Servant Leadership,Proactive Work Behavior,and Performance Overall Rating: Testing a Multilevel Model of Moderated Mediation

ABSTRACT

Purpose: The goal of this paper is to investigate whether salesperson proactive behavior mediates the relationship between sales manager servant leadership and salesperson overall performance rating by the sales manager. Moreover, it examines whether salesperson customer orientation and political skill moderate the sales manager servant leadership ? salesperson proactive behavior ─ salesperson overall performance. Design/methodology/approach: Empirical analysis is based on dyadic data from 181 industrial salespeople and their sales managers in a range of different industries (including both manufacturing and service industries). To analyze the multilevel moderated mediation process, this investigation uses Multilevel Structural Equation Modeling (MSEM). Findings: Sales manager servant leadership was positively related to salespeople overall performance rating through their proactive behavior except when their customer orientation was low. Moreover, this relationship between sales manager servant leadership and overall performance rating through proactive work behavior was stronger the greater the salespeople consumer orientation and political skill. Research implications: The study suggests that sales manager servant leadership is indirectly related to salesperson overall performance rating through salesperson proactive behavior. The findings also support subsequent research on salesperson values, skills, and behaviors as moderators in the servant leadership – proactive behavior – overall performance rating relationship. Understanding how these salesperson factors interact with sales management leadership to produce organizational outcomes (e.g., stress, engagement, organizational commitment) are questions that sales researchers may wish to pursue via further study. Practical implications: Sales managers should employ servant leadership to stimulate salespeople proactive work behavior. This study clearly indicates the salespeople need to adopt customer orientation and to have political skill. Hence, sales managers need to try to improve the customer orientation and the political skill of their salespeople through selection procedures or training programs. Originality/value: The relationship between sales manager servant leadership and salesperson overall performance through proactive work behavior has not been addressed and tested in the literature to date.     

Impression Management Tactics and Performance Ratings: A Moderated-Mediation Framework

Purpose: The objective of this study is to contribute to the sales management literature by analyzing whether self-monitoring dimensions (the ability to adjust the presentation of one’s self and the sensitivity to the expressive behaviors of others) play a moderating role in the use of impression management—supervisor liking—performance rating nomological network.

Methodology/approach: Empirical analysis is based on dyadic data from 122 industrial salespeople and their sales managers in 9 different industries. Structural equation modelling was used to analyze the psychometric proprieties of the measurement scales, and conditional process analysis was used to test the proposed hypotheses.

Research implications: The results obtained indicate that the use of supervisor-focused impression management tactics is an indirect antecedent of a salesperson’s performance rating through sales manager liking, but not the self-focused tactics. Results also show that a self-monitoring dimension i.e., the ability to adjust the presentation of one’s self, moderates the “impression management—supervisor liking—performance rating” chain. These results provide an increased understanding of the processes involved in sales managers—salespeople’s interactions.

Practical implications: The main implication for salespeople is that the use of impression management tactics to influence performance ratings only is effective when they use supervisor-focused tactics because attempts to influence via self-focused tactics will not have any effect. The most important implication for sales managers’ is that not all impression management tactics are successfully executed and that the identification of combinations of impression management tactics and the levels of salespeople’s self-monitoring can positively influence performance appraisals by generating evaluative biases. Given that evaluative biases can produce inequitable behaviors by sales managers in the task assignments and support provided to the salespeople, it is important that sales managers are aware of when they can occur (i.e., when salespeople with a moderate ability to adjust their self-presentation use supervisor-focused tactics).

Originality/value/contribution of the article: This article contributes to the existing knowledge by two important means. First, this study proposes a model and presents an empirical test of constructs that mediate (i.e., supervisor liking) and moderate (i.e., self-monitoring dimensions) the “use of impression management tactics—sales manager liking—performance appraisal” relation. This model responds to calls for studies that analyze how impression management tactics are related to performance appraisal and when the relation between the use of these tactics and performance rating occurs. Two, this study uses data from both salespeople and their sales managers, which minimizes any risk of common method variance bias.     

