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1/13
Why
people
quit:
Explaining
employee
turnover
intentions
among
export
sales
managers
Evangelia Katsikea a,1, Marios Theodosioub,*, Robert E. Morgan c,2
aAssistant Professor of Marketing, Department of Marketing and Communication, Athens University of Economics and Business, 76 Patission Street,
10434 Athens, GreecebAssociate Professor of Marketing, Department of Business and Public Administration, School of Economics and Management, University of Cyprus,
Kallipoleos 75, PO Box 20537, CY-1678 Nicosia, Cyprusc Sir Julian Hodge Chair of Marketing and Strategy, Cardiff Business School, Cardiff University, Colum Drive, Cardiff CF10 3EU, UK
From afar it can appear to be glamorous, jetting off a couple of
times
per
month
to
faraway,
exotic
destinations
to
close
major
deals.
In
truth
it
can
be
extremely
hard
work
and
is
not
a
role
for
the faint hearted. Many export sales professionals that weve
workedwith are renowned experts in airportdeparture lounges
and
unfortunately
see
little
of
the
countries
to
which
they
travel
(an
International
Recruitment
Consultancy,
2011).
1. Introduction
Sales organizations invest substantial financial and human
resources in developing effective salesforces (Ahearne, Rapp,
Hughes, & Jindal, 2010). To gain maximum return from this
investment, organizations must be able to retain competent and
experienced
salespeople
on
a
long-term
basis
(Homburg
&
Stock,
2004). In practice, however, all sales organizations face a certain
degree of salesperson turnover. Importantly though, evidence
suggests
that
salespeople
are
the
highest
risk
group
in
terms
of
staff
turnover
with
some
estimates
between
30%
to
70%
per
annum
(JDH Group, 2011). This undesirable phenomenon results in the
loss of knowledgeable and experienced salespeople, causes
significant
replacement
costs,
and
has
many
other
detrimental
effects
for
the
organizations
(Noble,
2008).
The deleterious effects of salespeoples turnover are even more
severe in the case of export sales organizations. In todays highly
globalised
and
competitive
international
business
environment,
export
sales
managers
play
a
critically
important
role
in
the
development and implementation of effective export sales
strategies and tactics. In small and medium sized firms in
particular,
export
sales
managers
are
commonly
the
only
company
personnel
that
travel
overseas
and
make
direct
contact
with
foreign customers. Personal visits to foreignmarkets enable export
sales managers to acquire valuable knowledge and first-hand
experience
regarding
local
market
conditions
and
export
customer
requirements
and
preferences.
The
literature
that
informs
existing
knowledge regarding international sales personnel turnover is
limited. Insights exist from expatriate adjustment theories,
International Business Review xxx (2014) xxxxxx
A R T I C L E I N F O
Article history:
Received 26 November 2012
Received in revised form 11 July 2014
Accepted 13 August 2014
Available online xxx
Keywords:
Employee turnover
Export sales
Job satisfaction
Management control
Organizational structure
A B S T R A C T
Predictably, sales organizations invest substantialfinancial andhumanresources in developingeffective
salesforces and yet salespeople are among the highest risk group in terms of staff turnover. For export
sales settings, theorganizational consequencesof thisformof turnover areevenmore severe. This study
develops a comprehensive conceptual model of seventeen hypothesized relationships among key
structural, supervisory-related, and psychological factors, and examines this nomological network that
leads to explaining export salesmanagers intentions to quit. Thefindings reveal the favorable impactof
formalization and the unfavorable impact of centralization upon both role ambiguity and role conflict.
The study finds that both formalization and centralization relate positively to the export sales
management behavior control system. Role stressors deleteriously affect export sales managers job
satisfaction, which in turn affects negatively intentions to quit. The study also discovers moderation
effects of psychic distance and export sales managers experience.
2014 Elsevier Ltd. All rights reserved.
* Corresponding author. Tel.: +357 22893606; fax: +357 22895030.
E-mail addresses: ekt@aueb.gr (E. Katsikea), mariosth@ucy.ac.cy
(M. Theodosiou), morganre@cardiff.ac.uk (R.E. Morgan).1 Tel.: +30 2108203417; fax: +30 2108203417.2 Tel.: +44 2920870001.
G Model
IBR-1140; No. of Pages 13
Please
cite
this
article
in
press
as:
Katsikea,
E.,
et
al.
Why people
quit:
Explaining
employee
turnover
intentions
among
export
sales
managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
Contents
lists
available
at
ScienceDirect
International Business Review
journal homepage: www.elsevier .co m/locate / ibus rev
http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
0969-5931/ 2014 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009mailto:ekt@aueb.grmailto:ekt@aueb.grmailto:mariosth@ucy.ac.cymailto:morganre@cardiff.ac.ukmailto:morganre@cardiff.ac.ukhttp://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://www.sciencedirect.com/science/journal/09695931http://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://www.elsevier.com/locate/ibusrevhttp://www.sciencedirect.com/science/journal/09695931http://dx.doi.org/10.1016/j.ibusrev.2014.08.009mailto:morganre@cardiff.ac.ukmailto:mariosth@ucy.ac.cymailto:ekt@aueb.grhttp://dx.doi.org/10.1016/j.ibusrev.2014.08.0097/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli
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voluntary employee turnover theories,job embeddedness theories
as
well
as
domestic
sales
theories.
However,
the
particular
role,
intrinsic and extrinsic demands, and contextual determinants that
confront the export sales manager mean that these theories, at
best, only partially explain the high turnover rates that these
personnel
are
victim
of.
Employee
turnover
presents
many
challenges
for
firms
from
the
high replacement costs, demanding training requirements, loss of
learning and experience effects, reduced morale among the
remaining
organizational
members
and
the
critical
financial
performance
consequences
(Reiche,
2008). Established
business
relationships may be undermined, and valuable knowledge
regarding certain export markets, as well as personal networks,
may
be
lost.
In
addition,
the
export
sales
organizations
will
incur
a
significant
replacement
cost,
whereas
it
may
take
many
years
before sales performance reaches previous levels in the affected
markets. Thus, export sales organizations can benefit greatly by
minimizing
turnover
rates
among
these
employees.
Surprisingly,
the
relevant
literature
devotes
limited
research
on
the
factors
the
influence the role perceptions, job-related attitudes and behavior,
work outcomes, and turnover rates of export sales personnel.
The
present
study
aims
to
enhance
the
existing
body
of
knowledge
regarding
the
determinants
of
export
success
by
focusing on the role of the export sales manager. A review ofthe pertinent export marketing literature indicates that the vast
majority
of
previous
studies
on
export
performance
have
exam-
ined
the
impact
of
export
marketing
strategy
elements,
firm-
specific factors and external/environmental influences (e.g.,
Cavusgil & Zou, 1994; Leonidou, Katsikeas, & Samiee, 2002;
Morgan,
Kaleka,
&
Katsikeas,
2004;
Murray,
Gao,
&
Kotabe,
2011).
