Research on the Mechanism of Internal Marketing Affecting Work Engagement of Generation Z Employees: The Mediating Role of Psychological Contract

Grounded in social exchange theory and psychological contract theory, this study investigates the mechanism through which internal marketing influences work engagement among Generation Z employees in Chinese enterprises, and examines the mediating pattern of psychological contract in this linkage, using a valid sample of 420 Generation Z staff from Chinese domestic firms. Data were collected via a structured questionnaire survey, and empirical analyses were performed through reliability and validity tests, partial least squares structural equation modeling (PLS-SEM), and the Bootstrap method. The empirical results reveal three core findings: First, internal marketing exerts a significant positive effect on Generation Z employees’ perception of psychological contract, which is consistent with the core conceptualization of internal marketing defined by Lings and Greenley (2005). Second, psychological contract has a significant positive impact on all three dimensions of Generation Z employees’ work engagement, specifically vigor, dedication, and absorption. Third, psychological contract plays a full mediating role in the relationship between internal marketing and Generation Z employees’ work engagement, indicating that the driving effect of internal
marketing on work engagement is fully transmitted through the psychological contract. This study unpacks the core transmission mechanism of internal marketing on work engagement within the Generation Z employee cohort, and provides solid empirical evidence and actionable practical guidance for enterprises to implement targeted management of Generation Z staff and effectively enhance their work engagement.

Keywords: Internal Marketing, Work Engagement, Generation Z Employees, Psychological Contract.