Abstract
Purpose: This study demonstrates that sales force management capability (SFMC) is a driver to financial performance when influenced by marketing orientation. Wherefore, the researchers explore how each SFMC ́s dimension (salesforce structuring, talent management, and customer targeting) contributes on the relation between MO and financial performance. Methodology: A survey (n=223) was applied in Information and Communication Technology (ICT) companies in Brazil. Structural equation modeling allowed us to understand how the sales management forces capability ́s dimensions influence the relation between market orientation and financial performance intensity. Findings: It is demonstrated that MO influences the three SFMC capability dimensions (salesforce structuring, talent management, and customer targeting), mainly customer targeting and talent management. Furthermore, it is shown that the relation between MO and financial performance is mediated by SFMC capability. Theoretical contributions: This study contributes to the marketing literature by showing that MO may be applied jointly to SFMC in order to improve performance. Furthermore, it is demonstrated that SFMC to enhance financial performance. Consequently, this study promotes a better understanding of the process in which MO may be related to SFMC, and how each specific dimension of SFMC influences financial performance. Practical contributions: Marketing managers and sales managers should sharing information about the market to achieve better financial results and competitive advantage. Also, practitioners should use market information strategically to segmenting and positioning sales force. In addition to customers, competitors, and environmental forces, petitioners should make an effort to manage their organizational resources better. Firms should use market information to improve performance and engage marketing managers to support sales investment.
Highlights
Market orientation (MO) has been investigated in marketing literature mainly because of its contribution to organizational performance (Kohli & Jaworski, 1990; Narver & Slater, 1990; Thornton, Henneberg & Naudé, 2015; Guo, Wang Hao & Saran, 2018)
General Discussion This research is the first that presented that MO has an impact on all dimensions of sales force management capability (SFMC)
It is the first to demonstrate that talent management (TM) (H2a) and Salesforce structuring (SFS) (H1a) has a greater impact when compared to customer targeting (CT) (H3a) when exploring one marketing capability in specific (Morgan, 2012)
Summary
Market orientation (MO) has been investigated in marketing literature mainly because of its contribution to organizational performance (Kohli & Jaworski, 1990; Narver & Slater, 1990; Thornton, Henneberg & Naudé, 2015; Guo, Wang Hao & Saran, 2018). Some studies suggest a positive relation between MO and organizational performance (Guo et al, 2018; Mamun et al, 2018). There are few studies relating MO and marketing capabilities, it is still a latent need to investigate the relation between MO and specific capabilities, such as sales capability (Smirnova, Naudé, Henneberg, Mouzas, & Kouchtch, 2011; Morgan, 2012; Ngo & O'Cass, 2012). To contribute to filling up this gap, we propose that MO generates FP through sales force management capability (SFMC)
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