مجلة اقتصاد المال و الأعمال
Volume 10, Numéro 1, Pages 54-63
2026-03-31

The Role Of Internal Marketing In Enhancing Customer Loyalty Through Crm Effectiveness In Algerian Smes: An Empirical Study

Authors : Bounar Reda . Boudiaf Ilyes .

Abstract

This research examines the role of internal marketing (IM) in strengthening Customer Relationship Management (CRM) practices within small and medium-sized enterprises (SMEs) in Algeria's eastern provinces—Constantine, Sétif, Annaba, and Batna. Employing a mixed-methods design, data were collected from 273 valid questionnaires across 32 service-oriented SMEs, achieving an 87% response rate, supplemented by 15 semi-structured interviews. Constructs were measured via a 5-point Likert scale and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS (Cronbach's α > 0.82, AVE > 0.52). Results indicate that internal marketing significantly enhances CRM adoption (β = 0.48, p < 0.001), explaining 55% of variance in CRM effectiveness and 42% in customer loyalty through mediation. Regional disparities persist: Constantine leads in CRM efficacy (M=3.9), while Batna lags (M=2.7) due to training deficits and infrastructure constraints. Although 74% of firms acknowledge IM's potential for retention improvement, only 38% implement structured IM programs. Recommendations advocate for province-specific IM-CRM training hubs and government-supported capacity building initiatives. This study bridges a significant research void in multi-province empirical models and offers actionable insights for policymakers and SME managers.

Keywords

Internal marketing ; CRM ; SMEs ; customer loyalty ; employee engagement