Research Article: 2020 Vol: 19 Issue: 5
Rizwan Qaiser Danish, University of the Punjab
Ahmed Muneeb Mehta, University of the Punjab
Hina Saleem, University of the Punjab
Muhammad Ramzan, University of the Punjab
Muhammad Usman, University of the Punjab
Farah Naz Naqvi, University of the Punjab
Ibrar Mansoor, National College of Business Administration and Economics
The purpose of this study is to examine the serial mediation role of sales manager control and salesperson behavioral performance on the relationship between market orientation and salesperson outcome performance in the pharmaceuticals industry in Pakistan. Improving salesperson performance through sales manager control and behavioral performance is a growing issue in the globally pharmaceuticals industry and these factors can improve the performance of pharmaceuticals industry. This study tends to investigate the meditational rela-tionship of sales manager behavioral control on market orientation and salesperson outcome performance through sequential meditational approach.
In this study 320 sales managers are respondents and self-administered survey was em-ployed targeting sales managers working at pharmaceuticals companies operating in Pakistan. Its research utilizes the non-probability convenience sampling for study and study has cross section type.
Specifically, the results show that market orientation is related to salespersons outcome performance through first sales manager control and then salesperson behavioral performance. The last section of this paper discusses its theoretical and practical implications along with limi-tations and future directions.
Market Orientation, Sales Manager control, Salespersons Behavioral Performance, Salespersons Outcome Performance.
Pakistan has high-speed emergent pharmaceuticals business. Pharmaceuticals setup suf-fered complex position in 1947.759 industries of pharmaceuticals is performing activities in Pa-kistan. Pakistan is able to produce products in finished form which is 70% of demand. No doubt the GDP share of pharmaceutical industry in Pakistan is less than 1% but on the other hand pharmaceuticals industry looks forward for growth and its driving growth in industry (Pakistan Pharmaceuticals Manufacture’s Association).
People of sale play important role in retail market, 14.5 million people contribute in sales profession and these are front line problem handler soldiers associate with salesperson perfor-mance. They people shoulder take responsibility for the sake of organization improvement in present days as well as in future days (Ryari et al., 2020).
Employer is the person who concluded the valuable outcome drive from performance concern with the employees, employees’ performance strongly bonded with managers. Studies construes that multiple elements will exist in coming days that will produce uniqueness associated with sales that commonly utilized performance aspects (Piercy et al., 2009). The sales force in phar-maceutical industry is indebted to high investment (Manchanda et al., 2004; Kappe, 2011).
Pharmaceuticals Companies maintain progress intended for Salesperson Outcome Per-formance which stimulus by Market Orientation, Sales’ Manager Control, “Behavior Perfor-mance of Salespeople” and “Outcome Performance of Salesperson”.
The specific research objectives of this study are;
A. To investigate what the market orientation among sales force.
B. To discover whether SM Control mediates the relationship between Market Orientation and “Salesperson Outcome Performance”.
C. To uncover the mediational effect of Salesperson Behavior Performance on Sales Manager Behav-ior Control and Salesperson Outcome Performance simultaneously.
D. To evaluate the Salesperson Outcome Performance via a “Sequential Meditational Approach” (Figure 1).
1. Is it market orientation has optimistic relation with sales manager control?
2. Is it sales manager control definitely relay with salesperson behavioral performance?
3. How market orientation is considerably linked with salesperson outcome performance?
4. Is it salesperson behavior performance relate with salesperson outcome performance?
5. How sales manager control has strong relation associate salesperson outcome performance?
The review of the literature was carried out according to the systematic review process defined by Pittaway et al. (2004) and Castagna et al. (2020) that are well-known in the field of literature reviews concerning marketing and managerial topic.
