Leveraging internal marketing strategies for enhancing organizational outcomes with employee satisfaction as a mediator

Purpose This study aims to explore how internal marketing strategies shape organizational outcomes in the banking sector, highlighting the mediating role of employee satisfaction. Recognizing the intense competition and workforce mobility in the Kosovo banking industry, the research investigates how development strategies and communication and alignment strategies contribute to sustainable performance. Design/methodology/approach A quantitative survey was administered to 325 employees across all commercial banks in Kosovo. Using partial least squares structural equation modeling, the study tested both direct and mediating relationships between development strategies, communication and alignment strategies, employee satisfaction and organizational outcomes. Findings The results show that both development and communication and alignment strategies significantly increase employee satisfaction, which, in turn, strengthens key outcomes such as employee intent to stay and positive word-of-mouth. Mediation analysis confirms that satisfaction serves as a critical bridge, amplifying the effects of internal marketing on organizational performance. Practical implications By integrating social exchange theory and self-determination theory, the study advances the theoretical understanding of how psychological mechanisms link internal marketing practices to organizational performance. Practically, the findings highlight that targeted investments in empowerment, training, managerial support and role clarity are essential for improving employee satisfaction, reducing staff turnover and ensuring long-term competitiveness in the banking sector. Originality/value This paper contributes to the limited empirical research on internal marketing in financial institutions by disentangling specific strategies and elucidating the mediating role of satisfaction. Beyond Kosovo, the findings provide actionable insights for banks and service organizations in similar high-pressure environments seeking to leverage internal marketing for sustainable growth.