Behavior-Based and Outcome-Based Salesforce Control Systems

An Empirical Investigation of the Antecedents of Sales Force Control Systems

“…Though the above mentioned four components are positively correlated with each other, the internal consistency of the index is very modest (Cronbach's a = 0.53). Similar findings have been reported by both Cravens et al (1993) and Oliver and Anderson (1994) and clearly show that some managers design control Systems in which some Clements are not in balance with the overall control system (so-called hybrid Systems). Nevertheless, we compute a behavior-control index by adding the z-values of all four control system Clements and dividing the sum by 4.…”

“…All respondents with amounts less than DM 750,000 are considered risk averse, while amounts above DM 750,000 indicate a risk seeking attitude. This scale seems preferable to Single item measures as used in Cravens et al (1993). Note also that meta analyses indicate that risk measures based on natural situations and lotteries are superior to other scales (see MacCrimmon and Wehrung 1986, pp.…”

“…Cravens et al (1993) obtained the surprising result that salesforce compensation is independent from field sales management control (i.e. monitoring and direction).…”

“…We decided to follow Cravens et al (1993) and use direct measures of single control Clements. We include the fixed salary percentage (FIXPERC) as a measure of compensation control, while direction and supervision are assessed using span of control (SPANCTRL) and the extent of reporting (REPORT).…”

“…Recent theoretical approaches such as agency theory and transaction cost analysis might remedy this, since they identify behavior-based and outcome-based control Systems as polar managerial strategies and also suggest circumstances under which they are appropriate (Eisenhardt 1989). Since these extreme control approaches first have been applied to the salesforce control issue by Anderson and Oliver (1987), a few empirical tests of the consequences (like Job satisfaction, Performance) of salesforce control Systems have been undertaken (Cravens et al 1993;Oliver and Anderson 1994;Oliver andAnderson 1995, Challagalla andShervani 1996). However, no attempt to investigate the antecedents of salesforce control Systems has been made so far.…”