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Internal marketing (IM) focuses on acquiring and retaining customer‐oriented employees. Critics of internal marketing claim that the term is simply a synonym for good human resources management. The concepts of internal marketing and human resource effectiveness (HRE), at both a strategic and technical level, are considered and suitable measures identified. Data are collected from the Australian public sector and a moderated regression analysis is used to investigate the hypothesized relationships. The study provides empirical support that there is a valid and distinct demarcation between IM and HRE, and that IM is an important antecedent to HRE.

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