Employee brand performance: The effects of internal marketing and the mediating role of employee brand behaviour in the banking sector

Abstract

This research investigated the concept of employee brand performance in the context of banks, which is an under-investigated topic. Both literature and practice show that branding is a major topic of concern to banks. But research on employee brand performance has not been well addressed in the literature, although its importance has been highlighted as a concept that can enhance banks’ brand performance, enabling them to gain competitive advantage. Lack of complete knowledge on the factors that contribute to employee brand performance is plaguing banks. In fact, research on the contribution of employees to the branding and brand performance of banks has not produced generalizable or parsimonious outcomes or models that could be considered by banks for implementation. This research has addressed this gap in the literature to some extent. Based on a thorough literature review, it was identified that employees’ contribution to brand performance could be controlled and manipulated if those employees are considered as internal customers. The concept of internal marketing of branding to employees was found to be useful in grooming employees to deliver the expected brand performance of banks, although such conceptualization was rarely found in the literature. Despite the paucity of research publications addressing the linkage between internal marketing and employee brand performance, some publications offered grounds to conceive such a linkage. In the absence of supporting theories or models that could provide a basis to directly link internal marketing and employee brand performance, it was argued that certain factors could be brought into the picture that could provide such a linkage. Again, the literature review showed that internal branding, along with employee brand loyalty, employee brand commitment and employee brand identification, provide support to link the concepts of internal marketing and employee brand performance. A conceptual model was developed. Results obtained through the research showed significant differences when compared to those already published in the literature, especially those pertaining to employee brand commitment. The outcome of the research showed that employee brand commitment was not significant in mediating the relationships between internal marketing, internal branding, and employee brand performance. The findings of the research showed that internal marketing operates better in enhancing employees’ performance through internal branding and employee brand identification. The findings also showed that internal marketing can operate through a linkage between internal branding and employee brand identity to enhance employee brand performance, although to a lesser extent when compared to the path that included employee brand loyalty. The findings further showed that banks could use both the paths—namely the linkage between internal marketing, internal branding, employee brand identity and employee brand performance on the one hand and internal marketing, internal branding, employee brand loyalty and employee brand performance on the other—to derive the best brand performance. The research was conducted in the Kingdom of Bahrain, considered to be the hub of banking and finance for Gulf Cooperation Council (GCC) countries. A quantitative research method was used, in the form of a survey involving 114 banks. Questionnaires were distributed to 700 employees. Responses were received from all 700 employees, with 396 being valid. The response rate was 56.5%. Overall, the research succeeded in bridging the gap between internal marketing and employee brand performance and developed a parsimonious model in which internal marketing could act as a useful determinant of employee brand performance, thus contributing to the body of knowledge.