The Mediator Role of Sales Force Management Capability on the Relation between Market Orientation and Financial Performance

Abstract

Purpose: Market orientation has an influence on how organizations work to attract, engage and retain customers, however, it is unclear how it influence financial performance. This study demonstrates that sales force management capability is a driver to financial performance when influenced by marketing orientation. Methodology: A survey (n=223) was applied in Information and Communication Technology (ICT) companies in Brazil. Structural equation modeling allowed us to understand how sales management forces capability dimensions influence the relation between market orientation and financial performance intensity. Findings: Results were found from the exploration of the three dimensions of the sales force management capability (sales force structuring, talent management, and customer targeting). Marketing and sales force management capability are essential to achieving financial performance, mainly on customer targeting and talent management. Theoretical contributions: This study contributes to a better understanding of the process by which marketing orientation can be related to sales force management capability and which specific variable dimension has the greatest effect on financial performance. Practical contributions: The results providing practitioners new understanding to better manage organizational resources. Firms should use market information to improve performance and engage marketing managers to support sales investment.