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Keywords: Salespeople feel connected to their coworkers when they know they can depend on and talk with one another.
Connectedness Employing social exchange theory, this study investigates the impact of connectedness on salesperson perfor-
Internal volatility mance. Specifically, the paper reveals the processes by which this relationship occurs, and the conditionality of
Performance the process itself. In fact, connectedness increases performance by one of two paths or both, depending on
Salespeople
internal volatility. Specifically, connectedness increases performance either through sales strategy im-
Sales strategy implementation
plementation or through selling effort, or both. The findings show that under conditions of high internal vola-
Selling effort
tility, such as manager turnover, connectedness increases performance via sales strategy implementation. Under
conditions of low internal volatility, connectedness increases performance through selling effort. In this scenario,
management provides the sales strategy allowing salesperson interaction to focus on motivating selling effort,
resulting in higher levels of performance. Under conditions of average internal volatility, connectedness in-
creases performance through both sales strategy implementation and selling effort. This research contributes to
the industrial sales literature, both theoretically and managerially, by illuminating the value of connectedness
within the sales force.
1. Introduction not only decreases job performance, but also increases health problems.
Like disconnected employees, those who are ostracized have a greater
Imagine you are working as a salesperson in a stable work en- tendency toward experiencing distress and diminished self-esteem.
vironment with the same boss and unchanging job responsibilities. Furthermore, it negatively affects job performance, particularly in-role
Moreover, you feel connected to your colleagues. Your work perfor- performance and organizational citizenship behavior (Ferris, Lian,
mance is enhanced through the mutual reliability between you and Brown, & Morrison, 2015). Specifically, these studies suggest that
your coworkers. Now, consider a dramatic change in your environment. salesperson performance suffers from coworker isolation and os-
Your manager changes, along with the duties of your job. The ambi- tracization. As a result, this raises the question of whether salesperson
guity in this new work environment leads to a change in how you in- productivity would benefit from coworker connectedness. The
teract with your colleagues. You realize that you now depend on them Merriam-Webster dictionary (1828) defines ‘to connect’ as “to put or
less for motivation and more for determining how best to do your job. bring together so as to form a new and longer whole.” Further, it defines
Interestingly, your connectedness with colleagues seems to fill different ‘connection’ as “a relation of personal intimacy (as of family ties).”
needs for you based upon the stability of your work environment. Social exchange theory identifies that social connections can potentially
Existing research suggests that employee disconnectedness nega- yield economic benefits (Blau, 1964; Thibaut & Kelley, 1959). However,
tively influences job satisfaction, organizational commitment (Mulki, research has not specifically addressed how social connectedness be-
Locander, Marshall, Harris, & Hensel, 2008), and extra-role perfor- tween coworkers can produce economic benefits for salespeople.
mance, while increasing turnover intentions (Mulki & Jaramillo, 2011). This research gap warrants attention for three primary reasons.
Disconnected employees also believe that they suffer from a lack of First, it echoes the need and significance of coworker connectedness
mentorship and career support, which, in turn, decreases their oppor- (Huang & Liu, 2017), which researchers have minimal understanding of
tunities for project assignments and advancement (DeSanctis, 1984; in an industrial sales setting. Second, no research studies investigate the
Fitzgerald, 1994). Chen and Kao (2012) find that being disconnected process(es) by which connectedness leads to performance. Third, an
⁎
Corresponding author.
E-mail addresses: elnowlin@ksu.edu (E.L. Nowlin), dmwalker@ksu.edu (D. Walker), nanaza@business.siu.edu (N.A. Anaza).
https://doi.org/10.1016/j.indmarman.2017.10.007
Received 10 January 2017; Received in revised form 11 October 2017; Accepted 12 October 2017
Available online 12 November 2017
0019-8501/ © 2017 Elsevier Inc. All rights reserved.
