The roles of political skill and intrinsic motivation in performance prediction of adaptive selling

THE ROLES OF POLITICAL SKILL AND INTRINSIC MOTIVATION IN PERFORMANCE PREDICTION OF ADAPTIVE SELLING Kimura, Takuma; Bande, Belén; Fernández-Ferrín, Pilar. Hosei University; University of Navarra; University of País Vasco UPV/EHU. ABSTRACT Previous studies have long recognized and examined adaptive selling behavior as an effective selling behavior in current selling situations. Although some studies assumed and revealed moderating factors that affect the effectiveness of adaptive selling behavior, few studies examined an individual’s skill as a moderator on this effect. This study focuses on political skill as a type of skill that has been recently found to have positive effects on sales performance. In addition, this study includes intrinsic motivation as an additional moderator that enables political skill to be invested for effective selling behavior. Our analysis of 249 salespeople and 145 supervisors in a matching sample largely supports our hypotheses that the positive effects of adaptive selling behavior on sales performance are the highest when both political skill and intrinsic motivation are high. Keywords: Adaptive selling behavior, Political skill, Intrinsic motivation, Sales performance. XXIX CONGRESO DE MARKETING AEMARK 2017 260 de 1617 ÍNDICE TRABAJOS PONENCIAS CyV 1. Introduction The model of adaptive selling developed by Weitz et al. (1986) suggested that not only adaptive selling behavior enhances sales performance but also its implementation is not necessarily a sufficient condition for achieving a high level of sales performance. A better understanding of the effectiveness of adaptive selling requires a contingency perspective that includes the moderators affecting the influence of adaptive selling behavior on sales performance. Although some empirical studies tested the moderating effects of situational factors, few studies have examined how a salesperson’s skill influences the effectiveness of adaptive selling behavior (Frank & Park, 2006; Giacobbe et al., 2006). In this study, we aim to address this research agenda by examining how political skill influences the relationship between adaptive selling behavior and sales performance. Previous studies have recognized the political nature of organizational life and revealed that political skill positively affects individual performance. Political skill can be regarded as one of the most important individual skills at work because recent studies reported that it explains more variance in individual performance than other types of abilities and skills (Blickle et al., 2011; García-Chas et al., 2015; Semadar et al., 2006). Moreover, some studies found the contribution of political skill to the enhancement of salespersons’ performance (Blickle et al., 2012; Li et al., 2017). However, prior studies have not provided us with an understanding of how political skill enhances a salesperson’s performance as they failed to examine the relationship between political skill and actual selling behavior. This study addresses this research gap by examining the effect of political skill on the outcomes of adaptive selling behavior. However, recent studies suggested that when individuals are insufficiently motivated toward work, the politically-skilled ones use their skill to enhance their own career success regardless of—and sometimes at the expense of—their contribution to the organization (Harris et al., 2009; Yang et al., 2016). Therefore, this study includes the intrinsic motivation to work as another moderator. Using an original data set of supervisor–salesperson dyads in Spain, this study specifically examined how salespersons’ political skill and intrinsic motivation affect the contribution of adaptive selling behavior to sales performance. By examining the three-way interactions of the focal variables, this study can provide us with a novel insight through the integration of two separate streams of research: (a) adaptive selling and (b) political skill in sales contexts. 