Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)

Research Article: 2017 Vol: 21 Issue: 2

Factors Influencing Sales Peoples Performance: A Study of Mobile Service Providers in Bangladesh

Muhammad Tahir Jan, International Islamic University Malaysia

Kamrul Islam, International Islamic University Malaysia

Abstract

Mobile service provider markets are a standout amongst the most unstable market environments because of expanded rivalry and change in the market. Thus, the developing concern requires the marketers to entirely look at client purchasing choice and satisfying procedure. On this basis, the purpose of the study is to more focus on the factors that influence sales people’s performance in mobile phone service providers. This paper used structural equation modelling (SEM) approach to test the research model. A primary data was collected using self-administered questions from mobile phone service operator in Dhaka city. The sample included 262 active sales people using a purposive sampling technique. The results revealed that intrinsic motivation, extrinsic motivation, organizational commitment and compensation had a significant relationship with sales people’s performance, whilst, job satisfaction has not significant impact on sales people’s performance. This study contributes a foundation for future research in achieving the objective of this study and fast developing mobile phone service industry.

Keywords

Sales People’s Performance, Job Satisfaction, Sales Motivation.

Introduction

Mobile phone users’ satisfaction is the level of an individual’s felt state resulting from comparing a product’s apparent execution in connection to the individual’s expectations. The sales people’s performance in marketing is to create a sustainable competitive advantage against competitor (Hossain, Sultana & Mazmum, 2016; Dey et al., 2016). Tai, Huang and Chuang (2016) argued that sales representatives' impression of their manager part demonstrate conduct related emphatically to confide in the business director and related by implication, through trust, to both job satisfaction and overall performance of the sales people in the business organization. According to Terho, Eggert, Haas and Ulaga (2015), the administration part of sales managers is so imperative. Administrators play a significant part in embellishment practices and state of mind of their sales people (Mulki, Jaramillo, Goad and Pesquera, 2015). Marks and Badovick (2015) contended that sales people adapt sales message to the individual consumer’s need and this has long been acknowledged as the advantage of personal selling over other methods of communication.

Accordingly, in the face of the competitive performance environment and the fast extension of essential scope of products and the need to sell in better approaches to new clients place (Lu, Yueh and Lin, 2016), thus, sales people performance is essential to perform the organizational task efficiently (Hossain et al., 2016). In addition, enhancing sales people performance through sales force inspiration is a developing issue in telecommunication sector (Dutt, 2015). Besides, the telecommunication industry is growing rapidly despite of economic slowdown and competition worldwide (Uddin et al., 2013). Therefore, sales people’s higher performance in the mobile service company is very essential to generate more profit in the organizations. Besides, this study is important since an effective performance of the sales people is essential for developing a business organization (Dutt, 2015), but there is no comprehensive study on sales people performance in the telecommunication industry in Bangladesh (Uddin et al., 2013; Ahmed and Rouf, 2015).

In 1960, experimental research have started to identify the impacts of the business sector and in the following couple of years, the attention motivated to hypothesis development that analyse the impacts of managerial structure on authoritative business sector (Avlonitis and Panagopoulos, 2007). In the mid-1970s, the significance of hierarchical market orientation was seen to decrease even with quick innovative changes which lessened the points of interest picked up by responsiveness to an individual client's needs (Magandini and Ngwenya, 2015). However, Hossain et al. (2016) assume that sales force industry has increasingly grew since the mid-1990s.

Throughout the following era, the literature has focused on the selling organization and has started to inspect the business sector introduction of the sales force as an outcome of assessment and prized frameworks (Lu et al., 2016). This individual level of business sector orientation, alluded to as sales people’s performance introduction, is of extraordinary interest in light of sales people’s performance and immediate contact with clients and the conviction that this will affect sales outcomes. Based on the selling orientation, researchers estimated that data within the business association encourages and facilitates business sector orientation (Rajagopal and Rajagopal, 2008). The unmistakable pattern towards responsibility in marketing and the pressure to improve profitability have inspired administrators to distinguish and actualize powerful sales force administration practices (Barker, 2001). Avlonitis and Panagopoulos (2007) stated that expanding worldwide rivalry; low levels of financial development and contracting client bases have quickened the need to distinguish determinants of actual performance within of the sales business organizations. Inside the advertising capacity, administration of sales force is of basic significance in numerous organizations because of the number of salesmen utilized and the measure of cash spent looking after it.

