Optimizing SFA Use to Maximize Sales Performance, Murat Serdaroglu

E-mail: murat.serdaroglu@merck.de Phone: +49 6151 729371

PhD Research Proposal

OPTIMIZING SALES FORCE AUTOMATION USE TO MAXIMIZE SALES

PERFORMANCE
Moderating Effects of Computer Self-Efficacy and Sales Experience
Murat Serdaroglu
University of Paderborn, Germany

Abstract
Existing SFA research mainly focuses on increasing the adoption and use of SFA by salespeople. However,
increased technology use does not always improve performance. This study will apply Task-Technology Fit
Theory and Task-Based Theory of Technology to test moderating effects of Computer Self-efficacy and
Sales Experience on the SFA and sales performance relationship. Performance effects of SFA is expected to
depend on individual characteristics of the salesperson. The study will open way for technology interfaces
and training sessions customized for different user-groups depending on their individual characteristics.

1. INTRODUCTION

The use of Sales Force Automation (SFA) systems is becoming widespread. More and more firms
in every industry are investing significant sums in SFA technologies with the goal of improving the
performance of their sales forces (Honeycutt 2005). Consequently, a growing body of academic
research focuses on this issue. Main areas of interest have been the adoption of SFA at individual
level (Avlonitis and Panagopoulos 2005; Jones et al. 2002; Keillor et al. 1997; Schillewaert et al.
2005; Speier and Venkatesh 2002) and technology implementation in selling organizations
(Erffmeyer and Johnson 2001; Parthasarathy and Sohi 1997; Rivers and Dart 1999) and
performance effect of SFA on salespersons (Ahearne et al. 2004; Schillewaert and Ahearne 2001).
An assumption in SFA adoption studies is that, more adoption of SFA will always improve sales
performance. In addition, there is little research on whether SFA improves sales performance of
every salesperson in same way (Ahearne et al. 2005). Individual differences among salespeople is
not received enough attention. The purpose of my research is to see which individual characteristics
moderate the relationship between sales technology and sales performance.

2. LITERATURE REVIEW

Optimizing Sales Force Automation

Technology adoption was originally a topic of IT research. Technology Acceptance Model (TAM)
is a still widely accepted and empirically tested model explaining adoption of technology by various
user groups in different contexts (Davis 1989). SFA adoption research is mainly based on this
general technology adoption research (Robinson et al. 2005; Schillewaert 2005). The main goal of
these papers is to increase use of technology by salespeople. An implicit assumption in these papers
is that increased technology use will always improve sales performance. Ahearne (2004) questioned
this assumption and empirically showed that this assumption is not always true. Technology has
diminishing returns in sales context, and technology use beyond a certain point will decrease
performance of salespeople (Ahearne 2004). In a successive study, Ahearne (2005) demonstrated
that training and support as facilitating conditions have a moderating effect on the performance
effect of SFA on sales performance. Salespeople who lack training and support failed to increase
their job performance even when they increased their technology use.

Task-Technology Fit
Another research stream has applied the Task-Technology Fit (TTF) model to explain adoption of
technology by users in different contexts (Dishaw and Strong 1999; Goodhue and Thompson 1995).
TTF model measures the match between the capabilities of the technology and demands of the task,
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 Optimizing SFA Use to Maximize Sales Performance, Murat Serdaroglu
E-mail: murat.serdaroglu@merck.de Phone: +49 6151 729371

that is, the ability of IT to support a task. TTF model posits that technology will be used only when
the functions available to the user support the activities of the user. Rational, experienced users will
choose those tools and methods that enable them to complete the task with the greatest net benefit.

Largely moving from the TTF theory, Mathiassen and Sørensen (2002) propose a Task-Based
Theory of Technology (TBT). TBT classifies technologies according to their functionalities and
links these to task categories based on complexity and uncertainty dimensions. TBT proposes that in
cases of inconsistency between the task and technology applied, the end-user may face an
unintended dysfuntionality (Mathiassen and Sørensen 2002, Sørensen et al. 2002). Such an
unintended dysfunctionality may be structure, information, interaction or transaction overload
depending on the complexity and uncertainty of the task and capabilities of the available
technology. If the problem at hand turns out to be more complex than originally intended, a system
standardizing the process will result in structure overload. If the task demands a more sophisticated
human intervention, a system automatically providing standardized information may result in
information overload. On the other hand, when a technology with networking capabilities is applied
to a task requiring high interaction between parties, interaction overload may be the result. Finally,
in situations where complex and uncertain tasks are attempted to be handled with technologies that
support coordination and standardized material, the result may be transaction overload. It should be
kept in mind that this kind of technology is the most complex and hardest to use of all technology
classes.

Computer Self Efficacy

Computer Self Efficacy (CSE) has been examined as an antecedent of technology use in Social
Cognitive Theory (Compeau and Higgins 1995) and as an antecedent of perceived ease of use
(Venkatesh and Davis 1996). CSE, as perceived technology expertise, may be defined as a judgment
of one's ability to use a computer. CSE construct has also been linked to the TTF in a study (Dishaw
2002).

Sales Experience
Another research stream investigates the relationship between experience of salespeople and
adoption of SFA. Keillor (1997) has compared the intention levels of more and less experienced
salespeople to adopt SFA technology. Similarly, Ko (2004) investigated the relationship between
SFA use and sales performance, where sales expertise and experience are moderators. Salespeople
with more experience and tech expertise benefited most from the SFA system. On the other hand,
experienced salespeople with less technology expertise benefited less from SFA when compared to
inexperienced salespeople with high technology expertise.

