12: RS of employees at seafood firms affects AC (expectation +)
+ H13: OC of employees at seafood firms affects AC (expectation +)
+ H14: TD of employees at seafood firms affects AC (expectation +)
H2: IM of employees at seafood firms affects CC (expectation +)
+ H21: IC of employees at seafood firms affects CC (expectation +)
+ H22: RS of employees at seafood firms affects CC (expectation +)
+ H23: OC of employees at seafood firms affects CC (expectation +)
+ H24: TD of employees at seafood firms affects CC (expectation +)
H3: IM of employees at seafood firms affects NC (expectation +)
+ H31: IC of employees at seafood firms affects NC (expectation +)
+ H32: RS of employees at seafood firms affects NC (expectation +)
+ H33: OC of employees at seafood firms affects NC (expectation +)
+ H34: TD of employees at seafood firms affects NC (expectation +)
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Internal
Communication
(IC)
Affective
Commitment
(AC )
H1
H21
H31
H12
H13
H14
Reward System
(RS)
H22
H23
H24
H32
Continuance
Commitment
(CC)
Organizational
Culture
H33
(OC)
Normative
Commitment
(NC)
H34
Training and
Development
(TD)
Fig. 1. Models and hypotheses proposed by authors
3. Methodology
Research Process
This study has combined qualitative and quantitative research methods. Qualitative research method has been
conducted by focus group discussions with 30 chief executive officers of seafood firms in 12/2017 at meeting
room of Statistics Office in Ca Mau province, Tien Giang province, Kien Giang province (Viet Nam) to modify
observational variables that have been used to measure research concepts. The result has shown that concept is
measured by 04 dimensions (IC, RS, OC, TD) and employee commitment concept is measured by 03 dimensions
(AC, CC, NC). All dimensions has measured through 27 variable observations, these variables were measured on
a five-point Likert scale, anchored by 1 = strongly disagree and 5 = strongly agree.
Response Rate
A total of 420 questionnaires size were distributed to staff through by hand to hand at seafood companies in
the Mekong Delta region from 12/2017 and by the cut off date to 02/2018. 420 yielded a response rate of 100%
were recovered, however, only 352 usable replies were obtained, representing an effective response rate of
83.8%. Convenient sampling was used a detailed questionnaire to test model and research hypotheses.
Data Processing Techniques
Quantitative data analyses techniques in SPSS version 20 and transformation of variables was done to make it
usable for AMOS which included Cronbach’s Alpha reliability, Exploratory Factor Analysis (EFA) and
Confirmatory Factor Analysis (CFA) were used to analyse the collected data for the study. Structural equation
modeling technique (SEM) was used to analyze the data and test hypotheses. The structural equation model
technique is an important tool which involves identification of variable and development of theoretical model.
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Hypotheses are then framed based on theoretical model. Primary data is collected through survey questionnaires
and hypotheses are tested on the bases of collected data.
4. Result and discussion
The sample characteristics
With 352 valid respondents (included 83.8% in all questionnaires): 178 employees at private enterprises
(50.6%), 86 employees at joint stock enterprises (23.5%), 91 employees at other types (25.9%) were conducted
in the analysis. As regards gender, females overwhelmingly predominate (73.8%). The most representative age
group is between 35 - 50 years of age (49.3%), with the < 25 age group being the least representative one (7.1%).
There is some contractual instability given that only 28.5% of respondents hold permanent working contracts.
The results analysis of scales’ reliability
The results presented in Table 2. show that of the 29 observed variables used to measure research concepts
these variables satisfy the conditions in the reliability analysis of the scale via the Cronbach’s Alpha coefficient
(Cronbach’s Alpha coefficient > 0.6 and correlation coefficient – total > 0.3, Nunnally & Burnstein, 1994). Thus,
all observational variables will be used in the exploratory factor analysis (EFA).
Table 2. Results of Scales’ reliability
Cronbach's Alpha if Item
Code
Scale
Deleted
Internal communication
Reward system
IC
RS
OC
TD
AC
CC
NC
0.843
0.951
Organizational culture
Training and development
Affective commitment
Continuance commitment
Normative commitment
0.849
0.712
0.839
0.870
0.816
(Source: Authors’ survey data, 2018)
The results of EFA
The results of the last factors of internal marketing and employee commitment presented in Table 3. and
Table 4. show suggested scales which have satisfied the standard. EFA factors affecting the internal marketing
are respectively extracted into 04 factors corresponding to observe variables from 04 concepts with a total
obtained variance of 68.898% > 50% at the Eigenvalue of 2.48 found satisfactory EFA analysis (Anderson et.
