Nexus between Job Rewards and Job Satisfaction: a mediating Effect of Internal Marketing in commercial banks of Sindh Pakistan

Abstract

The main theme of this study is to examine the indirect effect of internal marketing on job satisfaction in association with job rewards of employees working in commercial banks of Sindh Pakistan. This study is being conducted to verify the direct impact of job rewards on job satisfaction as independent variables i.e.: psychological reward, and financial reward are independent variables while internal marketing plays a mediating role while job satisfaction is the dependent variable. Six hypotheses were developed in contrast with the previous literature. A survey questionnaire was utilized to collect the data. The questionnaire was based on demographic questions on age, gender, education, marital status, income level, and bank region. For measuring these four constructs different scales were used for measuring psychological rewards the scale of De Geiter (2010) scale was used, for measuring financial rewards Heneman and Schwab (1985) scale was employed, for internal marketing Narteh (2012) scale was use to measuring the job satisfaction the Mulinge and Mueller (1998) scale was used. This research study has employed quantitative research methods in cross sectional settings. Responses were gathered from 413 frontline employees of commercial banks of Sindh Pakistan through physical visits and online. The overall response rate of respondents was 68% approximately. Later on, collected data was processed through SPSS for extracting descriptive analysis and Smart PLS for extracting inferential analysis. Cranach’s Alpha was used to measure the internal consistency and reliability, AVE was used to measure convergent validity, and Former & Larcker criteria for Discriminant validity and outer loadings were also extracted for the authenticity of constructs. Structural Equation Modeling (SEM) was applied to validate the measurement model. The results and findings have suggested that all assumptions/thresholds for meeting the minimum criteria and validation of the measurement model are accepted. The results suggest that all the proposed hypotheses were found supported by the relevant and prior studies in the context of job satisfaction respectively. The study concludes that the results of this study are confirmed with the prior studies by testing the hypotheses. Investigating the impact of mediation could provide light on the information that a direct cause-and-effect relationship cannot convey. This study's theoretical contribution is accompanied by the evidence that the correlations between numerous dimensions in banking marketing may be explained by indirect effects and mediator effects. Relationships between conventionally researched components, such as job rewards, job satisfaction, and internal marketing, demonstrate these impacts. Although these indirect impacts (mediators) may help to explain and improve diverse interactions, they have received very little attention in the research on banking marketing.