Additionally, sales people’s performance is vital for organizations (Rahman et al., 2014) since they deal with imperative finance, product or item and client information which could simply be exchanged starting with one organization and then the next. Along these lines, sales people’s performance and responsibility to the association are basic variable in the long haul achievement of the organizations (Buciuniene and Skudiene, 2015). Empirical studies (Payne et al., 2001) show that sales representatives’ maintenance prompts expanded sales quality and in this manner, expanded sales. Moreover, sales people’s performance is important to the future growth and success of all industry (Magandini and Ngwenya, 2015). Developing advances revolutionizes business sector needs making it troublesome for clients to articulate their future needs and prerequisites. Organizations require huge assets and specialized aptitudes to keep up a focused advantage (Magandini and Ngwenya, 2015).

Moreover, Zain and Jan (2014) explained the sales people's performance is a noteworthy subject for organizations. A continuous flow of sales people’s performance in the telecommunication industry is the lifeblood for organizations (Rahman et al., 2015) that continue to be competitive in high-technology industries such as telecommunications (Uddin et al., 2013). However, certain communication and interpersonal skills are needed by sales people to develop and improve relationships with customers. Yet little research has explored sales people’s performance (Deeter-Schmelz and Sojka, 2003) particularly in the telecommunication industry (Oko and Nnanna, 2014). The relationship marketing has currently increased attention to market orientation (Zain and Jan, 2014).

However, along these statements, the justification of this study is to examine the factors that influencing the higher performance of the sales people in the telecommunication industry in Bangladesh. Furthermore, this study is very significant, since there is no empirical evidence on sales people performance in the telecommunication industry in Bangladesh. This study will contribute to develop an effective performance of the sales people in the telecommunication industry and will also help future study to use as supporting evidence. This study also will help in determining the sales people’s compensation, job satisfaction, intrinsic motivation, extrinsic motivation and organizational commitment (Zain and Dahari, 2011; Zain and Jan, 2014). Furthermore, an effective and efficient performance of sales people in the telecommunication industry is a major aspect globally, but researchers has given a very little attention in this sector particularly in the context of Bangladesh there is no empirical research on this area. Thus, this study will contribute to fill this gap by conducting an exploratory study on sales people performance in the telecommunication industry in Bangladesh.

Theoretical Model and Development of Hypotheses

Figure 1 proposed a comprehensive model that encompasses how sales people’s performance create and affect mobile phone service industry. The essential structure is that combines sales force performance, characteristics of sales people, sales organization design and sales management control activities. Rahman et al. (2014) have proposed a conceptual framework that includes four key determinants: personal development, income, communication skills and extra benefits. Zain and Jan (2014) have provided the basic framework that includes job satisfaction, organizational commitment, intrinsic motivation and job tenure. Rahman et al. (2015) proposed a framework that combines the six key factors such as training, salesperson’s knowledge, salesperson’s skills, organizational productivity, organizational effectiveness and organizational performance.

Figure 1: Proposed Theoretical Model

Sales People’s Performance

The awareness of sales management practices is a part of sales organizations that show high levels of effectiveness up until that point (Parvinen et al., 2013). It is imperative to recognize the factors that are connected with better sales people’s performance to enhance the act of sales management or administration and build a company's competitiveness (Román and Rodríguez, 2015). Such endeavours are valuable in accomplishing benchmarks that could be utilized to assess the sales people’s performance in an organization against industry-wide standards (Cheng and Chang, 2015). While the significance of sales representative and sales organization adequacy in sales control scheme has been perceived in past studies (Longenecker, Ragland and Mallin, 2014), a large portion of them have underlined the factors that decide the effectiveness of the individual sales representative without much achievement in clarifying the distinctions in their performances (Shapiro and Gómez, 2014). The earlier study has been to explore the effect of other hierarchical and administration related elements, other than sales people’s performance, in providing a comprehension of the adequacy of the sales organization (Buciuniene and Skudiene, 2015; Hossain et al., 2016; Dey et al., 2016).

In addition, sales people performance is one of the key factors influencing sales volume, productivity, customer loyalty and unpredicted expenses (Buciuniene and Skudiene, 2015). According to Miao and Evans (2013), sales people performance in the business organization is vital since they deal with an essential money related, product and client data which could without much of a stretch be exchanged starting with one organization then onto the next. Therefore, business people inspiration and responsibility to the organizations are basic variable in the long-term achievement of organizations. The study by Rodriguez, Peterson and Krishnan (2012) argued sales people performance must capture gritty data on potential customers so as to pick up a superior comprehension of their requirements find key purchase influences and get it their purchasing process. Once this data is acquired, the next and similarly difficult step is to qualify the prospect. According to Panagopoulos and Nikolaos (2010), sales innovation can be defined as any information and communication technology utilized by the sales organization to lead its fundamental activities. For sales innovation to enhance performance, sales people must acknowledge and utilize the innovation within their occupation capacity (Rodriguez and Honeycutt, 2011). Raza et al. (2015) postulated that the inspiration of working connections makes moral obligation and individual's administration aptitudes preeminent to more prominent coolness. This increases attitudes of organization and outcome on working connections. The past ideas of dubious connections are presently supplanted with the expanded working connections between sales people performance and the client.

