Article

Translating sales effort into service performance: it's an emotional ride

Authors:
  • Ivy College of Business- Iowa State University
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Abstract

It has been broadly assumed by both researchers and managers that the more effort salespeople exert, the better their performance outcomes are likely to be. However, organizations are placing an increasing emphasis not just on objective sales outcomes, but on subjective, customer service outcomes as well. This research tests relationships between employee effort and relational performance. We develop and test the position that employee effort reaches a point of diminishing returns, after which relational performance decreases. Further, in an effort to bound our model, we test the moderating role played by employees' emotional intelligence in this relationship. We test our study model in a lagged, multisource field study, matching survey data collected from 107 employees and 19 supervisors, relational performance metrics, and archived effort data collected for a period of 3 months pre–survey data collection. The results from our analysis indicate that the relationship between effort and relational performance is captured by an inverted U-shaped function that is significantly moderated by emotional intelligence. We find that the effort of employees with low EI reaches an identifiable point of diminishing returns; however, the more effort those with high EI exert, the better their relational performance outcomes tend to be.

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In this chapter I review empirical studies directly testing the hypotheses of my 1973 paper "The Strength of Weak Ties" (hereafter "SWT") and work that elaborates those hypotheses theoretically or uses them to suggest new empirical research not discussed in my original formulation. Along the way, I will reconsider various aspects of the theoretical argument, attempt to plug some holes, and broaden its base.
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This study's premise is that ingratiation and organizational citizenship behaviors are similar but that supervisors will respond differently to employees depending on whether they label their extrarole behaviors as ingratiation or as organizational citizenship behavior (OCB). Variables based on Kelley's covariation model did not greatly influence supervisory attributions. The attribution of motive, however, was related to supervisory decisions on employee outcomes.
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Learning and performance goal orientations, two motivational orientations that guide salespeople's behavior, are related to working smart and hard. Working smart is defined as the engagement in activities that serve to develop knowledge of sales situations and utilize this knowledge in selling behavior. It is found that a learning goal orientation motivates working both smart and hard, whereas a performance goal orientation motivates only working hard. The goal orientations also are found to be alterable through supervisory feedback. Furthermore, self-efficacy, sales-people's confidence in their overall selling abilities, is found to moderate some of the relationships with the goal orientations.
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Anderson and Oliver (1987) presented a behavior vs. outcome sales control taxonomy based on methods of monitoring salespersons' effort. Under an outcome system, sales revenue is thought to be a sufficient criterion for sales proficiency. Under a behavior system, the sales process itself is critical and “input” monitoring activities are maximized. Oliver and Anderson (1994) tested these differences on salesperson perceptions and found effects on affective and cognitive consequences. This paper extends these findings and shows that, while conventional behavior and outcome strategies appear to be operating in accord with theory, evidence is found for an integrated or “hybrid” philosophy exhibiting degrees of both. The incidence and nature of such strategies are discussed in terms of their consequences and implications.
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A growing body of empirical evidence in the management literature suggests that antecedent variables widely accepted as leading to desirable consequences actually lead to negative outcomes. These increasingly pervasive and often countertheoretical findings permeate levels of analysis (i.e., from micro to macro) and management subfields (e.g., organizational behavior, strategic management). Although seemingly unrelated, the authors contend that this body of empirical research can be accounted for by a meta-theoretical principle they call the too-much-of-a-good-thing effect (TMGT effect). The authors posit that, due to the TMGT effect, all seemingly monotonic positive relations reach context-specific inflection points after which the relations turn asymptotic and often negative, resulting in an overall pattern of curvilinearity. They illustrate how the TMGT effect provides a meta-theoretical explanation for a host of seemingly puzzling results in key areas of organizational behavior (e.g., leadership, personality), human resource management (e.g., job design, personnel selection), entrepreneurship (e.g., new venture planning, firm growth rate), and strategic management (e.g., diversification, organizational slack). Finally, the authors discuss implications of the TMGT effect for theory development, theory testing, and management practice.
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Considerable research explores advertising’s role in influencing consumer perceptions and behavior. However, advertising’s impact on another key audience—the sales force—has been largely overlooked. Drawing from social identity and expectancy theories, and using survey and objective performance data across multiple wholesalers, the authors demonstrate that a salesperson’s perception of brand advertising has a significant effect on salesperson effort and performance by positively influencing the extent to which the salesperson identifies with the brand and his or her expectancy that such effort will generate results. These effects are moderated by internal communications and brand size. Model results suggest that advertising’s role may extend beyond “pull” to “push” by motivating salespeople to exert more effort on behalf of a brand. As a result, firms should take steps to proactively manage salesperson perceptions of brand advertising while also considering this dual role when assessing advertising effectiveness and efficiency.