Furthermore,
within
the
rich
research
stream
that
examines
the
performance outcomes of export marketing strategy, attention has
focused on the export strategy planning process and the planned
export
marketing
strategy,
whereas
the
implementation
of
planned export marketing strategy has been largely ignored
(Morgan,Katsikeas,&Vorhies, 2012).Wepropose that export sales
managers
play
a
crucially
important
role
in
the
implementation
of
export marketing strategies in specific foreignmarkets, as they arecommonly the only company personnel that have direct personal
contacts with current and prospective foreign customers/distri-
butors
to
promote
exports
and
negotiate
sales
deals.
As
a
result
of
their
personal
visits
to
foreign
markets,
export
sales
managers
acquire valuable knowledge and first-hand experience regarding
foreign customers needs and preferences and local market
conditions,
while
at
the
same
time
have
the
opportunity
to
develop
successful
business
relationships.
In
addition,
export
sales
managers can directly assess export customers response to the
strategic actions enacted by a firms export marketing plan.
Therefore,
export
sales
managers
can
significantly
enhance
an
exporting
firms
external
implementation
effectiveness,
as
defined
by
Morgan, Katsikeas, and Vorhies (2012, p. 273).
When
an
experienced
export
sales
manager
quits
his/her
job,the
export
organization
loses
a
valuable
resource
that
is
extremely
difficult,
costly,
and
time
consuming
to
replace,
whereas
in
the
meantime established profitable relationships with specific export
customers may deteriorate. To safeguard the long-term perfor-
mance
of
exporting
operations
exporting
organizations
must
adopt
appropriate
management
practices
that
will
enable
them
to
retain
their most competent export sales managers on a long-term basis.
This study aims to fill a notable gap in the extant export marketing
literature
by
offering
a
comprehensive
conceptual
framework
that
explains
how
export
sales
managers
form
intentions
to
quit
the
export sales organization. The findings of this study provide useful
insights to export executives in terms of the action they can take in
order
to
predict
quitting
intentions
and
take
appropriate
measures
in
order
to
reduce
this
undesirable
outcome.
Our study makes also an important contribution to sales
management
theory
by
demonstrating
that
organizational
struc-
ture and management control systems are distinct but comple-
mentary mechanisms that enable the export sales organization to
direct the attitudes and behavior of export sales personnel toward
desirable
outcomes.
Previous
research,
conducted
predominantly
in
a
domestic
sales
context,
has
focused
on
sales
management
control systems which are commonly implemented at the level of
field salesmanagerswho are responsible formonitoring, directing,
evaluating,
and
rewarding
field
salespeople
(Anderson
&
Oliver,
1987;
Challagalla
&
Shervani,
1996).
In
contrast,
less
research
attention has been devoted on the role of organizational structure,
which is an alternative form of control, usually determined at
higher
levels
in
the
organizational
hierarchy,
but
which
can
still
be
very
effective
in
directing,
influencing,
and
shaping
the
attitudes
and behavior of salespeople (Jaworski, 1988). We posit that the
role of organizational structure is increasingly important in the
case
of
export
sales
organizations.
The
personal
interaction
between
export
sales
managers
(travelling
abroad)
and
their
immediate supervisors (based in the home-market) is seriously
constrained as a result of the large geographicaldistances involved,
and
therefore
traditional
management
control
approaches
become
less
effective.
Organizational
structure
can
eliminate
this
flaw
by
setting the decision-making boundaries for export sales managers,clarifying their lines of responsibility and authority, and deter-
mining
the
nature
of
their
relationship
with
their
immediate
supervisors.
Finally, we expand the existing sales management literature by
providing empiricalevidence regarding the chain-of-effectsamong
key
organizational,
supervisory-related,
and
psychological
factors
that
ultimately
lead
to
the
reduction
of
export
sales
managers
intentions to leave the organization. Our study also theorizes, and
empirically confirms, that within the export sales context, it is
imperative
to
consider
factors
which
reflect
the
inherent
complexities in international business activities, or enable
managers to deal with this complexity. In this respect, we examine
the
moderating
effects
of
psychic
distance
and
export
sales
managers experience.The rest of the article is organized as follows. The next section
presents the conceptual framework of the study and develops
research
hypotheses.
Section
three
presents
the
research
method-
ology,
and
section
five
reports
the
results
of
statistical
analysis.
The
article concludes with a discussion of the key findings, managerial
implications, limitations and directions for future research.
2.
Conceptual
framework
and
research
hypotheses
Given the ubiquity of empirical studies devoted to employee
turnover
in
the
literature,
it
is
incongruous
to
suggest
that
still
little
insight
is
available
into
why
people
quit
their
jobs
(Lee,
Gerhart, Weller, & Trevor, 2008). Turnover refers to the actual
number
of
employees
that
leave
an
organization
within
a
specifiedtime
period
(Jaramillo,
Mulki,
&
Boles,
2013). A
high
turnover
rate
has
significant
negative
consequences
for
the
firm
that
include
increased costs and reduced effectiveness and efficiency in serving
existing customers and prospects (Sager, Varadarajan, & Futrell,
1988).
Although
salespeople
may
leave
the
organization
for
various
reasons,
most
research
attention
has
been
devoted
on
identifying the factors that drive them to voluntarily resign from
theirjob. Mobley (1977) proposes a model of the turnover process
that
includes
various
psychological
and
behavioral
stages
that
precede
an
employees
final
decision
to
quit.
A
key
proposition
of
this model is that a salesperson withdraws from thejob and starts
exhibiting dysfunctional behavior (e.g., absenteeism, passive job
behavior)
well
before
actually
quitting
the
job.
Moreover,
as
Mobleys
model
suggests,
job
attitudes
are
more
directly
related
E. Katsikea et al./ International Business Review xxx (2014) xxxxxx2
G Model
IBR-1140; No. of Pages 13
Please
cite
this
article
in
press
as:
Katsikea,
E.,
et
al.
Why people
quit:
Explaining
employee
turnover
intentions
among
export
sales
managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.0097/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli
3/13
to withdrawal cognitions associated with the decisions to leave
and
only
indirectly
related
to
the
actual
turnover
behavior
(Mowday, Koberg, & McArthur, 1984, p.80). A number of empirical
studies find that propensity to leave/intention to quit is the
stronger predictor of actual turnover behavior (Johnston, Varadar-
ajan,
Futrell,
&
Sager,
1987;
Sager
et
al.,
1988).