E.L. Nowlin et al. Industrial Marketing Management 68 (2018) 106–113
investigation explaining the conditionality of these processes is lacking foundation for an on-going exchange and the development of a long-
in an industrial sales context. In this study, coworker connectedness term social exchange relationship (Cropanzano & Mitchell, 2005). Thus,
refers to the extent salespeople have coworkers available to them for reciprocity acts as the basis of the interdependent and mutual ex-
conversations, social engagement, and relationship building. Coworker changes.
connectedness is the opposite of coworker isolation. Isolated employees Relationships can develop from economic exchanges or social ex-
feel a lack of social connection (Marshall, Michaels, & Mulki, 2007); changes (Bishop, Scott, & Burroughs, 2000). Economic exchanges are
whereas, connected employees experience high levels of closeness and exchanges for something of equal or greater value. Conversely, social
interaction with people in their organizational circle. exchanges include an emotional connectedness, loyalty, and a shared
To advance our understanding of the importance of social connec- identity. An important aspect of social exchange theory is that a per-
tions in the sales context, this research study uses social exchange son's actions or responses to actions are based upon the type of emotive
theory to investigate how coworker connectedness increases perfor- attachment he or she has with another individual (Walumbwa &
mance. Specifically, it explores how coworker connectedness improves Schaubroeck, 2009). Salespeople create emotional attachment with one
salespeople's performance through either the increase of selling skills another through the common challenges they experience in trying to
and capabilities (i.e., sales strategy implementation), or through the achieve sales objectives and success.
increase of selling effort, or both. In addition, this study considers the According to social exchange theory, benefiting from the opportu-
selling environment in which social exchange occurs, because research nity to discuss one's challenges creates an obligation for the receiving
indicates that external and internal factors can influence exchange re- party to respond in kind (Lambe, Wittmann, & Spekman, 2001). The
lationships. For example, Achrol and Stern (1988) find that external receiving party should then be willing to listen to coworkers' concerns,
forces influence exchange relationships among channel members. As a which produces a beneficial interdependence. On the relationship scale
result, this makes internal coordination mechanisms less effective, of economic to social exchanges, colleague connectedness is firmly
while increasing the degree of decision-making uncertainty. Thus, this ensconced as a social exchange. Hence, high levels of colleague con-
study considers how internal conditions and changes (i.e., internal nectedness suggest that salespeople would help their colleagues in
volatility) influence the relationship between salespeople's connected- need. Two needs that salespeople have include: a) successfully im-
ness with coworkers and their performance. The simultaneous evalua- plementing sales strategy and b) maintaining high selling effort.
tion of sales strategy implementation, which is planning based; and Sales strategy implementation refers to the extent to which the ex-
selling effort, which is motivation based; is critical in revealing the ecution of sales strategy and strategic effort is considered successful
potential differential effects of coworker connectedness. In addition, (Noble & Mokwa, 1999). Strategists contend that strategic im-
this research investigates whether the process through which coworker plementation should be the starting point as well as the underlying
connectedness influences performance is dependent upon work en- model for how salespeople plan to attain organizational goals
vironment. Specifically, this research proposes the following research (Hambrick and Fredrickson, 2001). In fact, strategic implementation is
questions: a key predictor for superior employee performance (Porter, 1996).
Following this logic, we premise that being connected to coworkers and
1. Does salespeople's connectedness to their colleagues influence their strategic implementation are positive resources vital for operational
performance? effectiveness. Nevertheless, how salespeople draw upon these resources
2. If so, what is (are) the process(es) by which this occurs? vary according to the internal conditions in which they find themselves.
3. And are these processes conditional? This means that different levels of internal volatility alter the type of
connectedness that a salesperson requires from his or her coworkers.
For example, under some circumstances, coworker connectedness Internal volatility (i.e., structural flux) refers to “the rate at which an
may lead to a focus on sales strategy implementation while shifting the organization changes its structure, rules, personnel, and procedures”
concentration away from selling effort. Conversely, under other cir- (Maltz & Kohli, 1996, p. 52). Under conditions of high internal volati-
cumstances, coworker connectedness leads to an emphasis on selling lity, there is a greater dependence on coworkers to provide guidance on
effort rather than sales strategy implementation. This study investigates how best to implement their sales strategy. Maltz and Kohli (2000) link
these conditions from an internal volatility perspective. selling atmospheres with high internal turbulence to conflict. The au-
This paper makes several contributions. First, this study introduces thors argued that internal turbulence prevented salespeople from col-
coworker connectedness to the sales literature. Second, the findings laborating in a strategic manner with others in the firm and directly
grounded in social exchange theory demonstrate that coworker con- fostered conflict (Maltz & Kohli, 1996).
