Value-Based Selling Capability: Antecedents and Implications for B2B Sales Performance

Abstract

ABSTRACT Purpose This study aims to explore the conception and antecedents of organizational value-based selling (VBS) capability in the business-to-business (B2B) market. Additionally, the present study also explores the contingency conditions between VBS capability and sales performance. Design/methodology/approach This study tested the model hypotheses by applying partial least squares regression to a sample of 186 sales directors or managers of service or product providers in China. Findings Four service-oriented resources in the organization – service-oriented human resource management practices (human), inter-departmental service collaboration (relational), service technology (informational), and end-to-end service processes and standards (organizational) – have a positive impact on VBS capability. In turn, VBS capability positively impacts sales performance, while customer needs complexity and competitive intensity positively moderate the relationship between the preceding two factors. Research limitations/implications This study tested the model hypotheses using cross-sectional subjective data for a single country. Practical implications The results suggest that providers should develop the VBS capability (embodied in understanding customer business, crafting the value proposition, communicating customer value, and verifying value-in-use) to secure a competitive advantage in the marketplace, in conjunction with building and leveraging their service-oriented resources to help VBS capability improve a comparative advantage. In particular, VBS capability tends to be more effective when customer needs are more complex, or the intensity of competition amongst enterprises is high. Originality/value This study conceptualizes and operationalizes the organizational value-based selling capability. Based on the resource-advantage theory, we identified and examined the critical role of four operant resources in forming VBS capability and the moderating effects of two factors related to customer and competitor between VBS capability and sales performance. This study advances and contributes to the existing research on selling capability, value-based selling, and B2B sales management.