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Objectives: The objectives of this study were to examine the effect of internal marketing on the employees’ customer orientation and their business performance will, and to verify the mediating effect of market orientation in local hospital setting. Methods: A questionnaire-based survey was conducted among 300 employees working at 9 hospitals in Changwon area, and 279 responses were analyzed. The data were collected from April 4 to April 17, 2015. SPSS 18.0 program was used for descriptive statistics, t-test, ANOVA, factor analysis and reliability test, and AMOS 18.0 program was used for path analysis. Results: First, delegation of authority, education and training, and compensation, among other factors of internal marketing, showed a statistically significant effect on market orientation. Second, market orientation had a significant effect on both customer orientation and business performance will. Third, internal marketing influenced rather indirectly on the customer orientation and business performance will, mediated by market orientation. Conclusions: Leveraging market orientation could help local hospitals make the most of their internal marketing activities in order to improve customer orientation at the individual level and the business performance at the organizational level.

bogeon jeongbo tonggye hakoeji

Effect of Internal Marketing on Customer Orientation and Business Performance Will, and Mediating Effect of Market Orientation in Small-to-Medium Sized Hospitals