Business Resilience and Social Inclusion: A Critical Reflection on Internal
Marketing
Resiliencia en los negocios e
inclusion social: Reflexión crítica sobre el Marketing Interno
Francia Contreras García
Instituto Tecnológico y de Estudios
Superiores de Monterrey (Mexico)
https://orcid.org/0000-0002-5096-6415
Tania Elena González Alvarado
Universidad de Guadalajara (Mexico)
https://orcid.org/0000-0002-3062-9665
Received:
November 23, 2020
Accepted:
December 29, 2020
ABSTRACT
The aim of the paper is to identify the dimensions
of the Internal Marketing that
contributes to business resilience and social inclusion. Marketing is
approached as a tool for social transformation. The documentary and data
analysis focused on the relevant theoretical and practical models proposed in
the last decades. It concludes with the proposal of four dimensions of internal
marketing that stimulate business resilience and social inclusion wich are: 1)
the attraction and development of talent through the competitiveness of the
workplace; 2) organizational change; 3) leadership development and empowerment;
and 4) communication for the exchange of knowledge and motivation.
Keywords: Sustainable development goals, Internal
marketing, resilience, social inclusion
JEL CODE: M31, M51, O15
RESUMEN
El objetivo del artículo es identificar las
dimensiones del marketing interno que
contribuyen a la resiliencia empresarial y a la inclusión social. El análisis
documental y de datos se centró en los modelos teóricos y prácticos propuestos
en los últimos cuarenta años. Se concluye con cuatro dimensiones del marketing
interno que favorecen a la resiliencia empresarial y a la inclusión social: El
objetivo del artículo fue identificar las dimensiones del marketing interno que
contribuyen a la resiliencia empresarial y a la inclusión social. Se abordó al
Marketing como una herramienta para la transformación social. El análisis
documental y de datos se centró en los modelos teóricos y prácticos propuestos
en los últimos cuarenta años. Se concluyó con cuatro dimensiones del marketing
interno que favorecen a la resiliencia empresarial y a la inclusión social: 1)
atracción y desarrollo de talento; 2) cambio organizacional; 3) Lideraqzgo y
empoderamiento; 4) comunicación para la creación del conocimiento y la motivación..
Palabras clave: Objetivos del desarrollo sostenible, Marketing interno, resiliencia, inclusión social.
JEL CODE: M31, M51, O15
INTRODUCTION
The aim of the paper is to identify the dimensions
of the Internal Marketing that
contributes to business resilience[1] and social inclusion[2]. Marketing was approached
as a tool for social transformation. There is also Internal Marketing for companies in the industrial sector. It is
possible that its application will gradually reverse the inertia of the
maquila, from hiring of cheap labor, and move towards production activities
with a greater contribution to the well-being of the employees.
In order to support this, the writing is divided
into five sections. The first is this introduction. The second presents the
theoretical and contextual framework on business tools aimed at increasing
productivity through the internal promotion of the company's image: Internal
Marketing. This second section was built with the idea that the technique has
led the tool to yield results that are far from the well-being of the employee,
also affecting the resilience of the company. The third section is the
methodology. The fourth one exposes Internal
Marketing as transformation
tool taking on consideration "the constant" as the "change is the only constant";
Three models are presented for Internal Marketing with their business
resilience indicators; as well as the relationship between the
descriptive-explanatory model and the prescriptive model in companies. All this
in order to establish which dimensions contribute to both business resilience
and social inclusion (Sabatino, 2016; Sheffi, 2005; Starr et al. 2003). Based on the latter, the conclusions presented in the
fifth and last part of the work are derived.