al., 1988) and KMO = 0.923 (0.5 ≤ KMO ≤ 1 ) is appropriate for conducting CFA assay, Barlett Test for Sig
value. = 0.000 <0.05, so the variables correlated (Hoang Trong, Chu Nguyen Mong Ngoc, 2008). EFA emplyee
commitment results have been extracted into 03 factor with an extracted variance of 71.07 % at the Eigenvalue
of 1.93. KMO = 0.844 (0.5 ≤ KMO ≤ 1 ) is appropriate for conducting CFA assay, Barlett Test for Sig value. =
0.000 <0.05, so the variables correlated. The EFA results are analyzed by Varimax rotation method. This results
show that observed variables in a total corresponding together.
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Table 3. EFA results of internal marketing
Component
1
2
3
4
IC4
IC2
0.834
0.823
0.815
0.808
0.796
IC3
IC1
IC5
RS1
RS2
RS4
RS3
OC2
OC3
OC4
OC1
TD1
TD4
TD3
TD2
0.904
0.874
0.851
0.848
0.885
0.849
0.813
0.766
0.879
0.858
0.823
0.800
(Source: Authors’ survey data, 2018)
Table 4. EFA results of employee commitment
Component
1
2
3
AC2
AC3
AC4
AC1
CC3
CC1
CC2
CC4
NC1
NC2
NC4
NC3
0.862
0.833
0.800
0.800
0.881
0.874
0.849
0.803
0.892
0.868
0.855
0.853
(Source: Authors’ survey data, 2018)
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The results of CFA
The CFA results of the last measurable model show that the model is suitable with data, Chi squared value as
531.724; Df at 365; CMIN/df at 1.407 < 3 with p-value at 0.000 (<0.05). Other measurement criteria are also
suitable: TLI = 0.961; CFI = 0.965 > 0.8; RMSEA = 0.037 < 0.8 (details see Figure 2). Measurement results are
on the basis of CFI, TLI, RMSEA, Chi squared/df, showing all scales reached unidimensionality, convergent
validity, discriminant validity and reliability. Thus, this model is consistent with data collected from the market.
In addition, the correlation coefficients together with the standard deviations show that they are different from
one, according to the concepts of discriminative research. The error of the measurement variables is not
correlated; the weights (λi) are greater than 0.5 and statistically significant. Thus, the observed variables are
unidimensionality, convergent validity, and discriminant validity.
The results of the test hypotheses:
The results of the study hypotheses presented in Table 5. show that all hypotheses are acceptable at
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significance (alpha) level of 0.05, the corresponding confidence level of 95% as following.
Table 5. Results of authors’ hypotheses test
Estimate
.386
S.E.
.064
C.R.
6.026
P
Hypothesis test result
Supported H11
Supported H21
Supported H31
Supported H12
Supported H22
Supported H32
Supported H13
Supported H23
Supported H33
Supported H14
Supported H24
Supported H34
AC
AC
AC
AC
NC
NC
NC
NC
CC
CC
CC
CC
<---
<---
<---
<---
<---
<---
<---
<---
<---
<---
<---
<---
IC
***
***
***
***
***
***
***
***
***
***
***
***
RS
OC
TD
IC
.288
.316
.321
.414
.329
.337
.359
.494
.338
.357
.362
.060
.061
.064
.057
.054
.054
.057
.065
.060
.060
.063
4.790
5.215
4.986
7.214
6.089
6.273
6.257
7.608
5.685
5.998
5.737
RS
OC
TD
IC
RS
OC
TD
(Source: Author’s survey data,2018)
Discussion and conclusion of the research
Discussion
The findings of this study provide seafood firms managers with insights into how employee commitment and
internal marketing orientation are related. According to the study’s result, it is shown that the internal marketing
scale at seafoods firms are affected by internal communication (IC), reward system (RS), organizational culture
(OC) and training and development (TD). The employees commitment scale are affected by affective
commitment (AC), continuance commitment (CC) and normative commitment (NC). The study’s result show
that all hypotheses are accepted.