The
present
study
aims
to
expand
the
pertinent
literature
on
salespeoples turnover to the context of export sales managers. As
previously discussed, the negative consequences associated with
export
sales
managers
turnover
are
even
more
severe.
Domestic
sales
organizations
are
often
able
to
fill
vacant
sales
positions
in
particular sales territories through transfers from nearby territo-
ries. Although redesigning sales territories can still have devastat-
ing
effects
on
existing
customersalesperson
relationships,
at
least
replacements
will
still
operate
within
a
familiar
business
environment. However, export sales organizations face a
completely different situation. Finding a competent person to fill
a
vacant
sales
position
in
a
specific
export
market
may
be
extremely
difficult,
as
valuable
knowledge
regarding
environmen-
tal and market conditions, business practices, and relationship
norms that prevail in foreign markets accumulates after many
years
of
personal
experience
and
repeat
visits
to
each
market.
Therefore,
retaining
competent
and
experienced
export
sales
managers should be an important priority for export salesorganizations. Academic research can assist export sales organiza-
tions
to
reduce
turnover
rates
by
investigating
the
factors
that
drive
export
sales
managers
to
form
turnover
intentions,
and
this
was the primary motive for the execution of this study.
Given the lack of relevant studies in an export marketing
context,
we
reviewed
the
mainstream
sales
management
literature
for
insights
regarding
the
key
antecedents
of
salespeoples
propensity to leave a sales organization. Our objective was not
only to identify the immediate precursors of intentions to leave,
but
also
to
adopt
a
backward
induction
process
in
order
to
establish a sequence of effects that ultimately leads to export sales
managers propensity to leave. We also tried to develop a concise
conceptual
model,
capable
of
explaining
a
significant
percentage
of
the variance of propensity to leave, but without adding unneces-sary complexity by including variables whose contribution in
explaining additional variance is negligible.
Drawing
on
the
extant
sales
management
literature,
and
integrating
insights
from
our
pre-study
interviews,
we
developed
the conceptual model outlined in Fig. 1. In particular, we propose
that
export
sales
managers
propensity
to
leave
is
directly
influenced by their level of job satisfaction. In turn, job stress, as
determined by role ambiguity and role conflict, is the main
antecedent of export salesmanagersjob satisfaction. Based on our
conceptualization,
export
sales
organizations
can
reduce
export
sales
managers
role
stress
by
employing
appropriate
control
mechanisms, at two different levels. At the lower level, the export
sales management control system focuses on the working
relationship
between
an
export
sales
manager
and
his/her
immediate
supervisor.
In
this
study,
we
focus
on
sales
manage-
ment behavior control, which involves the activities which
supervisors undertake in order to influence the behavior of export
sales
managers
and
provide
appropriate
encouragement,
guidance
and
support
(Anderson
&
Oliver,
1987;
Challagalla
&
Shervani,
1996). At a higher level, the top management of an export sales
organization designs an appropriate organizational structure that
determines
the
job
duties
and
responsibilities
of
export
sales
managers
and
their
immediate
supervisors,
the
delegation
of
decision making authority at different hierarchical levels, and the
rules, policies and procedures that organizationalmembers should
follow
in
performing
their
job.
According
to
Jaworski
(1988,
p.
27)
although
structure
is
not
part
of
the
traditional
management
control system, it should be considered as an additional form ofcontrol, insofar as it directs, influences, and shapes individual and
group
behavior.
Furthermore,
as
a
higher-level
control
mechanism,
organizational
structure
influences
the
employment
of
an
effective
sales management control system.
Our conceptual model includes also two moderating variables,
psychic
distance
and
export
sales
managers
experience,
which
capture
to
some
extent
the
unique
circumstances
faced
by
export
sales organizations. Psychic distance is defined as the perceived
differences between the home country and the foreign country in
terms
of
economic
development,
climatic
conditions,
lifestyles,
consumer preferences, language, education, and cultural values
(Sousa&Bradley,2006). The internationalizationprocess literature
suggests
that
firms
are
more
familiar
with
psychologically
close
countries, and therefore canmanage better their operation in thesecountries than in more distant ones (Johanson & Vahlne, 1977).
Therefore, export sales managers should be more familiar with
business
practices
and
market
conditions
in
psychologically
close
countries,
and
have
a
thorough
knowledge
and
understanding
of
Formalization
Centralization
Export Sales
Management
Control
Role
Ambiguity
Role
Conflict
Job
Satisfaction
Propensity to
Leave
Psychic Distance
Psychic Distance
Export sales
manager
experience
Fig. 1. A conceptual model of organizational structure, export sales management control, job satisfaction, and propensity to leave.
E. Katsikea et al./ International Business Review xxx (2014) xxxxxx 3
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IBR-1140; No. of Pages 13
Please
cite
this
article
in
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as:
Katsikea,
E.,
et
al.
Why people
quit:
Explaining
employee
turnover
intentions
among
export
sales
managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.0097/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli
4/13
export customers characteristics, preferences, requirements, and
purchasing
habits.
Therefore,
we
expect
that
control
mechanisms
(i.e., organizational structure and sales management control) will
have a stronger impact on export sales managers role stress in
more distant export markets. Similarly, experienced export sales
managers
are
more
capable
in
coping
with
the
uncertainty
and
complexity
inherent
in
international
business
activities.
Conse-
quently, an export sales management control system is likely to be
more effective in reducing the role stress of less experiencedexport
sales
managers.
We develop
the
rational
for
each
of
the
hypothesized
relationships
in
the
following
paragraphs.
2.1. Organizational structure and role stress
During
the
past
four
decades,
empirical
research
examined
the
negative influence of role stress on important sales job outcomes
like job satisfaction, organizational commitment and job perfor-
mance
(Netemeyer,
Brashear-Alejandro,
&
Boles,
2004).
By
contrast,
the
organizational
factors
that
can
potentially
contribute
towards reducing role stress receivedmuch less researchattention.
Role stress consists of role ambiguity and role conflict (Johnson &
Sohi,
2014). Role
ambiguity
is
the
extent
to
which
an
individual
is
uncertain
about
the
expectations
of
role
partners,
whereas
role
conflict refers to the perceived incompatibility among roleexpectations and demands (e.g., from supervisors, customers,
policies)
(Rizzo,
House,
&
Lirtzman,
1970). Thus,
in
order
to
effectively
handle
feelings
of
role
stress
among
their
export
sales
managers, export sales organizations must find ways to reduce the
uncertainty surrounding their job, and assist them in handling
conflicting
requests
and
demands.
Organizational
structure
can
serve
as
an
effective
control
mechanism
and
contribute
signifi-
cantly towards achieving these objectives.
