Sales Territory Design, Firm Characteristics, Training and Salesforce Performance in the Detergent Manufacturing Companies in Kenya

Abstract

The broad objective of the study was to determine the effect of sales territory design on salesforce performance in the detergent manufacturing companies in Kenya. The study further adopted firm characteristics and salesforce training as moderators in the relationship between sales territory design and salesforce performance. These relationships were tested using null hypothesis. A conceptual model was developed, and from it, six hypotheses were formulated to determine both direct and indirect relationships among the variables. Specifically, the study sought to establish the relationship between sales territory design and salesforce performance; the relationship between firm characteristics and salesforce performance; moderating effect of firm characteristics on the relationship between sales territory design and salesforce performance; the relationship between salesforce training and salesforce performance; the moderating effect of salesforce training on the relationship between sales territory design and salesforce performance and the joint effect of sales territory design, firm characteristics and salesforce training on salesforce performance.The study had six corresponding null hypotheses. Motivation for the study arose from an observatory experience on detergent sales promotions in the mainstream supermarkets in Kenya. Research problem of the study showed that there is conflicting literature about the extent to which sales territory design can influence salesforce performance. However, extant literature has shown that firm characteristics and training can strengthen the relationship between sales territory design and salesforce performance. The study was anchored on the resource advantage theory; resource based view; human capital theory and agency theory. The study was based on descriptive cross sectional survey because it was testing the relationships quantitatively at one point in time. The population of the study was 557 salespeople in the detergent manufacturing companies who were members of Kenya association of manufacturers. The unit of analysis was the salesperson. The sample size of the study was 326 salespeople. Primary data was collected from the respondents who were chosen through a simple random sampling method by use of structured questionnaires. Data was analyzed by use of linear regression models. The response rate of the study was 74 %. The study met reliability and validity tests. All the hypotheses test results were significant, hence all the null hypotheses were rejected. Findings of the first hypothesis showed that sales territory design influence salesforce performance (R2 = 0.698), findings of the second test of hypothesis showed that firm characteristic influences salesforce performance (R2 = 0.534), findings of the third test of hypothesis showed that firm characteristics strengthens the relationship between sales territory design and salesforce performance (R2 = 0.754); findings of the fourth test of hypothesis showed that training influences salesforce performance (R2 = 0.507); the findings of the fifth test of hypothesis showed that training strengthens the relationship between sales territory design and salesforce performance (R2 = 0.759); the findings of the joint effect of sales territory design, firm characteristics and salesforce training on salesforce performance showed that there is significant influence of the variables on salesforce performance (R2 = 0.728). The study findings contributed to theory, policy and practice in the field of marketing.The study limitation was as a result of Covid-19 pandemic that restricted access to the company premises and that made it difficult to directly distribute the questionnaires to the respondents, however measures were taken to manage the limitation by involving the human resource managers and sales managers.The study recommends that a similar study should be done using a longitudinal approach for the generalization of the results.