Share:


Niche based relational capability to increase salespeople performance in small and medium enterprises

Abstract

The role of salespeople is increasingly important in relation to improving sales performance. Sales may increase if it is supported by reliable, smart and hardworking salesperson. To create a professional salesperson, enterprises need to provide a guidance, for example, in the form of practical training that can support their works. The ability to adapt when interacting with the customers plays a critical role in relation to improving salesperson performance. However, there are inconsistencies in research findings between adaptive sales and salesperson performance. This research was conducted on salesperson in small and medium enterprises. Our sample consists of 300 respondents who lived in the Special Region of Yogyakarta. To obtain proper data, we carried out screening and trimming. The tests include: bias non-response test, logical connection test, and confirmatory factor analysis. This study uses structural equation model. A Sobel test was conducted to test the role of moderating variable. The findings of the research indicate that niche based relational capability was influenced by customers trust orientation, salesperson’s expertise and adaptability when interacting with their customers. The higher customers trust and the more intelligence of salesperson are, it will increase the niche based relational capability. In addition, salesperson’s performance may increase if it is supported by extensive customers relation based on market gaps, trust and salesperson’s intelligence. This research also discusses managerial implication, limitation and the directions for future research.

Keyword : adaptive selling behavioral, customers’ trust orientation, niche based relational capability, salesperson expertise, salesperson’s performance

How to Cite
Udayana, I. B. N. (2022). Niche based relational capability to increase salespeople performance in small and medium enterprises. Business: Theory and Practice, 23(1), 141–153. https://doi.org/10.3846/btp.2022.13012
Published in Issue
Apr 1, 2022
Abstract Views
529
PDF Downloads
548
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Agnihotri, R., & Krush, M. T. (2015). Salesperson empathy, ethical behaviors, and sales performance: The moderating role of trust in one’s manager. Journal of Personal Selling & Sales Management, 35(2), 164–174. https://doi.org/10.1080/08853134.2015.1010541

Agnihotri, R., Vieira, V. A., Senra, K. B., & Gabler, C. B. (2016). Examining the impact of salesperson interpersonal mentalizing skills on performance: The role of attachment anxiety and subjective happiness. Journal of Personal Selling & Sales Management, 36(2), 174–189. https://doi.org/10.1080/08853134.2016.1178071

Ahearne, M., Jones, E., Rapp, A., & Mathieu, J. (2008). High touch through high tech: The impact of salesperson technology usage on sales performance via mediating mechanisms. Management Science, 54(4), 671–685. https://doi.org/10.1287/mnsc.1070.0783

Ahmad, R., & Kim, D. (2015). An extended self-organizing map based on 2-opt algorithm for solving symmetrical traveling salesperson problem. Neural Computing & Applications, 26(4), 987–994. https://doi.org/10.1007/s00521-014-1773-z

Amyx, D., & Jarrell, L. (2016). The Influence of salesperson depression, low performance, and emotional exhaustion on negative organizational deviance. Journal of Managerial Issues, 28(3/4), 127–144.

Amyx, D., Sharma, D., & Alford, B. L. (2014). The influence of role ambiguity and goal acceptance on salesperson performance and commitment. Marketing Management Journal, 24(1), 52–65.

Ashforth, B. E., Sluss, D. M., & Saks, A. M. (2007). Socialization tactics, proactive behavior, and newcomer learning: Integrating socialization models. Journal of Vocational Behavior, 70(3), 447–462. https://doi.org/10.1016/j.jvb.2007.02.001

Babakus, E., Cravens, D. W., Grant, K., Ingram, T. N., & LaForge, R. W. (1994). Removing salesforce performance hurdles. Journal of Business & Industrial Marketing, 9(3), 19–29. https://doi.org/10.1108/08858629410066827

Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Strategic, and statistical considerations. Journal of Personality and Psychology, 51(6), 1173–1182. https://doi.org/10.1037/0022-3514.51.6.1173

Bartkus, K. R., Peterson, M. F., & Bellenger, D. N. (1989). Type a behavior, experience, and salesperson performance. Journal of Personal Selling & Sales Management, 9(2), 11–18.

Basir, M. S., Ahmad, S. Z., & Kitchen, P. J. (2010). The relationship between sales skills and salesperson performance: An empirical study in the Malaysia telecommunications company. International Journal of Management and Marketing Research, 3(1), 51–73.

