Understanding cross-cultural sales manager–salesperson relationships in the Asia-Pacific Rim region: a grounded theory approach

Abstract

As more organizations implement multinational strategies, sales managers leading sales forces encounter complex cultural challenges that affect relationships, processes, and outcomes. We undertake a qualitative study with the objective of understanding the sales manager–salesperson relationship when the sales manager is leading sales representatives located in other cultures. Because of the significant size and growth of Asian countries, we focus our study on the Asia-Pacific Rim region. In-depth interviews conducted with 21 sales managers working for a large multinational technology firm in our focal region provide the data for our analysis. Using a grounded theory approach, we identify five key themes: building and sustaining cross-cultural relationships, cross-cultural communication effectiveness, acquisition and maintenance of trust across cultures, language, and decision-making. From our findings, research propositions are offered and implications for researchers and practitioners are discussed.     

The sales manager as a unit of analysis: a review and directions for future research

This article analyzes empirical research in which the sales manager is the unit of analysis to determine what knowledge has been generated by sales scholars about sales managers and sales management practice. It examines what we have learned from sales managers about their jobs and themselves with particular emphasis on the managerial relevance of the work. While the sales literature is vast and despite the importance of sales managers being widely recognized and accepted, an extensive search of the sales literature identified only 163 articles in which the sales manager was the focus of empirical research about what they do. To help better understand what has been discovered, these articles are examined and categorized according to the main focus of each article's research. The results show that with respect to sales managers, our knowledge is limited and substantial opportunities exist for additional research to expand our understanding of the nature, roles, and impact of sales managers as well as providing usable advice for the practice of sales management.     

Sales Manager Behavior Control Strategy and its Consequences: The Impact of Manager Gender Differences

Salesperson gender studies have consistently reported no differences. In contrast, a single-company study found several differences based on sales manager gender concerning salesperson attitudes, behavior, and outcome (Piercy, Cravens, and Lane 2001). The present research examines the sales manager gender issue across multiple companies from the perspective of sales managers. Sales units led by female managers display higher effectiveness. Female sales managers perform significantly higher levels of behavior-based control activities and display higher competence in this management approach, compared to male counterparts. There are few differences in managers’ assessments of salespersons’ behavior performance based on gender. Female sales managers do not show higher levels of organizational citizenship behavior as part of their management approach. Interestingly, no differences based on gender were found concerning several salesperson and organizational characteristics. These findings suggest that different selling environments are not affecting the study gender results. Several promising future research directions are discussed.     

The Fortune 500 Companies' Selection Criteria for Promotion to First Level Sales Management: An Empirical Study

Since marketing, and particularly selling activities, determine the sources and size of a company's revenue, factors which vitally affect sales force performance are matters of crucial importance to corporate management.

Predicting how a newly appointed first level sales manager will perform in the new leadership task remains a difficult problem and the determination and use of selection criteria appears not to be clearly defined in the literature. Previous research has identified desirable attributes as selection criteria though typically these are neither ranked in importance nor as attributes that “can be developed later through training/experience” or be “innate to the person selected.” This research focused upon the selection criteria and practices of the Fortune 500 companies in selecting/appointing their first level sales managers. The results revealed that (i) the Fortune 500 human resource managers are in agreement with the findings of previous research with regard to which personality and character traits are crucial pre-requisites to good sales management performance; (ii) a surprisingly small number of firms use psychological batteries/tests or qualified psychologists to measure these traits; and (iii) turnover rates, not due to promotion, among first level sales managers appear to be high.     

The Effect of Vertical Exchange Relationships on the Performance Attributions and Subsequent Actions of Sales Managers

This study examines the type of relationship that exists between the sales manager and subordinate (vertical exchange status), and its impact on the sales manager's attributions about the subordinate performance, as well as subsequent responses to the subordinate. Results indicate that cadres may receive preferential consideration in explaining their performance, which then impacts the sales manager's response to the salesperson. The findings imply that sales managers should be careful in assigning attributions for performance by both cadre and hired hand salespersons.     

The Manager-Salesperson Relationship: an Exploratory Examination of the Vertical-Dyad Linkage Model

Abstract

The Vertical-Dyad-Linkage Model (VDL) is offered as a tool to explore the infrastructure of a sales team. Building on the philosophy found in most sales management literature that salespersons are to be managed as individuals, VDL theory allows an exploration of the underlying social organization that is present in all sales forces. Thus, the style that a manager uses with a particular salesperson will vary depending on the exchange relationship established (cadres, hired hands). The objectives of the paper are to explore the general tenets of VDL theory, to assimilate the theory in sales management, to provide implications for sales managers and salespeople, and to discuss the important implications for sales management research.     