The structural constructs that have attracted most research
attention
in
the
relevant
literature
include
formalization
and
centralization (Chi & Sun, 2013). Formalization is the degree to
which rules define roles, authority relations, communications,
norms
and
sanctions
and
procedures
(Hall,
Johnson,
&
Haas,
1967).
As implied in this definition, formalization provides guidance toproblem solving, creates less confusion, lowers divergent inter-
pretations to similar activities, reduces double standards, clarifies
role
expectations,
and
shifts
the
risk
and
attribution
of
failure
to
management
(Auh
&
Menguc,
2007;
Michaels,
Cron,
Dubinsky,
&
Joachimsthaler, 1988). Therefore, provided that the content of
formal rules and procedures is appropriately determined (Jaworski
&
Kohli,
1993),
formalization
can
potentially
reduce
perceptions
of
role
ambiguity.
The relationship between formalization and role conflict is
more controversial. In particular, some authors suggest that
formalization
increases
role
conflict
by
reducing
the
flexibility
available
to
salespeople
to
deal
with
conflicting
demands
and
preventing them from adapting to idiosyncratic circumstances
(Agarwal,
1993).
Although
these
claims
have
some
merit,
they
arebased
on
the
assumption
that
formal
standards
and
policies
are
very
strict
and
prevent
salespeople
from
exercising
any
discretion
when negotiating with customers. However, our pre-study inter-
views revealed that the main objective of exporting firms when
developing
formal
standards
and
policies
is
to
determine
the
boundaries
within
which
export
sales
managers
can
operate.
Formalization makes export sales managers less vulnerable to the
pressures and unreasonable demands of foreign customers, and
enables
them
to
devote
their
time
and
selling
efforts
on
the
most
promising
customers
and
prospects.
Formal
rules
and
procedures
can be viewed as a guiding framework that serves as a point of
reference for export sales managers when dealing with foreign
customers.
Therefore,
formalization
is
expected
to
reduce
percep-
tions
of
role
conflict.
Limited
empirical
evidence
also
supports
a
negative relationship between formalization and role stressors
(Michaels
et
al.,
1988).
H1.
Formalization
relates
negatively
to
role
ambiguity
H2. Formalization relates negatively to role conflict
In a highly centralized export sales organization, export sales
managers
have
restricted
decision-making
authority.
However,
the
boundary-spanning
nature
of
their
job
often
forces
them
to
makedecisions and resolve conflicts between foreign customer expec-
tations and demands and company offerings (Sohi, 1996).
Furthermore, greater centralization prevents export sales man-
agers from participating in determining company policies and
standards whereas their input, thoughts and ideas are excluded
from the decision making process (Auh & Menguc, 2007). In such a
working environment, they are less likely to understand the
expectations of their supervisors or devote effort on defining their
role requirements (Sohi, 1996). Moreover, they may feel that
company policies and standards do not reflect market realities
overseas and impose unreasonable constraints on their behavior
(Walker, Churchill, & Ford, 1975). Similarly, centralization con-
strains export salesmanagersflexibility and reduces their ability to
resolve conflicting demands between customers expectations and
company standards, increasing perceptions of role conflict. Based
on the above discussion, we posit the following:
H3.
Centralization
relates
positively
to
role
ambiguity
H4.
Centralization
relates
positively
to
role
conflict
2.2.
Organizational
structure
and
export
sales
management
behavior
control
Previous
research
has
devoted
limited
research
attention
on
the
factors
that
either
guide
the
choice
of
a
particular
control
system
or
determine its effective implementation (Baldauf,Cravens,& Piercy,
2005). The existing typologies of sales management control
(Anderson
&
Oliver,
1987;
Challagalla
&
Shervani,
1996)
emphasize
the
working
relationship
between
a
supervisor
and
his/her
subordinates. However, they do not explicitly examine the factors
that determine the particular type of control system that an
organization
adopts
or
the
hierarchical
level
at
which
this
decision
is
made.
To be effective, a particular sales management control system
must be centrally developed and implemented consistently
throughout an export sales organization. In particular, organiza-
tion-wide
policies,
rules,
and
directives
must
define
the
nature
of
the working relationship between export sales managers and their
immediate supervisors. Upper management should specify the
preferred form, frequency and content of information exchange
between
the
two
parties
(e.g., informal
meetings
versus
formal
reports). Moreover, the responsibilities of supervisors in terms ofproviding constructive feedback, guidance and support to export
sales managers must be formally specified. Otherwise, the
effectiveness of the control system will depend solely on the
discretion and eagerness of individual supervisors. Based on this
discussion, this study proposes that an export sales organization is
more likely to develop and implement an effective sales
management control system under a formalized and centralized
organizational structure.
H5.
Formalization
relates
positively
to
sales
management
behav-
ior control
H6.
Centralization
relates
positively
to
sales
management
behav-
ior
control
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Explaining
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turnover
intentions
among
export
sales
managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
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2.3. Export sales management behavior control and role stressors
Behavior control systems concentrate on developing and
maintaining relationships and encourage long-term results rather
than short-term outcomes (Baldauf, Cravens, & Grant, 2002).
Behavior
control
systems
emphasize
managerial
coaching
and
mentoring
designed
and
implemented
to
develop
subordinate
skills and capabilities (Mallin, Asree, Koh, & Hu, 2010). Challagalla
and Shervani (1996) make a distinction between two types of
behavioral
control,
namely
activity
control
and
capability
control.
Activity
control
concentrates
on
the
routine
activities
that
employees are expected to perform on a regular basis, the
monitoring of actual behavior and the administering of rewards
and
punishments
on
the
basis
of
the
performance
of
specified
activities.
Capability
control
emphasizes
the
development
of
individual skills and abilities, and represents an attempt to
influence performance by ensuring that employees possess the
set
of
skills
and
abilities
that
enable
good
performance
(Challagalla
&
Shervani,
1996,
p.
90).
The effective implementation of a behavior-based control
system requires the close cooperation and richer communication
between
export sales managers
and
their immediate
supervisors.
Supervisors
are induced
to
commit time
and
effort in
monitoring
and providing feedback to export sales managers, as well as inassessing their skills and capabilities and providing guidance and
support
for improvement.
Through
this
interaction,
export
sales
managers
acquire
a
greater
knowledge and
understanding of
their supervisors expectations, and recognize what activities and
behaviors are consistent with the export sales strategy and are
likely
to
lead
to
desired
end-results
(Challagalla &
Shervani,
1996).
Moreover,
under a
behavior-based
control
system, export
sales managers can work closely with their supervisors and rely
on their guidance and support in order to handle effectively
customers
demands
and
requests that
may
be
incompatible
with
company policies and standards. Therefore, behavior control is
expected to lower export sales managers role ambiguity and
role
conflict.