The Impact of Personality Variables,Prior Experience,and Training on Sales Agents' Internet Utilization and Performance

ABSTRACT

Emerging literature on the impact of the Internet on business-to-business (B2B) marketing has primarily focused on examining this issue from the perspective of manufacturers and buyers. This study focuses on the sales agent, a third prominent actor in B2B markets, and tests a conceptual model that relates a sales agent's personality, demographic, and user-situational constructs to that sales agent's Internet utilization for selling activities. Further, the model tested in this study relates a sales agent's Internet utilization to perceived sales performance. Findings in this study indicate that internal locus of control, learning orientation, and sales related Internet training relate positively to a sales agent's Internet utilization, and that a sales agent's age relates negatively to Internet utilization. Further, the results support a positive relationship between a sales agent's Internet utilization and sales performance. This study emphasizes that the Internet can be a productive tool for sales agents. The implications of the results of this study for sales agents with respect to training and recruitment are discussed and avenues for future research are suggested.     

The End of Corporate Social Responsibility: Crisis & Critique,by Peter Fleming and Marc T. Jones

ABSTRACT

Purpose: Given the ever-increasing pressure put on sales organizations to improve performance, behave ethically and establish long-term customer relationships, this study seeks to better comprehend ethical leadership’s part in doing so. It proposes that perceived ethical leadership indirectly influences salesperson performance through trust in manager and ethical ambiguity.

Methodology/Approach: A survey of business-to-business salespeople was taken. Hypotheses are tested using structural equation modeling.

Findings: The results show that perceived ethical leadership influences salesperson performance through the mediating roles of trust in manager and ethical ambiguity. Salespeople’s perceptions of their supervisor’s ethical leadership behaviors positively impact their trust in manager and negatively influences their ethical ambiguity. In turn, trust in manager positively influences sales performance while ethical ambiguity negatively influences sales performance.

Research Implications: The results from testing the hypothesized model support mechanisms by which ethical leadership behavior may affect business-to-business salesperson job performance. It appears that ethical leadership works through ethical ambiguity and trust in manager to impact salesperson behavior performance, rather than directly impacting salesperson performance. Importantly the findings add to the literature an important consequence of ethical leadership, ethical ambiguity. This research likewise adds to the literature on role, and more specifically ethical, ambiguity by finding that reducing salesperson ethical ambiguity has a positive impact on salesperson behavior performance.

Practical Implications: This study finds that one important mechanism for reducing ethical ambiguity is for sales supervisors to practice ethical leadership. By reducing ethical ambiguity, sales managers can improve business-to-business salesperson performance. In addition, use of ethical leadership by sales managers can positively influence the business-to-business salesperson’s trust in manager, which subsequently leads to greater sales performance.

Originality/Value/Contribution: The results of this study add to our knowledge of ethical leadership by further developing its consequences. It also sheds light on a vastly under-researched construct, ethical ambiguity. Finally, it further validates the important role that trust in manager plays in the organization.     

Power-Base Effects on Salesperson Motivation and Performance: A Contingency View

Purpose: The sales literature shows that motivation is a key determinant of salesperson performance. The literature also suggests that how managers use social power will have an effect on important organizational outcomes, including salesperson performance. This study examines the five bases of social power that sales managers use (reward, coercive, legitimate, referent, and expert) as moderating influences in the salesperson motivation (extrinsic and intrinsic)—salesperson performance linkage.

Methodology/approach: Data was collected from 128 salespeople using a cross industry survey. Eight hypotheses were developed and tested using SmartPLS (partial least squares).

Findings: The authors found support for five of eight hypotheses. Results and significant findings suggest that sales managers can impact sales performance in extrinsically motivated salespeople by using coercive and legitimate power. For intrinsically motivated salespeople, sales managers can impact sales performance by using coercive, legitimate, and referent power.