2. Hypothesis Development 2.1. Adaptive Selling Adaptive selling is defined as the “altering of sales behaviors during a customer interaction or across customer interactions based on perceived information about the nature of the selling situation” (Weitz et al., 1986: p. 175). By using different sales presentations across sales encounters and making adjustments during the encounters, salespersons who engage in adaptive selling tend to achieve high levels of sales performance (Spiro & Weitz, 1990). Although Weitz et al.’s (1986) original model of adaptive selling assumes that the effectiveness of adaptive selling behavior depends on the characteristics of sales situations, XXIX CONGRESO DE MARKETING AEMARK 2017 261 de 1617 ÍNDICE TRABAJOS empirical studies have shown that adaptive selling behavior leads to high sales performance in wide situations. In fact, a meta-analysis confirmed the positive effect of adaptive selling behavior on sales performance (Frank & Park, 2006). Román and Iacobucci (2010) stated that although personal selling is much more costly than many of today’s electronic alternatives, personal selling might still be the most effective means of marketing communication. Therefore, it is reasonable to assume that adaptive selling behavior is one of the key behaviors for a salesperson to be a high performer. 2.2. Performance Dimensions Since adaptive selling behavior is a kind of personal selling behavior, its effectiveness can be evaluated by individual-level performance. Griffin et al. (2007) proposed and validated three dimensions of individual-level performance: (a) individual task proficiency, (b) individual task adaptivity, and (c) individual task proactivity. These dimensions can serve as an integrative framework of individual performance since they cover performance in formalized, as well as emergent roles thereby reflecting the situation of work contexts that involve uncertainty. Individual task proficiency is defined as “the degree to which an employee meets the known expectations and requirements of his or her role as an individual” (Griffin et al., 2007, p. 331). Individual task adaptivity is “the degree to which individuals cope with, respond to, and/or support changes that affect their roles as individuals” (p. 331). And individual task proactivity refers to “the extent to which individuals engage in self-starting, future-oriented behavior to change their individual work situations, their individual work roles, or themselves” (p. 332). These dimensions can be a measure of the effectiveness of adaptive selling behavior. Task proficiency has been the focus of traditional performance management system, and thus it can be regarded as a measure of salesperson’s performance, including the result of adaptive selling. Task adaptivity reflects a worker’s effectiveness in dealing with uncertain situations. Task proactivity is required in work where individuals need to identify improved ways of working under their own initiative, without relying on directions from supervisors. In short, task adaptivity and task proactivity reflect the effectiveness in work that requires flexible and proactive behavior. Therefore, both task adaptivity and task proactivity can be a performance measure of adaptive selling behavior. 2.3. Moderators However, execution of adaptive selling behavior may not necessarily lead to a high level of individual performance measured by Griffin et al.’s framework. The reason is that empirical findings have shown mixed results in the relationship between adaptive selling behavior and sales performance (see Giacobbe et al., 2006, for a review). Weitz et al.’s (1986) model assumes the existence of moderators that affect the effectiveness of adaptive selling behavior. Specifically, it proposes the characteristics of the selling environment and the abilities (knowledge) and skills (information collection) of the salesperson as moderators. Although some empirical studies revealed the moderating effects of the selling situation on the relationship between adaptive selling behavior and XXIX CONGRESO DE MARKETING AEMARK 2017 262 de 1617 ÍNDICE TRABAJOS sales performance (Giacobbe et al., 2006; Porter et al., 2013), prior studies have provided us with little understanding of the moderating effects of salespersons’ skill. Political Skill: Weitz et al. (1986) argued that salespeople’s procedural knowledge enhances the effectiveness of adaptive selling. However, the development of procedural knowledge may not be sufficient for effective adaptive selling. Adaptive selling requires salespeople to calibrate their sales approach to sales