Bolander, W., Satornino, C. B., Hughes, D. E., & Ferris, G. R. (2015). Social networks within sales organizations: Their development and importance for salesperson performance. Journal of Marketing, 79(1), 1–16. https://doi.org/10.1509/jm.14.0444

Boorom, M. L., Goolsby, J. R., & Ramsey, R. P. (1998). Relational communication traits and their effect on adaptiveness and sales performance. Journal of the Academy of Marketing Science, 26, 16. https://doi.org/10.1177/0092070398261003

Çerri, S., & Xhuvani, A. (2012). Exploring factor affecting trust and relationship quality in a supply chain context. Journal of Business Studies Quarterly, 4(1), 74–90. https://doi.org/10.7441/joc.2012.04.02

Chang, K.-C., Chen, M.-C., Hsu, C.-L., & Kuo, N.-T. (2012). Integrating loss aversion into a technology acceptance model to assess the relationship between website quality and website user’s behavioural intentions. Total Quality Management, 23(8), 913–930. https://doi.org/10.1080/14783363.2011.637793

Chen, C.-C., & Jaramillo, F. (2014). The double-edged effects of emotional intelligence on the adaptive selling–salesperson-owned loyalty relationship. Journal of Personal Selling & Sales Management, 34(1), 33–50. https://doi.org/10.1080/08853134.2013.870183

Cheng, B. L., & Rashid, M. Z. A. (2013). Service quality and the mediating effect of corporate image on the relationship between customer satisfaction and customer loyalty in the Malaysian hotel industry. Gadjah Mada International Journal of Business, 15(2), 99–112. https://doi.org/10.22146/gamaijb.5474

Choi, B. J., & Kim, H. S. (2013). The impact of outcome quality, interaction quality, and peer-to-peer quality on customer satisfaction with a hospital service. Managing Service Quality, 23(3), 188–204. https://doi.org/10.1108/09604521311312228

Chow, W. S., & Shi, S. (2015). Investigating customers’ satisfaction with brand pages in social networking sites. The Journal of Computer Information Systems, 55(2), 48–62. https://doi.org/10.1080/08874417.2015.11645756

Chu, P.-Y., Lee, G.-Y., & Chao, Y. (2012). Service quality, customer satisfaction, customer trust, and loyalty in an e-banking context. Social Behavior and Personality, 40(8), 1271–1284. https://doi.org/10.2224/sbp.2012.40.8.1271

Drollinger, T., & Comer, L. B. (2013). Salesperson’s listening ability as an antecedent to relationship selling. Journal of Business & Industrial Marketing, 28(1), 50–59. https://doi.org/10.1108/08858621311285714

Dulger, M., Alpay, G., Yilmaz, C., & Bodur, M. (2016). How does learning orientation generate product innovativeness and superior firm performance? International Journal of Business and Economic Development, 4(2), 68–77.

Eng, H. W., & Sorooshian, S. (2013). Service quality and its relationship with customer satisfaction. Journal of Management and Science, 3(4), 109–114.

Fang, Y., Qureshi, I., Sun, H., McCole, P., Ramsey, E., & Lim, K. H. (2014). Trust, satisfaction, and online repurchase intention: The moderating role of perceived effectiveness of e-commerce institutional mechanisms. MIS Quarterly, 38(2), 407–427. https://doi.org/10.25300/MISQ/2014/38.2.04

Ferdinand, A. T., & Wahyuningsih, W. (2018). Salespeople’s innovativeness: A driver of sales performance. Management & Marketing. Challenges for the Knowledge Society, 13(2), 966–984. https://doi.org/10.2478/mmcks-2018-0016

Fink, R. C., James, W. L., Hatten, K. J., & Bakstran, L. (2008). Supplier strategies to increase customer purchases over the duration of customer-supplier relationships. Journal of Business & Industrial Marketing, 23(8), 529–543. https://doi.org/10.1108/08858620810913344

Glickman, S. W., Galhenage, S., McNair, L., Barber, Z., Patel, K., Schulman, K. A., & McHutchison, J. G. (2012). The potential influence of internet-based social networking on the conduct of clinical research studies. Journal of Empirical Research on Human Research Ethics, 7(1), 71–80. https://doi.org/10.1525/jer.2012.7.1.71

Hajli, N., & Lin, X. (2016). Exploring the security of information sharing on social networking sites: The role of perceived control of information. Journal of Business Ethics, 133(1), 111–123. https://doi.org/10.1007/s10551-014-2346-x

Hassan, M. U., Qureshi, S. U., Hasnain, A., Sharif, I., & Hassan, R. (2013). Market orientation, learning orientation and organizational performance: Evidence from banking industry of Pakistan. Science International (Lahore), 25(4), 945–956.