Research implications: Related to social power theory, the study suggests that salesperson performance is dependent upon a salesperson’s combined motivation orientation and the base of power used by the sales manager. The study also sets the stage for subsequent research on how managerial power can be studied as a moderator for other personal salesperson characteristics (e.g., self-esteem, self-efficacy, locus of control) and salesperson performance. In addition, understanding how these other personal characteristics interact with managerial bases of power to produce other organizational outcomes (e.g., job satisfaction, organizational commitment) are questions that sales researchers may wish to pursue via further study.

Practical implications: For practicing sales managers, the research study can provide guidance as to how they may tailor their use of power to best impact salesperson performance. For a manager to understand the motivational makeup of each salesperson, open communication and dialogue must occur at the onset of their relationship. Having the knowledge of what drives each salesperson, a manager can modify their leadership style (and choice of power base) to suit the situation. Customizing these sales management approaches may also have long-term benefits for the organization as studies show that doing so can lead to reduced levels of turnover as well as increased levels of performance.

Contribution of the article: This study is important to sales research, theory, and practice. The authors contribute to the selling and sales management literature by extending motivation and social power theories into the sales domain by showing that managerial power may be a key moderating determinant between a salesperson’s motivation and his/her sales performance. For practicing sales managers, we provide some insight and guidance for understanding how to throttle or moderate their use of various social power bases when dealing with individual salespeople who may differ in their motivation orientation, age, and degree of selling experience.     

Customer Relationship Management (CRM)'s Impact on B to B Sales Professionals' Collaboration and Sales Performance

Purpose: Sales literature has traditionally considered technology adoption from acceptance and diffusion perspectives. This article examines the impact of customer relationship management (CRM) technology on business-to-business (B2B) sales professionals' ability to collaborate with internal stakeholders and also assesses the relationship between CRM utilization and sales performance. The study moves from assuming that CRM utilization positively impacts salesperson effectiveness and performance to assessing this outcome from the perspective of the salesperson.

Methodology: A survey that was comprised of four scales was sent to 115 B2B sales professionals and usable surveys were received from 70 respondents. The data were analyzed using partial least squares regression to test the hypothesized paths. Partial least squares regression has been shown to work for small sample sizes.

Findings: There is empirical evidence that CRM adoption and utilization positively impacts sales performance, sales effectiveness, and collaboration. As a partial mediator, collaboration positively influenced CRM utilization's effect on sales performance. However, collaboration did not positively influence sales process effectiveness. Explanations of the findings are offered.

Managerial Implications: Sales managers can use CRM technology to make their sales team more effective and efficient. Second, increased collaboration across the firm positively mediates sales performance. Lastly, to increase collaboration, sales managers should stress that CRM leads to higher performance for both the sales team and the entire firm.     

Managers' mobility,trade performance,and wages

Knowledge is key to the competitiveness and success of an organization and in particular of a firm. Firms and their managers acquire knowledge via a variety of different channels which are often difficult to track down and quantify. By matching employer–employee data with trade data at the firm level we show that the export experience acquired by managers in previous firms leads their current firm toward higher export performance, and commands a sizeable wage premium for the manager. Moreover, export knowledge is decisive when it is market-specific: managers with experience related to markets served by their current firm receive an even higher wage premium; firms are more likely to enter markets where their managers have experience; exporters are more likely to stay in those markets, and their sales are on average higher. Our findings are robust to controlling for unobserved heterogeneity and, more broadly, endogeneity and indicate that managers' export experience is a first-order feature in the data with an impact on a firm's export performance that is, for example, at least as strong as that of firm productivity.     