Available empirical
evidence also supports
a
negative relationship between behavior control and role stress(Challagalla & Shervani, 1996; Jaworski, Stathakopoulos, &
Krishan, 1993).
H7. Sales management behavior control relates negatively to role
ambiguity
H8. Sales management behavior control relates negatively to role
conflict
2.4. Role stressors and job satisfaction
During
the
past
four
decades
numerous
studies
have
examined
the effects of job satisfaction on important work outcomes like
organizational
commitment,
job
performance,
and
turnoverintentions
(Netemeyer,
Johnston,
&
Burton,
1990;
Netemeyer,
Brashear-Alejandro, & Boles, 2004; Singh, Verbeke, & Rhoads,
1996).Although thefindings of these studies have not always been
consistent
(particularly
regarding
the
causal
direction
between
job
satisfaction
and
other
work
outcomes)
conventional
wisdom
suggests that high levels of job satisfaction are desirable. The
extant literature has also devoted significant research attention on
the
antecedents
of
job
satisfaction.
In
particular,
previous
research
has
studied
extensively
the
effects
of
role
ambiguity
and
role
conflict (Netemeyer et al., 1990). Theoretically, role stress leads to
tensions and pressures due to job requirements, including the
psychological
and
physical
consequences
of
such
pressures,
and
therefore
reduces
job
satisfaction
(Fry,
Futrell,
Parasuraman,
&
Chmielewski,
1986).
Furthermore,
empirical
research
indicates
that both role ambiguity and role conflict have a significant
negative
effect
on
job
satisfaction
(Fry
et
al.,
1986).
H9.
Role
ambiguity
relates
negatively
to
job
satisfaction
H10. Role conflict relates negatively to job satisfaction
2.5. Job satisfaction and propensity to leave
Propensity to leave is defined as the subjective estimation of anindividual regarding the possibility to quit the organization in the
near future (Mowday et al., 1984). This construct represents a
behavioral intention that precedes actual salesperson turnover
(Brown & Peterson, 1993). Conceptually, the contention that
intention to leave predicts actual turnover is consistent with the
Fishbeins (1967) model of attitudes, intentions, and behavior.
Previous research provides consistent evidence that propensity to
leave is the most effective predictor of salespeople turnover
(Brown & Peterson, 1993).
A low turnover rate among salespeople is desirable because it
reduces significantly replacement costs and keeps knowledgeable
and experienced personnel in the sales organization (Good, Page,&
Young, 1996). Understanding the underlying causes of turnover
can provide insights into how to control the phenomenon (Goodet al., 1996). Therefore, intention to leave is a key construct
examined in models of salespeoples role perceptions, job
attitudes, behavior, and performance (Johnston, Parasuraman,
Futrell, & Black, 1990; Netemeyer et al., 1990, 2004; Sager, 1994;
Singh
et
al.,
1996).
The
results
of
these
studies
indicate
that
job
satisfaction
is
a
primary
determinant
of
turnover
intentions,
and
a
direct negative relationship exists between the two constructs.
Thus, satisfied salespeople are less likely to leave the organization.
H11. Job satisfaction relates negatively to propensity to leave
2.6. Moderating effects
2.6.1. Psychic distance and formalizationThe concept of distance has attracted interest to international
business and marketing scholars who aim to explain variations in
international
business
and
marketing
strategies
and
operations
across
foreign
markets
(Prime,
Obadia,
&
Vida,
2009,
p.
184).Psychic
distance includes factors that can prevent the flow of information
from and to a foreign market (Johanson & Vahlne, 1977). Examples
include
differences
in
language,
education,
business
practices,
culture
and
industrial
development.
Due
to
the
geographical
distances involved and the inherent complexities associated with
international operations (Piercy, Low, & Cravens, 2011), which are
more
evident
in
psychologically
distant
markets,
the
prescription
of
clear
rules,
policies
and
guidelines
through
a
highly
formalized
organizational structure is essential in order to reduce export sales
managers
perceptions
of
role
conflict
and
ambiguity.
On
the
otherhand,
export
sales
managers
are
more
capable
and
knowledgeable
to
deal
with
job
requirements
and
customer
demands
in
psychologically close export markets. Therefore:
H12. The influence of formalization on export salesmanagers role
ambiguity is stronger in psychologically distant markets
H13. The influence of formalization on export salesmanagers role
conflict is stronger in psychologically distant markets
2.6.2. Psychic distance and centralization
In
a
centralized
organization,
export
sales
managers
have
limited
decision
making
authority.
By
contrast,
export
executives
must
initiate
or
approve
all
major
decisions.
Still,
export
executives
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Explaining
employee
turnover
intentions
among
export
sales
managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
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are based in the companys headquarters and travel much less
frequently
than
export
sales
managers.
Therefore,
their
exposure
to the environmental and market conditions that prevail in export
markets is rather limited. Moreover, they may lack a thorough
understanding of export customers needs, preferences, and
purchasing
habits.
Under
these
circumstances,
decisions
made
by
export
executives
are
unlikely
to
reflect
market
realities
in
export countries. In addition, export sales managers will experi-
ence higher levels of role ambiguity and role conflict since they
will
have
limited
participation
in
decision
making,
constrained
flexibility
to
respond effectively
to
the
idiosyncrasies
of
export
markets, and incapability to resolve conflicting demands between
customers expectations and company standards. However, both
export
executives
and
export sales
managers
have
more
accurate
knowledge
with
respect
to
export markets
that
are
perceived
as
psychologically close. Consequently, export executives are better
equipped to make decisions regarding these markets, whereas
export
sales
managers
areable
to
carry
out
more
effectively
their
job
duties
and
responsibilities,
despite
the
constrains
imposed
by
centralization. Therefore, this study expects that the negative
influence of centralization on export sales managers role percep-
tions
will
be
stronger
in psychologically
more
distant
markets.
H14. The influence of centralization on export sales manager roleambiguity is stronger in psychologically distant markets
H15.
The
influence
of
centralization
on
export
sales
managers
role
conflict
is
stronger
in
psychologically
distant
markets
2.6.3. Export sales managers experience
Experience is an important variable that moderates relation-
ships among salespeoples perceptions, attitudes and behavior
(Cron,
Dubinsky,
&
Michaels,
1988).
Compared
to
their
experienced
counterparts, inexperienced salespeople are more sensitive and
react strongly to work related factors such as role stressors (Russ &
McNeilly, 1995). Therefore, sales managers must devote greater
attention
and
provide
more
extensive
guidance
and
support
to
inexperienced salespeople. Although the authors argue thatbehavior control is an effective mechanism for reducing stress
among all export sales managers, they expect that an individuals
level
of
job
experience
moderates
this
influence.