situations. By definition, such calibration should be based on their keen understanding of information that can be obtained through the interactions with customers. Therefore, as Lankau and Scandura (2002) argued, procedural knowledge is not a sufficient learning outcome for adaptive selling in the current business environment. They suggested two important types of personal learning. First, is the “relational job learning” that is defined as “increased understanding about the interdependence or connectedness of one’s job to others” (Lankau & Scandura, 2002, p. 780). Another is the “personal skill development” that means “acquisition of new skills and abilities that enable better working relationships” (p. 780). Because it is a skill that can be developed through these types of personal learning (Blass & Ferris, 2007) and may be important for adaptive selling, this study focuses on political skill. The literature on adaptive selling has not investigated political skill, which is defined as “the ability to effectively understand others at work, and to use this understanding to influence others to act in ways that enhance one’s personal and/or organizational objectives” (Ferris et al., 2005, p. 127). Although previous studies showed positive effects of political skill on salespeople’s performance (Blickle et al., 2012; Li et al., 2017), they did not examine the relationship between political skill and concrete sales behavior. By examining the interaction effects of adaptive selling behavior and political skill, this study addresses this research gap. Political skill is conceptualized as a skill that consists of four dimensions: social astuteness, interpersonal influence, networking ability, and apparent sincerity. Based on social cognitive theory (Bandura, 1991) and social capital theory (Nahapiet & Ghoshal, 1998), we can infer that each of these dimensions allows a salesperson to effectively implement adaptive selling behavior. Social cognitive theory suggests that individuals regulate their behavior based on information and cues from self, others, and environments (Bandura, 1991). Political skill promotes such regulation. Social astuteness enables a salesperson to keenly understand both himself/herself and others and calibrate as well as adjust the sales approach to different and changing sales situations. A salesperson high in interpersonal influence can appropriately adapt and calibrate his/her behavior to each sales situation to elicit favorable responses from customers. Social capital theory suggests that social capital in the form of high levels of trust work as a resource for individuals (Nahapiet & Ghoshal, 1998). A salesperson with a high level of networking ability can effectively develop trusting relationships with customers. Such trusting relationships provide him/her with deeper understandings of each customer that contributes to adaptive selling. Because apparent sincerity enables a salesperson to appear to customers as having high levels of integrity, authenticity, sincerity, and genuineness, adaptive selling behavior will not be perceived as tactical or deceitful. In addition, these four dimensions of political skill contribute to building high-quality relationships with supervisors and colleagues (Epitropaki et al., 2016; Wei et al., 2010, 2012). Utilizing such XXIX CONGRESO DE MARKETING AEMARK 2017 263 de 1617 ÍNDICE TRABAJOS relationships, politically-skilled salespersons can acquire information and resources that are useful for effective implementation of adaptive selling. Intrinsic Motivation: The argument in the previous section assumes that politically-skilled salespersons use their political skill to implement adaptive selling behavior and to develop foundational resources useful for adaptive selling. However, prior studies suggested that politically-skilled individuals do not necessarily use their political skill to achieve high levels of task performance or career success within an organization. For example, Yang et al. (2016) found that the negative relationship between work–family conflict and affective commitment was stronger in employees who were high in political skill than in those who were low in political skill. A more concrete example for the argument is provided by Harris et al. (2009). Their study showed that in a low-LMX situation, politically-skilled