Besides, sales people assume a critical part in molding the continuous relationship between firms (Krishnan, Peterson and Groza, 2015). The sales force makes social advantages that rise above the trade substance of a solitary exchange by giving arrangements that spare time and make more noteworthy convenience to the client. Business people likewise share their skill and learning which builds the competency of client choice making. Rodriguez et al. (2012) argued that a sales representative should be capable over an assortment of undertakings and circumstances. They should fill in as the client's specialists in the offering firm, find workarounds, tackle issues and make smooth trade pathways between firms (Rodriguez, Peterson and Krishnan, 2012). Through these value-added activities, sales person make client satisfaction and loyalty for the firm (Schwepker and Schultz, 2015). It is proposed that organizations will encounter more prominent execution when administration connects with and attempts to build up its sales force. Moreover, in a fast-paced, changing business market place or commercial center, access to convenient and precise information can have the effect between a changed over and a missed open door for a skilled sales people(Krishnan, Peterson and Groza, 2015). According to Rodriguez, Peterson and Krishnan (2012), wise, particular and valid information on clients is the best backing for supported firm performance when one considers that procedures can be effectively imitated and skilled salespersons effortlessly poached by the competition. This proposes the technological procurements gave to the business compel likely assumes a key part in the general population performance relationship. In this way, Krishnan et al. (2015) proposed that technological procurements will absolutely direct the impact individuals have on performance such that individuals will impact execution to a more prominent degree in firms with high levels of mechanical procurements.

However, this study identified five independent variables (job satisfaction, intrinsic motivation, extrinsic motivation, organizational commitment and sales people compensation) have a positive impact on sales people performance (dependent variable) in the telecommunication industry in the context of Bangladesh. Recent empirical studies have found that the antecedents or perceptions of sales people performance about the job satisfaction, intrinsic motivation, extrinsic motivation, organizational commitment and sales people compensations have major impact on sales people performance in the business organizations (Zain and Jan, 2014; Rahman et al., 2014; Zain and Dahari, 2011).

Job Satisfaction

Though, experiential validation about job satisfaction of sales people performance is stun in the overall style. A sensible examination on diverse aspects of job satisfaction has been conceived in Bangladesh. According to Mittal, Gera and Singhvi (2012), the empirical study concentrate exactly concentrates the measurements of sales people performance advantages as perceived by sales experts in India and observationally tests the forerunner relationship of salespersons' recognitions with their general satisfaction with sales force automation devices. Advantages of sales force automation devices as perceived by sales experts were observed to be a three-dimensional constructs comprising of the elements (measurements) of 'selling effectiveness’, 'expense of offering' and 'client connections'. All the three variables were observed to be huge precursors of overall satisfaction of sales people performance in the organizations (Mittal et al., 2012). Job satisfaction influence to sales people performance and turnover intentions is well-espoused (Johnson and Sohi, 2014). The previous studies show that a variety of factors such as recognition of effort and results (Jensen, McMullen and Stark 2008), personal growth and ability, leadership and supervisor feedback (Buciuniene and Skudiene, 2008), financial compensation and incentives, employee autonomy and team work have strong influence on motivation of salespeople performance and leads to their stronger relationship with the organization. Thus, we proposed that:

H1 Job satisfaction has a significant relationship with sales people’s performance.

Intrinsic Motivation

Intrinsic motivation is identified with sales people performance and this relationship is mediated by occupational commitment (Yousaf, Yang and Sanders, 2015). Many trial and field considers have recognized between intrinsically and extrinsically arranged people and analysed the relationship and results of self-sufficient intrinsic motivation and controlled extrinsic motivation. Haines, Saba and Choquette (2008) argued that the different between intrinsic motivation and extrinsic motivation has significant ramifications in comprehension representative work environment conduct and in actualizing human asset administration.