THEORETICAL-CONTEXTUAL FRAMEWORK
Some research indicates that the reconciliation
between the interests of the employee with the needs and expectations of the
client increased the productivity, commitment and well-being of the employee
(Cali et al. 2018; Gil and Ospina, 2018; Perilla and
Gómez, 2017; González, 2017; Rodríguez and Suárez, 2016; Barth and Negri, 2015;
Guzmán, 2013; González and Hernández, 2012; Cequea et al. 2011; Sinn, 2008; Gracia et
al. 2006; Hernández et al. 2003;
Rodríguez and Sanz, 2011; Berry, 1981). There was even a decrease in work stress
(Goodman, 2014; Garrosa and Carmona, 2011). However, the models applied to
achieve this conciliation in recent decades have focused only on productivity
at the expense of employee well-being (Drucker, 1999). The decrease in
production costs has led to a drop-in wages and job insecurity (Borderías and
Martini, 2020) worldwide. This situation makes it possible to declare that the
technique of senior management has led the tool to offer results that are far
from the well-being of the employee, also affecting the resilience of the
organization in times of greater change in the environment.
Business tools aimed at increasing productivity
based on cost reduction need to be modified in the face of global changes. No
matter how competitive and old companies are, they all face uncertain
scenarios, the main characteristics of which are usually: climate change,
migratory flows and new poverty profiles (Rangel and Campos, 2018; Marí-Klose
Pau and Marí-Klose Marga, 2017; Stefoni et
al. 2017, Salgado, 2015; Climent, 2015; Villaseca and Padópulos, 2011,
Medialdea and Álvarez, 2005).
Climate change is not the only cause of migratory
flows; but it is a factor that has intensified them; in turn, high-income
countries and large cities have not had the capacity to absorb these flows,
encouraging the existence of new poverty profiles (Martín and González, 2016).
On the one hand, the logic driven by a greater
reduction in production costs through labor flexibility and outsourcing (Hernández, 2016; Vélez
and Granda, 2016; Vesga, 2011; Sánchez, 2010; Gallego and Vargas, 2006) has
contributed to the erosion of the world economic system, which no longer
guarantees the long-term sustainability of global businesses (Martín and
González, 2016).
On the other hand, the Sustainable Development
Goals (UNDP, 2020) consider social inclusion and an increase in the employee's
welfare as means for greater sustainability. One of the 17 goals of sustainable
development is to achieve full, productive and decent employment for all. In
the capitalist system, work is one of the main mechanisms for social inclusion
(Sisto, 2009). If this is analyzed superficially, it seems ambitious,
contradictory and little complementary to the current logic of large companies
and the prevailing modes of production. However, if it is considered that
business tools are dynamic and that it is the vision of decision makers that
determines them, then this development objective does not seem so contradictory
and much easier to achieve, benefiting in parallel the company and the
employee. The basis of this rests on the reorientation and adaptation of the tools
towards the new scenarios. In this way, Internal
Marketing is an example in the
reorientation of its tools towards the construction of a more sustainable
economic system (Kortam and Mahrous, 2020), increasing productivity and
reducing costs, without detriment to the employee's welfare, and even, building
more resilient organizations in the face of adverse scenarios (González and
Martín, 2013).
Given the current challenges and the search for
the creation of more inclusive jobs, which guarantee the employee's welfare;
but, at the same time make the company more resilient, is the Internal Marketing is considered as a
theoretical model that in practice offers especially appropriate tools (figure
1).
Figure 1. Contribution of
internal marketing to business resilience
Source: own elaboration.
Figure 2. Business dilution
between three markets through internal Marketing
Source: own elaboration.
Internal Marketing is (1) satisfaction and motivation of the
employee to (2) focus on the customer and their satisfaction, by (3)
coordination and functional inter (4) integration with a market approach and
(5) implementation of corporate strategies and / or specific actions (Rafiq and
Ahmed, 2000; Foreman and Money, 1995). Under this perspective, job satisfaction
is granted through customer satisfaction (Lings, 2004). It is a more humanistic
vision of the results of the company because it includes the different
perceptions of the employees and the multiple realities that coexist in their
work area. By operating as an internal market, the company is diluted between
the labor and goods and services markets, being more consistent in its actions
and adapting to changes faster. Diluting between the two markets does not mean
disappearing, it means acting with the same logic and speed, becoming more
resilient (figure 2). Both marketing strategies (internal and external) are
aligned (Lings and Greenley, 2005), the capabilities of the company are
dynamic, and the market responds more quickly (Gounaris, 2006).
