Effects of formal sales control systems: A combinatory perspective

This research paper investigates the combinatory effects of three well-established formal sales control styles: outcome, capability, and activity control. Drawing on Expectancy Theory and Cognitive Evaluation Theory, the authors theorize that sales control combinations have differential impacts on three key intermediary variables (salesperson knowledge, role ambiguity, and intrinsic motivation), which subsequently affect salesperson performance. A Partial Least Squares (PLS) analysis using data from industrial salespeople and their managers indicates that (1) the capability and outcome control styles have positive combinatory effects that enhance salesperson knowledge and intrinsic motivation while mitigating role ambiguity, (2) combining outcome control and activity control can increase role ambiguity, and (3) a combination of activity control and capability control can enhance role clarity but dampen intrinsic motivation. Finally, our results indicate that the effects on manager-rated salesperson performance of capability control and activity control are fully mediated while the effects of outcome control are partially mediated by salesperson knowledge and role ambiguity.