The concept of supply chain management is to manage the flow of information and goods by controlling the processes of production and distribution through a single integrated strategy and policy. A variety of studies have been conducted as antecedents in supply chain management, which can be combined with internal marketing. Therefore, it is assumed that relational behavior as internal marketing of the supply chain leader will affect the follower’s flexibility and satisfaction, which is supply chain performance. The components of internal marketing have been studied in various ways. In this study, the components of internal marketing were constructed and studied by using the four factors of education and training, vision provision, fair reward, and role obviousness.
100 questionnaires were collected from the Seoul Metropolitan area and Busan Gyeongnam area. Reliability and exploratory factor analysis were conducted through the PLS program, and confirmatory factor analysis and structural equation modeling were conducted.
In this study, PLS (Partial Least Square) analysis using PLS 3.0 program was used to verify convergent validity, discriminant validity, and reliability. As shown in <Table 1>, all the figures exceeded the recommended value, and it was judged that the measurement tools had reliability and convergence validity.
As shown in Table 2, all the correlation coefficients are smaller than the square root of the mean variance extraction value, and the correlation coefficient between all the constructs is smaller than the square root of the mean variance extraction value. (Fornell and Larcker 1981).
As a result of hypothesis test, four of the eight hypotheses were adopted and two hypotheses were directional.
In summary, the training and vision provision of supply chain leaders had positive effects on follower’s flexibility and a hypothesis has been adopted, and education had negative effects on Satisfaction. In addition, fair reward and role obviousness had positive influence on Satisfaction, and hypothesis has been adopted. Fair reward had negative effect on flexibility.
Training and vision provision had a positive impact on flexibility, and fair reward and role obviousness had a positive effect on Satisfaction. It is estimated that the factors that present investment or benefit for the future, such as training and vision provision, are responding flexibly by suppliers in order to obtain future benefits. It is estimated that current presenting benefits or standards such as fair reward and role obviousness lead to satisfaction with the current situation.
Fair reward and role obviousness did not have a negative or no impact on flexibility, and the hypothesis was rejected by showing that training and vision provision had little or no effect on Satisfaction.
The reason for this is as follows. Fair reward had a negative impact on flexibility since the supplier chain leader is considered to judges fair compensation and fairness by evaluating and compensating suppliers based on fair standards and principles, supply chain followers think that they need responses based on standards and principles rather than flexible response.
The fact that education have a negative impact on transactional satisfaction can be attributed to overall training and education of suppliers as interference or control, which is estimated to have a negative effect on transactional satisfaction. In other words, supply chain leaders are trained to help their followers, but rather as interference or control, satisfaction with suppliers' supply chain leaders may decline. And the fact that the vision provision does not affect the Satisfaction means that presenting the vision for the future is not a benefit to the present, and therefore the supplier needs the current real benefit rather than the vision of the future, It is estimated that it will affect Satisfaction more.
Implications of this study are as follows. First, education and vision provision among internal marketing of supply chain leader had positive effects on the follower’s flexibility for suppliers. Therefore, the supply chain leader can expect flexible response by providing training and vision provision to the follower as supplier. Second, fair reward and role obviousness in the internal marketing of supply chain leaders had positive effects on Satisfaction of follower as suppliers. Therefore, the supply chain leader can get Satisfaction of suppliers by providing fair reward and enhancing role obviousness. It is expected to creates performance of supply chain.
Third, variables such as training and vision provision that related competency enhancing or future benefits had effects on supplier’s flexibility. Variables such as fair reward and role obviousness can be used to assess current benefits or present Transaction basis, and these variables had effects on Satisfaction.
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