In addition, according to Yousaf, Yang and Sanders (2015), intrinsic motivation identifies with perceived pleasure and satisfaction derived from completing the conduct. Past exploration discoveries recommend that higher levels of intrinsic motivation as a rule lead to eagerness to invest more energy in a given assignment and thus, shape impression of convenience (Ryan and Deci, 2001; Ayeh, Au and Law, 2013). All the more characteristically inspired clients are more disposed to disparage the trouble included in utilizing the telecommunication. The study by Shih Hu and Farn (2010), many studies point out brand community identification as an antecedent of brand community member’s intrinsic motivation to interact and cooperate with community members. Zain and Jan (2014) examined that intrinsic motivation has a significant positive impact on sales people job satisfaction and organizational commitment. Based on these arguments, this study postulates that:

H2: Intrinsic motivation has a positive impact on sales people’s performance.

Extrinsic Motivation

Extrinsic motivation is connected both to sales people performance and contextual performance and these connections are interceded by organizational commitment (Yousaf et al., 2015). The study by Haines et al. (2008), extrinsic motivation concerns the drive to perform certain conduct with the reason for acknowledging particular objectives or prizes. Extrinsic motivation can be defined as the observation that clients will need to perform a movement since it is seen to be instrumental in accomplishing esteemed results that are particular from the action itself, for example, enhanced job performance and promotions (San Martín and Herrero, 2012). Venkatesh et al. (2003) defined performance expectancy as the degree to which an individual trusts that utilizing the system will help him or her enhance the performance of an assignment or work. Along these lines, this variable is similar to concepts such as extrinsic motivation and performance expectancy.

However, the vision of a helpful must be grounded in community aspirations, extrinsic motivations of the local people, followed by continuous capacity building programs. According to McCombs (2012), extrinsic motivation identifies with a prize the individual receives, other than the task itself, such as recognition or rewards. Furthermore, Venkatesh et al. (2003) concepts similar to perceived usefulness include extrinsic motivation. Prior studies discussing motivation theory have point out that a certain human behaviour is determined by extrinsic motivation (Van der Heijden, 2003). Likewise, practices driven by extrinsic motivation are prone to be brought on by support results (Watchravesringkan, Nelson Hodges and Kim, 2010). They also argued that while extrinsic motivation impacts conduct due to compensates and advantages, people who are inherently determined have a tendency to perform a movement in light of a longing to perform the action that originates from inside of themselves, not in view of clear outside support. However, the hypothesis can be articulated that:

H3: Extrinsic motivation has a positive impact on sales people’s performance.

Organizational Commitment

Sikorska-Simmons (2005) examined the role of organizational commitment, work fulfilment and socio-demographic qualities as indicators of organizational commitment among staff in helped living. It is especially imperative to investigate organizational commitment, due to its inter-relationship with staff turnover. They also argued that organizational commitment is measured by the degree of staff distinguishing proof, involvement and steadfastness to the business organization. Few studies have examined organizational commitment among sales people in long-term services (Akroush and Al-Mohammad, 2010; Rahman et al., 2014). The finding of Buciuniene and Skudiene (2015) study examined that organizational commitment has positive impact on sales people performance in the organization. Additionally, transformational leadership has also positive relationship with the employee commitment and it is important in relation to sales people or employee’s organizational commitment (Buciuniene and Skudiene, 2008). The study by Zain and Jan (2014), the findings revealed that organizational commitment has positive impact on tenure.

According to Dale and Fox (2008) and Cogliser et al. (2009), there is numerous an impressive written works about sale peoples’ commitment to business organizations. Indeed, organizational commitment is the sales people’s capacity to predict organizational outcomes like turnover, performance, organizational objectives, organizational viability and truancy. Zain and Jan (2014) stated that higher level of sales people organizational performance has been connected to higher efficiency. On the other hand, lower levels of authoritative responsibility have been connected to larger amounts of non-attendance, turnover and anxiety related issues. According literature, some researchers found that sales people’s performance has negative relationship between organizational commitments and intended to leave organization (Cogliser et al., 2009; Boles et al., 2012; Buciuniene and Skudiene, 2015). Cogliser et al. (2009) elucidated that this connections may be the cause of considering age and job residency, which explains to comparative impacts and procedures. Interestingly, Kumar and Giri (2009) stated that different examples of connections exist between organizational commitment and sales people performance over various employment stages. Based on this literature the following hypothesis is proposed:

H4: Organizational commitment has a positive impact on sales people’s performance.