This vision of Internal Marketing is
congruent with the vision of a XXI century work flexibility, with greater
benefits for the employee. The current company is a Collage in continuous assembly and disarmament (Sisto, 2009). In
this Collage, the employee is more
than a piece of assembly under unstable joints in which he is expected to
remain long-term, grow professionally and develop his talents. The employee is
the human part that articulates and gives meaning to the other elements of the Collage. The vision of the three markets
provides speed and consistency between the internal elements of the company and
those external to it, increases its capacity to respond to changes and even
makes it an agent of change.
It is possible that this dynamic and uncertain
vision also facilitates a greater understanding of productivity, and allows the
rediscovery of why one employee is more productive than another under the same
conditions; Or, what causes an employee to be more productive in different
periods or circumstances, and even in adverse circumstances. Internal Marketing identifies the differences between what
the employer perceives about the image of the employee by the company, and the
true perception of the employee on itself and for the company, thereby
achieving the reinvention of their work, the working environment and
employer-employee-client relationships.
METHODOLOGY
An approach has been made to the phenomenon has
been made through the compilation and documentary analysis of the last forty
years (books, magazines, videos, blogs, among others) on the actions of
companies worldwide to create a better work environment through the approach
"the employee is the client". Based on this, three models were
identified. Two of them are descriptive-explanatory and one is prescriptive.
These models were analyzed and compared according to their dimensions and to
the theoretical basis. This analysis had as a second claim the increase in the
employee's welfare in the face of climate change, the new poverty profiles and
migratory flows, resulting in greater business resilience.
The preliminary results were exposed to the debate
of the scientific and academic community through participation in
multidisciplinary conferences, seminars and congresses. In the same way,
triangulation between experts has been a necessary and essential measure, in
order to achieve consistency and greater objectivity in what is collected and
analyzed.
DEVELOPMENT AND DISCUSSION
Before the free trade, it was considered that the
formal structures of the company were designed to achieve the main activities
and enabled to capitalize on human potential (Argyris, 1993), under a planned
environment and with little possibility of facing to international competition.
The prevailing theoretical thinking in business aspects attributed minimal
importance to tackle climate change, the new poverty profiles and migratory
flows. The companies had rigid structures and with many hierarchical levels.
The procedure manual was highly indispensable and was based on rigid rules and
policies to which the employee had to quickly adapt without question.
Figure 3. Transformation of thinking
based on internal marketing
Source: own
elaboration.
The transition from a closed economy to an open
one, implying the confrontation with international changes, led theorists to
consider companies as open sociocultural systems and, as such, inclusive of
ideological elements, collective schemes of meanings, values, knowledge and
beliefs, forming an integrated whole with more dynamic structures, emerging
strategies, policies and processes of the organization in constant change
(Crosby, 2002). Internal Marketing was part of the transformation from
"the constant" to "change as the only constant" (figure 3).
According to the literature review, the first
reference to appears in 1976 Internal Marketing. Almost twenty-five years
before the world committed to the Millennium Goals, and nearly forty years
before the Sustainable Development Goals. Berry et al. (1976) raised the
importance of Internal Marketing in customer service, while Flipo (1986)
censured marketing without employee involvement and Grönroos (1990) linked
marketing service with satisfaction. Although it was Collins and Payne (1991)
who found the importance of the employee in the achievement of the company's
objectives, through strategies marketing.
The link between Internal Marketing and quality in
customer service was clearly explained. However, its application was not
extended to other functions within the company, nor did it involve companies
that were not typical of the service sector. The bet was towards the employee
who dealt directly with the customer. Piercy and Morgan (1991), almost at the
same time as Collins and Payne (1991), related the motivation of the employee
with the costs of the company. Finally, Berry and Parasuraman (1991) proposed
to practice first Internal Marketing, before external one.
