THE INFLUENCE OF LEADERSHIP STYLE ON INTERNAL MARKETING IN RETAILING

Abstract

An exploratory investigation using a survey study approach was undertaken in two organisations in retailing, to explore whether there is any connection between HOD leadership style and the effectiveness of marketing concept in the organisation. Findings emerged on several levels. Despite the agreement on the importance of leadership in IM, little integration of leadership and IM research is found in the literature. Traditionally, leadership studies relate to job satisfaction, motivation, performance, productivity and communication. The term leadership means different things to different people (De Jong 2006). Although no ultimate definition of leadership exists (Yukl 2002) the majority of definitions reflect some basic elements including influence, motivation, intention, and change. Despite the importance of acknowledging the concept of leadership and its implications on internal marketing, it emerges that empirical studies of the relationship between leadership and internal marketing are unduly under-represented. Looking at the results, the achievement oriented and participative styles are positively associated with internal marketing. The achievement oriented is somewhat a better predictor than participative style in predicting variability in internal marketing. Conversely, the directive style is negatively associated with the internal marketing variable. The only leadership style that has no significant effect on internal marketing is the supportive style. The results also show that staff job satisfaction levels are positively predicted by leadership style. Further analysis shows that only 2 out of 4 leadership styles have positive significant effects on internal marketing; these are: achievement oriented and participative styles. The other two are not significant in predicting the variability in job satisfaction. The regression results show that leadership style has a significant effect on the HOD performance variable. All leadership styles, except supportive style, have significant effects on HOD performance. The achievement oriented and participative styles have positive significant effects, but the directive style has a negative effect on HOD performance. The overall results show that achievement oriented and participative styles have positive significant effects directly and are mediated by internal marketing effects on job satisfaction and HOD performance. But the directive style of leadership has a significant direct negative effect and is mediated by internal marketing on HOD performance only and not on job satisfaction. Survey data at the individual level was aggregated across the two organisations and analysed. While these results cannot be statistically generalisable because of the small and unrepresentative sample used, the findings suggest that the link between individual organisation members’ perceptions of Internal Marketing and HOD leadership would be worthy of a larger study.