Homburg, C., Müller, M., & Klarman, M. (2011). When does salespeople’s customer orientation lead to customer loyalty? The differential effects of relational and functional customer orientation. Journal of the Academic Marketing Science, 39(6), 795–812. https://doi.org/10.1007/s11747-010-0220-7

Huang, C.-C., Fang, S.-C., Huang, S.-M., Chang, S.-C., & Fang, S.-R. (2014). The impact of relational bonds on brand loyalty: The mediating effect of brand relationship quality. Managing Service Quality, 24(2), 184–204. https://doi.org/10.1108/MSQ-04-2013-0072

Keneseia, Z., & Kolos, K. (2018). The role of employee affective delivery and customer perceived control in service recovery. Market-Tržište, 30(1), 7–22. https://doi.org/10.22598/mt/2018.30.1.7

Kantur, D. (2016). Strategic entrepreneurship: Mediating the entrepreneurial orientation-performance. Management Decision, 54(1), 24–43. https://doi.org/10.1108/MD-11-2014-0660

Kim, B. (2017). Understanding key antecedents of user loyalty toward mobile messenger applications: An integrative view of emotions and the dedication-constraint model. International Journal of Human-Computer Interaction, 33(12), 984–1000. https://doi.org/10.1080/10447318.2017.1304607

Kim, B., & Kim, S. (2016). Effects of managers’ communication and satisfaction on their perceived importance of value chain sustainability. International Journal of Services and Operations Management, 25(1), 21–47. https://doi.org/10.1504/IJSOM.2016.078069

Kim, B., & Min, J. (2015). The distinct roles of dedication-based and constraint-based mechanisms in social networking sites. Internet Research, 25(1), 30–35. https://doi.org/10.1108/IntR-11-2013-0253

Klerk, S. D. (2014). The importance of networking as a management skill. South African Journal of Business Management, 41(1), 37–49. https://doi.org/10.4102/sajbm.v41i1.512

Lee, Y.-I., Chang, C.-H., & Chen, Y.-S. (2011). The influence of novelty, flexibility, and synergy of package tours on tourist satisfaction: An analysis of structural equation modeling (SEM). Quality & Quantity, 47(4), 1869–1882. https://doi.org/10.1007/s11135-011-9631-x

Li, L., Zhu, Y., & Park, C. (2018). Leader–member exchange, sales performance, job satisfaction, and organizational commitment affect turnover intention. Social Behavior & Personality: An International Journal, 46(11), 1909–1922. https://doi.org/10.2224/sbp.7125

Locander, D. A., Mulki, J. P., & Weinberg, F. J. (2014). How do salespeople make decisions? The role of emotions and deliberation on adaptive selling, and the moderating role of intuition. Psychology and Marketing, 31(6), 387–403. https://doi.org/10.1002/mar.20702

Locander, D. A., Weinberg, F. J., & Locander, W. B. (2018). The mediating role of sales department innovation orientation on creative selling. Journal of Managerial Issues, 30(4), 463–482. https://www.jstor.org/stable/45176598

Mandal, S. (2016). An empirical investigation on integrated logistics capabilities, supply chain agility and firm performance. International Journal of Services and Operations Management, 24(4), 504–530. https://doi.org/10.1504/IJSOM.2016.077786

Maroofi, F., Sadeghi, F., Mirzavandi, J., & Fathi, D. (2011). Adaptive selling behavior in Iran automobile sales representatives. International Journal of Academic Research, 3(2), 225–230.

Matsuo, M., Hayakawa, K., & Takashima, T. (2013). Learning-oriented sales management control: The case of a pharmaceutical company. Journal of Business-to-Business Marketing, 20(1), 21–31. https://doi.org/10.1080/1051712X.2012.690174

Miao, C. F., & Evans, K. R. (2013). The interactive effects of sales control systems on salesperson performance: A job demands–resources perspective. Journal of the Academic Marketing Science, 41(1), 73–90. https://doi.org/10.1007/s11747-012-0315-4

Moslehpour, M., Aulia, C. K., & Masarie, C. E. L. (2015). Bakery product perception and purchase intention of Indonesian consumers in Taiwan Massoud Moslehpour. International Journal of Business and Information, 10(1), 63–94.

