Effects of internal branding and brand-oriented leadership on work-related outcomes

Abstract

This study develops an empirical model to test the effect of internal branding and brand-oriented leadership on employees' service recovery performance and turnover intention, with a particular emphasis on psychological contract as a mediator. Using a quantitative approach, questionnaire responses were collected from frontline employees of four- and five-star hotels in the Turkish Republic of Northern Cyprus. Statistical analyses were performed using the SmartPLS software. The results of the statistical analyses showed internal branding and brand-oriented leadership positively influence psychological contracts. Moreover, the results suggest that hotels need to establish effective internal branding mechanisms to relay their brand messages through internal communication, training, briefings, and meetings. It was observed that, in general, a psychological contract guarantees a partial complementary mediation between internal branding and brand-oriented leadership on service recovery performance and turnover intention.