Internal Marketing’s Impact on Service Quality and Sustainability, Mediated by Employee Outcomes in Saudi Banking

Abstract

This study investigates the impact of internal marketing practices on employee satisfaction, commitment, and performance, as well as how these outcomes mediate the relationship between internal marketing, service quality, and organisational sustainability in the Saudi Arabian banking sector. Targeting employees across various banks, the study applies partial least squares structural equation modelling (PLS-SEM) to test a comprehensive conceptual framework. The findings reveal that internal marketing significantly enhances employee satisfaction and commitment, with both outcomes playing a pivotal role in improving service quality and contributing to long-term organisational sustainability. While the direct effect of internal marketing on performance and sustainability is moderate, the indirect influence through employee outcomes is substantial. The study further confirms that satisfied and committed employees have a positive impact on service delivery, customer experience, and ultimately, institutional resilience. This research holds strategic importance for bank managers and policymakers in Saudi Arabia, particularly in relation to the national transformation goals outlined in Vision 2030. It highlights the necessity of embedding internal marketing into organisational culture as a driver of sustainable service excellence. By positioning employees as internal stakeholders and aligning internal marketing efforts with strategic objectives, the banking sector can foster a resilient workforce, enhance customer loyalty, and sustain a competitive advantage in a rapidly evolving financial environment.