Compensation

Effective management and motivation of a company sales force is significant to the advertising and marketing success of numerous products, however moderately little is thought about the empirical significance of one component of the sales management arsenal: sales people compensation in the business organization. Rouziès (2011) give extremely aggregate observational confirmation on sales force compensation hones that is to a great extent steady with the forecasts in the quantitative analytical literature, however the information are excessively collective, making it impossible to allow conclusive statements. Behavioural scholars have analysed the motivational force of various types of money related and nonmonetary prizes to a sales people performance (Darmon and Rouziès, 2015). In one arrangement of studies (Schöttner, 2015), sales force motivation is conceptualized as a cycle: sales effort produces sales performance, which creates rewards or compensation for sales people, which thusly creates motivation to apply yet more sales exertion. The study by Tseng and Kang (2014) found that the sales compensations affect the product recommendations made by the brokers.

In addition, the study Lopez et al. (2006) examined that sales people performance is most encouraged by increasing sales compensation. The discovering appears to demonstrate that a lot of offers pay could be more ideal than a little measure of sales compensation. In view of these thoughts, the high quick pay plan is utilized as a part of the business sector (Bomers, Cole and Reimink, 2016). In the prompt sales compensation plan, sales people performance get the remuneration for the most part taking into account the fleeting deals they have made and along these lines the plan can inspire the sales people to offer a particular product that is gainful for the organization. According to Segalla, Rouziès, Besson and Weitz (2006), yet, the requirement for sales people compensation and the weight to make a sale could push salesmen to concentrate more on advancing a specific kind of product however not on the necessities of clients.

However, to conquer this issue, organizations could offer long-term sales people compensation rather than a high prompt remuneration (Ryals and Rogers, 2005). In a long haul pay plan, some companies just pay sales people a little part of the pay in every period. According to Bomers, Cole and Reimink (2016), the upside of this sales people compensation practice is that it requires sales operators to continue giving services to the clients in every period and turns out to be less fleeting cantered. Be that as it may, contrast and high quick sales people compensation, the utilization of a levelled pay plan might debilitate sales representatives since it backs off the velocity of riches aggregation. According to Frederick, Lowenstein and O’Donoghue (2002), a few studies have mentioned that individuals ordinarily hold positive time inclination on cash and that their impression of the prize structure could have impacts on their decisions in sparing utilization, nourishment utilization or travel choices. Yet, few studies have inspected the impacts of constructive time inclination on the product proposals made by the financial service people (Bomers, Cole and Reimink, 2016). The sales people compensation is utilized as a part of the protection business and insurance agencies as a rule control the time structure of the compensation to spur sales operators to sell certain sorts of products. Accordingly, we propose that:

H5: Compensation has a positive impact on sales people’s performance.

Methodology

Variable Operationalization

The variables are measured from the review of literature, which are adapted to the setting of this research. The sales people’s job satisfaction, intrinsic motivation and organizational commitment were identified 19 items developed from Rahman et al. (2014), Zain and Dahari (2011), Zain and Jan (2014). Twelve items from Watchravesringkan et al. (2010) and Lopez et al. (2006) were used to evaluate the extrinsic motivation and sales people’s compensation. These items were measured how well the sales people integrated with their performance on Mobile Phone Service Company. Based on Krishnan, Peterson and Groza (2015), Rahman, Mohamad and Khan (2014), seven items measuring the sales people’s performance were modified. The participants of this study were requested to answer their level of agree/disagree on the sales people perceptions using 6-point Likert scale.

Sample Size and Survey Direction

The paper has used a review technique, utilizing self-administered questions to examine the theoretical framework. A total of 6 mobile service operators such as Grameen phone, Robi, Bangla link, Airtel, Teletalk and Citycel, most of them were situated in Dhaka city. The sampling frame was comprised of sales people who had age at least 25 years and 1 year job experience on sales related activities. The potential respondents were selected randomly. This strategy empowered the researchers to get to an adequate number of potential respondents for this paper. By utilizing the mobile phone service provider setting for selecting respondents, the researcher mitigated the issue of availability, as well as perceived a method that can make a standard circumstance and reducing conceivable biases. The potential respondents were pleasantly drawn by the researcher of this study.

Researcher accentuated that the information gathered will be used only for academic purposes and respondent were unidentified and voluntary. A total of 350 questionnaires were distributed and 262 valid questionnaires were returned, communicating response rate of 74.86%. Male participants included 63% of the sample, whilst female participants included about 37%. In terms of age, 70% were age group 25-34 years and 15% participants between 35 and 44 years old, which followed by 14% respondents 24 years old and below and rest 4% respondents above 45 years old. With regards to their educational background, 70.6% were master degree 22% were bachelor degree, 3% were diploma degree, about 3% were others and 1.5% were higher secondary school certificate. As far as mobile service company, majority of the respondents were Grameen Phone (24.8%), which followed by Banglalink (19.5%), Teletalk (16.8%), Airtel (15.3%), Citycel (13%) and Robi (10.7%) respectively. In terms of their monthly income, 44.7% were between Tk.16,000 and Tk.20,000, which followed by 22.5% were between Tk.21,000 and Tk.25,000, 14.5% were between Tk.26,000 and Tk.30,000, about 14% were Tk15,000 and above and rest 4.6% were Tk.31,000 and above respectively (Table 1).

