You might like to read the following article as well: http://www.london.edu/newsandevents/news/2011/06/Business_leaders_say_internal_bureaucracy_biggest_barrier_to_innovation_1259.html

http://www.forbes.com/sites/ericjackson/2011/12/14/top-ten-reasons-why-large-companies-fail-to-keep-their-best-talent/

I always see your questions days after you post them. Internal bureaucracy in a business sense means the process of having things done in a business or the hierarchy of the organization. You could say the internal bureaucracy of company can be seen when they want to issue a press release, there are many decision makers that have to approve of this and a process must be followed in order for it to be released. This would be an internal bureaucracy. Hope that makes sense

The following article will help you understand it : http://www.forbes.com/sites/ericjackson/2011/12/14/top-ten-reasons-why-large-companies-fail-to-keep-their-best-talent/

This is so specific business term. It's technical however I would refer it to something internal like group inside division or department. This could be organizational level. So something "level" internal of bigger circle.