employees are more likely to seek employment elsewhere than those that are not politically skilled. These studies suggested that when the current work environment is not personally attractive, a politically-skilled individual does not devote his/her political skill to achieve high levels of task performance. Therefore, we can assume that when salespeople are intrinsically motivated to the current work, they are likely to use their political skill to enhance their effectiveness of selling activities. On the contrary, when they are not intrinsically motivated, they are likely to use their political skill not for selling activities, but for other activities, such as ingratiation toward supervisors and external networking (Fang et al., 2015; Tocher et al., 2012; Treadway et al., 2007). Consistent with these arguments, results of recent empirical studies in management and other fields indicated that individuals’ skills leads their high performance only when their intrinsic motivation is high (Hill et al., 2016; Logan et al., 2011). Therefore, we hypothesize the following: Hypotheses (a)-(c): Political skill and intrinsic motivation interact to affect the positive relationship between adaptive selling behavior and a salesperson’s performance: (a) task proficiency, (b) task adaptivity, and (c) task proactivity. Specifically, they operate as a three-way interaction: (1) when both political skill and intrinsic motivation are high, the positive relationship between adaptive selling behavior and salesperson’s performance will be stronger; (2) when both political skill and intrinsic motivation are low, the relationship between adaptive selling behavior and salesperson’s performance will be weaker; and (3) when either political skill or intrinsic motivation is high and other is low, the relationship will be moderate. We summarize our model in Figure 1. XXIX CONGRESO DE MARKETING AEMARK 2017 264 de 1617 ÍNDICE TRABAJOS FIGURE 1: Proposed model. 3. Method 3.1. Sample and Procedure We collected the data from salespeople and their supervisors working for 145 enterprises located in Spain. The selected enterprises met the following criteria: (1) the enterprises had commercial recognition and had been in business for at least ten years; (2) the salespeople performed the sales activities described in Marshall et al. (1999), and (3) the salespeople attended to business customers. The sample covered a variety of industries, including manufacturing, technology, financial services, construction, wholesale, retail, and insurance. The final sample consisted of 249 matched supervisor-salesperson dyads, which included 249 salespersons and 145 supervisors. Of the 249 salespersons, 71.9% were male, the average age was 39.1 years, and the average sales experience was 11.7 years. Of the supervisors, 83.4 were male and their average age was 45.3 years. 3.2. Measures The salesperson survey contained measures of adaptive selling behavior, political skill, intrinsic motivation, sales experience, and demographic questions. The supervisor survey contained scales measuring salesperson’s performance. The questionnaire items were initially written in English and then translated into Spanish using the back-translation procedure (Brislin, 1986). All variables were measured by 7-point Likert-type scales (1 = “strongly disagree” to 7 = “strongly agree”). Adaptive Selling Behavior: To assess the respondents’ adaptive selling behavior, we used Robinson et al.’s (2002) five-item scale. The respondents were asked to rate the degree of their adaptive selling behavior. Sample items are: “When I feel that my sales approach is Adaptive Selling Intrinsic motivation Political skill Individual Task Proficiency Individual Task Adaptivity Individual Task Proactivity Information provided by the salespersonInformation provided by the supervisor XXIX CONGRESO DE MARKETING AEMARK 2017 265 de 1617 ÍNDICE TRABAJOS not working, I can easily change to another approach” and “I like to experiment with different sales approaches.” The Cronbach’s α for this scale was .79. Political Skill: To assess the respondents’ political skill, we used 18 items of the Political Skill Inventory (PSI) developed by Ferris et al. (2005). Sample items are: “I spend a lot of time and effort at work networking with others”; “I am able to make most people feel comfortable and at ease