In
particular,
experienced
export
sales
managers
are
in
a
better
position
to
deal
with problems and difficulties that may arise when performing
selling activities in export markets. Moreover, they are more
familiar
with
company
policies
and
standards,
and
accustomed
with
organizational
culture
and
top
managements
leadership
style. Hence, although experienced export sales managers also
benefit by the direction and support they receive from their
immediate
supervisors,
their
less
experienced
colleagues
are
in
a
much
greater
need
for
such
assistance.
Therefore,
this
study
expects that the contribution of behavior-based control towards
reducing
role
ambiguity
and
role
conflict
will
be
greater
amongless
experienced
export
sales
managers.
H16.
The
influence
of
behavior
control
on
role
ambiguity
is
stron-
ger for less experienced export sales managers
H17.
The
influence
of
behavior
control
on
role
conflict
is
stronger
for less experienced export sales managers
3.
Research
methodology
3.1. Sample and data collection procedures
This
study
tests
the
proposed
conceptual
model
and
hypotheses
using
data
collected
from
small-
and
medium-sized
exporters
in
the United Kingdom. The sampling frame for this study is drawn
from
the
Dun
and
Bradstreet
commercial
database
of Key British
Enterprises. To be eligible for inclusion in the study sample, a firm
must meet the following thresholds: exporting at least for three
years; employ up to 500 full-time employees; and, operate in one
of
the
following
industrial
sectors:
textile
mill
products;
apparel
and
other
finished
goods
made
from
fabric
and
other
similar
materials; chemical and allied products; rubber andmiscellaneous
plastics products; machinery except electrical; and electrical and
electronic
machinery,
equipment
and
supplies.
The
selection
of
a
multi-industry
sampling
design
is
necessary
in
order
to
enhance
the generalizability of the research findings. A random sample of
1000 eligible firms is selected for inclusion in this study.
This
study
employs
a
survey
methodology
for
data
collection,
following
the
guidelines
provided
by
Dillman
(2000).
A mail package is sent to the Head of Exporting Operations to
each of the 1000 sample firms, along with a cover letter that
explains
the
purpose
and
objectives
of
the
study,
and
a
postage-
paid
return
envelope.
Recipients
are
instructed
to
pass
on
the
survey packet to one individual that fulfills the export sales
manager role in their firm. The initial mailing and two further
waves
produce
160
usable
responses,
for
a
response
rate
of
16%.
However,
191
of
the
firms
that
were
initially
included
in
the
study
sample are dropped, mainlybecause of incorrect conductdetails ortermination of their exporting operations. Thus, the effective
response
rate
is
19.8%
(160
of
the
eligible
809
firms).
The
demographic
characteristics
of
the
sample
are
presented
in
Appendix.
3.2.
Response
issues
Following ArmstrongandOverton (1977) guidelines, thedataare
checked for non-response bias by comparing early and late
respondents
on all
study
constructs as
well
as
on
key
company
characteristics including number of full-time employees, export
experience, export sales, and number of export markets. Non-
response
bias
checks
also
involve
comparing a
random
sample
of
75 non-respondents with respondents in terms of the aforemen-tioned company characteristics. The non-significant t-test results
indicate thatnon-response bias isnot amajorproblem in this study.
The
key
informant
in
this
study
is
the
export
sales
manager.
This
study
employs
certain
steps
in
order
to
ensure
the
quality
of
responses. First, the cover letter explains clearly and in details the
job activities and responsibilities of an export sales manager and
instructs
the
recipients
of
the
mailing
package
that
the
question-
naire
must
be
filled
by
a
person
in
the
exporting
firm
that
performs
this role. Second, it stresses that the study is conducted under the
guidance of an academic institution for purely academic research
purposes.
Third,
participants
are
promised
anonymity
and
confidentiality
of
responses,
and
are
offered
a
copy
of
the
study
results. Fourth, this study follows thewidely accepted practices for
questionnaire
design
and
survey
administration.
Further,
a
posthoc
test
for
key
informant
quality
is
performed.
In
particular,
the
last
section
of
the
questionnaire
includes
four
statements
that
assess respondents: (1) knowledge regarding the firms exporting
activities; (2) involvement with the firms exporting activities; (3)
responsibility
for
the
firms
exporting
activities;
and
(4)
confidence
in
answering
the
questions
of
the
survey
instruments.
The
mean
scores for these statements range between 6.01 and 6.40 (on a
seven-point scale anchored by Low and High) indicating that
potential
bias
attributable
to
the
key-informant
is
negligible.
This
study
employs
the
Harmans
one-factor
test
(Podsakoff
&
Organ, 1986) to test for common method bias (CMB). First, this
analysis involves a principal components analysis of all constructs
examined
in
this
study.
The
two
second-order
constructs,
namely
export
sales
management
control
system
and
job
satisfaction,
are
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Please
cite
this
article
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Katsikea,
E.,
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al.
Why people
quit:
Explaining
employee
turnover
intentions
among
export
sales
managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.0097/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli
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represented in this analysis by the summated scales of their
underlying
first-order
factors,
whereas
all
other
constructs
by
their
original measurement items. The unrotated solution results in
seven factorswith eigenvalues greater then 1.0, accounting for71%
of the variance. No general factor emerges, whereas the first factor
explains
only
25%
of
the
variance.
Second,
a
CFA
approach
to
Harmans
one-factor
test
is
used
in
which
the
summated
scales
of
the 15 first-order factors included in the structural model are
restricted to load on a single factor. The results obtained from this
analysis
indicate
a
poor
fit: x2(90)= 662.64, p
7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli
8/13
Table 1
Measurement scales, confirmatory factor analysis results, and reliabilities.
