1. Introduction
The COVID-19 pandemic has pushed all economic sectors into a complex and unpredictable situation. Currently, it is challenging for most sectors to identify or create new business opportunities in domestic and international markets [
1]. Despite being an essential pillar of a country’s economic development [
2,
3], the banking sector has especially faced difficulties in enhancing and maintaining its market presence, productivity, and performance following the pandemic [
4,
5,
6,
7]. Notably, the intensifying competition among banks makes it not only more complex but also more imperative for banks to create value for external and internal stakeholders in order to survive, both during and after the pandemic [
8,
9]. In particular, the employees of an organization are crucial in enhancing the organization’s performance in the present climate.
Employees are among a company’s pre-eminent assets and serve as productive liaisons with external audiences, i.e., customers [
10]. Prior studies have found that, in service organizations such as banks, employees are valuable stakeholders whose engagement and satisfaction companies strive to increase by developing broader strategies [
11,
12,
13,
14,
15]. Empirically, scholars have concluded that employees’ positive behaviors and attitudes enhance their satisfaction; as a result, higher customer engagement is achieved [
16,
17,
18]. Several researchers have further confirmed that employees’ job satisfaction is broadly influenced by their service quality [
19,
20,
21,
22]. In other words, frontline employees of banks are agents who deliver high-quality services and create a supportive relationship with customers [
23]. This connection is a key determinant of high customer satisfaction and loyalty [
24].
Retaining and motivating employees is therefore crucial for boosting the productivity and performance of the banking sector. Specifically, it is important for the banking sector to identify and understand the key factors that make employees satisfied and motivated to perform their work responsibilities, as Mohammad et al. pointed out that satisfied employees are more productive [
25]. In fact, Putra et al. noted that several banks have begun to pay attention to the indicators of employees’ satisfaction and engagement with their job [
10].
To this end, we considered the importance and applicability of internal marketing practices as a tool to engender employees’ job satisfaction during and after the COVID-19 pandemic, which could potentially enable banks to compete in the post-pandemic market [
26]. Internal marketing refers to “viewing employees as internal customers, viewing jobs as internal products that satisfy the needs and wants of these customers, while addressing the objectives of the firms” [
27]. In essence, internal marketing practices hand over a firm to its employees [
28]. However, there is a lack of research on internal marketing practices in developing countries [
29], with most extant research having been conducted in developed countries such as the USA and the UK. Moreover, the concept of internal marketing is relatively new in the banking sector of developing countries. Oladapo et al. reported that banking institutions in such countries, including Saudi Arabia, still practice traditional systems to train employees to deal with customers [
30].
More recently, Alzaydi concluded that the banks in Saudi Arabia failed to sustain the quality of services during the COVID-19 pandemic, as before the pandemic, they were offering effective services to customers [
31]. Furthermore, the consumers’ attitude and behavior during the COVID-19 pandemic changed, and they started demanding a more modern service quality [
32,
33,
34].
Baz et al. similarly highlighted that banks are yet to implement a modern customer management system due to a lack of technological innovation [
35]. Consequently, it is essential for banking organizations to understand their context-specific customer culture and, subsequently, to educate their employees accordingly via effective internal marketing practices so that they can effectively handle and satisfy customers [
5,
10,
27,
36]. Therefore, several empirical studies investigated and concluded that the banks in Saudi Arabia are still practicing the traditional customer service style [
30]. Thus, Akbari highlighted that the leadership of the banking sector is not designing and practicing modern customer services practices, mainly in developing countries [
37]. In this regard, Tuuk suggested that the leadership of the banks should discuss with and allow the frontline employees to participate in designing the customer services strategies, as these employees can understand and predict the customers’ intentions and attitudes to be satisfied [
38].
To bridge the aforementioned gap in the literature, we aimed to investigate the impact of four internal marketing dimensions (i.e., supportive and participative leadership, training and development, information and communication, and selection and appointment) on Saudi Arabian bank employees’ job satisfaction during the COVID-19 pandemic. We applied the social exchange theory (SET) [
39] to achieve the study objectives. According to Sohail and Jang, the SET “implies that a satisfied employee extends his level of satisfaction to a customer as a way of showing appreciation or gratitude to his employer, who, in one way or another, provides satisfactory working conditions to the employee” [
22].
