Antecedents and Consequences of Sales Force Intrinsic Motivation: An Integrated Model

Abstract

How can sales force be motivated for superior sales productivity? This question has consistently been asked by sales management since long. While sales quota based compensation are frequently used to improve performance, critics highlight potential dark side of such schemes resulting into extrinsic motivation of poor quality as it would not be sustainable and bring counter-productive work behaviors. Numerous practicing managers and academics recite now-familiar motivational mantra that motivation comes from the self, not from desire for money. Although intrinsic motivation has long been theorized as strong predictor of performance particularly for the jobs requiring creativity, yet empirical evidence does not seem to converge. Moreover, knowledge is strikingly limited of how informal controls intrinsically motivate sales force to perform their job in creative fashion to be star performers. It provides strong stimulus to address the research question of how sales force intrinsic motivation is influenced by largely ignored informal sales force controls (antecedents) such as optimistic sub cultural control (workgroup level context) and spirit at work based control (job level context) which, in turn, drive sales performance directly and indirectly by sales force creativity (consequences). Moreover, it is advocated that if indeed different selling situations exist, then there will be high likelihood that each type of sales force, for example trade (Fast Moving Consumer Goods; hereinafter FMCG) and missionary (Pharmaceutical) sales force of this study, may respond differently to contextual factors, such as informal sales force controls of this study, resulting into differential influence on motivation, behavior and performance. Surprisingly, knowledge regarding the effect of the type of sales force selling situations for critical sales force outcomes is limited at best. This issue provided thrust for this study to address important research question of whether or not effectiveness of newly introduced informal sales force controls is contingent upon selling situations of trade (FMCG) and missionary (Pharmaceutical) sales force. An integrated conceptual model is proposed by uniquely merging complementary insights from conceptual logic of informal controls, componential theory of creativity and self-determination theory. Mixed method sequential explanatory research design is used to empirically test the proposed model by employing structural equation model. In focal quantitative phase, data is collected by structured survey questionnaire from 1065 frontline field sales force, both sales persons and sales managers, of 60 sales organizations of FMCG and Pharmaceutical industries in Pakistan. In follow-up qualitative phase, eleven semi-structured interviews of the survey respondents are used to interpret and corroborate key quantitative findings. Findings indicate that intrinsic motivation does not automatically translate into improved sales performance. Actually, sales force intrinsic motivation first stimulates their creative performance of selling job which, in turn, improves their sales performance. Analysis clarifies the role of intrinsic motivation that it is contextually influenced attitudinal state cultivated by both informal sales force controls. Spirit at work based control has important role in nurturing sales force creativity, which consequently improves their sales performance, over and above that is mediated by intrinsic motivation. Whereas optimistic sub cultural control stimulates sales force creativity, by cultivating intrinsic motivation, which results into their improved sales performance. Interestingly, these relationships do not differ significantly across selling situations of trade and missionary sales force disconfirming the assumption of heterogeneity of such selling situations. This thesis provides potential aid to theoreticians and practitioners to appreciate and understand complex mechanism of effectively designing informal sales force control levers by highlighting the importance of intermediary markers of sales force intrinsic motivation and creativity for developing high performing sales force operative in highly competitive FMCG and Pharmaceutical industries, characterized by cut-throat competition, challenging sales quotas and escalating customer demands, in the context of developing country of Pakistan. From practical stand point, this thesis enriches sales management understanding that trade and missionary selling situations are not sufficiently diverse to cause differential perceptions of informal sales force controls.