Exploring Internal Marketing Dimensions in the Banking Sector of Bosnia and Herzegovina

Abstract

Aims: This paper aims to investigate internal marketing dimensions in banks in the market of Bosnia and Herzegovina (BiH). The research aims are: 1) To determine the attitudes of employees and management regarding the presence of the observed internal marketing dimensions (familiarity with the vision, reward system, training and development, internal communication) in the banks in BiH, 2) To determine the existence of a statistically significant difference in the attitudes of employees and management regarding the presence of the observed internal marketing dimensions in the banks in BiH, 3) To determine the impact of socio-demographic characteristics on the attitudes of employees and management regarding the presence of the observed internal marketing dimensions in the banks in Bosnia and Herzegovina. Study Design: A quantitative research approach was employed to investigate internal marketing dimensions, utilizing a survey method to collect empirical data from management and employees in banks across Bosnia and Herzegovina. Place and Duration of Study: The data were collected in Bosnia and Herzegovina from management and employees of the banks during the last quarter of 2023. Methodology: This paper is based on empirical data collected through the written structured questionnaire. The total of 250 questionnaires were collected, of which 184 were included in the analysis. The total number of validated responses was 63 from managers and 121 from employees. To analyze the data, an independent samples t-test was conducted to determine whether significant differences existed between employees' and management's perceptions of internal marketing dimensions. Additionally, a chi-square (χ2) test was used to examine the relationship between socio-demographic characteristics and respondents' attitudes toward internal marketing dimensions. Results: The results indicate that the attitudes of employees and management differ in two out of four observed internal marketing dimensions: familiarity with the vision and the presence of the reward system in BiH banks. However, no significant differences were found in attitudes toward training and development or internal communication. Additionally, socio-demographic characteristics did not show any significant correlation with internal marketing perceptions. Conclusion: This study highlights the need for a more consistent and strategic approach to internal marketing within BiH banks, particularly in aligning employees and management on key dimensions. Addressing these gaps could enhance organizational cohesion and effectiveness.