- To hypothesis H1, the study’s result show that all factors internal communication (IC), reward system (RS),
organizational culture (OC) and training and development (TD) have positive relationship between internal
marketing and affective commitment (AC) as following:
AC = 0.386*IC + 0.288*RS + 0.316*OC + 0.321*TD
- To hypothesis H2, the study’s result show that the factors Internal communication (IC), reward system
(RS), organizational culture (OC) and training and development (TD) have positive relationship between internal
marketing and Continuance commitment (CC) as following:
CC = 0.494*IC + 0.338*RS + 0.357*OC + 0.362*TD
- To hypothesis H3, the study test show that the factors internal communication (IC), reward system (RS),
organizational culture (OC) and training and development (TD) have positive relationship between internal
marketing and normative commitment (NC) as following:
NC = 0.414*IC + 0.329*RS + 0.337*OC + 0.359*TD
This means that,
(i) Employees are committed to the organizations when seafood firms have made better internal marketing
strategy. The key success factors for organizations today are internal communication, reward system,
organizational culture, training and development. This is suitable to the actual situation in the seafoods
companies at the Mekong River Delta.
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(ii) According to author’ study results, there are the relationship between the factors of internal marketing
and employee commitment. Firstly, seafood companies are concerned about the quality of workers’ life.
Secondly, seafood firms contribute to the improvement of the community and behave equally and respectfully to
employees in their companies. Thirdly, employees feel that working in their company brings safety and peaceful
things of their mind.
(iii) At seafood firms, employees think that they are treated fairly and properly, fully guaranteed their
benefits. They believe that their leaders is always interested in my ideas. Moreover, they can develop their career
and take part in picnics annually at their companies. In recent years, the economy has encountered many
difficulties, so some have cut the welfare level. Even so, there are bonuses every year on Holidays, Lunar New
Year, welfare funds for travel allowances and medical examinations for staff.
The research’s results have brought about practical results for the business and human resources of the
fisheries companies in the Mekong River Delta. It helps the managers see internal marketing’s role for cohesion
members. Through this, the managers have to measures to monitor, manage and adjust marketing strategies for
employee commitment more sustainable. For example, to facilitate for optimal employees commitment, internal
communication has to be integrated with modern technology. In fact, today employees in the organization, most
of them have own at least a social network account and need to connect, expand the information network
anywhen, anywhere. Making and using e-mails and social media to engage your employees. This will ensure
understanding among all the employees. However, the importance of face-to-face meetings between employees
and management still administrate.
Beside, the fishery sector is significant contribution to the economy of Vietnam, fisheries and aquaculture
industries have also absorbed millions labors of Vietnamese population. There, the companies need to conduct
the exactly and scientific employee assessment, the pay is based on the capacity and efficiency of work
associated with condition and circumstances to complete specific work. Employees who poor treatment by
managers, dissatisfaction with that job and career prospects, and a perception that reward system was not
sufficient and fair were the main reasons for abandonment their organization, if they find another job
opportunity. Most employees are satisfied with the salary and benefits, but they do not feel their pay is
commensurate with their performance and has not been fully involved in welfare programs. Therefore, fisheries
companies should ensure the equitable distribution of income, the need for a clear salary and bonus policy, based
on objective and fair assessment of capacity and effectiveness. So the quality of employees’s life will ensure and
employees commitment with the organization is more during.
The organizational culture factor should concern by leadership. They got an important role in shaping and
sharing common values of the business. In addition to the material benefits, the motivational activities of
employees such as sightseeing, picnic, group activities not only arousing excitement in employees’ work but also
the occasion of sticking relations, improve the spirit of the employees in the company.
To build the company into a learning organization, strengthen training courses on soft skills for employees
and training courses for professional work. Always create the environment and opportunities for employees to
learn from their own work environment; organize sharing knowledge, experiences on labor safety, food hygiene
and safety ... among the parts of the company; encourage employees to open up new ideas, innovations ... so that
they can be assured of commitment to work.
5. Conclusion
This study implies that internal marketing is very beneficial and effective approach towards the employees
positive behavioural outcomes such as employee commitment. In order for managers to assess and understand
internal marketing as well as the impact of internal marketing on the employee commitment at seafood
companies in Mekong River Delta provinces, Vietnam. The study results are shown the relations between
internal marketing and employee commitment. Factors that influenced employee commitment in this study were
internal marketing, specially as: internal communication (IC), reward system (RS), organizational culture (OC)
and training and development (TD). There are several practical implications that can be derived from the
reseach. Managers should be encouraged to monitoring employee behavior to improve it by changing internal
marketing strategy facilitated to the fishery sector improve products quality and profitability toward a more
sustainable and responsible development.
However, the research’s study has certain limitations: (i) Due to limited resources in conducting research, the
sampling in regarding only 352 employees at seafood companies in Mekong River Delta, Vietnam. Therefore,
the results might not be able to be represented for a large scale nationwide. (ii) This study has been conducted a
convenient sampling technique using direct interview methods from the respondents. So, the reliability of the
research scale may be higher if random sampling would be chosen.
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