Internal Marketing involved the treatment of
employees and customers to increase corporate effectiveness, improving internal
relations (Helman and Payne, 1992). Wright et al. (1994) showed that Internal
Marketing contributes to the adaptation of the company to new market
environments. Caruana and Calleya (1998), emphasized the relationship with organizational
commitment.
While Ahmed et al. (2003), added the sense of
belonging, motivation, communication and empowerment. Bak et al. (1995)
explained that Internal Marketing achieves more effective and participatory
employees, directing their participation towards learning environments. That is
why Cahill (2017; 1995), demonstrated the relationship between Internal
Marketing and organizational learning. The studies presented by these
researchers are from the last decade of the last century, which was an
important moment in the process of globalization and trade opening in different
parts of the world.
Organizational learning is key to resilience in
organizations. A learning organization is easily adaptable to external changes,
stimulating the achievement of organizational objectives. It is possible that a
company with Internal Marketing is a learning organization and, therefore, it
is more resilient. Therefore, it is not surprising that Barney and Wright
(1998) demonstrated the positive impact of internal Marketing on the
competitiveness of the company and its organizational performance. As it was
demonstrated, companies globally were facing major changes in the face of
liberalization, deregulation and decentralization. There were rapid changes in
the international environment.
The entrepreneur at that time (last five years of
the last century), had been subject to new challenges. He faced international
competition without leaving home because this competition was installed in his
locality. He also faced new financial challenges, one of them arose from a
system of exchange parity not controlled by the government, another challenge
had to do with the new financing schemes. These challenges indicated the
transformation of his town on a more international stage. In that same five
years, labor flexibility had knocked on the door in the world economic system
and it had been opened wide. Which is why Internal Marketing took on a new
justification. Hogg et al. (1998) concluded that the employee had an impact on the
perception of clients towards the company, and that this was directly related
to performance and values, among other factors.
The business tools that revolved around Internal
Marketing had become, by that time, in allies of companies that increased productivity
hand in hand with the fall in wages worldwide, the weakening of pension
systems, as well as the stiff competition that middle and senior management
employees were subjected to. Climate change and migratory flows were not
considered. New poverty profiles emerged in the most prosperous cities and rich
countries. Companies focused on the accounting benefits of labor flexibility
and sought strategies to reduce costs, not to adapt to changes in the
environment.
All talent retention strategy was practically unrelated
to salary and job stability. Short-term employee commitment was obtained
without genuine commitment from the company. In this scenario, Chew (2004)
related business performance to employee retention; linked the capacity for
innovation and business development with the knowledge and skills of employees.
However, Internal Marketing is based on models
that aim at internal customer satisfaction, based on participatory management
processes (Bohnenberger, 2005), interfunctional coordination, integration and
empowerment (Rafiq and Ahmed, 2000). All of this requires motivation, training,
recognition and empowerment (Bansal et al. 2001).
For the present study, an analysis of three models
with the highest incidence in business practice in recent years was run (table 1).
They present a long-term vision of the employer-employee relationship,
fostering permanent reciprocity and loyalty between the company and its
employees.
In the first model (Berry and Parasuranam, 1991)
the best employees are recognized, attracted and retained. The second model
(Ahmed et al. 2003) emphasizes
motivation and empowerment, reinforcing the combination between personnel
management and marketing. The third model (GPTW, 2019) focuses entirely on
business practice and with the nuances of a multidimensional reality.
Table 1.
Orientation of internal marketing models
and their indicators for business resilience
|
Berry & Parasuranam (1991) Oriented to customer satisfaction |
Ahmed, Rafiq & Saad (2003) Oriented to business performance |
Great Place To Work (2019) & Levering (1995) Oriented to the employee's welfare |
|||||
|
INDICATORS |
Talent attraction |
Management empowerment and psychological
environment |
Trust and commitment |
||||
|
Assertive communication |
Middle management leadership |
Respect |
|||||
|
Continuous
training |
Strategies
for performance recognition |
Credibility and loyalty towards the company |
|||||
|
Leadership |
Integration of
high-performance teams |
Impartiality and social inclusion |
|||||
|
Freedom for
work |
Incentive system and adaptation in processes |
Sense of
belonging (pride) |
|||||
|
Recognition for results |
Inter-functional
coordination and integration through communication |
Fellowship and collaboration |
|||||
|
|
|
Training and development of individual skills |
|
|
|
||
Source: own
elaboration based on the authors’ proposal.