Psychological contracts and independent sales contractors: an examination of the predictors of contractor-level outcomes

Abstract

Over the past decade, the independent sales contractor (ISC) has emerged as both an important distribution channel and a management challenge. This study makes two contributions to this evolving field. First, it explores the interrelations of the psychological contract with sales performance, voluntary turnover and organisational advocacy of ISCs, which have hitherto been largely unexplored. Second, it examines differences between high- and low-performing sales contractors on these linkages, due to findings in the literature that a small number of sales contractors often achieve a majority of sales. Based on survey data as well as 7 years of contractor-level data related to sales performance and voluntary turnover (n = 189), results indicate that psychological contract fulfilment and perceived dependency are important determinants of subsequent sales performance, voluntary turnover and organisational advocacy, with significant differences reported between high- and low-performing ISCs. A notable finding pertinent for sales managers responsible for managing ISCs is that high-performing sales contractors are motivated by psychological contract fulfilment and a low perception of dependency, while low-performing sales contractors are more likely to act as advocates for the firm due to perceived dependency, but may concurrently engage in organisational advocacy as a means to leave the firm.     

Towards a fairer manager performance measure: a DEA application in the retail industry

Abstract

Retailers need to determine the performance of their individual stores and, beyond the stores, the managers in charge of running them. The aim of this paper is to develop performance standards that can be applied to fairly distribute rewards to managers regarding their performances by taking into account store neighbourhood characteristics. In order to propose a fairer measure of store performance, the authors introduce and explore the concepts of organizational justice and store efficiency. They use real data from a French supermarket chain and a geomarketing approach. The two-step Data Envelopment Analysis (DEA) model results are compared with a retailer’s ranking. The retailer tends to favour points of sale having a more important sales area, with more employees and operating in a more densely populated area with a higher buying power. The ranking stemming from the DEA model links store performance to other geo-demographic variables.     

Buyer-Seller Interaction,Capacity Management,and Relationship Marketing

Abstract

This paper provides insight into the dynamic sales processes that occur in the restaurant industry. Its primary purpose is to provide hospitality marketers and managers a framework tor improving overall sales in food and beverage organizations. After outlining this framework for increased restaurant sales, a detailed overview of buyer-seller interaction, relationship marketing, and restaurant management literature is provided to give the reader an understanding of previous Studies.     

Customers,marketing and the network organization

Customers are becoming more demanding. Network organizations are emerging which embrace customers, and are more flexible and responsive to their needs. CEO's increasingly regard customers as part of the organization. Customers are too important to be “left” to one or two directors and their divisions. CEO's are requiring everyone to focus upon the requirements of customers. To help achieve this, organizations are seeking ways of linking remuneration and performance assessment to customer satisfaction. Increasingly customers assume reliability and performance. Quality of itself may no longer differentiate alternative suppliers. In markets in which all suppliers have their quality programmes, managers need to consider what lies beyond quality. Reason is no longer enough. Less tangible factors such as feelings, emotions and values need to be understood. CEO's question whether marketing departments can respond to these and other challenges and help facilitate the changes they are seeking.     

Influences of Managerial Drivers on Export Sales Units’ Performance of Small and Medium-Size Enterprises

ABSTRACT

This report offers a contribution to the theories related to firms' export performance. Job satisfaction and behavioral and outcome performance of export managers have received attention in export literature. However, the relationships between export managers’ rewards system and the level of export managers’ morale with export managers’ job satisfaction, behavioral and outcome performance, and export sales units’ performance of small and medium-size enterprises have not thoroughly been examined, tested, or validated. A new model is developed based on export managerial psychology theory, which integrates two constructs, the export managers’ rewards and level of morale, as critical variables affecting export performance. The research findings suggest that four connected relationships in a PLS model are positive, significant, and substantial. Particularly, managers’ financial and nonfinancial rewards influence managers’ level of morale, which in turn affects managers’ behavioral performance, and managers' behavioral performance influences managers’ outcome performance, which, finally, affects firms’ export performance.     

