When You Work with a Superman, Will You Also Fly? An Empirical Study of the Impact of Coworkers on Performance

2019 ◽  
Vol 65 (8) ◽  
pp. 3495-3517 ◽  
Author(s):  
Tom Fangyun Tan ◽  
Serguei Netessine

We examine a large operational data set in a casual restaurant setting to study how coworkers’ sales ability level affects other workers’ sales performance. We find that waiters react nonlinearly to their coworkers’ ability. In particular, when coworkers’ overall sales ability is low, increasing this ability may prompt waiters to redouble both upselling and cross-selling efforts. When overall coworkers’ ability is high, however, further increasing their ability may trigger waiters to reduce sales efforts. Our empirical findings imply that, to maximize sales, managers should mix waiters with heterogeneous ability levels during the same shift. Through a counterfactual analysis, we find that considering the inverted U-shaped peer effects when optimizing current waiters’ schedules without changing their utilization may increase total sales by approximately 2.48% at no extra cost. This paper was accepted by Vishal Gaur, operations management.

2020 ◽  
Vol 35 (12) ◽  
pp. 1901-1913
Author(s):  
Babak Hayati ◽  
Sandeep Puri

Purpose Extant sales management literature shows that holding negative headquarters stereotypes (NHS) by salespeople is harmful to their sales performance. However, there is a lack of research on how managers can leverage organizational structures to minimize NHS in sales forces. This study aims to know how social network patterns influence the flow of NHS among salespeople and sales managers in a large B2B sales organization. Design/methodology/approach The authors hypothesize and test whether patterns of social networks among salespeople and sales managers determine the stereotypical attitudes of salespeople toward corporate directors and, eventually, impact their sales performance. The authors analyzed a multi-level data set from the B2B sales forces of a large US-based media company. Findings The authors found that organizational social network properties including the sales manager’s team centrality, sales team’s network density and sales team’s external connectivity moderate the flow of NHS from sales managers and peer salespeople to a focal salesperson. Research limitations/implications First, the data was cross-sectional and did not allow the authors to examine the dynamics of social network patterns and their impact on NHS. Second, The authors only focused on advice-seeking social networks and did not examine other types of social networks such as friendship and trust networks. Third, the context was limited to one company in the media industry. Practical implications The authors provide recommendations to sales managers on how to leverage and influence social networks to minimize the development and flow of NHS in sales forces. Originality/value The findings advance existing knowledge on how NHS gets shared and transferred in sales organizations. Moreover, this study provides crucial managerial insights with regard to controlling and managing NHS in sales forces.


2021 ◽  
Author(s):  
Suresh Muthulingam ◽  
Suvrat Dhanorkar ◽  
Charles J. Corbett

It is well known that manufacturing operations can affect the environment, but hardly any research explores whether the natural environment shapes manufacturing operations. Specifically, we investigate whether water scarcity, which results from environmental conditions, influences manufacturing firms to lower their toxic releases to the environment. We created a data set that spans 2000–2016 and includes details on the toxic emissions of 3,092 manufacturing facilities in Texas. Additionally, our data set includes measures of the water scarcity experienced by these facilities. Our econometric analysis shows that manufacturing facilities reduce their toxic releases into the environment when they have experienced drought conditions in the previous year. We examine facilities that release toxics to water as well as facilities with no toxic releases to water. We find that the reduction in total releases (to all media) is driven mainly by those facilities that release toxic chemicals to water. Further investigation at a more granular level indicates that water scarcity compels manufacturing facilities to lower their toxic releases into media other than water (i.e., land or air). The impact of water scarcity on toxic releases to water is more nuanced. A full-sample analysis fails to link water scarcity to lower toxic releases to water, but a further breakdown shows that manufacturing facilities in counties with a higher incidence of drought do lower their toxic releases to water. We also find that facilities that release toxics to water undertake more technical and input modifications to their manufacturing processes when they face water scarcity. This paper was accepted by David Simchi-Levi, operations management.