Ou, W.-M., Shih, H.-M., Chen, C.-Y., & Tseng, C.-W. (2012). Effects of ethical sales behaviour, expertise, corporate reputation, and performance on relationship quality and loyalty. The Service Industries Journal, 32(5), 773–787. https://doi.org/10.1080/02642069.2010.531268

Paschal, A. U., & Eid, R. (2011). Integrating internal customer orientation, internal service quality, and customer orientation in the banking sector: An empirical study. Service Industries Journal, 31(14), 2487–2505. https://doi.org/10.1080/02642069.2010.504822

Pelham, A. M., & Kravitz, P. (2008). An exploratory study of the influence of sales training content and salesperson evaluation on salesperson adaptive selling, customer orientation, listening, and consulting behaviors. Journal of Strategic Marketing, 16(5), 413–435. https://doi.org/10.1080/09652540802480837

Pettijohn, C. E., Rozell, E. J., & Newman, A. (2010). The relationship between emotional intelligence and customer orientation for pharmaceutical salespeople: A UK perspective. International Journal of Pharmaceutical and Healthcare Marketing, 4(1), 21–39. https://doi.org/10.1108/17506121011036015

Pettijohn, C. E., Schaefer, A. D., & Burnett, M. S. (2014). Salesperson performance the role of role ambiguity, autonomy and self-efficacy. Academy of Marketing Studies Journal, 18(1), 99–111.

Piercy, N. F., Cravens, D. W., & Lane, N. L. (2012). Sales manager behavior-based control and salesperson performance: The effects of manager control competencies and organizational citizenship behavior. Journal of Marketing Theory and Practice, 20(1), 7–22. https://doi.org/10.2753/MTP1069-6679200101

Rehmat, F., Farsam, T., Ahmad, M. S., Naqvi, S. I. R., & Shoib, M. (2005). Consumer purchase intentions affected by cause related marketing, skepticism and brand loyalty: A co-relational analysis. Journal of Managerial Sciences, 9(1), 116–132.

Rodriguez, M., & Honeycutt, E. D. (2011). Customer Relationship Management (CRM)’s impact on B to B sales professionals’ collaboration and sales performance. Journal of Business-to-Business Marketing, 18(4), 335–356. https://doi.org/10.1080/1051712X.2011.574252

Roman, S., & Iacobucci, D. (2010). Antecedents and consequences of adaptive selling confidence and behavior: A dyadic analysis of salespeople and their customer. Journal of the Academic of Marketing Science, 38(3), 363–382. https://doi.org/10.1007/s11747-009-0166-9

Roman, S., & Luis Munuera, J. (2005). Determinants and consequences of ethical behaviour: An empirical study of salespeople. European Journal of Marketing, 39(56), 473–495. https://doi.org/10.1108/03090560510590674

Salam, A.-E., Eman, M., Shawky, A. Y., & El-Nahas, T. (2013). The impact of corporate image and reputation on service quality, customer satisfaction and customer loyalty: Testing the mediating role. Case analysis in an international service company. Journal of Business and Retail Management Research (JBRMR), 8(1), 130–152.

Schmitz, C., Lee, Y.-C., & Lilien, G. L. (2014). Cross-selling performance in complex selling contexts: An examination of supervisory- and compensation-based controls. Journal of Marketing, 78(3), 1–19. https://doi.org/10.1509/jm.12.0421

Schwepker, C. H. (2015). Influencing the salesforce through perceived ethical leadership: The role of salesforce socialization and person–organization fit on salesperson ethics and performance. Journal of Personal Selling & Sales Management, 35(4), 292–313. https://doi.org/10.1080/08853134.2015.1106769

Schwepker, J. C. H., & Good, D. J. (2012). Sales Quotas: Unintended consequences on trust in organization, customer-oriented selling, and sales performance. Journal of Marketing Theory and Practice, 20(4), 437–452. https://doi.org/10.2753/MTP1069-6679200406

Sekaran, U. (1984). Risearch methods for business, a skill building approach (2nd ed.). John Wiley & Sons, Inc.