Sales manager cost control engagement: antecedents and performance implications

Many organizations face competing agendas by which they are expected to simultaneously grow sales output while controlling associated costs. At the interface of this organizational pressure and the sales force’s implementation of such initiatives is the sales manager. However, questions with significant implications remain regarding how a sales manager’s requisite engagement with cost control affects sales performance. To address this issue, the authors conceptualize and operationalize the notion of sales manager cost control engagement. Results from a survey of 178 business-to-business sales managers show the antecedent and consequence effects of sales manager cost control engagement. A variety of organizational factors are shown to effectively direct the sales manager’s attention to cost control, which in turn has a positive impact on cost-related sales performance. These findings add to an emergent body of research aimed at understanding key skills required of sales managers for driving sales performance as well as provide a novel perspective for sales managers to consider when balancing pressures between cost inputs and sales outputs. Several theoretical and managerial implications are offered, as are future research directions.     

When the Sales Manager is a Woman: An Exploration into the Relationship Between Salespeople's Gender and their Responses to Leadership Styles

This paper reports the results of an exploratory study comparing the responsiveness of male versus female salespersons to differing leadership styles of female sales managers. Responding triads, made up of one female sales manager and two subordinate salespersons (one male and one female), completed questionnaires assessing the managers' leadership style, the salespersons' satisfaction with supervision, and the salespersons' selling performance. Partial correlational analysis revealed gender differences in the way satisfaction with supervision and performance effectiveness related to the female managers' leadership styles. Male sales force members were most responsive to leaders who displayed individualized consideration and used a transactional style (contingent rewards or management by exception). Saleswomen preferred charismatic leaders and those who were capable of intellectually stimulating methods. The results are discussed and recommendations made for future research.     

Generating and sharing of market intelligence in sales teams: an economic social network perspective

In this research, we take a multimethod approach to shed light on the potential costs to sales teams that generate and share market intelligence (MI). First, we introduce an analytical model to propose the respective levels of effort that sales managers, experts, and team members spend generating and sharing MI. To test our propositions, we utilize social network data from 40 independent, business-to-business (B2B) sales teams, representing 287 salespeople. Interestingly, our results support the premise that team members become dependent (reduce MI efforts) when their sales manager or team expert shares MI among the team. We term this a “sharing tax” that sales managers and team experts pay when they share MI. Consequently, sales managers demonstrate greater MI-generation efforts the more they share MI. We also find that experts who share more (less) also show greater (lesser) MI-generation efforts, but only for teams where sales managers share low (high) levels of MI. In summary, our research innovatively conducts an empirical test of the Nash Equilibrium pattern of sales team effort to show that two critical team members, the sales manager and expert, are at a disadvantage when they share valuable MI.     

Sales Force Activities and Marketing Strategies in Industrial Firms: Relationships and Implications

This study explores the role of the sales force in formulating and executing marketing strategies. Specifically, the relationships between sales force activities such as providing information about customer needs, hiring and training salespeople, and assessing new market segments and four marketing strategies (market penetration, product development, market development, diversification) are examined. Results indicate that the use of sales force activities is related to a firm's strategic choices, and that the relationships vary by firm size and type of offering.     

Salespeople's Perceptions of Sex Differences in Sales Managers

A field experiment was conducted to extend the work of Marshall, Mowen, and Stone (1995) on salesperson selection decision making by adding two types of decision makers. Practicing sales managers and human resource managers evaluated a simulated hiring scenario for an open sales position and indicated their preferences between two job candidates with different levels of risk and performance potential. Experimental conditions were level of decision impact (sales manager or HR manager), decision frame (loss or gain), and time of valuation (outcome of the decision known soon or in the more distant future). The results provide evidence to support the findings of prior research in that an interaction occurred between decision frame and time of valuation such that the higher risk/higher performance potential candidate was preferred when managers framed the decision from a loss domain and the decision outcome occurred in the future. In addition, the higher risk/higher performance potential candidate was more preferred by sales managers than by HR managers. The findings are discussed in terms of their importance to salesperson selection research and practice.     

Corporate Culture and Sales Force Management in Japan and America

Abstract

Managers' personal values are a key aspect of corporate culture. Sales representatives' agreement with their managers' values (hereafter “value congruence”) can be expected to influence sales performance, satisfaction, and propensity to quit. These propositions are investigated in two countries. One hundred seventy-five sales representatives and 93 sales managers from a Japanese firm and 146 sales representatives and 21 sales managers from a comparable American firm participated in the study. A questionnaire was distributed to the managers and representatives. Value congruence was found to be weakly related to performance, but strongly related to satisfaction and propensity to quit for both cultural groups. The Japanese group was found to be higher in value congruence and propensity to quit, but lower in satisfaction. Suggested are implications for future research and for managers.     