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The rapid growth of research on organizational citizenship behaviors (OCBs) has resulted in some conceptual confusion about the nature of the construct, and made it difficult for all but the most avid readers to keep up with developments in this domain. This paper critically examines the literature on organizational citizenship behavior and other, related constructs. More specifically, it: (a) explores the conceptual similarities and differences between the various forms of “citizenship” behavior constructs identified in the literature; (b) summarizes the empirical findings of both the antecedents and consequences of OCBs; and (c) identifies several interesting directions for future research.
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Driven by more demanding customers, global competition, and slow-growth economies and industries, many organizations search for new ways to achieve and retain a competitive advantage. Past attempts have largely looked internally within the organization for improvement, such as reflected by quality management, reengineering, downsizing, and restructuring. The next major source for competitive advantage likely will come from more outward orientation toward customers, as indicated by the many calls for organizations to compete on superior customer value delivery. Although the reasons for these calls are sound, what are the implications for managing organizations in the next decade and beyond? This article addresses this question. It presents frameworks for thinking about customer value, customer value learning, and the related skills that managers will need to create and implement superior customer value strategies.
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Identification of the variables that affect the performance of sales professionals has been an endeavor that has lasted for decades. In the current study, the constructs of emotional intelligence and dispositional affectivity were hypothesized as being positively related to sales force performance. The findings of this research indicate that sales performance is significantly related to emotional intelligence and a combination of the measures of dispositional affect. Based on these findings, implications, conclusions, and suggestions for future research are provided.
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Firms continue to struggle with the implementation of sales force technology tools and the role they play in sales representative performance. This research expands previous literature in the area of sales force automation (SFA) and customer relationship management (CRM) by looking at the consequences after technology adoption by a sales force. Data were gathered from three sources to include 662 sales representatives, 60 sales managers, and fi rm archival data. Using structural equation modeling, our fi ndings indicate that SFA usage has a direct impact on effort, thereby reducing number of hours worked, and CRM usage has a direct positive impact on adaptive selling behaviors. Moreover, experience moderates the relationship between CRM usage and adaptive selling. Discussion, limitations, and directions for future research are also discussed.
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The authors address a fundamental gap in understanding how sales performance and job satisfaction are determined in an investigation of the sales force of a direct-selling organization. Results indicate a direct positive effect of work-related effort on job satisfaction that is not mediated by sales performance. This is inconsistent with commonly accepted theoretical models and suggests that the perspective of work as a ''terminal value'' (i.e., an end in itself, rather than strictly a means to an end) has been underemphasized in models of work behavior. As such, either (1) measures of sales performance should be broadened to encompass the terminal value perspective on the psychological value of work or (2) conceptual models should be revised to reflect that narrowly defined measures of sales performance do not completely mediate the effect of effort on job satisfaction. The authors conclude with a discussion of managerial implications of these findings.
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The authors combine findings from 155 samples of more than 31,000 salespeople to test alternative models of antecedents and consequences of adaptive selling behavior (ASB) and customer orientation (CO). A random-effects meta-analysis yields average values for 28 different correlations ranging from -.16 to .35, 19 of which are significant. Controlling for salesperson gender and selling experience, structural equation modeling indicates that ASB increases self-rated, manager-rated, and objective measures of performance, whereas CO increases only self-rated performance. Both ASB and CO increase job satisfaction. Tests of reciprocal relationships indicate that ASB increases CO and job satisfaction increases performance rather than vice versa. Selling experience increases performance but not job satisfaction, and saleswomen rate their performance and satisfaction slightly higher than salesmen do. The magnitudes of the relationships indicate that ASB and selling experience have greater effects than CO and gender on salesperson performance.
