The Impact of Internal Branding on Employee Engagement and Outcome Variables in the Hotel Industry

The concept of internal branding is well accepted in the service industry. This study examines how internal branding helps service organizations achieve desirable outcomes such as job satisfaction and employee loyalty. The model is developed based on social exchange theory and considers the relationship among internal branding, employee engagement, job satisfaction, and employee loyalty. The model is tested on service employees of hotels in South Korea using a survey method. The study finds internal branding is critical for employees to be engaged with the job and the organization and employee engagement fully mediates the relationship between internal branding and job satisfaction. Several implications are discussed.