Figure 4, on its left side, showing the elements
of the descriptive explanatory model built based on two main theoretical models
(Berry and Parasuranam, 1991; Ahmed et al
2003) shown in Table 1. The
right side of Figure I shows the prescriptive model generated by Great Place to Work (GPTW, 2019), which
is supported by a group of companies (45 countries on 6 continents) at the
global level. They work with an anonymous survey, with 51 items, to which the
employee (around 10 million worldwide) answers, detailing how they feel and
what they think about the company and their workspace (GPTW, 2019).
Great
Place to Work (GPTW, 2019) is a model of Internal
Marketing that provides feedback to the company regarding the internal work
environment and the external labor market. Companies look beyond productivity
and profitability; they seek a distinction from the competition.
The feedback and the distinction Great Place to Work contribute to the
company operations in congruence with the three markets: internal, labor and
goods and services. The main elements considered by this prescriptive model are
comparative measurement and analysis of workplace competitiveness; Intellectual
Capital for Leadership Development and Human Capital Best Practices and
Knowledge Sharing (GPTW, 2019). In the business environment there is a lot of
optimism and credibility towards this model.
Figure 4. Internal
Marketing orientation towards business resilience
In this way, those who make decisions based on
their beliefs lead the practice to transform the business reality, in turn, the
new business reality transforms the theory (explanation of reality). The Great Place to Work model is an
essential link between practical reality and theory of Internal Marketing (GPTW, 2019; Dabirian et al. 2017; Bakker, 2010; Fulmer et al. 2003; Levering, 1995).
Great
Place to Work strengthens
the phenomenon (Internal Marketing)
and gives it continuity in such a way that practices Internal Marketing originally focused on the service sector have
transferred to industrial sector, with more and more companies in the
industrial sector interested in obtaining the distinction and in carrying out
the necessary practices to improve employee welfare.
In the Great
Place to Work model, the main characteristic in determining a great
workplace is the level of trust between management and employees, not specific
policies or practices. The benefits represent a modern and more ambitious
version of Elton Mayo's (1972) approach. Mayo (1972) focused on individual job
satisfaction without addressing the most basic issues necessary to create a
high level of trust.
Great
Place to Work is based on
communication (two-way dialogue), the strengthening of work skills and
integrity, essential for trust in the workplace (Levering and Moskowitz, 1993).
This model confirms that Internal
Marketing has been altered by social changes and company management. The
importance of Internal Marketing is
undoubted, and it is possible that companies allocate a larger budget to
strengthening it (table 2).
Table 2.
Contribution of dimensions Internal
Marketing to business resilience and social inclusion (Sustainable
Development Goals)
|
Internal marketing dimension |
Definition |
Contribution |
|
Attracting and developing talent through workplace
competitiveness (GPTW, 2019; Barney and Wright, 1998; Levering, 1995; Berry
and Parasuraman, 1991) |
Builds elements
that attract the best, develop individual skills that add to the capabilities
of the company and to the performance of the business. |
It encourages
social inclusion, because it focuses on talent and not on the individual's
social and economic background. |
|
Organizational change (Ahmed et al. 2003; Barney and
Wright, 1998; Levering, 1995) |
Dynamic business processes in constant modification
through self-assessment and self-learning. |
Increases the level of response of the company towards
changes in the labor market as well as goods and services, fosters
resilience. |
|
Leadership and empowerment development (GPTW, 2019;
Ahmed et al. 2003; Barney and Wright, 1998; Levering, 1995; Berry and
Parasuraman, 1991) |
Construction of high-performance
teams, improvements in the work environment, appropriation of knowledge and
support from senior management to act on the basis of such ownership. |
It promotes the
learning environment in the company. It turns learning environments into the best
allies for organizational adaptation to new realities. |
|
Communication for the exchange of knowledge and
motivation (GPTW, 2019;
Ahmed et al. 2003; Barney and Wright, 1998; Levering, 1995; Berry and
Parasuraman, 1991) |
Clear and accessible communication, contributing to
integration and the generation of competences . Employees trust the people
they work for, take pride in what they do, and enjoy who they work with. They
are motivated for continuous improvement. |
It encourages social inclusion and the creation of new
jobs, while increasing productivity, innovation and continuous learning. |
Source: Own elaboration.
