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The purpose of this paper is to examine how internal marketing orientation affects balanced scorecard outcomes (financial performance, customer, internal process, learning and growth) in a small service businesses context.

Drawing from the small businesses, the relationship between internal marketing orientation and performance is hypothesized and tested. A structural equation modeling (SEM) test with maximum likelihood estimation was performed to test the relationship between the research variables.

The results obtained from the SEM analyzes revealed that internal marketing orientation positively impacts the levels of financial and non-financial performance. The results also indicate that non-financial performance measures (that is, customer, internal process, learning and growth) directly affect financial performance.

This study unpacks the mechanism between internal marketing orientation and balanced scorecard outcomes and contributes to the academic research of internal marketing orientation in the context of small businesses.