Table 1
Demographic Information
Characteristics Description Frequency Percentage
Gender Male 166 63.4
Female 96 36.6
Age 24 and below 37 14.1
25-34 years 175 66.8
35-44 years 39 14.9
45-54 years 7 2.7
55 and above 4 1.5
Marital status Single 61 23.3
Married 201 76.7
Education Higher Secondary School 4 1.5
Diploma degree 8 3.1
College graduate (Bachelor) 58 22.1
Master degree 185 70.6
Others 7 2.7
Mobile service company Grameen Phone 65 24.8
Robi 28 10.7
Bangla Link 51 19.5
Airtel 40 15.3
Teletalk 44 16.8
Citycel 34 13.0
Monthly income BDT. 15,000 and below 36 13.7
BDT. 16,000-BDT. 20,000 117 44.7
BDT. 21,000-BDT. 25,000 59 22.5
BDT. 26,000-BDT. 30,000 38 14.5
BDT. 31,000 and above 12 4.6

Analysis and Results

Two-step method is used for this paper. First, confirmatory factor analysis was employed for measurement model. Second, the hypotheses were identified to test the structural model. By applying this approach, the source of a poor model fit was also identified easily.

Measurement Model

A measurement model, comprising all the constructs of interest was evaluated. The predictive accuracy of the structural model was evaluated in terms of the accepted correlation value explained. To measure the discriminant validity, CFA is run among all the variables together namely job satisfaction, intrinsic motivation, extrinsic motivation, organizational commitment, sales people compensation and sales people performance through a measurement model by connecting all the exogenous and endogenous variables with an intention to evaluate whether the variables are highly correlated or not. When the correlation between two constructs is less than 0.85 can be treated as discriminant validity as suggested by Byrne (2010). The findings indicated that each of the construct’s correlation is less than 0.85. Therefore, it indicates that the discriminant validity is achieved (Figure 2).

Figure 2: Measurement Model

Importantly, the findings also indicated that job satisfaction (JB1, JB2, JB3 and JB4), intrinsic motivation (IN1, IN2, IN3 and IN4) and extrinsic motivation (EX1, EX2, EX3 and EX4) are consisted of four items, respectively. Hence, organizational commitment holds all six items (OC1, OC2, OC3, OC4, OC5 and OC6) significantly. Sales people compensation (CO2, CO3, CO4, COM5 and CO6) and sales people performance (SP2, SP3, SP4, SP5 and SP6) are consisted of five items, respectively. However, some items such as JB5, JB6, JB7, IN5, IN6, EX5, EX6, CO1, SP1 and SP7 are deleted due to the lower loading as suggested by the Hair et al. (2010). Accordingly, the measurement model was achieved the high predictive relevance and fit indices.

Structural Mode

The structural model was tested based on the assessment of measurement model. Structural equation modelling technique is conducted to identify the relationships between the independent and dependent variables. Successions of goodness-of-fit indexes are used to come out with the best fitted model by following the guidelines of Hair, et al. (2010) in which they recommended that at least three fit indexes including at least one index from each category of fit model need to be considered. To assess the structural path relationships among the identified variables three criteria are considered. The first criterion is the absolute fit where RMSEA and GFI; while the second criterion is incremental fit where Comparative Fit Index (CFI) and Adjusted Goodness-of-Fit Index (AGFI) and lastly the third criterion namely Parsimony Fit category where chisq/df is considered.

In addition, the researcher also looked the Modification Indices (MI) and Squared Multiple Correlation value. If MI value is more than 15, need to draw double headed arrow for being “free parameter estimate” (Zainudin, 2012). The MI value is found more than 15 between the correlation e6 (JB4), e7 (JB3), e10 (IM4), e11 (IM3), e16 (EM2), e17 (EM1), e18 (OC1), e19 (OC2), e22 (OC5), e23 (OC6), e24 (CO2) and e25 (CO3) during the run and rerun procedures. However, for further develop the goodness-of-fit indices; double headed arrow is used to set them as “free parameter estimate” between the error points of the described items.

Accordingly, after run the model, the result found that the structural model is attained the recommended level. Hence, the result found that the Absolute fit RMSEA=0.070, FGI= 0.908; incremental fit CFI=0.917 and AGFI=0.898 and Parsimonious fit Chisq/df=3.094 that is less than 5.0 as suggested by Zainudin (2012). Based on the values obtained, it indicates that structural equation modelling technique is a meaningful method to describe the direct relationships among the variables (Figure 3).

