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Examining the effectiveness of sales management control practices in developing countries

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  • Piercy, Nigel F.
  • Low, George S.
  • Cravens, David W.

Abstract

Management control consists of managers' initiatives to direct and influence employees for the purpose of achieving an organization's objectives. Sales management control is identified as an important antecedent of several salesperson and organizational consequences in prior developed country studies. We examine the impact of management control in combination with incentive pay and territory design on salesperson performance and sales unit effectiveness for sales organizations in three developing countries (Greece, India, and Malaysia). The results point to territory design as a strong predictor of performance and effectiveness. Management control is also a relevant predictor of performance and effectiveness. Surprisingly, incentive pay has no effect on salesperson performance, although it has a positive impact on sales unit effectiveness in Greece and India. Several important managerial implications are highlighted by the study findings.

Suggested Citation

  • Piercy, Nigel F. & Low, George S. & Cravens, David W., 2004. "Examining the effectiveness of sales management control practices in developing countries," Journal of World Business, Elsevier, vol. 39(3), pages 255-267, August.
    • Handle: RePEc:eee:worbus:v:39:y:2004:i:3:p:255-267
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    1. Piercy, Nigel F. & Low, George S. & Cravens, David W., 2011. "Country differences concerning sales organization and salesperson antecedents of sales unit effectiveness," Journal of World Business, Elsevier, vol. 46(1), pages 104-115, January.
    2. Jose Varghese & Manoj Edward, 2018. "Relationship Between Job Orientation and Performance of Sales People: A Financial Services Industry Perspective," IIM Kozhikode Society & Management Review, , vol. 7(1), pages 88-96, January.
    3. Prince, Nicholas R. & Bruce Prince, J. & Kabst, Rüediger, 2020. "National culture and incentives: Are incentive practices always good?," Journal of World Business, Elsevier, vol. 55(3).
    4. Theodosiou, Marios & Katsikea, Evangelia, 2007. "How management control and job-related characteristics influence the performance of export sales managers," Journal of Business Research, Elsevier, vol. 60(12), pages 1261-1271, December.
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    6. Avlonitis, George J. & Panagopoulos, Nikolaos G., 2007. "Exploring the influence of sales management practices on the industrial salesperson: A multi-source hierarchical linear modeling approach," Journal of Business Research, Elsevier, vol. 60(7), pages 765-775, July.
    7. 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.
    8. Somnath Lahiri, 2011. "India-focused publications in leading international business journals," Asia Pacific Journal of Management, Springer, vol. 28(2), pages 427-447, June.
    9. Isaac TWENEBOAH-KODUAH & Charles ADUSEI & Charles TENKORANG, 2016. "Sales Territory Management and Distributor Performance in the Telecommunications Industry in Ghana," Expert Journal of Marketing, Sprint Investify, vol. 4(2), pages 46-59.
    10. Miglena PENCHEVA, 2018. "Organizational Culture – Values and Practices, Evidence from Manufacturing Industry in Northeastern Bulgaria," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 105-114, November.
    11. Korma Mesfin & Kolloju Naveen & Kummitha Harshavardhan Reddy & Kareem Mohanad Ali, 2022. "Impact of Organizational Culture on Organisational Performance: A Study on the Employees in Educational Institutions," Business Systems Research, Sciendo, vol. 13(1), pages 138-155, June.
    12. 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.
    13. Mishra, Sushanta Kumar & Bhatnagar, Deepti & D’Cruz, Premilla & Noronha, Ernesto, 2012. "Linkage between perceived external prestige and emotional labor: Mediation effect of organizational identification among pharmaceutical representatives in India," Journal of World Business, Elsevier, vol. 47(2), pages 204-212.

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