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The authors use meta-analysis techniques to investigate the evidence that has been gathered on the determinants of salespeople's performance. A search of the published and unpublished literature uncovered 116 articles (the list of which is available upon request) that yielded 1653 reported associations between performance and determinants of that performance. The results indicate the determinants can be ordered in the following way in terms of the average size of their association with performance: (1) role variables, (2) skill, (3) motivation, (4) personal factors, (5) aptitude, and (6) organizational/environmental factors. When ordered according to the amount of the observed variation in correlations across studies that is real variation (i.e., not attributable to sampling error), the determinants rank as follows: (1) personal factors, (2) skill, (3) role variables, (4) aptitude, (5) motivation, and (6) organizational/environmental factors. To investigate whether the associations between each of the categories of predictors and performance could be partially accounted for by the presence of moderator variables, the results were broken out by customer type, product type, and type of dependent measure used. The results indicate that the strength of the relationship between the major determinants and salespeople's performance is affected by the type of products salespeople sell. The authors discuss the implications of these findings for sales managers and researchers.
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This paper suggests that feelings (moods and emotions) play a central role in the leadership process. More specifically, it is proposed that emotional intelligence, the ability to understand and manage moods and emotions in the self and others, contributes to effective leadership in organizations. Four major aspects of emotional intelligence, the appraisal and expression of emotion, the use of emotion to enhance cognitive processes and decision making, knowledge about emotions, and management of emotions, are described. Then, I propose how emotional intelligence contributes to effective leadership by focusing on five essential elements of leader effectiveness: development of collective goals and objectives; instilling in others an appreciation of the importance of work activities; generating and maintaining enthusiasm, confidence, optimism, cooperation, and trust; encouraging flexibility in decision making and change; and establishing and maintaining a meaningful identity for an organization.
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Salespeople involved in the marketing of complex services often perform the role of "relationship manager." It is, in part, the quality of the relationship between the salesperson and the customer that determines the probability of continued interchange between those parties in the future. A relationship quality model is advanced and tested that examines the nature, consequences, and antecedents of relationship quality, as perceived by the customer. The findings suggest that future sales opportunities depend mostly on relationship quality (i. e., trust and satisfaction), whereas the ability to convert those opportunities into sales hinges more on conventional source characteristics of similarity and expertise. Relational selling behaviors such as cooperative intentions, mutual disclosure, and intensive followup contact generally produce a strong buyer-seller bond.
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This series of studies describes the development of a measure of emotional intelligence based on the model of emotional intelligence developed by Salovey and Mayer [Salovey, P. & Mayer, J. D. (1990). Emotional intelligence. Imagination, Cognition and Personality, 9, 185–211.]. A pool of 62 items represented the different dimensions of the model. A factor analysis of the responses of 346 participants suggested the creation of a 33-item scale. Additional studies showed the 33-item measure to have good internal consistency and testretest reliability. Validation studies showed that scores on the 33-item measure 1.(a) correlated with eight of nine theoretically related constructs, including alexithymia, attention to feelings, clarity of feelings, mood repair, optimism and impulse control;2.(b) predicted first-year college grades;3.(c) were significantly higher for therapists than for therapy clients or for prisoners;4.(d) were significantly higher for females than males, consistent with prior findings in studies of emotional skills;5.(e) were not related to cognitive ability and6.(f) were associated with the openness to experience trait of the big five personality dimensions.
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The authors develop a conceptual model depicting relationships between salesforce control systems, characteristics, performance, and sales organization effectiveness as a framework for testing the propositions formulated by Anderson and Oliver (1987). The results from a study of 144 diverse sales organizations provide support for the relationship between behavior-based salesforce control systems and specific salesforce characteristics, different salesforce performance dimensions, and sales organization effectiveness. The results imply a limited role for incentive compensation in salesforce control systems. They also suggest the need for a proper blend between field sales management and compensation control and identify important avenues for future research.
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Exploring the factors that explain the choice of governance structures in interfirm alliances, this study challenges the use of a singular emphasis on transaction costs. Such an approach erroneously treats each transaction as independent and ignores the role of interfirm trust that emerges from repeated alliances between the same partners. Comprehensive multiindustry data on alliances made between 1970 and 1989 support the importance of such trust. Although support emerged for the transaction cost claim that alliances that encompass shared research and development are likely to be equity based, there is also strong evidence that repeated alliances between two partners are less likely than other alliances to be organized using equity.
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Moderated hierarchical multiple regression (MHMR) typically is used to test for the presence of interactions. When an interaction term is composed of correlated variables, linearity and additivity become confounded. The result of this confounding is that an interaction term in MHMR may be statistically significant only because of its overlap with unmeasured nonlinear terms. The author recommends that squared terms be used as covariates in such situations and shows that the resulting loss of power with respect to the test of significance for the interaction term is limited to that associated with the loss of degrees of freedom and is therefore negligible, if it exists at all. (PsycINFO Database Record (c) 2012 APA, all rights reserved)