nectedness is a driver of performance in a sales context. Third, the High internal turbulence breeds frequent managerial changes and
paper reveals multiple processes by which this effect occurs. Fourth, the uncertain structural adjustments that hinder sales performance (Maltz
findings show that the total effect of connectedness on performance is & Kohli, 1996). For example, the constant coming and going of man-
conditional on internal factors. This study not only makes these con- agers creates a gap in pragmatic leadership that undermines the suc-
tributions to the literature, but also has important implications for cessful implementation of sales strategy. Under this scenario, coworkers
managers. would take on any absent upper management roles by providing gui-
dance to colleagues that need it, thus increasing the implementation of
2. Literature review sales-focused strategies (Panagopoulos & Ogilvie, 2015). In fact, Maltz
and Kohli (1996) argue that when internal volatility is high, integrating
Social exchange theory provides the theoretical background for this mechanisms that foster coworker closeness should decrease interfunc-
study. This theory explains how norms of reciprocal behavior occur tional conflict. Connectedness, a version of coworker closeness, can be
within an organizational context with economic and/or social benefits considered an integrating mechanism that encourages salespeople to
(Blau, 1964; Thibaut & Kelley, 1959). If one individual benefits from work as a team. Thus, ensuring that the selling process is moving right
this reciprocal exchange, then that individual should respond in kind along, particularly when everything around them appears uncertain.
(Gergen, 1969). Meaning, one salesperson's actions are dependent upon The heightened uncertainty during volatile times can only yield
another salesperson's behavior, creating a sense of interdependence, positive effects if salespeople pool together their strategic efforts and
which reduces risk and encourages cooperation (Molm, 1994). With capabilities to enhance performance. The strategic consensus needed
this norm or exchange rule, one salesperson engages in a behavior that for sales strategy implementation can only manifest itself when sales-
benefits another salesperson. If the other salesperson reciprocates, then people are connected. Although existing research has yet to investigate
additional rounds of exchanges will occur. This interaction provides the coworker connectedness, it does identify a positive relationship
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E.L. Nowlin et al. Industrial Marketing Management 68 (2018) 106–113
Table 1 supported if the effect in Eq. (5) is greater than the effect in Eq. (6)
Constructs, items, and measurement model. when internal volatility is high.
Construct Factor loading⁎
5. Measures
Connectedness (α = 0.915)
I have friends available to me at work 0.786
A variety of latent measures was used in this study. The items for
I have one or more co-workers available who I talk to about 0.732
day-to-day problems at work each construct, factor loadings, and reliabilities are reported in Table 1.
I have co-workers available whom I can depend on when I have 0.859 Connectedness was measured using a scale developed by Marshall et al.
a problem (2007). The scale was modified to fit the context of this study. Five of
I have enough people available at work with whom I can talk 0.875 the six items from Maltz and Kohli's (1996) internal volatility scale were
about my job
I have people around me at work 0.715
used. Substituting “sales” for “marketing” in each item, four of the 5
I have people I can turn to at work 0.850 items from Noble and Mokwa's (1999) scale were used to measure the
Internal volatility (α = 0.892) effectiveness of sales strategy implementation. Selling effort was mea-
The way we do things in our department keeps changing 0.745 sured using a 3-item scale developed by Sujan et al. (1994). Salesperson
You can never tell when you're going to have a new boss 0.777
performance was assessed with Behrman and Perreault's (1982) scale
around here
You never know when your job is going to change in this 0.872 measuring salesperson performance across seven categories.
business unit Several variables were incorporated into the performance equation
The only thing you can be sure of in my department is that 0.820 as controls. Sales experience and tenure with the current firm have both
something is going to change been found to be positively correlated with performance. Internal
It seems like we are always reorganizing 0.741
competition among salespeople, distinct from connectedness, was also
Sales strategy implementation (α = 0.880)
Our sales strategy was effectively implemented 0.777 included, based on a 4-item scale from Anaza and Nowlin (2017). The
The implementation of our sales strategy was generally 0.766 salesperson's education level (i.e., college degree or higher), was also
considered to be a success considered.
