The Impact of Internal Marketing Practices on Employee Performance in Islamic Banks of Jordan

Abstract

 Many organizations in the banking industry recognize the importance of internal marketing practices because they deal with and respond to a changing environment to obtain a competitive advantage. The aim of this study is to evaluate internal marketing practices adopted by Islamic Banks of Jordan and their impact on employees’ performance. 500 Questionnaires were distributed to Islamic bank employees in Jordan. Relationships of variables in the proposed model and scale characteristics were analyzed using smart PLS. Results indicate that there are strong relations between hiring, empowerment, rewards and incentives, and employee performance. Management should empower the employees in the daily business and routine activities. In this era of globalization, Islamic banks must develop internal marketing practices as a distinct area of competition because the services that the organization generates are produced by the employees who direct them to the customers. Banks have to pay attention to high-performing employees.