Purpose Taking an evidence from social exchange theory, this research examines the mediating role of affective commitment in the correlation between internal branding, employee engagement and job satisfaction. The moderating role of work environment on the link between internal branding and affective commitment is also studied in this research. Design/methodology/approach The data were collected by using well-structured research measures from 215 employees working in the BPO sector of India (Punjab and Chandigarh). The hypotheses were developed, and the conceptual model was validated by applying structural equation modeling. The data were analyzed by using two statistical packages, namely SPSS and AMOS. Findings The findings suggest that internal branding has a significant positive relationship with employee engagement, job satisfaction and affective commitment. The mediating effect of affective commitment on the relationship between internal branding and employee engagement was full, whereas on the relationship between internal branding and job satisfaction, it was partial. Work environment also moderated the relationship of internal branding with affective commitment. Research limitations/implications The current study offers significant lessons to management thinkers, human resource (HR), organizational branding and marketing manager. However, BPO sector should be aware about the critical role played by internal branding to enhance affective commitment, employee engagement and job satisfaction of the employees. The role of affective commitment is also taken into account to study the effect of internal branding on employee engagement and employee's job satisfaction. For itself, internal branding cannot be considered as in isolation and is doubtful to be efficacious if the work environment is not encouraging to an employee as well as to the brand values. Practical implications This study offers significant lessons to management thinkers, HR, organizational branding and marketing manager. However, BPO sector should be aware about the critical role played by internal branding to enhance employee engagement, job satisfaction and affective commitment of the employees. An important role of affective commitment is also taken into account to study the effect of internal branding on employee engagement and employee's job satisfaction. For itself, internal branding cannot be considered as in isolation and is doubtful to be efficacious if employees are not provided an encouraging work environment. Originality/value Existing researches on internal branding are theoretical in nature and overlook the empirical impact of internal branding on employee engagement, job satisfaction and affective commitment from the BPO employees' perspective. The study also offers an empirical examination of potential mediator and moderator for internal branding.