All pain,no gain? Why adopting sales force automation tools is insufficient for performance improvement

The dawning of the 21^st century brought a wave of research into the phenomenon of sales force automation (SFA)—technology tools aimed at enabling sales organizations to better practice customer relationship management. While the academic literature has offered great insight into how an organization can increase the likelihood that its sales force will adopt a new technology system, a great majority of research stops there. This is unfortunate in that companies mistakenly infer that use of an SFA system is the major hurdle and that simply motivating SFA use will be the key to unlocking improved performance. However, this is often not the case; many organizations are able to get their sales force to use an SFA system but do not see improvements in performance. As such, after briefly providing an overview of the factors affecting SFA use, this research provides insight into why use alone may not contribute to long-term improvements in a firm's sales performance. Key empirical findings and theoretical arguments from the extant literature are considered and a list of best practices is offered here to help managers bridge the gap between SFA use and improved sales effectiveness and efficiency.     

Individual and contextual influences on the affective commitment of retail salespeople

Abstract

Salesperson characteristics as well as managerial approaches have been found to play an important role in the development of positive attitudes by salespersons towards an organisation. This study integrates these two research areas to investigate the personal and contextual antecedents of affective organisational commitment of retail salespeople. Fit theory and the literature on person–situation interaction provide the theoretical bases for explaining how salesperson selling skills, job liking, and empowerment individually and jointly influence affective commitment. A multilevel modelling approach is used to analyse data from 105 sales managers and 419 salespeople. Findings reveal that salespersons' affective commitment is influenced by their selling skills, degree of job liking, tenure, and empowerment. The results also indicate that the impact of selling skills on affective commitment is higher when empowerment is high. Based on the study's findings, implications for managing salespeople as well as limitations and suggestions for future research are offered.     

Transformational Leadership: Managing the Twenty‐First Century Sales Force

In today's more diverse sales organizations, sales managers face important interpersonal challenges to achieving high‐quality relationships, which result in better performance within their sales force. In this article, it is argued that cultural distance can negatively influence sales manager and sales subordinate relationships. The quality of these relationships ultimately influences the level of effort that sales subordinates exert toward achieving organizational sales goals. However, despite the potential obstacle of cultural distance, sales managers can utilize transformational leadership as a means to mitigate its adverse effects on one‐to‐one relationships with members of the sales force.     

The Interplay of Emotion Regulation and Sales Experience in Salesperson Conflicts: Evidence from an Emerging Economy

ABSTRACT

It is human nature that personal interactions are often charged with emotions and laden with conflicts. Workplace encounters are not immune from this reality. Despite this, few studies have examined ways to reduce interpersonal conflict in the workplace. This study examines the interpersonal impact of emotion regulation on salesperson relationships with stakeholders. Using structural equation modeling, results of the analysis showed that salesperson's regulation of emotions was negatively related to interpersonal conflict with co-workers as well as with customers; and positively impacted customer-oriented sales behaviors. The results also support the moderating role of selling experience in the relationship between emotion regulation and interpersonal conflict with customers. That is, the negative relationship between regulation and conflict with customers is stronger for salespeople with lower sales experience. These findings put forward important managerial implications with regard to the recruitment and training of sales professionals.     

Managing the Next Generation of Sales,Gen Z/Millennial Cusp: An Exploration of Grit,Entrepreneurship, and Loyalty

Purpose: The current study explores the latest generation of the workforce, Generation Z/Millennial cusp, and the loyalty concerns hiring managers’ experience. The authors explore how the characteristics of entrepreneurship and grit can potentially impact employee loyalty to an organization.

Methodology/approach: A content analysis using responses from 51 hiring managers and their views of the advantages and challenges of hiring from the millennial generation yielded patterns focused on grit, loyalty, and entrepreneurship.

Findings: Based on the feedback from hiring managers using a grounded theory approach, we propose a conceptual model that includes three constructs that emerged from the analysis: individual entrepreneurship orientation, grit, and loyalty. The results from the content analysis suggest grit moderates the relationship between entrepreneurship and loyalty. The conceptual model proposes sales managers can hire individuals with grit to decreased employee turnover.