Salesperson Behavior Performance relate Salesperson Outcome Performance
Oliver & Anderson (1994) and Ravens (2013) work for the sake of development of sales-persons they involve in theoretical work and shows concern in two dissimilar philosophies. The area manager of sales focus on the income compensation if which have no change having direct effect on behavior of salesperson derives from control system. No change in income com-pensation leads to salesperson behavior as well as another thing is incentive which shows effect on salesperson behavior based on outcome by controlling system. Activities which relate to sale or concern with sales and they can increase the sale or decrease the sale, salespeople done deep analysis on it. For this objective’s manager use technical knowledge and skills. Sales people are mostly responsible for controlling the major sales activities whether the results are favorable or not, hence their behaviors are important to study to evaluate their performance (Churchill, and Ford 1979; Churchill, Ford, and Walker 1990; Ravens, 2013).
Association of Sales Manager Behavioral Control and Salesperson Outcome Performance
Uncontrollable determinants associate with people of sale develop outcome and it’s a most precious problem directly hampered the salespeople (Walker et al., 1979; Baldauf et al., 2001). Intentions are exploiting to become peaceful outcomes and consider in elucidation exter-nalities (Ryans and Weinberg, 1987).
Oliver & Anderson (1994), Badauf et al. (2001) propose that people of sale will be hav-ing bottom most rank of compare behavior based management with outcome control. Behavior performance of salesperson relates to perform strategy and action in the procedure of selling (Limbu et al., 2016). “Salesperson performance has been defined and measured in a variety of ways. Generally speaking, all of these decisions relating to sales force should be guided by the objectives established by the sales and other managers”.
Control system is developed only for fulfill objectives of organization. Requirement for enhancement, identify results and performance level forecasters of performance support firm (Pešalj et al., 2018; Tuomela, 2005; Koufteros et al., 2014).Behavior control relay the monitor actions of salespersons conferring to the stages of firm (Kim & Hsieh, 2003). Different in gender have different influence on outcome performance of salesperson in the firm proceedings (Macin-tosh & Krush, 2017).
Market Orientation and Sales Manager Behavioral Control
Unlimited description of market orientation consists operational market informational process behavior in relation to customer and competitors, explicitly information attainment, dis-semination of this information and capability to interactively face to that is obtained (Baker & Sinkula, 1999).
Baker & Sinkula (1999) conclude that superior performance of firm can be developing from learning environment created by sales managers. To highest performance, prime distinction between two prospective how behaviors and values are packed. Most strong direction is respon-sible priceless effect on performance and its associate with the environment develop by the or-ganization.
“Market orientation improves the performance of both private and public sector” (Mat-sui et al., 2017). Conception of marketing to fulfill the goals associate with firm can be perform by gratifying the needs drive from consumer more effectively play role before competitor. Mar-ket orientation is the weapon which produces the environment to strongly execute the commit-ment of company. Organization effectiveness which drive through market orientation actually not present just due to performance, other determinants also participate which shows benefits side to firm (Cano et al., 2004).
Market orientation provides the compare able significant guide line for high performance to locally and overseas market (Zebal, 2018). Gounaris (2008) suggested that internal marketing program should be attractive enough to measure the outcome performance of salesforce (see also Lings, 2004).
The classical or traditional view of marketing observes that control over market is neces-sary but it can only be achieved by removing problems or barrier. There are three factors that are important, behavioral, financial and contextual to have a market control.
Using the “control systems of behavioral responses of working people have an influence on employee behavior. Employee performance is improved from management control system through the feedback it’s a basic aim of management control system. Performance of manage-ment is the overall aggregate work unit productivity assessment” (Jaworski 2015). “Four dys-functional behaviors are same in the situation somewhere firm cannot completely understand the activity but on other hand accountability measures will only partial shows the position of activi-ties which be required to perform” (Anderson & Chambers 1985; Jaworski 2015).
In these days, managers face challenges to create control system behave like a back bone of employee performance and it’s also improving the performance. For the sake of satisfy require outcome of performance manager require to coalesce the control systems they lead the desire outcome. “Very little is known about how different types of controls interact with, complement, and substitute for one another”. Control systems combination improves the salesperson behavior and measure the improvement of salesperson (Zang et al., 2020).