Figure 3: Structural Model

A structural model, comprising all the constructs of interest was evaluated. Two psychometric tests such as validity and reliability were done based on the full structural model generated. As presented in Table 2, all the constructs had composite reliability (CR) values of greater than the threshold point of 0.60 (Hair et al., 2010). The findings also shows that the average variance extracted (AVE) was greater than 0.50, showing a good reliability. The factor loadings were above 0.50, specifying a good convergent validity (Table 2).

Table 2
Convergent Validity
  Description Factor loadings AVE CR
Job Satisfaction [JB1] My sales manager has always our best interest. 0.89 0.62 0.86
  [JB2] My job makes me feel good about myself. 0.94    
  [JB3]I am satisfied with my job. 0.74    
  [JB4] I like the management in my actual job. 0.52    
Intrinsic Motivation [IN1] Through my job I feel I am giving a big contribution to my society 0.85 0.67 0.89
[IN2] My job gives me high feeling of self esteem 0.97    
  [IN3] I feel great with the freedom I have in my job 0.79    
  [IN4] I get a sense of accomplishment at my present job. 0.63    
Extrinsic Motivation [EX1] I think the pay here is better than in other companies. 0.6 0.58 0.84
[EX2] Taking part in sales position makes me feel better about myself. 0.62    
[EX3] My income is sufficient for my expenses. 0.99    
  [EX4] I only stay in this company because I make more money rather than in other companies. 0.77    
Organisational Commitment [OC1] My organization cares about the development of employees. 0.73 0.60 0.89
[OC2] My organization is build based on mutual trust. 0.84    
[OC3] My organization has high degree of support to its employees. 0.94    
[OC4] I am extremely happy to be part of this organization. 0.86    
[OC5] I like the leadership and management style of my organization. 0.66    
[OC6] I would recommend my organization to my friends. 0.51    
Compensation [CO2] I am satisfied with the remuneration I get compare to my performance. 0.59 0.58 0.87
  [CO3] The sales compensation plan rewards for performance in areas I can control. 0.75    
  [CO4] I like the remuneration I get in my job. 0.89    
  [CO5] There is a clear link between my performance and my compensation. 0.82    
  [CO6] My salary and other compensation packages are good in comparison with others. 0.74    
Sales People Performance [SP2] I quickly sale high volumes of new products. 0.69 0.55 0.86
[SP3] I have the ability to reach the sales targets set by my manager. 0.79    
[SP4] I bring high market share for my company. 0.87    
  [SP5] I am one of the highest achievers in my department. 0.72    
  [SP6] I am one of the highest performers in terms of planning and time management in my team. 0.63    

This study conducts five hypotheses which are concluded from previous literature. The Table 3 depicted the result of the hypothesis testing that emphasizes on the estimates, critical ratios and p-values. The findings show that four hypotheses have a significant relationship with sales people performance. The results also show that job satisfaction is not statistically significant, therefore H1 is rejected. However, intrinsic motivation and extrinsic motivation have significant and positive impact on sales people performance at significant level p<0.05 in which H2 and H3 are accepted. Importantly, organizational commitment and sales people compensation have a strong significant (p<0.01) and positive relationship with sales people performance. Therefore, H4 and H5 are accepted.

Table 3
Hypothesized Relationship
Hypothesis Relationship Esti S.E. C.R. P Results
H1 SP <-- Job Satisfaction 0.101 0.066 1.516 0.129 Not accepted
H2 SP <-- Intrinsic Motivation 0.099 0.046 2.152 0.031 Accepted
H3 SP <-- Extrinsic motivation 0.107 0.043 2.482 0.013 Accepted
H4 SP <-- Organizational Commitment 0.340 0.054 6.327 0.000 Accepted
H5 SP <-- Compensation 0.254 0.067 3.800 0.000 Accepted