around me”; and “I have good intuition or savvy about how to present myself to others.” The reliability of this measure was sufficient (α = .91). Intrinsic Motivation: Intrinsic motivation was measured using a three-item scale developed by Evans et al. (2007). Sample items are: “(I) Obtain a sense of accomplishment from my work.” and “(I) Feel a sense of personal growth and development in my work.” The Cronbach’s α for this scale was .87. Salesperson’s Performance: Salesperson’s performance was measured using a nine-item scale developed by Griffin et al. (2007) based on the supervisor survey data. This scale comprises three items for individual task proficiency (α = .86), three items for individual task adaptivity (α = .87), and three items for individual task proactivity, respectively (α = .85). Control Variables: Using a sample of engineers, García et al. (2015) showed a significant positive relationship between professional experience and Griffin et al.’s (2007) three dimensions of individual performance. Therefore, in addition to demographic variables such as age and gender, we controlled sales experience in the analysis. Gender was coded with men as 1 and women as 0. Age and sales experience were measured by years. Confirmatory factor analysis (CFA) with a maximum likelihood estimation demonstrated good fit of the data to a six-factor correlated model (χ2 = 909.73; d.f. = 532; χ2/d.f. = 1.71; p<.001; RMSEA = .05; TLI = .90; CFI = .91; IFI=.91). All factor loadings were significant. We compared relative fit of this six-factor model with alternate models including five factors and four factors. On every occasion, the fit of the six-factor model was significantly better than the fit of any alternative model 1 . To assess discriminant validity, Fornell and Larcker’s (1981) approach was used. The confidence intervals for the correlation between pairs of variables were calculated. As none of the intervals included the value one, discriminant validity between the constructs was assumed. 4. Results 4.1. Descriptive Statistics Table 1 presents the descriptive statistics (means, standard deviations, and correlations) of all variables. As for control variables, gender correlates negatively with individual task proficiency (r = −.17, p < .01) and individual task proactivity (r = −.15, p < .05), suggesting that in our sample, female salespeople are higher in task proficiency and task proactivity than male salespeople. Neither age nor sales experience has significant correlations with each of three individual performance dimensions. Adaptive selling, political skill, and 1 Five-factors model (AS, ITP, ITProa, ITA, IM+PS): χ2 = 1189.30; d.f. = 535; χ2/d.f. = 2.22; p<.001; RMSEA = .08; TLI = .83; CFI = .85; IFI=.85; Four-factors model (AS, IM, PS, ITP+ITProa+ITA): χ2 = 1167.35; d.f. = 539; χ2/d.f. = 2.16; p<.001; RMSEA = .07; TLI = .84; CFI = .85; IFI=.85 XXIX CONGRESO DE MARKETING AEMARK 2017 266 de 1617 ÍNDICE TRABAJOS intrinsic motivation significantly and positively correlate with all individual performance dimensions. TABLE 1: Descriptive Statistics of and Correlations among Study Variables. M S.D. 1 2 3 4 5 6 7 8 1. Age 39.1 8.0 2. Gender 0.7 0.5 .20* * 3. Sales experience 11.7 7.9 .77* * .11 4. Adaptive selling 5.8 0.8 .05 -.01 .13* 5. Political skill 5.4 0.8 .19* * .13 .12 .37** 6. Intrinsic motivation 5.6 0.9 .26* * .10 .24* .28** .47** 7. Task proficiency 5.8 1.0 -.01 - .17** .12 .19** .21** .22** 8. Task adaptivity 5.6 1.1 -.02 -.07 .05 .19** .19** .18** .70** 9. Task proactivity 5.4 1.2 -.04 - .15** .06 .23** .14* .19** .55** .56** ** p < .01, * p < .05 4.2. Hypothesis Testing We tested our hypotheses using the PROCESS Macro (Model 3; Hayes, 2013). The threeway interaction of adaptive selling behavior, political skill, and intrinsic motivation was a significant predictor of task proficiency (B=.33, p<.01), thus confirming hypothesis (a). Adding the three-way interaction provided an incremental increase in R2 of .03 (p<.01). We used a technique for probing the calculation of regions of significance via the Johnson– Neyman technique (Table 2). Among employees reporting intrinsic motivation below 3.72 (3.6% of participants), political skill reduced the positive effect of adaptive selling behavior on individual task proficiency. For those with intrinsic motivation scores above 6.13 (21.4%), political