The cognitive evaluation theory present system of outcome control strongly refer to out-put of sales relationship with income and other rewards in sales force due to best management of control, best sales of salespeople consider where favorable outcome is measured and on the other hand bottommost performance is also exist in the ways of negative reaction and incompetency.
• Market Orientation
• Sales Manager Control
• Salesperson Behavior Performance
• Salesperson Outcome Performance
H1 MO has major relation SMC.
H2 SMC optimistically effect with SBP.
H3 SBP positive link with SOP.
H4 MO is strong relationship with SOP.
H5 MO associate with SBP.
H6 SMC has effect on SBP.
Choose non probability convenience sampling its suitable for its research and probability sampling is not favorable for this research. Probability sampling is not required for this study. Outcome performance through sequential mediation with two variables is considered in this re-search. This study has relationship with descriptive nature.
Aim relate this research measure the outcome performance of salesperson by consuming serial mediation approach to measure market orientation relation associate salesperson outcome performance in the industry of pharmaceuticals Lahore, Pakistan, important variables sales man-ager control and salesperson behavioral performance impact as a mediator are measured in this study related pharmaceutical industry. Individual, dyad or group unit of analysis are consume in research. Respondents of this research have individual unit of analysis; manager of sales depart-ment are respondents and sales manager as respondents belongs with different level of experi-ence and competence regarding outcome control system. All researches belong with two longitu-dinal and cross section kinds regarding time horizon. Cross sectional study is selected for this study. Cross sectional study is a snapshot and conducted at once, on the other hand longitudinal study is carried out at many points in time.
Consider population is the managers of sales working in pharmaceutical or-ganization located in Lahore, Pakistan.320 sample size is selected for this research. Cannot study whole population because number of respondents is not defined. For data collection utilize the response to item theory collected the responses from multiple respondents. Provided the ques-tionnaires to managers of pharmaceuticals related sale personally. Design questionnaire for re-spondents from various sources and associated researches.
Practice Liker scale for measure market orientation bestowing to Deshpande and Farley (1996 to 1998). Salesperson behavior performance is measure by using five item scale originally developed by Baldauf & Cravens (2002).
After collection of sufficient data for analysis purpose the results (Tables 1, 2, 3, 4 & 5) were obtained by using SPSS and AMOS 24 for structural equation modeling (Figures 2, 3 & 4).
|Table 1 Threshold Measures|
|Cmin/df =<3 good and <5 sometimes acceptable|
|CFI=>.85 sometimes acceptable >0.95 greater >0.90 traditional|
|RMSEA= <0.05 is good, 0.10 to 0.05 is moderate and >0.10 is bad|
|Table 2 Model Fitness of Structural Model|
|Table 3 Reliability Analysis|
|Sales Manager Control||0.715|
|Salesperson Behavioral Performance||0.728|
|Salesperson Outcome Performance||0.723|
|Table 4 Correlations|
|Table 5 Regression Weights: (Group Number 1 - Default Model)|
|Salesperson Outcome Performance
Comprehensive the analysis of data by using IBM SPSS Statistics Data Editor Software and AMOS. These software’s have various benefits over the traditional techniques of regression and GLM. AMOS (Analysis of Moment Structure) can perform various operations simultaneous-ly along with CFA and bootstrapping base mediation analysis.
“Market orientation” has express consequence on “salesperson outcome performance”. Hypothesis of “market orientation” and sop is ***, estimate value is 0.193, S.E is 0.042 and c.r. is 4.653. Its demonstrations that mo have durable contact sop.
Overhead Table 6 of analysis demonstrations “market orientation” has strong relative among “salesperson outcome performance” lacking mediator with beta value is 0.328 and p-value is 0.001 its low p-value from 0.5.
|Table 6 Mediation|
|Direct effect with Mediator||Indirect effect||Result|
On the other hand “market orientation” has strong effect on “salesperson outcome per-formance” with the presence of mediator “sales manager control” and salesperson behavior per-formance its p-value is less than 0.5 * with beta value is 0.123.
