David J. Finch, Gashaw Abeza, Norm O’Reilly and Carola Hillenbrand
The purpose of this paper is to examine the drivers of independent sales contractor (ISC) performance. As independently contracted sales agents, the ISC model is a growing method…
Abstract
Purpose
The purpose of this paper is to examine the drivers of independent sales contractor (ISC) performance. As independently contracted sales agents, the ISC model is a growing method of non-permanent employment utilized in many sectors. Specifically, this study seeks to fill a gap in the literature related to the under-researched link between ISCs and organizational identification.
Design/methodology/approach
This study conducts an exploratory, mixed-methods study based on data collected from 189 ISCs from a professional services firm.
Findings
Results demonstrate that outcomes related to sales performance, retention and advocacy are influenced directly and indirectly by organizational identification. It also shows that tangible benefits related to financial and marketing values are the strongest predictors of ISC organizational identification. Intangible dimensions such as value congruence, management trust and embeddedness play a limited role in the model.
Research limitations/implications
Results show that ISC sales performance is enhanced when an ISC views their identity and the identity of the firm as highly interdependent. These findings suggest that organizational identification can be a key performance indicator when evaluating the return on marketing investment for a firm.
Practical implications
This study provides some important guidance to managers responsible for ISCs. First, the study identifies the primary drivers of organizational identification. Specifically, the study demonstrates that financial and marketing benefits are the primary relational antecedents of organizational identification. Both value congruence and operational benefits play relatively minor roles. Similarly, the results show that both organizational identification and historic sales performance are critical predictors of sales performance.
Originality/value
Few researchers have examined the link between ISCs and organizational identification. Organizational identification is of particular importance in the study of ISCs, as they possess the dual identity of an independent agent and that of a sales representative of the firm they are under contract. This study contributes to existing literature by extending previous studies that examine antecedents of sales performance.
Details
Keywords
Kevin Money, Carola Hillenbrand, Ian Hunter and Arthur G. Money
While Freeman's stakeholder management approach has attracted much attention from both scholars and practitioners, little empirical work has considered the interconnectedness of…
Abstract
Purpose
While Freeman's stakeholder management approach has attracted much attention from both scholars and practitioners, little empirical work has considered the interconnectedness of organisational perspectives and stakeholder perspectives. The purpose of this paper is to respond to this gap by developing and empirically testing a bi‐directional model of organisation/stakeholder relationships.
Design/methodology/approach
A conceptual framework is developed that integrates how stakeholders are affected by organisations with how they affect organisations. Quantitative data relating to both sides of the relationship are obtained from 700 customers of a European service organisation and analysed using partial least squares structural equation modelling technique.
Findings
The findings provide empirical support for the notion of mutual dependency between organisations and stakeholders as advocated by stakeholder theorists. The results suggest that the way stakeholders relate to organisations is dependent on how organisations relate to stakeholders.
Originality/value
The study is original on two fronts: first, it provides a framework and process that can be used by researchers to model bi‐directional research with other stakeholder groups and in different contexts. Second, the study presents an example application of bi‐directional research by empirically linking organisational and stakeholder expectations in the case of customers of a UK service organisation.