Consequences of Sales Management's Behavior- and Compensation-Based Control Strategies in Developing Countries

Abstract

The authors examine the consequences of sales management's behavior- and compensation-based control on important salesperson and organizational consequences from the sales manager's perspective. The few existing studies on this topic have been conducted in developed countries. The authors examine sales management control in three less developed countries: Greece, India, and Malaysia. The conceptual model considers the relationships among behavior-based control, compensation control, satisfaction with sales territory design, salesperson behavior and outcome performance, and sales unit effectiveness. Contrary to the prevailing conceptual logic, the findings from less developed countries provide no support that a combination of high levels of both behavior- and compensation-based control have a negative, conflicting impact on salesperson and organization consequences. The findings have several important implications for decisions about international sales operations.