Compensation and Control Systems: A New Application of Vertical Dyad Linkage Theory

Compensation and control systems offer much for study. In this paper, we provide directions for future research by considering the system of influences that operate to shape salesperson behavior in the presence of formal and informal systems attempting to influence behaviors and outcomes. By applying vertical dyad linkage theory to the issue of control, we illustrate how the field remains fertile for continued study to improve the understanding of how incentives influence sales managers, salespeople, and customers. Of particular interest is the interplay between superiors and subordinates across sales force management layers and in the context of compensation/control. Further, the chain of linkages extends to customers, also providing fruitful opportunities for research.