Internal Marketing Analysis in the Healthcare Field: Employee Satisfaction and Well-Being as Mediation Variables

Abstract

As global competition intensifies, the quality of services and human resources becomes critical for healthcare organizations. Internal marketing, which bridges marketing with human resource management, is essential for fostering positive employee attitudes and sustaining competitive advantage. This study examines the influence of internal service quality on employee satisfaction, well-being, and performance, highlighting the mediating roles of satisfaction and well-being in enhancing performance. This cross-sectional study was conducted with 147 public hospital employees in Indonesia (response rate: 88%). Data were gathered using a self-administered Performance Excellence questionnaire, Employee Well-Being Scale (EWBS), Job Satisfaction Survey (JSS), and Job Performance questionnaire. Structural equation modeling was applied to test the hypotheses. Internal service quality was found to directly influence employee satisfaction, well-being, and performance. Employee satisfaction and well-being were significant direct influences on employee performance. Satisfaction emerged as the most influential mediator between internal service quality and performance, while well-being provided an additional mediating effect, reinforcing the internal marketing framework within the Service Profit Chain (SPC) theory. A strong internal service quality culture enhances employee satisfaction and well-being, leading to improved performance. Integrating well-being as a mediator in internal marketing strategies in healthcare is crucial for optimizing organizational outcomes.