2019 ◽  
Vol 65 (8) ◽  
pp. 3835-3852 ◽  
Author(s):  
Yao Cui ◽  
A. Yeşim Orhun ◽  
Izak Duenyas

This paper studies the effect of introducing a new vertical differentiation strategy, paying for an upgrade to a premium product after purchasing the base product, on the price dispersion of the base product arising from existing price discrimination strategies. In particular, we examine how a major U.S. airline’s price dispersion in the coach cabin changes after introducing the option to upgrade to a new type of premium economy seating within the coach cabin. We first provide a theoretical analysis that highlights two competing pressures that the new premium economy seating upgrades created on coach class prices. On the one hand, the airline benefits from lowering its prices because by allowing more customers to purchase in the first place, it increases the probability of selling upgrades (admission effect). On the other hand, for some customers, the value of flying with the airline increases because of the upgrade availability, therefore the airline may find it optimal to increase its prices (valuation effect). In the second part of the paper, we conduct an empirical investigation of the impact of upgrade introduction on coach class prices, based on a proprietary transaction-level data set from a major U.S. airline company. The empirical analysis tests the main predictions of our theoretical model and examines further nuances. The results show that the introduction of the premium economy seating upgrades is associated with an increase in the price dispersion and revenues in the coach class, the admission effect is stronger than the valuation effect on the low end of the price distribution, and the opposite is true on the high end of the price distribution. Finally, we discuss implications of our results for firm revenues and consumer welfare. This paper was accepted by Serguei Netessine, operations management.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Richard Conde ◽  
Victor Prybutok

Purpose Previous sales research remains limited to analyzing the influence of sales activities with sales agent tenure. To date, research on this subject has focused on the downstream direct or indirect impact of sales activities to sales performance, failing to consider whether sales activities impact a sales agent’s tenure. This paper aims to assess the effect of sales activities on sales performance and sales agent engagement on sales agent tenure through the lens of autonomous motivation to better understand sales activities as an overall sales process antecedent Design/methodology/approach Through the utilization of secondary sales operational data, this research demonstrates the influence of sales activities on multiple sales agent outcomes, while depicting the importance of sales managers creating an autonomous motivational climate. Findings This research demonstrates the direct relationship between sales activities to job engagement and sales performance. However, sales activities have a negative relationship to sales agent tenure, which require a sales manager to create an autonomous motivation to mediate the relationship between sales activities and sales agent tenure. Practical implications Organizations are provided with sample methodology and analysis to better determine how a culture grounded in autonomous motivation mediates sales activities and can be a catalyst for improving sales agent tenure. Then, provide a better understanding of the effect of actual sales activities on important sales department work outcomes. Originality/value The model is the first to test holistically the influence of sales activities on sales performance, sales agent engagement and tenure jointly by using actual secondary operational data. This study provides a glimpse of the real world balance a sales manager must consider between climate and activities. Plus, this study takes initial steps to study sales agent engagement, an under-researched construct in sales research.


Author(s):  
Michael L. Mallin

Purpose The purpose of this paper is twofold. First, it provides the results of a study of key characteristics of proactive salespeople and the impact of salesperson proactive behavior on selling performance. Second, it provides recommendations for sales management to implement organizational strategies designed to develop, train and coach salespeople to be more proactive. Design/methodology/approach In all, 278 business-to-business salespeople were surveyed to identify key traits and outcomes of proactive salespeople. The average subject was 28 years of age with 5 years of selling experience. Scales from the management, organizational behavior and sales performance literature were used to identify the degree that subjects engaged in proactive behavior in their selling role, a self-assessment of their sales performance and individual traits thought to predict higher levels of proactive behavior. Findings The findings revealed that proactive salespeople exhibited high levels of selling behavior performance – an important contributor to measurable selling results. In addition, proactive salespeople were intrinsically motivated, confident in the tasks of selling and willing to take calculated risks. Practical implications Practical implications suggest that sales managers can play a key role in fostering proactive behavior among salespeople through development, training and coaching. First, sales managers can play a role in the development of salesperson intrinsic motivation by stressing the importance of asking good questions to understand their customer’s problems to the extent that they can be proactive and recommend solutions for change. Second, training programs to make salespeople more confident should center on fully understanding product/service functionality and applications to typical customer problems. Finally, coaching tools such as win–loss reviews, post-call analysis/feedback and role-playing are useful mechanisms to reinforce the right type of risk-taking selling behavior decisions. Originality/value The value of this research is to shed light on the importance of salesperson proactive behavior as a means to drive selling organizational performance and fostering long-term customer relationships. Understanding the drivers of proactivity among salespeople is the first step for sales management to be able to operationalize organizational strategies to develop, train and coach salespeople to be more proactive in their selling approach.