Constructs and measurement items Standardised loadingsa
Formalization (a= .81; CR= .82; AVE= .61) (Aiken & Hage, 1966, 1968) (seven-point scale, anchored by Strongly Disagree
and Strongly Agree)
How things are done here is left up to the employee doing the work (R) .63 (7.78)
Employees here are left to do as they please (R) .92 (11.81)
Most people here make up their own rules in the job (R) .77 (9.73)
Centralization
(a=
.88;
CR
=
.89;
AVE
=
.72)
(Aiken
&
Hage,
1966,
1968)
(seven-point
scale,
anchored
by
Strongly
Disagreeand Strongly Agree)
Even small matters have to be referred to someone higher up for a final answer .75 (10.16)
I have to ask my immediate manager before I do almost anything .98 (14.71)
Any decision I make has to have my immediate managers approval .80 (11.01)
Export sales management control (Second-order factor) (Challagalla & Shervani, 1996) (Items measured on a seven-point scale,
anchored by Strongly Disagree and Strongly Agree)
A. Activity Information (a= .92; CR= .92; AVE= .70) .77 (7.67)
My immediate manager informs me about the export sales activities I am expected to perform .73b
My immediate manager monitors my export sales activities .85 (10.05)
My immediate manager informs me on whether I meet his/her expectations in the venture market .89 (10.62)
My immediate manager tells me to adjust my export sales activities, if he/she feels that there is need to do so .85 (10.09)
My immediate manager evaluates my export sales activities .85 (10.12)
B. Activity rewards (a= .93; CR= .93; AVE= .87) .68 (7.68)
If I perform export sales activities well my immediate manager will commend me .91b
I would be recognized by my immediate manager if he/she was pleased with how well I perform export sales activities .95 (13.53)
C. Activity punishment (a= .86; CR= .87; AVE= .68) .63 (6.67)
I would receive an informal warning if my immediate manager was not pleased with how I perform export sales activities .81b
I would receive a formal reprimand if my immediate manager was unhappy with how I perform export sales activities .93 (11.70)
I would be put on probation if my immediate manager was unhappy with how I perform specified export sales activities .72 (9.40)
D. Capability information (a= .93; CR= .93; AVE= .74) .83 (8.89)
My immediate manager has standards by which my selling skills are evaluated .79b
My immediate manager periodically evaluates the selling skills I use to accomplish a task .87 (11.89)
My immediate manager provides guidance on ways to improve selling skills and capabilities .91 (12.79)
My immediate manager evaluates how I make sales presentations and communicate with foreign customers .85 (11.60)
My immediate manager assists by suggesting why using a particular sales approach may be useful .89 (12.28)
E. Capability rewards (a= .81; CR= .80; AVE= .58) .83 (7.61)
Assignment of better territories or accounts depends on how good my selling skills are .71b
I am commended if I improve my selling skills .85 (8.67)
Promotion opportunities depend on how good are my selling skills and capabilities .71 (7.65)
F. Capability punishment (a= .93; CR= .91; AVE= .76) .64 (7.47)
I receive an informal warning if my immediate manager is not pleased with my selling skills and capabilities .89b
I receive a formal reprimand if my immediate manager is not pleased with my selling skills and capabilities .89 (19.95)
I am put on probation if my immediate manager is not happy with my selling skills and capabilities .84 (14.51)
Role conflict (a= .78; CR= .79; AVE= .50) (Rizzo et al., 1970) (seven-point scale, anchored by Never and Always)
I work with two or more groups who operate quite differently .62 (7.16)
I receive incompatible requests from two or more people .84 (10.35)
I do things that are apt to be accepted by one person and not accepted by another .75 (9.07)
I receive an assignment without adequate resources and material to execute it .57 (6.52)
Role ambiguity (a= .90; CR= .90; AVE= .64) (Rizzo et al., 1970) (seven-point scale, anchored by Never and Always)
I feel certain about how much authority I have (R) .76 (9.71)
I have clear, planned goals and objectives for my job (R) .75 (9.58)
I know what my responsibilities are (R) .87 (11.80)
I know exactly what is expected of me (R) .87 (11.91)
Explanation is clear of what has to be done (R) .74 (9.33)
Job satisfaction (second-order construct) (Churchill, Ford, & Walker, 1974) (seven-point scale, anchored by Strongly Disagree
and Strongly Agree)
A. Satisfaction with overall job (a= .93; CR= .93; AVE= .78) .71 (6.48)
My work gives me a sense of accomplishment .87b
Mywork
is
exciting
.88
(13.69)My work is satisfying .93 (15.13)
I am really doing something worthwhile in my job .86 (13.13)
B. Satisfaction with Fellow Workers (a= .85; CR= .87; AVE= .63) .67 (6.02)
The people I work with are very friendly .86b
The people I work with help each other out when someone falls behind or gets in a tight spot .84 (11.80)
My fellow workers are pleasant .90 (12.97)
My fellow workers are selfish (R) .51 (5.99)
C. Satisfaction with supervision (a= .90; CR= .90; AVE= .70) .60 (5.15)
My immediate manager is up to date .71b
My immediate manager has always been fair in dealings with me .82 (8.91)
My immediate manager gives us credit and praise for work well done .95 (9.98)
My immediate manager lives up to his/her promises .85 (9.20)
D. Satisfaction with customers (a=0.87; CR=0.87; AVE=0.63) .52 (4.43)
My customers live up to their promisesb .72b
My customers are trustworthy .84 (8.78)
My customers are loyal .83 (8.66)
My customers are understanding .78 (8.25)
E. Katsikea et al./ International Business Review xxx (2014) xxxxxx8
G Model
IBR-1140; No. of Pages 13
Please
cite
this
article
in
press
as:
Katsikea,
E.,
et
al.
Why people
quit:
Explaining
employee
turnover
intentions
among
export
sales
managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.0097/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli
9/13
model. Fit statistics (x2(339)= 626.69, p
7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli
10/13
to a model in which one relationship is set free implies that the
moderator
variable
has
a
significant
influence
on
that
relationship.
Table
4
presents
the
results
obtained
from
this
analysis.
Concerning psychic distance, the results indicate that the
negative influence of formalization on role ambiguity is stronger
when
export
sales
managers
operate
in
more
distant
export
markets (high-distance group: b = .44, t = 3.17; low-distancegroup: b = .02, t = .19; Dx2(1)= 10.74,p .05). Even though the estimated coefficients
for these associations are stronger in more distant markets, chi-
square differences are not statistically significant. Therefore, no
support
is
provided
for
H13
and
H14. With
respect
to
export
salesmanagers experience, the findings indicate that the export sales
management behavior control system ismore effective in reducing
perceptions of role ambiguity among less experienced export sales
managers (more experienced managers groups: b = .13, t = .96;
less experienced managers group: b = .39, t = 2.83; Dx2
(1) = 4.58, p
7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli
11/13
Against the backdrop of the salespersons propensity to leave,
this
study
is
primarily
interested
in
the
control
aspect
of
export
sales
management. Given the nature of the salespersons role and their
characteristic flexibility, control becomes a focal sales management
activity. Whilst researchers know a great deal about control and
how
it influences
the
attitudes
and
behavior
of
workers
(Anderson
&
Oliver, 1987;
Jaworski,
1988)
it
is
important
to
recognize that
control mechanisms can be established at different hierarchical
levels within an organizationandparticularlyhow topmanagement
develop
control mechanisms
that
define
an
appropriate
framework
for
the
operation
of
the
sales
organization,
thereby
determining
the
specific activities to be performed by individual members. In line
withJaworskis (1988) theoretical assumption, this study identifies
organizational
structure
as
such
a
control
mechanism.
The
study
findings
reveal
the
favorable
impact
of
formalization
and the unfavorable impact of centralization upon both role
ambiguity and role conflict. Local market adaptation and the sales
functions
ability
to
customize
their
engagement
activity
are
central
to
export
strategy
(Cavusgil
&
Zou,
1994).