I personally think that the implementation of the sales strategy 0.852
All of the latent constructs used 7-point, Likert-type scales, with the
was a success
The implementation of the sales strategy was considered a 0.833 exception of the 5-point, Likert-type scales for internal volatility and
success in my area sales strategy implementation.
Selling effort (α = 0.759)
I work long hours to meet my sales objectives 0.614
I do not give up easily when I encounter a difficult customer 0.735
5.1. Confirmatory factor analysis
I work untiringly at selling a customer until I get an order 0.804
Performance (α = 0.921) A confirmatory factor analysis (CFA) was conducted using MPlus 7.
Rate your contribution to … The CFI (0.936) and RMSEA (0.061) indicate an adequate fit.
Your company's market share 0.684
Reliabilities were assessed with Cronbach's alphas reported in Table 1.
Selling high profit margin products or services 0.791
Generating a high level of dollar sales 0.877 The alphas exceed the 0.70 level as prescribed by Nunnally (1978).
Quickly generating sales of new products 0.761 Additional properties of the latent constructs are presented in Table 2.
Identifying major accounts in your territory and selling to 0.790 Convergent validity was established with significant standardized item
them loadings on their underlying proposed factors (Bagozzi and Youjae,
Exceeding sales targets 0.837
1988). The composite reliabilities all exceeded 0.70, and discriminant
Assisting your sales supervisor meet his or her goals 0.791
Internal competition (α = 0.962) validity is evident given that the average variances extracted exceed the
Some of my co-workers are hostile to one another: shared variances (Fornell & Larcker, 1981). Composites of the model
when one co-worker outperforms the rest 0.892 constructs were used in the analysis to aid in the estimation of the
when one co-worker appears to have more advantages 0.958
conditional model and to allow for clear tests of the hypotheses.
when one co-worker has a better relationship with the 0.961
manager
when one co-worker achieves more with less effort 0.904 5.2. Common method bias
⁎
Significant at the 0.05 level.
The marker variable technique (Lindell & Whitney, 2001) was used
as an empirical test for method bias, where the smallest correlation in
And the final term is the direct effect of connectedness on perfor- the correlation matrix is used as a conservative estimate of bias. The
mance, δ3. lowest correlations (absolute value of 0.02) exist between connected-
The hypotheses will be tested by comparing the indirect effects ness and internal competition as well as between selling effort and in-
shown in Eqs. (5) and (6). H1 will be supported if the effect in Eq. (5) is ternal competition (see Table 2). The correlations were adjusted and
less than the effect in Eq. (6) when internal volatility is low. H2 will be then reassessed for statistical significance, consistent with the
Table 2
Descriptive statistics and correlations of study variables (N = 230).
1 Connectedness 5.73 0.83 0.92 0.65 0.02 0.23 0.04 0.09 0.00
2 Internal volatility 2.69 0.82 0.89 − 0.13 0.63 0.15 0.00 0.00 0.20
3 Sales strategy implementation 3.93 0.69 0.88 0.48⁎ − 0.39⁎ 0.65 0.09 0.17 0.04
4 Selling effort 5.51 0.80 0.76 0.20⁎ − 0.06 0.30⁎ 0.52 0.24 0.00
5 Performance 5.40 0.80 0.92 0.30⁎ − 0.03 0.41⁎ 0.49⁎ 0.63 0.01
6 Internal competition 3.83 1.68 0.96 − 0.02 0.44⁎ − 0.19⁎ 0.02 0.12 0.86
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prescribed test. The significance among the correlations in Table 2 re- mediation-only model, following Zhao, Lynch, and Chen (2010). As a
mained after the adjustments, providing no evidence of common result, our findings fully support the conceptual model shown in Fig. 1.
method bias.