3. RESEARCH GAPS

While the assumption of positive and linear relationship between SFA and sales performance has
been rejected, further validation testing different moderators for that relationship is necessary
(Ahearne et al. 2004; Ahearne et al. 2005). For instance, Ahearne and others (2005) asked for
additional research for other moderating effects else than training and support. Ahearne et al. (2004)
called for additional research on moderating effects of technology expertise. Similarly, existing
research on TTF and CSE only investigates how to accelerate acceptance, as adoption research
(Dishaw et al. 2002). On the other hand, no study so far has investigated the negative effects of
unintended dysfunctionalities of SFA technology on sales performance. Finally, Mathiassen and
Sørensen (2002) did not consider moderator effects of user characteristics in their TBT theory.

4. RESEARCH OBJECTIVES

My research will go beyond technology adoption and investigate cases instead, where further SFA
use does not increase the performance of the salesperson. The moderating effects of CSE and sales
experience on the performance effect of SFA on individual salesperson will be the study's main
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 Optimizing SFA Use to Maximize Sales Performance, Murat Serdaroglu
E-mail: murat.serdaroglu@merck.de Phone: +49 6151 729371

focus. My research will apply TTF and TBT of Technology on the SFA context. My research will
check which technology overload cases might apply depending on salesperson characteristics. The
study will aim to find ways of optimizing SFA use for individual salespeople.

5. CONCEPTUAL FRAMEWORK AND HYPOTHESES

My research will investigate the moderating effects of CSE and sales experience on the relationship
between SFA and sales performance (figure 1). Based on the SFA literature, a diminishing return on
SFA is expected on sales performance beyond an optimal point. Such diminishing return may be
when a technology overload is experienced by salespeople. The type of technology overload
possibly faced will vary for every salesperson. Salesperson's perception of the sales task and
therefore the technology overload faced will depend on their CSE and sales experience (figure 2).
Experienced salespeople with CSE are expected to have the highest gains from SFA. Such users
have the capability to use more advanced features of a SFA system. The advanced features should
also be more productive features, meaning the extra usage time could be spent on using advanced
productive features of the technology (Ahearne et al. 2004, pp. 307). However, such salespeople
may face structure overload, if they perceive structural constraints from a SFA system automating
sales processes. On the other hand, experienced people with low CSE are expected to gain less from
SFA, with greater difficulty in locating the right information in SFA at the right time. Such
salespeople are expected to face information overload, where SFA provides them with excess
information. In contrast, inexperienced salespeople with high CSE are expected to apply SFA and
all communication technologies available, but they may end up with interaction overload. This
would be the result of using available technology beyond its original purpose and relying too much
on SFA in sales, which is a highly uncertain and complex task. Inexperienced and technophobic
salespeople, finally, have the risk of transaction overload. This may result from attempting to apply
advanced SFA functions on sales processes, although when the salesperson is competent on neither
SFA nor the sales process. The result will be the rejection of SFA. Ahearne et al. (2004) suspected
that unskilled or technophobic users will not achieve any productivity benefits or the relationship
will not be significant (pp. 307). Finally, salespeople who face no technology overload are expected
to have the highest effectiveness levels.

6. METHODOLOGY

The study is conducted under support of a global pharmaceutical and chemicals company with
headquarters in Darmstadt, Germany. The company provides access to its databases and sales forces
located in 54 countries for the research project. In order to measure the moderating effects of CSE
and sales experience, the study will apply a quantitative approach. Self reported tech use, CSE, sales
experience and perceived technology overload will be measured through survey method. Most of
these measures are already available in literature. Perceived technology overload measures will be
adapted from IT research. Sales performance will be measured by both self report and objective
sales performance data to be provided by the company. Reliability of measures will also be tested in
a pilot study.

7. IMPLICATIONS/ POTENTIAL CONTRIBUTION

This research will contribute to the stream of studies that question the implicit assumption that
increased technology use will always improve sales performance. This contribution will be made by
testing theories with a focus on technology functionality and task characteristics, a new approach in
this research stream. In practical perspective, understanding the differing relationships between
different tech expertise and sales experience classes of users can provide a basis for developing SFA
systems that interface differently with different classes of users. Current SFA/CRM software and
software training is marketed and provided in a “one size fits all” package. Validation of the
hypotheses of this research will lead to customized or adaptive user interfaces and training sessions,
based on the technology overload risks perceived by the user.
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 Optimizing SFA Use to Maximize Sales Performance, Murat Serdaroglu
E-mail: murat.serdaroglu@merck.de Phone: +49 6151 729371

Individual Characteristics:
Computer Self-Efficacy
Sales Experience

SFA Sales
Technology Performance
Use

Figure 1: Moderating Effect of Individual Characteristics

Low Task Uncertainty High Task Uncertainty

Computational Technology: Networking Technology:

Low Task High
Complexity
Standardizing Process Standardizing Connection CSE
Potentially Structure Overload Potentially Interaction Overload

Adaptive Technology: Collaborative Technology:

High Task Standardizing Information Standardizing Material Low
Complexity Potentially Information Potentially Transaction CSE
Overload Overload
High Sales Experience Low Sales Experience

Figure 2: The Complexity and Uncertainty dimensions of the task classifying technology into four
types, assembled with individual characteristics of Sales Experience and Computer Self-Efficacy

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 Optimizing SFA Use to Maximize Sales Performance, Murat Serdaroglu
E-mail: murat.serdaroglu@merck.de Phone: +49 6151 729371

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E-mail: murat.serdaroglu@merck.de Phone: +49 6151 729371

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