This table highlight the partial mediation is present because indirect effect is also significant with p-value 0.001 which is not as much of as 0.05 shows indirect effect on salesperson outcome per-formance.
Study relates orientation of market is essential for performance; Manager associates with sale by controlling improve the performance of salesperson in organization (Piercy et al., 2009). Relationship exists among market orientation and salesperson performance very deepest, per-formance of employee measured through market orientation (Haugland et al., 2007).
Theoretical framework exposes the control system of sales done by the sales manager in the firm how suitable for the improvement in performance and where its control system needs to appreciate and where require discouraging the control system of sale drive through managers (Katsikeas et al., 2018).
Basic need of his study to develop the salesperson production in industry for the sake of this objective expose the brunt of market relating activities on the achievement of employee through performance. Also invoke sale manager control and behavioral performance behaves as mediator in this relationship and plays its own role for outcome.
In this study observed managers related sales department must be strong command on market, manager need reliable control through evaluating, monitoring and directing employees in right direction for the achievement of organizational goals. Its research considers important pe-rimeter is to perform every employee in sales and develop the organization. Managers have per-fect monitoring system to evaluate the behavioral performance as well as outcome performance; they also require taking serious action for the output concern with sales. Study preferred manager require support from market orientation. Market orientation is behaved as a back bone of per-formance, it happened with deep knowledge of market like competitors, need of customer and demand of consumer.
Another most valuable thing without sales manager control outcome performance can develop through market orientation but its outcome must be match requirement of pharmaceuti-cal firm. Sales manager keep eye on behavioral performance of employees lead the performance outcome.
Study belongs with determinants and its positive and negative effects relate salesperson outcome performance in various directions, regarding this influence reflect market orientation, sales manager control and salesperson behavioral performance in the pharmaceuticals firm.
Regarding previous pharmaceuticals studies employees of sales performance improve due to control related sale manager. This type of research declared sales manager control as well as be-havioral performance is strong pillars of salesperson outcome performance and its support for the growth of pharmaceutical industry.
All over the world industry of pharmaceutical cannot touch the sky of success without the performance of employee’s related sales. Each organization wants to achieve the goal pharma-ceutical organization also have desire to accomplish the aim, this aim necessitate salesperson outcome performance.
Salespersons or representatives associate with any organization are the faces of organiza-tion in all over the globe. If they perform in better ways, their organization grows. However, like any other study conducted, our research is followed by certain limitations and directions for fu-ture research.
Limitation and Future Directions
Only observed determinants associated salesperson outcome performance, market orien-tation and sales manager control as well as behavioral performance, they have serial mediation impact on salesperson outcome performance. Near future critical sales skill also can observe as a moderator on salesperson outcome performance its can be a valuable effect.
One more thing its study contain area of goods business related with pharmaceutical in-dustry employees performance of marketing department in the coming days this study conduct relate with service business, its most impotent to measure the performance of salesperson link with service business, these organization require appropriate performance of salespersons to de-velopment of organization, actually services in service business is not seen, salesperson efforts develop the value of services.
Motivation strategies deliberate in future research through sales manager control towards outcome performance of salesperson. Motivation strategies can lead better performance. In com-ing days researcher can examine the mediation moderation approach by consider moderator salesperson behavioral performance through mediator’s critical sales skills, adaptive selling be-havior and sales manager control for the salesperson outcome performance.
Self-respect of salesperson is an essential factor for output in the future study and must be considered as prior self-respect effect on the growth of pharmaceutical industries. Furthermore, hamper self-respect of salesperson is a big hurdle in the ways of performance outcome. Future research may involve analyzing the negative relation with self-respect assistant factors which help the management to remove the hurdle for outcome performance of salesperson.