We also conducted a more sophisticated test of bias using Williams, 7. Discussion
Hartman, and Cavazotte's (2010) CFA marker technique. The latent
construct “knowledge hoarding” was used as the marker variable in the Research suggests that employee feelings of disconnectedness ne-
test – a variable theoretically unrelated to the substantive variables in gatively affect their performance (Chen & Kao, 2012; Mulki et al., 2008;
the model. Knowledge hoarding concerns the predisposition to accu- Mulki & Jaramillo, 2011). Yet, research does not address how sales-
mulate and store information (Anaza & Nowlin, 2017), a behavior people's social connections with coworkers improve their performance.
distinct from the phenomena included in the model. The test assesses Using survey data from business-to-business salespeople, this study
the impact the variance of the marker variable has on the substantive investigates this issue. We also investigate the mediating mechanisms
factor correlations (i.e., structural parameters). In the unconstrained through which coworker connectedness influences salesperson perfor-
model, the correlations between the substantive constructs are esti- mance. The study's findings offer several theoretical contributions as
mated. However, those same correlations are fixed at the values from well as relevant managerial insights.
the baseline model in the restricted model. No statistically significant
difference was found between the two models (difference 7.1. Theoretical implications
in = 0.742 < critical value = 18.307). Thus, validating the finding
from the simple marker variable test that method bias does not appear First, we introduce coworker connectedness to the sales literature.
to be present. Prior to this work, we are unaware of any existing research addressing
connectedness in a marketing or sales context. This study finds that
6. Results salespeople's level of connectedness to their colleagues has a positive
impact on their performance through two mediating processes. This
Five thousand bootstrapped samples were drawn using MPlus to study also finds that the size of this effect is not conditional on the
assess the conditional and indirect effects, following Preacher and volatility of the workplace (i.e., the sum of the indirect effects are not
Hayes (2008). The model parameter estimates appear in Table 3. As conditional upon internal volatility). The implication is that the more
shown in the table, connectedness impacts both sales strategy im- salespeople feel connected to their coworkers, the more these feelings
plementation and selling effort, when internal volatility is at its mean of connection will translate into higher levels of sales performance via
[β1 = 0.277, 95% CI (0.189, 0.382) and γ1 = 0.184, 95% CI (0.031, selling effort and strategy implementation.
0.354); respectively]. And both sales strategy implementation and Second, this study contributes to social exchange theory by applying
selling effort affect performance [δ1 = 0.382, 95% CI (0.181, 0.581) the theory in a new context and explaining the relationship between
and δ2 = 0.264, 95% CI (0.132, 0.397); respectively]. employee connectedness and salesperson performance. Empirically, the
However, our substantive interest lies in the indirect effects of study demonstrates how coworker connectedness yields the economic
connectedness on performance via sales strategy implementation and benefits of higher levels of sales performance. Contemporary sales re-
selling effort. As shown in Table 3, the indirect effect of connectedness search has often used social exchange theory to study relational ex-
on performance via sales strategy implementation is conditional on changes between business partners with trust and commitment oper-
internal volatility (see Eq. (5)). At low levels of internal volatility, the ationalized as key constructs of the theory (e.g., Lambe et al., 2001).
indirect effect is not significant, but the effect is significant at higher Until this study, researchers had not captured an equally relational
levels of internal volatility. This is displayed graphically in Fig. 2 using facet of social exchange. For instance, connectedness that triggers not
a floodlight analysis (Spiller, Fitzsimons, Lynch Jr., & McClelland, only economic outcomes (e.g., selling effort and performance), but also
2013), indicating the ranges of internal volatility at which the indirect the strategic outcome of sales strategy implementation. This study thus
effects are significant (i.e. Johnson-Neyman points). As shown in the introduces connectedness as a critical relational motivator for social
Figure, connectedness has a significant indirect effect on performance and economic exchanges.
via sales strategy implementation when internal volatility is above Third, this study reveals the processes by which connectedness
− 1.34 standard deviations below the mean of internal volatility. impacts performance and shows that the mechanism is conditional.
