Concept Paper on Internal Marketing Practices on Internal Service Quality of Licensed Special Banks in Sri Lanka

In the highly competitive banking industry, maintaining high service quality is crucial for ensuring customer satisfaction and long-term success. Internal marketing plays a pivotal role in shaping employees’ perceptions of service quality, directly impacting their performance and engagement. This paper explores the influence of internal marketing practices on Internal Service Quality (ISQ) within Licensed Special Banks in Sri Lanka. Internal marketing involves strategies aimed at enhancing employee motivation, satisfaction, and performance. Key internal marketing practices include rewards and motivation, internal communication, employee training and development, employee selection and recruitment, and healthy working environment. The ISQ includes tangibility, reliability, empathy, responsiveness and assurance. These practices collectively contribute to improved service quality, ultimately benefiting both employees and customers. Despite the significance of internal marketing in the banking sector, limited research has been conducted on its specific impact on ISQ within Sri Lanka’s Licensed Special Banks. This study aims to provide an empirical review of previous research in this area and analyze the remaining literature related to this field. It examines the connection between internal marketing practices and ISQ, offering valuable insights for banking institutions. By leveraging effective internal marketing strategies, banks can: Strengthen employee engagement and job satisfaction, improve service delivery efficiency, Enhance overall customer satisfaction and loyalty. As competition in Sri Lanka’s banking sector intensifies, prioritizing internal marketing strategies is essential for sustaining high service quality. This study seeks to bridge the research gap by providing practical recommendations for banks to refine their internal marketing approaches and improve service performance.