Originality/value contribution: This study provides several contributions to the stream of research focused on Generation Z and employee loyalty. First, due to the changing demographic of the workforce, sales managers need to hire and retain younger sales professional that have different expectations; therefore, thinking differently of their hiring process. Second, the study creates an exploratory discussion that can help sales managers evaluate future talent for their organization. Sales managers may evaluate an applicant’s “grittiness” vs. those who are more entrepreneurial in spirit in order to retain those sales professionals long term.     

Perceptual differences regarding leadership between the store manager and employees and its impact on frontline sales performance: A research note

This study focuses on the bright side of perceptual differences regarding leadership that may exist between managers and employees. Specifically, building on leadership literature, the authors propose that in situations wherein a manager’s perceptions of their own leadership are lower than that of their employees’ perceptions of their managers’ leadership, employees’ sales performance levels are higher. Data were collected from retail store managers and frontline employees in Brazil in three different contexts (e.g., footwear, clothing, and furniture). Based on polynomial regression analyses, the findings suggest that sales performance is generally higher when a manager’s self-perceptions are lower than their frontline employees’ perceptions of managers’ transactional and transformational leadership.     

The Small Food Manufacturing Sector in the Irish Grocery Market

Abstract

This paper seeks to explain the continuing reduction in the number of small food manufacturing companies in Ireland by examining food manufacturers' self perceived performance and investment intentions in the context of retailers' supplier selection processes. The paper finds that the greatest and most immediate risk to small suppliers survival is their under—performance in generating retailers' sales andmargins. The paper also identifis a set of inconsistencies in suppliers' investment intentions. It is argued that small manufacturers, while appreciating their relative under—performance in commercial performance, are failing to divert resources into this area. The study also raises concerns about small food manufacturers understanding of their market and the principles that direct their innovation efforts.     

Tradeoffs in Supplier Attribute Ratings in Supplier Selection across Strategic versus Non-Strategic Purchases

ABSTRACT

Purpose: This research identifies a customer perspective that is often ignored, neglected, or undervalued in B-to-B sales – the nature of the product itself. The pivot point is whether the product/service desired is strategic (critical to the company’s mission) or non-strategic (not critical to the company’s mission).

Methodology/Approach: A conjoint analysis was conducted for both types of purchases (strategic and non-strategic), assessing the tradeoffs and espoused preferences of four key attributes involving both the supplier and the product across three performance levels – (1) stability of the supplier, (2) reliability, (3) competitive pricing and (4) product quality.

Findings: The results indicate that B-to-B customers do make tradeoffs between suppliers based on stability, reliability, pricing and product quality. The direction of the tradeoffs depends on whether the purchase is a strategic or non-strategic acquisition. The results suggest that suppliers would benefit from understanding the relationship of their products and services to the B-to-B customer’s mission when the supplier is deciding how to improve performance.

Research implications: Too often there is a disconnect between B-to-B salespeople and their customers resulting in suppliers failing to reach performance goals. The research focuses on the importance of B-to-B salespeople uncovering whether or not the customer considers the nature of the product being considered as strategic or non-strategic to their business. The research helps to explain some of the mixed findings in the supplier selection literature.

Practical implications: The research points to the fact that customers analyze and make decisions differently depending on the type of product. Additionally, the research highlights the importance to customers of understanding the potential legal and financial risk of suppliers. This is important in that traditionally suppliers tend to focus on product features and benefits in their selling efforts. These results indicate that they should spend significant time discussing factors that illustrate legal and financial risk reduction to the customer of dealing with their companies.

Originality/Value/Contribution: The study offers a new look at an age-old problem of enhancing sales performance through a new lens by considering the nature of the product (strategic versus non-strategic) through the perspective of the customer. The findings help to explain the mixed results of previous research. To date, the nature of the product and tradeoffs of attributes that customers are willing to make depending on that product classification have not been the focus, though the results suggest that understanding customer decision-making through this lens may enhance supplier success.