The indirect effect of connectedness on performance via selling ef- Historically, internal volatility is considered a telltale sign of in-
fort is also conditional on internal volatility (see Eq. (6) and Fig. 3a). At traorganizational conflict (De Gregorio, Cheong, & Kim, 2012). Inter-
high levels of internal volatility, the indirect effect is not significant, but estingly, our research provides empirical evidence showing internal
the effect is significant at lower levels of internal volatility. This is also volatility playing a moderating role. Our study reveals that when in-
shown in Fig. 2, with the Johnson-Neyman point indicating that the ternal volatility is high, connectedness is primarily manifested in
indirect effect is significant when internal volatility is below 0.6 stan- salespeople supporting each other by filling the voids in management
dard deviations above the mean of internal volatility. functions (i.e., strategy implementation). However, the path from
The hypotheses can be tested using these depictions. When internal connectedness to performance via selling effort is no longer significant.
volatility is low (− 1.34 standard deviations below the mean) the in- When volatility is low, management is effectively handling strategy
direct effect of connectedness on performance via sales strategy im- implementation. Moreover, the support and encouragement among
plementation (see Eq. (5)) becomes insignificant [0.054, 95% CI (0.000, salespeople creates connectedness, which enhances their performance
0.132)], while the indirect effect of connectedness on performance via through higher levels of selling effort. However, the path from con-
selling effort (see Eq. (6)) is significant [0.076, 95% CI (0.008, 0.183)]; nectedness to performance via sales strategy implementation is no
supporting H1 (see Fig. 3b). longer significant. At mean levels of internal volatility, both paths are
Likewise, when internal volatility is high (0.6 standard deviations significant. This indicates that connectedness increases performance
above the mean) the indirect effect of connectedness on performance through both sales strategy implementation and selling effort. The
via sales strategy implementation (see Eq. (5) and Fig. 3c) is significant implication is that when the selling environment is experiencing just
[0.129, 95% CI (0.059, 0.227)]. Meanwhile the indirect effect of con- average levels of internal volatility, then connectedness increases
nectedness on performance via selling effort (see Eq. (6)) becomes in- salesperson performance both through selling effort and sales strategy
significant [0.036, 95% CI (0.000, 0.094)]; providing evidence for H2. implementation. These findings can be explained by social exchange
The direct effect of connectedness on performance (δ3) is not sig- theory in the sense that the exchange conditions between salespeople
nificant [0.119, 95% CI (− 0.035, 0.278)]. This finding indicates a are disrupted by environmental uncertainties. Yet, the utility involved
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Table 3
Parameter estimates.
Effect Parameters (see Eq. (1)-(6)) Parameter Bootstrapped lower 2.5% of Bootstrapped upper 2.5% of
estimate confidence interval confidence interval
⁎
Significant at 0.05 level.
indirect effect of
indirect effect of connectedness connectedness on
on performance via selling effort performance via sales
strategy
H2
implementation
H1
Johnson-Neyman Johnson-Neyman
point is -1.34 sd point is .6 sd
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E.L. Nowlin et al. Industrial Marketing Management 68 (2018) 106–113
in maintaining connected relationships can yield maximum benefits to However, the more the sales team is connected, the less productivity
performance. In the end, this outweighs the cost of being bogged down would be negatively affected by such disruption. In effect, this research
by structural changes often present in many selling environments. suggests that connectedness will offset the potential impact of in-
In effect, when internal volatility is high, connectedness to perfor- stabilities (i.e., high turnover, lack of oversight, etc…) on performance.
mance via sales strategy implementation is significant; whereas the Finally, a connected sales team offers managers insight into how
path via selling effort is not. Conversely, when internal volatility is low, they can effectively leverage their efforts to increase their salespeople's
connectedness to performance via selling effort is significant; whereas productivity. This means that in very volatile situations with a sales
the path via sales strategy effectiveness is not. While the valence of the team with high social connectedness, managers should narrow their
total effect of connectedness on performance (i.e., the sum of the two focus to helping their salespeople implement their sales strategy.
indirect effects) is not conditional on internal volatility, the process by Conversely, under conditions of low internal volatility, managers
which the effect occurs is. Importantly, the direct effect of connected- should encourage their salespeople's selling effort.
ness on performance in our model is not significant. Following Zhao
et al. (2010), this null finding along with the significance of the indirect
paths provides full support for our conceptual model. 7.3. Limitations and future research
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8. Conclusion Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with un-
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