Examining the Impact of Servant Leadership on Sales Force Performance

Much has been written about the importance of focusing on customers to drive organizational success. In this paper, aspects of manager–salesperson relationships are examined as drivers of deeper customer focus in salesperson–customer interactions. In particular, managers’ servant leadership, a leadership style emphasizing genuine concern for subordinate welfare, is examined as a catalyst of parallel concern by salespeople for their customers. Salesperson perceptions of managers’ servant leadership empirically relate to salesperson customer orientation, in turn driving adaptive selling behaviors, customer-directed extra-role behaviors, and sales performance outcomes. Other results and implications for management and sales leadership research are presented.     

An assessment of needed sales management skills

The skills required of sales managers are vitally important to the success of the firm's selling effort; however, there has not been a recent review that identifies these needed skills. Based on a survey of sales executives from 145 companies, this research develops a taxonomy of key sales management skills. The perceived importance of these skills is reported based on the level of management, gender and the performance level of the firm. In addition to identifying the relative importance of the various sales management skills, they were found to group into three conceptual dimensions relating to interpersonal, technical and strategic skills. The results also indicate that significant differences in the perceived level of skill importance exist based on level of management, years managing salespeople, gender and on three dimensions of the respondent's firm performance.     

Descriptive and Predictive Analyses of Industrial Buyers' Use of Online Information for Purchasing

The impact of demographic differences between sales reps and their managers is explored using data gathered from 340 manager-rep dyads. Education and gender differences between sales reps and managers, but not age differences, are shown to affect sales reps' role stress, organizational attachment, and perceptions of opportunities for advancement, as well as managers' ratings of the reps' performance. Study results support findings of previous research addressing relational demography and the similarity-attraction paradigm. The chief divergence of this study is that it depicts the role of frequency of contact between sales rep and manager in the link between demographic similarity and several outcome variables.     

建言类型对管理者建言采纳的影响：上下级关系的间接调节作用

基于说服模型,本研究探讨了建言类型、上下级关系、管理者感知忠诚对管理者建言采纳的影响。通过两个管理者样本的实验数据,本研究发现：(1)管理者更易采纳促进性建言而非抑制性建言;(2)在上下级关系不好的情况下,建言类型对建言采纳的影响显著,在上下级关系较好的情况下,建言类型对建言采纳的影响不显著;(3)上下级关系是通过管理者感知忠诚调节建言类型对建言采纳的影响。     

The Role of Trust in Salesperson—Sales Manager Relationships

Leader-Member Exchange Theory (LMX) offers a way to better understand nuances of the salesperson-sales manager relationship. The study reported here employs leader-member exchange theory to evaluate how sales employees develop trust with their managers. Findings show that salespeople's perceptions of procedural justice positively influence salespeople's commitment to the organization, and thereby their satisfaction with the job. Suggestions are provided concerning how sales organizations can train managers to manage consistently and thereby build trust and commitment in salespeople.     

How to Retain Real Estate Sales People: What Things Work

Abstract

This study examines the residential real estate salesperson as one population and the real estate sales manager as a second population in an effort to identify those rewards important to successful sales and career development, as well as retention. Indepth interviews were conducted in order to provide more reliable results for this career field. It was determined that the management of real estate salespeople can be improved by focusing upon selection procedures as well as by developing a greater identification of the salesperson with the firm.     

Selling and Sales Management in Action: Attitudes and Applications of Quotas by Sales Executives and Sales Managers

A survey of 186 sales managers and executives revealed that in setting sales quotas, factors such as the sales territory and the support provided by the manager were considered more important than the past performance of the sales representative. As would be expected, in an inspection of general opinions about sales quotas, the managers demonstrated a preference for linking the sales quota to the compensation of the salesperson.     

Manager–salesperson congruence in customer orientation and job outcomes: The bright and dark sides of leadership in aligning values

To create customer-oriented organizations, managers are often asked to promote a values-based vision. Yet, many managers struggle with transferring their values to employees making strategic value changes difficult. Despite this challenge, research has yet to demonstrate how managers effectively align values within the sales force, or the impact alignment has on job outcomes. Therefore, we develop and empirically test a conceptual framework to examine the role of transformational leadership in aligning salesperson customer orientation (CO) values. We find that transformational leadership is a strong mechanism in creating perceived value congruence, yet may have a surprising dark side. Results suggest that transformational managers achieve congruence by raising or, contrary to conventional wisdom, lowering salesperson CO values to meet the perceived values of the manager. Response surface modelling results support the importance of perceived manager values. Customer-oriented salespeople have higher job satisfaction and sales performance when they perceive their manager to also have high CO. When values are misaligned, job satisfaction increases more for low CO salespeople as perceptions of manager CO increase. Exploratory findings show that performance was higher under situations of perfect alignment but also under severe misalignment suggesting that values generate performance under complementary or supplementary conditions.