skill augmented the positive effect of adaptive selling behavior on task proficiency. For those salespeople with intrinsic motivation scores above 3.72 and below 6.13, political skill did not moderate the relationship between adaptive selling behavior and task proficiency. Thus, the moderating effect of political skill on the relationship between adaptive selling behavior and individual task proficiency is, in itself, dependent on the salesperson’s intrinsic motivation. TABLE 2: Conditional Effect of Political Skill x AS* on ITP at Values of Intrinsic Motivation. Motivation Effect SE p LLCI ULCI 2.0000 -1.0972 .4427 .0139 -1.9693 -.2250 2.2500 -1.0142 .4163 .0156 -1.8344 -.1941 2.5000 -.9312 .3901 .0178 -1.6998 -.1627 2.7500 -.8433 .3642 .0207 -1.5657 -.1309 3.0000 -.7653 .3385 .0247 -1.4321 -.0985 3.2500 -.6823 .3132 .0303 -1.2993 -.0654 3.5000 -.5994 .2883 .0387 -1.1674 -.0314 3.7235 -.5252 .2666 .0500 -1.0504 .0000 3.7500 -.5164 .2641 .0517 -1.0366 .0038 4.0000 -.4334 .2405 .0728 -.9073 .0404 XXIX CONGRESO DE MARKETING AEMARK 2017 267 de 1617 ÍNDICE TRABAJOS Motivation Effect SE p LLCI ULCI 4.2500 -.3505 .2180 .1093 -.7800 .0791 4.5000 -.2675 .1969 .1756 -.6554 .1204 4.7500 -.1845 .1776 .2999 -.5344 .1653 5.0000 -.1016 .1608 .5283 -.4183 .2152 5.2500 -.0186 .1474 .8997 -.3089 .2717 5.5000 .0644 .1383 .6419 -.2080 .3368 5.7500 .1473 .1344 .2741 -.1174 .4121 6.0000 .2303 .1362 .0922 -.0381 .4987 6.1340 .2748 .1395 .0500 .0000 .5496 6.2500 .3133 .1435 .0300 .0306 .5960 6.5000 .3962 .1555 .0114 .0900 .7025 6.7500 .4792 .1712 .0055 .1420 .8164 7.0000 .5622 .1896 .0033 .1886 .9358 *AS=Adaptive selling, ITP=Individual task proficiency. Regarding individual task adaptivity, the three-way interaction term was not significant (B=.14, p=.16). Thus, hypothesis (b) was not supported. Specifically, political skill affects the strength of the relationship between adaptive selling behavior and individual task adaptivity, regardless of the salesperson’s intrinsic motivation. The three-way interaction of adaptive selling behavior, political skill, and intrinsic motivation was also a significant predictor of task proactivity (B=.44, p=<.001), thus confirming hypothesis (c). Adding the three-way interaction provided an incremental increase in R2 of .05 (p<.001). According to the Johnson–Neyman regions of significance (Table 3), among salespeople reporting intrinsic motivation below 3.90 (3.6% of participants), the interaction of political skill and adaptive selling was negatively related to individual task proactivity so that political skill reduced the positive effect of adaptive selling on individual task proactivity. For those with intrinsic motivation scores above 5.65 (54.0%), political skill augmented the positive effect of adaptive selling behavior on task proactivity. For those salespeople with intrinsic motivation scores above 3.90 and below 5.65, political skill did not moderate the relationship p between adaptive selling behavior and task proactivity. Thus, we can conclude that the moderating effect of political skill on the relationship between adaptive selling behavior, and individual task proactivity is contingent on the salesperson’s level of intrinsic motivation. TABLE 3: Conditional Effect of Political Skill x AS* on ITProa at values of intrinsic motivation. Motivation Effect SE p LLCI ULCI 2.0000 -1.3448 .4523 .0033 -2.2360 -.4537 2.2500 -1.2342 .4254 .0041 -2.0722 -.3962 2.5000 -1.1236 .3986 .0052 -1.9088 -.3383 2.7500 -1.0129 .3721 .0070 -1.7459 -.2799 3.0000 -.9023 .3458 .0097 -1.5836 -.2210 3.2500 -.7916 .3200 .0141 -1.4220 -.1613 3.5000 -.6810 .2946 .0217 -1.2614 -.1006 3.7235 -.5704 .2698 .0356 -1.1019 -.0389 3.7500 -.5021 .2549 .0500 -1.0042 .0000 XXIX CONGRESO DE MARKETING AEMARK 2017 268 de 1617 ÍNDICE TRABAJOS Lankau, M. J., & Scandura, T. A. (2002). An investigation of personal learning in mentoring relationships: Content, antecedents, and consequences. Academy of Management Journal, 45(4), 779-790. Li, J., Sun, G., & Cheng, Z. (2017). The Influence of Political Skill on Salespersons’ Work Outcomes: A Resource Perspective. Journal of Business Ethics, 141(3), 551-562. Logan, S., Medford, E., & Hughes, N. (2011). The importance of intrinsic motivation for high and low ability readers’ reading comprehension performance. 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