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Local Culture, Internal Marketing and Employee Satisfaction in Improving Financial Performance: A Case Study of Microfinance Institutions in Bali

Author

Listed:
  • I Putu Astawa

    (Tourism Business Management, State Polytechnic of Bali, Jimbaran 80361, Bali, Indonesia Author-2-Name: Tjokorda Gde Raka Sukawati Author-2-Workplace-Name: Faculty of economics and Business, Udayana University, Jimbaran 80361 Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective � Local culture acts as a bridge in empowering the resources owned by a firm so they can operate harmoniously. This research tests the theory of local culture, internal marketing, and employee satisfaction in an effort to improve financial performance. Methodology/Technique � The research is supported by the existing phenomenon of increasing credit issues. The data is obtained from 1,364 questionnaires and is quantitatively analyzed through Structural Equation Modelling. A qualitative analysis is used to deepen the anomaly relationship through a phenomenological approach. Findings � The result show that local culture becomes the organizational culture, but has no direct influence on the improvement of performance. Indicators related to the environment have a very low contribution to the development of organizational culture. Internal marketing indicators, such as recruitment processes and internal communication, have a significant contribution on the achievement of financial performance. Further, employee satisfaction has a significant impact on the achievement of financial performance. Novelty � This study develops a new model that can be used to enhance financial performance. The integration of local culture into internal marketing and employee satisfaction is a relatively novel invention.

Suggested Citation

  • I Putu Astawa, 2018. "Local Culture, Internal Marketing and Employee Satisfaction in Improving Financial Performance: A Case Study of Microfinance Institutions in Bali," GATR Journals jmmr185, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jmmr185
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    References listed on IDEAS

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    1. Bernhardt, Kenneth L. & Donthu, Naveen & Kennett, Pamela A., 2000. "A Longitudinal Analysis of Satisfaction and Profitability," Journal of Business Research, Elsevier, vol. 47(2), pages 161-171, February.
    2. Salomão Alencar de Farias, 2010. "Internal Marketing (IM): a literature review and research propositions for service excellence," Brazilian Business Review, Fucape Business School, vol. 7(2), pages 99-115, May.
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    More about this item

    Keywords

    : Local Culture; Internal Marketing; Employee Satisfaction; Financial Performance; Microfinance Institutions; Bali.;
    All these keywords.

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • Z19 - Other Special Topics - - Cultural Economics - - - Other

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