ROLE OF INTERNAL SERVICE QUALITY (ISQ) IN THE LINKAGE BETWEEN PERCEIVED ORGANIZATIONAL SUPPORT AND ORGANIZATIONAL PERFORMANCE

Abstract

The purpose of this paper is to investigate the role of Internal Service Quality (ISQ) in
the linkage between Perceived Organizational Support (POS) and Organizational
Performance (OP). The study focused on the ISQ of different banks operating in
Peshawar. Stratified random sampling technique was utilized to collect the data from
different banks operating in the city of Peshawar. A total of 564 questionnaires were
distributed in 80 different branches of medium and large sized banks. In the present
study 404 questionnaires were returned, constituting the response rate of 71.63%. A
total of 63 questionnaires were rejected. The total number of questionnaires usable for
the study was 341. The findings reveal that in the banking sector, perceived
organizational support and internal service quality have a direct and positive impact on
the organizational performance, furthermore the results revealed that ISQ partially
mediates the relationship between perceived organizational support and organizational
performance. The findings provide useful insights for organizations, particularly in the
banking industry, seeking to be competitive and responsive to the increasing challenges.
Conclusions emphasize that mechanisms to encourage and foster ISQ in the
organization are likely to facilitate the introduction, adoption, and diffusion of service
quality both within and outside the organization which in turn, is likely to result in
achievement of superior bank performance.