This study contributes to the literature on internal marketing practices in several ways. First, it identifies and explains the role of the critical indicators of internal marketing (i.e., supportive and participative leadership, training and development, information and communication, and selection and appointment) by verifying their impact on employees’ job satisfaction in the banking sector. Previous studies have largely focused on the direct impacts of internal marketing practices on the behaviors and attitudes of employees in different organizations [
22,
40,
41,
42], neglecting the underlying mechanisms through which these effects take place. The third contribution of this study is the application of the SET to develop the research framework, which was subsequently tested using a structural equation modeling (SEM) analysis.
This paper is organized as follows: first, we present a review of relevant empirical studies before identifying the dimensions of internal marketing practices and developing the theoretical ground of the study. Following that, we discuss our research methods, samples, and measures. The results of the analysis are then reported and interpreted. Finally, a discussion of the study’s implications, limitations, and future research directions conclude the paper.
Country Context—Saudi Arabia
According to a recent report published by the Saudi Arabian Monetary Authority (SAMA), a total of 25 commercial banks, including 13 domestic and 12 international banks, are operating in different cities of Saudi Arabia [
43]. The banking sector in Saudi Arabia is growing rapidly and appreciably, contributing to the development of the economy and human capital [
30,
32,
44]. By total assets, Saudi Arabia’s banking sector ranks second in the Gulf Cooperation Council (GCC) countries and comprises over 29% of all banking assets in the region; this is despite making up around 34% of the banking sector’s total credit, lending to commerce, manufacturing, and construction sectors on the country [
45].
2. Literature Review and Theoretical Development
Internal marketing is a philosophy that advocates a modern view of employees. According to Chen and Sriphon, the leadership of any organization typically plays an important role in identifying and implementing the latest trends that attain business goals and sustain competitive advantages [
46]. In this regard, the internal marketing approach involves organizational leadership, treating employees as customers [
37] by prioritizing their satisfaction and engagement [
47,
48]. Nemteanu and Dabija suggested that organizations should practice internal marketing as it can significantly engage and satisfy employees in terms of their job environment [
49]. This is especially pertinent during the COVID-19 pandemic, when the banking sector is challenged to develop a safe yet socially distanced connection between employees and customers to minimize the spread of the virus [
5,
50]. For example, in Saudi Arabia, the Saudi Arabian Monetary Authority (SAMA) introduced COVID-19 SOPs for the banking sector and instructed all financial institutions to maintain social distancing with their customers [
51,
52]. In such a challenging crisis, banking organizations need to keep their employees motivated and satisfied so that they can work effectively and contribute to achieving business goals. Accordingly, internal marketing can be considered a critical practice that sustains employees’ job satisfaction [
27,
53]. Specifically, it has been confirmed by several authors that internal marketing practices include four key dimensions (i.e., supportive and participative leadership styles, training and development, information and communication, and selection and appointment) that can significantly predict employees’ job satisfaction [
22].
According to Sohail and Jang “internal marketing leads to employee satisfaction; employee satisfaction leads to service quality; service quality leads to customer satisfaction; customer satisfaction leads to repeat purchases of the service, and repeated purchases lead to organizational profitability” [
22]. Indeed, COVID-19 has given rise to various employee implications that can be explored with the SET, including exhaustion, burnout, anxiety, stress, performance, counterproductive work behaviors, health, development, wellbeing, and satisfaction [
49]. The SET posits that organizations that offer their employees a satisfactory working environment amid the pandemic can derive a high level of service quality [
20,
21] because employees’ gratitude and appreciation to the organization will be reflected in their services to customers [
28,
54]. Furthermore, scholars have applied the SET to establish the impact of internal marketing practices on employees’ job satisfaction [
22,
49,
55]. Despite being touted as one of the best theories to support employees’ job satisfaction, few scholars have extended the SET to investigate the impact of internal marketing practices on employees’ job satisfaction in the banking sector. To bridge this theoretical gap, we developed a research model integrating four internal marketing dimensions (i.e., supportive and participative leadership styles, training and development, information and communication, and selection and appointment), and job satisfaction. The following sections present the development of the hypotheses and research model (see
Figure 1).
