Research Article
A Study on the Effect and Mechanism of Sales Force Control Systems(SFCs) on Sales Performance: Focusing on the Mediating Role of LMX and Team Support Atmosphere
Yonsei University
Chungnam National University
Published: January 2018 · Vol. 47, No. 2 · pp. 403-423
DOI: https://doi.org/http://dx.doi.org/10.17287/kmr.2018.47.2.403
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Abstract
This study examines the influence and mechanism of sales force control system based on control theory on sales performance of salesperson. Past literature have focused on identifying individual psychological mechanisms such as salesperson’s orientation and job-related attitudes in relation to the sales performance of the sales force control system. There is no research done about it. In order to fill the theoretical gap and to expand the scope of research in the field of sales management, this study investigates how the activity control and outcome control directly affect the salesperson’s sales performance. In addition, we tried to clarify the mechanism of Leader-Member Exchange(LMX) and team support atmosphere in this process. Data for empirical analysis were obtained from large life insurance company in South Korea: 1016 salespeople, 157 sales managers' questionnaire response data, and objective sales data of salespeople. Using triadic data sources, we conducted empirical analysis. As a result of the study, activity control and outcome control were not directly related to the sales performance of salesperson. Activity control positively affected the Leader-Member Exchange (LMX) and team support atmosphere. However, no significant results were found for outcome control. Team support atmosphere had a positive effect on salesperson performance, but the Leader-Member Exchange(LMX) had a negative effect. Finally, the mediating effect of the Leader-Member Exchange(LMX) on the relationship between activity control and sales performance was confirmed. Based on these empirical studies, theoretical implications and practical implications are discussed. The limitations of the study and the direction of future research are also suggested.
