How Control Systems Influence the Salesperson s Objective Performance: An Empirical Investigation

Transcription

1 How Control Systems Influence the Salesperson s Objective Performance: An Empirical Investigation Vincent Onyemah, Boston University, USA Erin Anderson, INSEAD, France Boston University School of Management Working Paper #

2 ABSTRACT Based on the analyses of archival performance data matched with a survey of 1,290 salespeople working in Africa, Europe, and North America, this paper demonstrates the existence of a curvilinear relationship between salesperson performance and sales force control system. Contrary to expectations informed by extant literature, there is evidence of situations where behavior-based control systems yield better sales performance than outcome-based control systems. Further, mixed control systems-- offshoots of outcome- and behavior-based control philosophies have both strengths and weaknesses which directly reflect on salesperson performance. Analysis using a varying parameter model shows that the above relationships remain after controlling for the moderating influence of sales manager s personal and professional investment orientation toward the salesperson. The consequences of steering a middle ground with the aid of mixed control systems are investigated and discussed. This paper closes with a discussion of its findings and the implications of these for research and management practice. 1

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