A competitive path to cohesion: multilevel effects of competitiveness in the sales force

Abstract

Selling is often associated with competitiveness, which has led many scholars to examine trait competitiveness as a driver of salesperson performance. However, it is also suggested that competitiveness contributes to less cohesive work environments which can have adverse effects on firms and their stakeholders. The authors explore this dichotomy by first conducting a field study utilizing multilevel, multisource data acquired from 358 salespeople working at 86 offices of a large company. Using Mplus, the authors employ a 1-2-1 multilevel model to test the effects of trait competitiveness on work group cohesion, along with subsequent effects on sales performance and turnover. Findings reveal a surprising positive relationship between trait competitiveness and work group cohesion, with the latter reducing turnover likelihood. Thus, trait competitiveness has indirect effects, through work group cohesion, in reducing turnover, while having direct and positive effects on sales performance. Results of a follow-up qualitative study reveal that the positive relationship between trait competitiveness and work group cohesion can be attributed to the competitive focus (i.e. interpersonal, intergroup, or intrapersonal) of the individuals within the sales organization. Overall, this work shows that organizations can have both competitive salespeople and cohesive work environments, contributing beneficially toward sales output and turnover.