Shafiee, M. M., & Bazargan, N. A. (2018). Behavioral customer loyalty in online shopping: The role of e-service quality and e-recovery. Journal of Theoretical & Applied Electronic Commerce Research, 13(1), 26–38. https://doi.org/10.4067/S0718-18762018000100103

Shkeer, A. S., & Awang, Z. (2019). The impact of marketing information system components on organizational decision making: A case of Jordanian Five Star Hotels. International Review of Management and Marketing, 9(6), 197–204. https://doi.org/10.32479/irmm.8622

Shoemaker, M. E., & Pelham, A. M. (2013). Does salesperson perception of the firm-level of market orientation influence sales behavior and performance attributions? Journal of Managerial Issues, 24(4), 381–400.

Singh, R., & Das, G. (2013). The impact of job satisfaction, adaptive selling behaviors and customer orientation on salesperson’s performance: Exploring the moderating role of selling experience. Journal of Business & Industrial Marketing, 28(7), 554–564. https://doi.org/10.1108/JBIM-04-2011-0121

Singh, R., & Koshy, A. (2012). A New conceptualization of salespersons customer orientation: Proposition and implications. Marketing Intelligence & Planning, 30(1), 69–82. https://doi.org/10.1108/02634501211193921

Tawinunt, K., Phimonsathien, T., & Fongsuwan, W. (2015). Service quality and customer relationship management affecting customer retention of longstay travelers In The Thai tourism industry: A Sem approach. International Journal of Arts & Sciences, 8(2), 459–477. https://search.proquest.com/openview/ab698719082bd800a5097f82af1480ce/1?pq-origsite=gscholar&cbl=626342

Tjahjono, H. K., Fachrunnisa, O., & Palupi, M. (2019). Configuration of organisational justice and social capital: Their impact on satisfaction and commitment. International Journal Business Excellence, 17(3), 336–360. https://doi.org/10.1504/IJBEX.2019.097957

Toyese, A. Y. (2014). Customer relationship management and customer loyalty in Nigerian telecommunication industry. Journal of Business and Retail Management Research (JBRMR), 8(2), 1–7.

Tsai, M.-T., Chin, C.-W., & Chen, C.-C. (2010). The effect of trust belief and salesperson’s expertise on consumer’s intention to purchase nutraceuticals: Applying the theory of reasoned action. Social Behavior and Personality, 38(2), 273–288. https://doi.org/10.2224/sbp.2010.38.2.273

Udayana, I. B. N., Farida, N., & Ardyan, E. (2019). Selling relationship quality to increase salesperson performance in the pharmacy industry. International Journal of Services and Operations Management, 33(2), 262–285. https://doi.org/10.1504/IJSOM.2019.100289

Vatani, M. S., Mehrmanesh, H., Toshih, A., & Mohagheghzadeh, F. (2014). Relationship marketing and loyalty of costumers from the viewpoint of gharb steel industrial company. Journal of Current Research in Science Coden (USA): JCRSDJ, 2(2), 251–256.

Verhoef, P. C. (2003). Understanding the effect of customer relationship management efforts on customer retention and customer share development. Journal of Marketing, 67(4), 30–45. https://doi.org/10.1509/jmkg.67.4.30.18685

Vij, S., & Farooq, R. (2015). The relationship between learning orientation and business performance: Do smaller firms gain more from learning orientation? Journal of Knowledge Management, 8(4), 7–28.

Voss, G. B., & Voss, Z. G. (2008). Competitive density and the customer acquisition–retention trade-off. Journal of Marketing, 72(6), 3–18. https://doi.org/10.1509/jmkg.72.6.003

Wang, X., Wang, G., & Hou, W. C. (2016). Effects of emotional labor and adaptive selling behavior on job performance. Social Behavior and Personality, 44(5), 801–814. https://doi.org/10.2224/sbp.2016.44.5.801

Wilson, J. M., & Hunt, C. S. (2011). The impact of sales engineers on salesperson effectiveness. Journal of Marketing Development and Competitiveness, 5(2), 130–138.

Wu, S.-I., & Ho, L.-P. (2014). The influence of perceived innovation and brand awareness on purchase intention of innovation product an example of iPhone. International Journal of Innovation and Technology Management, 11(4), 1–22. https://doi.org/10.1142/S0219877014500266

Xiabing, Z., Christy, M. K. C., Matthew, K. O. L., & Liang, L. (2015). Building brand loyalty through user engagement in online brand communities in social networking sites. Information Technology & People, 28(1), 90–106. https://doi.org/10.1108/ITP-08-2013-0144

Zhu, D. H., & Chang, Y. P. (2015). Effects of interactions and product information on initial purchase intention in product placement in social games: The moderating role of product familiarity. Journal of Electronic Commerce Research, 16(1), 1–13.