2021 ◽  
Author(s):  
Nikolay Osadchiy ◽  
William Schmidt ◽  
Jing Wu

We offer a new network perspective on one of the central topics in operations management—the bullwhip effect (BWE). The topic has both practical and scholarly implications. We start with an observation: the variability of orders placed to suppliers is larger than the variability of sales to customers for most firms, yet the aggregate demand variability felt by suppliers upstream does not amplify commensurably. We hypothesize that changes to the supplier’s customer base can smooth out its aggregate demand. We test the hypothesis with a data set that tracks the evolution of supply relationships over time. We show that the effect of customer base management extends beyond the statistical benefits of aggregation. In particular, both the formation and the dissolution of customer-supplier relationships are associated with the smoothing of the aggregate demand experienced by suppliers. This provides fresh insight into how firms may leverage their customer-supplier relationships to mitigate the impact of the BWE. This paper was accepted by Jay Swaminathan, operations management.


2021 ◽  
Author(s):  
Yuqian Xu ◽  
Tom Fangyun Tan ◽  
Serguei Netessine

Operational risk has been among the three most significant types of risks in the financial services industry, and its management is mandated by Basel II regulations. To inform better labor decisions, this paper studies how workload affects banks’ operational risk event occurrence. To achieve this goal, we use a unique data set from a commercial bank in China that contains 1,441 operational risk events over 16 months. We find that workload has a U-shaped impact on operational risk error rate. More specifically, the error rate of operational risk events decreases first, as workload increases, and then increases. Furthermore, when workload is low, employees tend to make performance-seeking risks; however, when workload is high, employees tend to exhibit quality degradation due to cognitive multitasking. Based on the causal relationship between workload and operational risk events from the empirical analysis, we discuss staffing policies among branches aimed at reducing operational risk losses. We find that employing a flexible staffing rule can significantly reduce the number of operational risk events by 3.2%–10% under different scenarios. In addition, this significant performance improvement can be achieved by adding even a little bit of flexibility to the process by allowing employees to either switch their business lines in the same branch or switch branches within the same business lines on a quarterly basis. This paper was accepted by Vishal Gaur, operations management.


2018 ◽  
Vol 52 (7/8) ◽  
pp. 1457-1484 ◽  
Author(s):  
Ting Yu ◽  
Ko de Ruyter ◽  
Paul Patterson ◽  
Ching-Fu Chen

Purpose This study aims to explore the formation and consequences of a cross-selling initiative climate, as well as how a service climate, which provides an important boundary condition, affects both its formation and its ultimate impact on service-sales performance. This article identifies two important predictors of a cross-selling initiative climate: frontline employees’ perceptions of supervisors’ bottom-line mentality and their own sense of accountability. Design/methodology/approach The multilevel data set includes 180 frontline staff and supervisors (team leaders) from 31 teams employed by a spa/beauty salon chain. Hierarchical linear modelling and partial least squares methods serve to analyse the data. Findings Supervisors’ bottom-line mentality disrupts a cross-selling initiative climate. A sense of accountability exerts a positive impact at both individual and team levels. A service climate at the team level weakens the impact of a sense of accountability on a cross-selling initiative climate. A cross-selling initiative climate has a positive effect on team-level service-sales performance, but this effect is weakened by the service climate. Originality/value This study conceptualises an important frontline work unit attribute as a climate. It offers an initial argument that a cross-selling initiative climate is a central factor driving a work unit’s service-sales performance, which can increase firms’ productivity and competitive advantages. With this initial attempt to explore the antecedents and consequences of a cross-selling initiative climate, the study also offers novel insights into the interplay between a service and a cross-selling initiative climate.