Discussion

Based on the assessment of structural model, sales people’s intrinsic motivation, extrinsic motivation, organizational commitment and compensation are dependent on the sales people’s performance. This is expected as the improvement of sales people’s performance requires a good relationship between the key factors and sales people’s performance in mobile phone service industry in Bangladesh. The results from the study supported from the previous study (Zain and Jan, 2014) whereby job satisfaction is positively related to tenure but there is no significant relationship between job satisfaction and tenure. However, the result identified job satisfaction is positively related to sales people performance and there is no significant relationship between job satisfaction and sales people performance in the context of mobile service company in Bangladesh. This result is similar to the study by Zain and Jan (2014) in the automobile salesperson’s career tenure in Malaysian context. Moreover, as job satisfaction of this study is not significantly relationship with sales people performance in the mobile service company in Bangladesh. Conceivably, the researcher should divide job satisfaction into different dimensions. Therefore H1 (job satisfaction) is not significant with sales people performance. However, in this matter, Purani and Sahadv (2008) identified five dimensions on sales people performance. According to Sahadev and Purani (2008), job satisfaction on each of the five dimensions has a significant relationship to career development in Indian company. Thus, sales people job satisfaction has positive relationship with sales people performance in the mobile service company in Bangladesh but not significant. Perhaps, sales people are not fully satisfied in their job. According to Zain and Jan (2014) and Sahadev and Purani (2008), reported that job satisfaction has a significant impact on job tenure. However, the current study needs to include the dimension of satisfaction. Generally, customer’s satisfaction and dissatisfaction lead to take decision to staying and leave the organization (Ahmad and Gelaidan, 2013).

Zain and Jan (2014) examined that intrinsic motivation has a positive and significant impact on tenure. Moreover, intrinsic motivation has a positive and significant impact on job satisfaction and organizational commitment. However, result of this study indicates that intrinsic motivation and extrinsic motivation has a positive and significant relationship with sales people performance. Therefore, H2 and H3 are accepted. In the context of mobile service company in Bangladesh, sales people are usually influenced by intrinsic and extrinsic motivation with respect to sales people performance. However, Shipley and Kiely (2007) examined that extrinsic motivation is more prominent than intrinsic motivation on the sales people performance in the organization. Perhaps, sales people are motivated by monetary. As Siu (2007) reported that China used monetary motivation to influence and improve sales people performance.

In addition, the result of the current study supports previous study on the significant impact of organizational commitment on sales people performance. Zain and Jan (2014) examined that organizational commitment has a significant relationship with tenure. Sales people performance in the mobile service company in Bangladesh has an organizational commitment in their job. A finding of this study organizational commitment has significant impact on sales people performance and therefore H4 is accepted. Bekowitz et al. (2014) stated that organizational commitment is the most effective factsor in relationship to sales people performance in the organization.

Moreover, the result also shows that the compensation has a significant relationship with sales people performance in the mobile phone service industry in Bangladesh. Therefore, H5 is accepted. However, compensation refers to monetary incentives designed to influence sales people performance (Schmitz, Lee and Lilien, 2014) and their desired behaviour to help the industry achieve its goals (Duncan and Natarajarathinam, 2016). Monetary incentives minimize the need for costly surveillance in sales organization. Payment should be consisted with the company’s objectives and depend on sales people performance. Thus, if a company includes product-mix incentives in the compensation plan to influence sales people to sell a broader range of company’s product, those who indeed sell a boarder mix will earn higher bonuses than those who do not.

Conclusion and Implications

There are a few limitations of this study are experienced on the total procedure of this study. An adequate number of data (e.g. published and unpublished articles, published journals and supporting materials) is referred for optional information for this study. From Bangladesh mobile service providers’ point of view, there are no adequate journals and articles identified with sales people performance. However, in this concentrate, a large portion of the journals are adopted from developed countries. The sample size of this study may not explain total population due to constrained monetary assets and time. In addition, 262 samples from Dhaka city may not be enough to illustrate properly total sales personal that are aged 24 years old and below. For this study, self-administered questionnaires have been developed on close-ended questions as it is very simple for answering questions of respondents. Moreover, the limited financial resources and time consuming (e.g. time of submission due to academic schedule) is the main barrier to cover a wider area of this survey. Furthermore, the findings of this study are applicable only to the mobile service providers in Bangladesh. Finally, overall findings of this study can set a background for future research for greater understanding on the impact of sales people performance in mobile service company in Bangladesh.

Since, this study was conducted in the Dhaka City in Bangladesh, in this manner, for the future exploration it might be reached out to different zones of Bangladesh in the mobile service company. This study may likewise be done broadly that secured all of Bangladesh to distinguish the sales people performance. As far as further research, the findings of this study from different mobile service companies’ sales people performance may extrapolate the overall population and may develop intensive exploration. Furthermore, different variables, for example, sales people political skill (interpersonal influence, social astuteness, networking ability and apparent sincerity), salesperson tenure, relational centrality and positional centrality might be utilized for the future exploration. However, different qualities in research plan are most critical which discovers precise data and answer for actualizing the successful mobile service technique in Bangladesh mobile service providers.

References