2.1. Supportive and Participative Leadership and Employees’ Job Satisfication
According to Vrontis et al. supportive and participative leadership, as a key dimension of internal marketing in an organization, is liable to design and implement modern strategies and market culture trends that motivate employees to work [
56]. Managers of an organization can implement supportive and participative leadership styles to enhance employees’ job satisfaction [
22,
57,
58]. Specifically, senior managers can educate and monitor frontline employees who directly interact with customers [
37], as these managers are generally role models for their immediate subordinates. By doing so, managers can motivate and empower their subordinates to work on new business ideas, as well as to deal with customers effectively.
Prior studies have confirmed that supportive and participative leadership significantly influences employees’ job satisfaction [
59,
60]. More recently, Sohail and Jang found that supportive leadership in an organization plays an important role in educating employees on how to interact with customers, thereby enhancing the quality of the services [
22]. Likewise, Tuuk confirmed that effective supportive leadership in the banking sector significantly improves employees’ job satisfaction, which is likely during the COVID-19 pandemic as well [
38]. Considering the above discussion, we proposed the following hypothesis:
H1: Supportive and participative leadership significantly and positively impacts employees’ job satisfaction.
2.2. Training and Development and Employees’ Job Satisfaction
Nemteanu and Dabija pointed out that the COVID-19 pandemic has created serious and unpredictable challenges for organizations [
49]. Amid this crisis, organizations face high market competition [
5,
61], such that their success or failure depends on the ability of skilled employees to manage and resolve growing challenges [
13]. Skilled employees are assumed to provide dynamic services and contribute to the organization’s productivity, mainly by interacting with customers effectively [
25]. Therefore, Khanfar concluded that employee training and development programs significantly enhance organizations’ overall performance and quality of services [
62]. Accordingly, Musa et al. suggested that organizations should arrange updated training and development programs for their employees, since the COVID-19 pandemic has changed the way of doing business [
63].
Empirical findings have confirmed that training and development is a dominant dimension of internal marketing [
53]. Adding or extending knowledge is one of the important factors that impels organizations to attain business goals and sustain competitive advantages [
62,
64]. Recently, Shen and Tang, and Jaworski et al. found a strong positive relationship between the training and development of employees and their job satisfaction [
65,
66]. Similarly, Arroyo-López et al. corroborated that employees’ training and development programs enable them to work effectively and maintain a high quality of services [
67]. Thus, we developed the following hypothesis:
H2: Training and development significantly and positively impacts employees’ job satisfaction.
2.3. Information and Communication and Employees’ Job Satisfaction
According to Zoe and Ogba, and Sarker and Ashrafi, information and communication is among the most common dimensions of internal marketing in service organizations [
68,
69]. Considering the COVID-19 crisis, the frontline staff of the banking sector apply this dimension to interact with external stakeholders, i.e., customers. On the other hand, organizational leadership also practices internal information and communication to reach the organization’s internal customers, i.e., employees [
22]. Putra et al. observed that, during the COVID-19 pandemic, it was a challenging task for employees to communicate with customers while maintaining the quality of services amid enforced SOPs [
10]. Management must therefore understand and implement modern communication applications for employees to effectively interact with customers; as a result, quality of services can be maintained for the long term [
37,
60,
64,
70], and employees can also feel satisfied with their job [
22].
Further, Rumiyati and Syafarudin, described the severe post-COVID-19 impacts on the banking sector due to high market competition [
71]. In this regard, Marcu suggested that the banking sector should effectively apply internal marketing practices to sustain the performance of employees and competitive advantages in the market [
5,
21]. A modern communication system that integrates external and internal communication and enables employees to interact with and serve customers effectively could therefore lead to an efficient quality of services [
68,
69,
72,
73,
74]. This is because a practical and modern communication system boosts employees’ confidence and assures them of their service delivery. In line with this discussion, we proposed the following hypothesis:
H3: Information and communication significantly and positively impacts employees’ job satisfaction.