Internal
Marketing is a social
process. People become relevant as their ability to generate value in the
company begins to be recognized, through increased productivity, improvements
in customer service and impact on the economic results of the company (Winston
and Cahill, 2012; Pfeffer, 1998). Internal
Marketing contributes to the dynamic capabilities and value(Berry and
Parasuraman, 1991; Rafiq and Ahmed, 2000; Lings, 2002). It also contributes to
the financial performance of the company (GPTW, 2019; Fu et al. 2018; Salehzadeh et
al. 2017; Išoraitė, 2017)
However, its contribution to business resilience
and social inclusion is more important (table 2) under the new scenarios. Of
course, the impact of Internal Marketing on
business resilience and social inclusion depends a lot on the long-term vision
of senior management. The dimensions that contribute to resilience and social
inclusion require a strategic vision that is not static, not short-term, and
much less linear.
CONCLUSIONS
As analyzed in this work, a limitation for
obtaining better results in business practice, in the face of current
challenges, is the existence of tools that are conceived by those who occupy
positions in senior and middle management, which tend to be static and
isolated. A static, short-term and linear view is dangerous because it leads to
poor results, even when the best tools are avilable. A large part of these
arose in the middle of the last century, in a protectionist environment and
planned economies. Faced with a change in circumstances, decision makers have
to modify their vision: from short term to long term, from planned to emergent,
from linear to multidimensional. This work considered that, in most cases, the
technique (the way something is done or applied) limits the results before the
tool itself.
Internal
Marketing is key to
business resilience to climate change, new poverty profiles and migration flows
at the time that reconciles the welfare of employee, his labor productivity with
social inclusion. This requires making long-term decisions and analysis. It
requires transforming the vision from the short term into the long term so that
it can take effect.
The maximum use depends on the vision of senior
management regarding changes in the environment. Once the company acts in
congruence with the three markets: internal, labor and of goods and services,
it is possible that it will achieve better results in terms of customer
satisfaction, business performance and the employee's welfare.
It is concluded that the dimensions of internal marketing that contribute to
business resilience and social inclusion are the following: 1) the attraction
and development of talent through the competitiveness of the workplace; 2)
organizational change; 3) leadership development and empowerment; and 4)
communication for the exchange of knowledge and motivation.
This conclusion is based in the analysis of data from Great
Place to Work and the documentary analysis of the theories that support Internal Marketing model, recognizing
the need to delve even deeper into more specific realities. It would imply new
lines of investigation, which require direct investigation to gather evidence
about what happens within companies that apply any of the three models
identified in the work.
The new reality that the business sector and the
labor market have entered also leads to the opportunities of comparative
studies between before and after the pandemic modifications of modus operandi in what respects the Internal Marketing and employment
commitment. As well as its possible contribution or not contribution to the
resilience of the company in times of pandemic.
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ACKNOWLEDGMENT
The article is from the
doctoral thesis corresponding to the Doctorate Program in Administration
Sciences, included in the National Register of Quality Postgraduate Programs (Padrón
Nacional de Posgrados de Calidad in Spanish), Conacyt, Mexico and Francia
Contreras has a Conacyt Scholarship.
[1] The quality of being able to return
quickly to a previous good condition after problems (Cambridge University,
2020).
[2] The idea that everyone should be able to
use the same social facilities, take part in the same activities, and enjoy the
same experiences, including people who have a disability or other disadvantage
(Cambridge University, 2020).