Examining the effectiveness of sales management control practices in developing countries

Abstract

Management control consists of managers' initiatives to direct and influence employees for the purpose of achieving an organization's objectives. Sales management control is identified as an important antecedent of several salesperson and organizational consequences in prior developed country studies. We examine the impact of management control in combination with incentive pay and territory design on salesperson performance and sales unit effectiveness for sales organizations in three developing countries (Greece, India, and Malaysia). The results point to territory design as a strong predictor of performance and effectiveness. Management control is also a relevant predictor of performance and effectiveness. Surprisingly, incentive pay has no effect on salesperson performance, although it has a positive impact on sales unit effectiveness in Greece and India. Several important managerial implications are highlighted by the study findings. © 2004 Elsevier Inc. All rights reserved.