2019 ◽  
Vol 37 (3) ◽  
pp. 258-270
Author(s):  
Valter Afonso Vieira ◽  
Juliano Domingues da Silva ◽  
Colin Gabler

Purpose The purpose of this paper is threefold: first, to determine the impact of interpersonal identification on sales performance; second, to uncover whether or not that relationship changes direction based on levels organizational prestige; and third, to test the antecedent of managerial support on salesperson interpersonal identification. Ultimately, the authors want to provide sales managers with tangible ways to nurture the self-concept of their sales force while optimizing sales performance. Design/methodology/approach The authors test the hypotheses using a data set of 196 B2C retail salespeople in the shoe industry. Respondents answered a printed questionnaire, which was analyzed using multiple linear regression and response surface analysis. Findings The authors find that managerial support does positively influence interpersonal identification among salespeople which, in turn, increases sales performance. However, the relationship is curvilinear, becoming negative when over-identification occurs. This inverted U-shaped relationship is moderated by organizational prestige such that the negative influence is overcome by employees who have pride and confidence in their organization. Practical implications Managers should balance the level of support that they provide their employees. While this mentorship generally leads to positive results, too much can lead to over-identification, and consequently reduce sales performance. However, this negative effect can be overcome if the salesperson perceives his organization as prestigious. Therefore, a mix of guidance and autonomy may foster the strongest self-concept among the sales team and generate the most positive outcomes. Further, managers should monitor their employees’ perceptions of the company, communicating its strong reputation internally to generate organizational prestige. Originality/value The authors extend social identity theory in a sales context to provide a better understanding of how self-concept can be altered – for better or worse – by the sales manager. The authors also show the importance of communicating your company’s social value to employees. While over-identification in the manager–employee dyad can create a “tipping point” where sales performance begins to decrease, organizational prestige may be able to overcome this effect, demonstrating the power of prestige. Together, the authors present the importance of contextual and external influences on individual sales performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yaqin Zheng ◽  
Dong Liu ◽  
Yi Zheng ◽  
Zhimei Zang

Purpose This study aims to investigate moderators affecting the impact of salesperson acquisition-retention (AR) ambidexterity on sales performance based on the motivation-opportunity-ability (MOA) framework. Design/methodology/approach The authors collected triadic data through 391 questionnaires from salespeople, 50 questionnaires from sales managers and archival data about each salesperson’s performance. Hierarchical linear modeling was applied to test the hypotheses. Findings The results indicate that salesperson AR ambidexterity positively affects sales performance. The positive effect is strengthened by capability control but weakened by outcome control and activity control. The authors also find that sales experience and market attractiveness hurt the effectiveness of salesperson AR ambidexterity. Research limitations/implications First, this study does not examine the mediating mechanism underlying the effect of salesperson AR ambidexterity. Second, sales-service ambidexterity is another ambidextrous variable for salespeople. Future research can consider AR and sales-service ambidexterity together. Practical implications First, managers should be cautious when encouraging experienced salespeople to conduct AR ambidexterity. Second, managers need to use capability control to motivate salespeople with AR ambidextrous behaviors. Third, AR ambidexterity could be not required in a market with many opportunities. Originality/value Although some studies have examined the effectiveness of salesperson AR ambidexterity, they reveal inconsistent findings, which suggest contingent conditions on the effectiveness of salesperson AR ambidexterity. However, the attention on the contingent conditions is limited. Therefore, this paper systematically investigates the contingent conditions from the MOA framework. The findings provide some insights into when salesperson AR ambidexterity is effective.


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