Research Article
A Study on the Effects and Mechanisms of Sales Force Control Systems (SFCs) on Salesperson Performance
1 Yonsei University, 2 Chungnam National University
Published: January 2018 · Vol. 47, No. 2 · pp. 403-423
DOI: https://doi.org/10.17287/kmr.2018.47.2.403
Full Text
Abstract
This study examines the influence and mechanisms through which sales control systems, grounded in control theory for sales organizations, affect salesperson sales performance. The existing literature has focused on revealing individual psychological mechanisms such as salesperson orientation and job-related attitudes in the relationship between sales control systems and salesperson performance, while research on relationships with supervisors within the organization and organizational climate arising from social exchange relationships has been severely insufficient. To fill this theoretical gap and expand the scope of research in sales management, this study sought to determine the direct effects of activity control and outcome control—subdimensions of sales control systems—on salesperson sales performance, and to identify the mechanistic roles of leader-member exchange (LMX) and team support climate in this process. Data for the empirical analysis were obtained with the support of a major domestic life insurance company, utilizing survey response data from 1,016 salespeople and 157 sales managers, along with objective sales performance records of the salespeople (triadic data sources), all of which were matched for use in the empirical analysis. The results showed that activity control and outcome control had no direct relationship with salesperson sales performance. Activity control had a positive effect on leader-member exchange (LMX) and team support climate, while outcome control showed no significant results. Team support climate had a positive effect on salesperson performance, whereas leader-member exchange (LMX) was found to have a negative effect. Additionally, the mediating effect of leader-member exchange (LMX) was confirmed in the relationship between activity control and sales performance. Based on these empirical findings, theoretical and practical implications were discussed, and the study's limitations and directions for future research were presented.
