GRADUATE RESEARCH DISSERTATIONS
CHAIR: STEFAN SLEEP, PH.D. | SECOND: PRAMOD IYER, PH.D. | READER: STERLING BONE, PH.D.
STRATEGIC DYNAMICS OF SFCS_ LEADERSHIP STYLES AND DECENTRALIZATION IN FOSTERING SALESPERSON LOYALTY
BUSINESS IMPACT
SCHOLARLY ABSTRACT
Salesperson loyalty has become critical for business suc - cess, necessitating a deeper understanding of its drivers. This study advances Sales Force Control System (SFCS) literature by addressing prior inconsistencies and adapt - ing traditional frameworks to today’s sales environment, characterized by decentralization and digital transforma - tion. Distinctively, it investigates how SFCS decentraliza - tion influences salesperson loyalty toward their immedi - ate managers compared to the organization, extending prior research beyond organizational commitment. Using a survey of US-based B2B sales professionals, the study examines the mediating role of perceived fairness and the moderating impacts of traditional leadership styles and new-normal sales constructs, including flexible work arrangements and technology-enabled selling. Results confirm that decentralization within SFCS positively influences salesperson loyalty, with Loyalty to the orga - nization slightly surpassing managerial loyalty. Fairness perceptions significantly mediated these relationships, highlighting fairness as a crucial psychological mecha - nism. Contrary to expectations, neither transactional nor servant leadership significantly moderated these effects, likely due to managers’ dual roles as evaluators and imple - menters of SFCS and salespeople’s growing dependence on technological resources over traditional managerial inter - actions. Notably, technology-enabled selling emerged as a significant moderator, enhancing fairness perceptions and loyalty outcomes. These findings underscore a critical shift in contemporary sales management, indicating invest - ments in sales technologies may effectively complement or even surpass traditional managerial roles. Results offer practical guidance for optimizing salesperson retention, engagement, and performance by strategically calibrating SFCS, fostering fairness, redefining managerial roles, and integrating advanced sales technologies into organization - al practices. Keywords: Sales Force Control Systems, Loyalty, Decentralization, Perception of Fairness, Technology-Enabled Selling, Leadership Styles, Flexible Work Arrangements.
Investments in sales tech (CRM, enablement, analytics) aren’t just productivity tools; they also shape percep - tions of support and fairness. Well‑implemented tech that helps reps sell more effectively can partially substi - tute for classic high‑touch managerial control. Technology‑enabled selling strengthens the positive effects of decentralization and fairness; traditional leadership styles mattered less. Decentralized SFCS increases salesperson loyalty, especially to the organization. Sales leaders should push decision rights and autonomy closer to the front line (quotas, tactics, account decisions), within clear guardrails. This improves loyalty and reten - tion—big levers in high‑cost B2B sales environments. Perceived fairness is the key psychological mechanism mediating SFCS → loyalty. When redesigning comp plans, territories, or performance metrics, explicitly test for fairness (procedural and distrib - utive). Even a “good” SFCS design will underperform if reps see it as biased or opaque.
DIERTO MATANDA MOKE, PH.D.
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