2.4. Selection and Appointment and Employees’ Job Satisfaction
According to Mehrabad and Brojeny, and Easterby-Smith et al. the term ‘selection and appointment’ was introduced by human resource management in the 1980s to represent a significant change in an organization’s strategic direction [
75,
76]. Researchers have identified selection and appointment (staffing) as a common dimension of internal marketing [
53,
59]. Internal marketing practices guide organizational leadership to hire skilled, reliable, qualified, and capable employees who would feel more satisfied in the working environment, leading to a dynamic quality of the services [
77,
78]. It is even more critical to hire skilled employees under the COVID-19 pandemic as they can deliver and maintain maximum services to customers. In fact, COVID-19 has changed the trends of performing a particular job. However, researchers have paid less attention to the dimension of selection in the banking sector. Empirically, limited studies have been conducted in developing countries to investigate the impact of selection and appointment in an organization, especially in the banking sector. Thus, we developed the following hypothesis:
H4: Selection and appointment significantly and positively impacts employees’ job satisfaction.
5. Discussion and Conclusions
We developed a theoretical model to investigate the direct relationships between internal marketing practices (i.e., supportive and participative leadership, training and development, information and communication, and selection and appointment), and employees’ job satisfaction. Our findings reveal that a supportive leadership style positively impacts employees’ job satisfaction (β = 0.221,
t-value = 2.860,
p-value = 0.004), which is consistent with previous studies, such as that of [
85]. Amid the COVID-19 pandemic, the banking sector faces numerous market challenges [
26]; at this juncture, supportive leadership can play an important role in introducing or adapting a new business trend, and creating a normal working environment for employees to feel more motivated and provide the maximum quality of services [
71]. Recently, Haque pointed out that, during the COVID-19 pandemic, the organizational leadership played a robust role in learning and implementing modern business trends, as it can maintain and deliver effective service quality to the consumers [
86].
The results also showed a robust positive relationship between training and development and employees’ job satisfaction (β = 0.149,
t-value = 1.885,
p-value = 0.008). Several studies have concluded that training and development is a crucial dimension of the internal marketing because it is a unique resource that supports organizational leadership, not only in developing modern business strategies, but also in training new and old employees to achieve business goals and make them satisfied to work more effectively. Since the COVID-19 pandemic, it has been challenging for banking sector employees to learn and implement new norms of operations and provide essential services to customers while maintaining quality [
49]. In this case, training and development can support employees and teach them new trends of customer management, which would sustain the performance from all aspects [
65]. Accordingly, Prasetyaningtyas et al. highlighted that, during the COVID-19 pandemic, companies worldwide, including the banking sector, introduced a new working style called work from home (WFH) and forced their employees to work regularly from home [
87]. Thus, due to the novelty of the WFH concept, most employees were unaware of how to effectively WFH [
87]. In this regard, Zito et al. suggested that organizational leadership should offer modern training and development programs to their employees so that they can be more satisfied with the job while WFH [
88].
We also found a positive and strong relationship between information and communication and employees’ job satisfaction (β = 0.230,
t-value = 3.182,
p-value = 0.002). Scholars have cited information and communication as the best predictor of employees’ job satisfaction [
89]. Sanders et al. pointed out that, during the COVID-19 pandemic, information and communication between employees and customers was an arduous task to perform [
90]. Further, Sohail and Jang stated that when “employees with multicultural orientations and/or different ethnic backgrounds, different nationalities and different demographic characteristics come together, a tendency towards miscommunication in both verbal and nonverbal communication is likely to occur” [
22]. Nonetheless, it appears that better communication systems during and after the pandemic are imperative for quality service delivery.
The positive relationship between selection and appointment and employees’ job satisfaction was supported as well (β = 0.156,
t-value = 2.650,
p-value = 0.008), corroborating the work of Khan et al. and Barkhuizen et al. Further, they reported that during the COVID- 19 pandemic, organizational leadership needs to hire qualified, skilled, and experienced candidates to be the “right person for the right job,” as these candidates can fill the organizational communication gaps caused by the pandemic [
91,
92].
The findings of this study add to the literature by identifying the specific internal marketing dimensions (i.e., supportive and participative leadership, training and development, information and communication, and selection and appointment) that enhance bank employees’ job satisfaction in the COVID-19 context. This study contributes new knowledge that bridges internal marketing research and job satisfaction research. Finally, we have extended the application of the SET to the context of internal marketing in the banking sector of a developing country, particularly during a global pandemic.