When
operating
under conditions of centralization, this structural constraint
handicaps the export sales managers ability to adapt according
to
the
necessary
conditions
and
role
conflict
and
role
ambiguity
become
inevitable
consequences.
Centralization
effectively
becomes a straightjacket and removes the discretion that isrequired for the export salesmanager to confront challenges in vivo
and
address
appropriate
response
to
customers
in
export
markets.
In
contrast,
formalization
provides
a
framework
and
offers
rules
and procedures that govern role behavior. Although standardized,
these rules encourage specific action responses and reduce
confusion
and
judgmental
reasoning.
These
benefits
mean
that
role
clarity
and
role
ambiguity
are
less
apparent
under
conditions
of high formalization because many of the sources of these role
stressors have been managed out by standardized practices.
As
forms
of
hierarchical
control,
the
study
finds
that
both
formalization and centralization relatepositively to the export sales
managementbehavior control system. Indesigning and administer-
ing
a
behavior-based
control
system,
managers
need
to
collate,
map,
and audit important export sales activities and capabilities. Thefindings show that the administrative mechanisms that therefore
underlie this type of control system are traits of formalization for
codification
and
centralization
for
uniformity.
Interestingly,
the
findings
also
reveal
how
the
export
sales management
behavior
control system reduces role ambiguity by improving the clarity of
export sales managers expectations because it focuses attention
ontothecontrolledactivitiesandcapabilities.Butthisfindingwasnot
mirrored
forexport
salesmanagers
perceptions
of
role
conflict
upon
which behavior-based control has no influence.
Although seemingly paradoxical, the working life of the export
sales
manager
benefits
from
formalization
while
simultaneously
suffers
from
centralization.
The
implication
of
this
is
clear
exporting firms need to improve standardization of work routines
and
operating
methods
without
correspondingly
centralizingdecision
making.
The
challenge
of
this
organizational
solution
provides
tangible
benefits
for
the
outreach
activities
of
the
export
sales manager. By formally delineating clearly the routines and
practices required whilst also ensuring that centralized processes
do
not
hinder
their
day-to-day
responsibilities,
export
sales
managers
will
benefit
in
their
work
roles
(Steward,
Walker,
Hutt,
& Kumar, 2010). The role stressors of role ambiguity and role
conflictdeleteriously affect export salesmanagersjob satisfaction.
It
is
not
surprising
that
when
these
managers
suffer
an
array
of
demands,
each
at
variance
with
another,
their
job
satisfaction
declines. Correspondingly, this study finds that export sales
managers propensity to leave is a likely consequence of this
chain
of
effects.
This,
in
turn,
can
set
in
train
a
number
of
consequences
for
management
attention
and
so
auditing
the
extent of role ambiguity and role conflict by encouraging feedback
and
open
lines
of
communication
will
help
to
support
more
this
key boundary spanner (Piercy, Cravens, Lane, & Vorhies, 2006).
Moderation analysis results indicate that psychic distance
explains important distinctions in the proposed model. For
example,
in
more
distant
markets,
formalization
has
a
stronger
negative
impact
on
export
sales
managers
role
ambiguity.
Similarly, the challenges that centralization imposes on export
sales managers role conflict are also increasingly evident in more
distant
markets.
For
exporting
firms,
these
emphases
imply
a
greater
need
for
formalization
and
lesser
need
for
centralization
in
improving, respectively, role ambiguity and role conflict of their
export sales managers. By way of export sales managers
experience,
this
study
finds
a
novel
effect
in
that
the
export
sales
management
behavioral
control
system
is
more
effective
at
reducing perceptions of role ambiguity among less experienced
export salesmanagers. Thismeans that the conformity that control
systems
engender
invokes
role
clarity
at
earlier
stages
of
an
export
sales
managers
career
when
learning
and
development
opportu-
nities are at their greatest. Therefore, appropriate training needs to
be established so that less experienced export sales managers
suffer
less
role
ambiguity
by
better
understanding
the
control
dashboard
that
is
used
to
monitor
their
behavior.
This study has also important implications for theory develop-ment in the neglected areas of export sales management. In
particular,
it
highlights
the
critical
role
of
export
sales
managers
in
export
success,
and
emphasizes
the
need
to
retain
these
personnel
in the firm on a long-term basis. The extant research on exporting
focuses on the export strategic planning process, and integrates
relevant
theories
like
the
resource-based
view
of
the
firm,
and
the
industrial
organization
theory,
in
an
effort
to
explain
the
drivers
of
superior export performance. Numerous studies on exporting
during the past four decades have contributed to the development
of
a
rich
body
of
knowledge
regarding
export-related
issues.
Surprisingly; however, these studies paid limited attention to the
fact that export sales managers are commonly the only firm
personnel
that
visit
foreign
markets
to
meet
prospective
buyers
and establish mutually beneficial relationships with them.Therefore, their contribution to export success is invaluable. To
advance further export-related theories, academic research must
devote
more
effort
on
the
peoples
aspect
of
exporting,
and
examine
appropriate
managerial
practices
that
can
positively
influence the job-related attitudes and behavior of export sales
managers, and direct their behavior towards achieving organiza-
tional
objectives.
The
present
study
contributes
to
this
emerging
stream
of
research
by
showing
how
control
mechanisms
at
different organizational levels contribute towards reducing export
sales managers intention to leave, which is a highly desirable
outcome
with
important
long-term
benefits
for
export
sales
organizations.
Future
studies
must
investigate
other
important
dimensions of export sales managers job, and identify the key
factors
that
either
enhance
or
restrain
export
sales
managersperformance.
6. Limitations and future research
This
study
has
several
limitations
that
should
be
addressed
in
future
research.
First,
the
study
accommodates
for
international
market variation in the researchmodel by incorporating ameasure
ofpsychicdistance.Although the researchmodel explains overhalf
of
the
variance
about
the
mean
of
managers
propensity
to
leave,
inevitably
testing
the
extent
to
which
competing
explanations
offer insightful viewpoints is important. To this end, individual
level endogenous triggers such as managers perceived ease of
movement,
receipt
of
unsolicited
job
offers,
and
work-family
conflict
should
be
considered
while
also
firm
level
exogenous
E. Katsikea et al./ International Business Review xxx (2014) xxxxxx 11
G Model
IBR-1140; No. of Pages 13
Please
cite
this
article
in
press
as:
Katsikea,
E.,
et
al.
Why people
quit:
Explaining
employee
turnover
intentions
among
export
sales
managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.0097/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli
12/13
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Jaworski, B. J., Stathakopoulos, V., & Krishan, S. H. (1993). Control combinations inmarketing: Conceptual framework and