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Effects of formal sales control systems: A combinatory perspective

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  • Miao, C. Fred
  • Evans, Kenneth R.

Abstract

This research paper investigates the combinatory effects of three well-established formal sales control styles: outcome, capability, and activity control. Drawing on Expectancy Theory and Cognitive Evaluation Theory, the authors theorize that sales control combinations have differential impacts on three key intermediary variables (salesperson knowledge, role ambiguity, and intrinsic motivation), which subsequently affect salesperson performance. A Partial Least Squares (PLS) analysis using data from industrial salespeople and their managers indicates that (1) the capability and outcome control styles have positive combinatory effects that enhance salesperson knowledge and intrinsic motivation while mitigating role ambiguity, (2) combining outcome control and activity control can increase role ambiguity, and (3) a combination of activity control and capability control can enhance role clarity but dampen intrinsic motivation. Finally, our results indicate that the effects on manager-rated salesperson performance of capability control and activity control are fully mediated while the effects of outcome control are partially mediated by salesperson knowledge and role ambiguity.

Suggested Citation

  • Miao, C. Fred & Evans, Kenneth R., 2012. "Effects of formal sales control systems: A combinatory perspective," International Journal of Research in Marketing, Elsevier, vol. 29(2), pages 181-191.
    • Handle: RePEc:eee:ijrema:v:29:y:2012:i:2:p:181-191
    DOI: 10.1016/j.ijresmar.2011.09.002
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    References listed on IDEAS

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    1. Miao, C. Fred & Evans, Kenneth R. & Shaoming, Zou, 2007. "The role of salesperson motivation in sales control systems -- Intrinsic and extrinsic motivation revisited," Journal of Business Research, Elsevier, vol. 60(5), pages 417-425, May.
    2. Cravens, David W. & Lassk, Felicia G. & Low, George S. & Marshall, Greg W. & Moncrief, William C., 2004. "Formal and informal management control combinations in sales organizations: The impact on salesperson consequences," Journal of Business Research, Elsevier, vol. 57(3), pages 241-248, March.
    3. Wilken, Robert & Cornelißen, Markus & Backhaus, Klaus & Schmitz, Christian, 2010. "Steering sales reps through cost information: An investigation into the black box of cognitive references and negotiation behavior," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 69-82.
    4. Panagopoulos, Nikolaos G. & Avlonitis, George J., 2010. "Performance implications of sales strategy: The moderating effects of leadership and environment," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 46-57.
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    Cited by:

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    2. Stephen K. Kim & Amrit Tiwana, 2016. "Chicken or egg? Sequential complementarity among salesforce control mechanisms," Journal of the Academy of Marketing Science, Springer, vol. 44(3), pages 316-333, May.
    3. Hur, Won-Moo & Shin, Yuhyung & Shin, Gyeongpyo, 2022. "Daily relationships between customer incivility, organizational control, self-efficacy, and service performance," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    4. Lukas Isenberg & Susanne Kreiter & Roland Helm & Christian Schmitz, 2022. "Marketing control in international headquarters-subsidiary working relationships of industrial goods firms: the role of environmental context," Journal of Business Economics, Springer, vol. 92(6), pages 1035-1064, August.
    5. Valerie Good & Douglas E. Hughes & Ahmet H. Kirca & Sean McGrath, 2022. "A self-determination theory-based meta-analysis on the differential effects of intrinsic and extrinsic motivation on salesperson performance," Journal of the Academy of Marketing Science, Springer, vol. 50(3), pages 586-614, May.
    6. Kuester, Sabine & Homburg, Christian & Hildesheim, Andreas, 2017. "The catbird seat of the sales force: How sales force integration leads to new product success," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 462-479.
    7. Ohiomah, Alhassan & Andreev, Pavel & Benyoucef, Morad & Hood, David, 2019. "The role of lead management systems in inside sales performance," Journal of Business Research, Elsevier, vol. 102(C), pages 163-177.
    8. Park, Hyewon & Hur, Won-Moo & Kang, Seongho, 2023. "Contribution of sales control in salespeople’s creative selling: Work engagement as a mediator," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    9. Zheng, Yaqin & Liao, Hsin-Yi & Schrock, Wyatt A. & Zheng, Yi & Zang, Zhimei, 2023. "Synergies between salesperson orientations and sales force control: A person-organization fit perspective on adaptive selling behaviors and sales performance," Journal of Business Research, Elsevier, vol. 155(PA).
    10. Valerie Good & Douglas E. Hughes & Hao Wang, 2022. "More than money: establishing the importance of a sense of purpose for salespeople," Journal of the Academy of Marketing Science, Springer, vol. 50(2), pages 272-295, March.
    11. Zoha Fatima & Adil Khan & Abdul Saboor Mohammad, 2024. "The Efficacy of Salesforce Control Systems: Their Impact on the Pharmaceutical Industry in India," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(2), pages 275-292, May.

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