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  • 7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli

    1/13

    Why

    people

    quit:

    Explaining

    employee

    turnover

    intentions

    among

    export

    sales

    managers

    Evangelia Katsikea a,1, Marios Theodosioub,*, Robert E. Morgan c,2

    aAssistant Professor of Marketing, Department of Marketing and Communication, Athens University of Economics and Business, 76 Patission Street,

    10434 Athens, GreecebAssociate Professor of Marketing, Department of Business and Public Administration, School of Economics and Management, University of Cyprus,

    Kallipoleos 75, PO Box 20537, CY-1678 Nicosia, Cyprusc Sir Julian Hodge Chair of Marketing and Strategy, Cardiff Business School, Cardiff University, Colum Drive, Cardiff CF10 3EU, UK

    From afar it can appear to be glamorous, jetting off a couple of

    times

    per

    month

    to

    faraway,

    exotic

    destinations

    to

    close

    major

    deals.

    In

    truth

    it

    can

    be

    extremely

    hard

    work

    and

    is

    not

    a

    role

    for

    the faint hearted. Many export sales professionals that weve

    workedwith are renowned experts in airportdeparture lounges

    and

    unfortunately

    see

    little

    of

    the

    countries

    to

    which

    they

    travel

    (an

    International

    Recruitment

    Consultancy,

    2011).

    1. Introduction

    Sales organizations invest substantial financial and human

    resources in developing effective salesforces (Ahearne, Rapp,

    Hughes, & Jindal, 2010). To gain maximum return from this

    investment, organizations must be able to retain competent and

    experienced

    salespeople

    on

    a

    long-term

    basis

    (Homburg

    &

    Stock,

    2004). In practice, however, all sales organizations face a certain

    degree of salesperson turnover. Importantly though, evidence

    suggests

    that

    salespeople

    are

    the

    highest

    risk

    group

    in

    terms

    of

    staff

    turnover

    with

    some

    estimates

    between

    30%

    to

    70%

    per

    annum

    (JDH Group, 2011). This undesirable phenomenon results in the

    loss of knowledgeable and experienced salespeople, causes

    significant

    replacement

    costs,

    and

    has

    many

    other

    detrimental

    effects

    for

    the

    organizations

    (Noble,

    2008).

    The deleterious effects of salespeoples turnover are even more

    severe in the case of export sales organizations. In todays highly

    globalised

    and

    competitive

    international

    business

    environment,

    export

    sales

    managers

    play

    a

    critically

    important

    role

    in

    the

    development and implementation of effective export sales

    strategies and tactics. In small and medium sized firms in

    particular,

    export

    sales

    managers

    are

    commonly

    the

    only

    company

    personnel

    that

    travel

    overseas

    and

    make

    direct

    contact

    with

    foreign customers. Personal visits to foreignmarkets enable export

    sales managers to acquire valuable knowledge and first-hand

    experience

    regarding

    local

    market

    conditions

    and

    export

    customer

    requirements

    and

    preferences.

    The

    literature

    that

    informs

    existing

    knowledge regarding international sales personnel turnover is

    limited. Insights exist from expatriate adjustment theories,

    International Business Review xxx (2014) xxxxxx

    A R T I C L E I N F O

    Article history:

    Received 26 November 2012

    Received in revised form 11 July 2014

    Accepted 13 August 2014

    Available online xxx

    Keywords:

    Employee turnover

    Export sales

    Job satisfaction

    Management control

    Organizational structure

    A B S T R A C T

    Predictably, sales organizations invest substantialfinancial andhumanresources in developingeffective

    salesforces and yet salespeople are among the highest risk group in terms of staff turnover. For export

    sales settings, theorganizational consequencesof thisformof turnover areevenmore severe. This study

    develops a comprehensive conceptual model of seventeen hypothesized relationships among key

    structural, supervisory-related, and psychological factors, and examines this nomological network that

    leads to explaining export salesmanagers intentions to quit. Thefindings reveal the favorable impactof

    formalization and the unfavorable impact of centralization upon both role ambiguity and role conflict.

    The study finds that both formalization and centralization relate positively to the export sales

    management behavior control system. Role stressors deleteriously affect export sales managers job

    satisfaction, which in turn affects negatively intentions to quit. The study also discovers moderation

    effects of psychic distance and export sales managers experience.

    2014 Elsevier Ltd. All rights reserved.

    * Corresponding author. Tel.: +357 22893606; fax: +357 22895030.

    E-mail addresses: [email protected] (E. Katsikea), [email protected]

    (M. Theodosiou), [email protected] (R.E. Morgan).1 Tel.: +30 2108203417; fax: +30 2108203417.2 Tel.: +44 2920870001.

    G Model

    IBR-1140; No. of Pages 13

    Please

    cite

    this

    article

    in

    press

    as:

    Katsikea,

    E.,

    et

    al.

    Why people

    quit:

    Explaining

    employee

    turnover

    intentions

    among

    export

    sales

    managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009

    Contents

    lists

    available

    at

    ScienceDirect

    International Business Review

    journal homepage: www.elsevier .co m/locate / ibus rev

    http://dx.doi.org/10.1016/j.ibusrev.2014.08.009

    0969-5931/ 2014 Elsevier Ltd. All rights reserved.

    http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://www.sciencedirect.com/science/journal/09695931http://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://www.elsevier.com/locate/ibusrevhttp://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://www.elsevier.com/locate/ibusrevhttp://www.sciencedirect.com/science/journal/09695931http://dx.doi.org/10.1016/j.ibusrev.2014.08.009mailto:[email protected]:[email protected]:[email protected]://dx.doi.org/10.1016/j.ibusrev.2014.08.009
  • 7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli

    2/13

    voluntary employee turnover theories,job embeddedness theories

    as

    well

    as

    domestic

    sales

    theories.

    However,

    the

    particular

    role,

    intrinsic and extrinsic demands, and contextual determinants that

    confront the export sales manager mean that these theories, at

    best, only partially explain the high turnover rates that these

    personnel

    are

    victim

    of.

    Employee

    turnover

    presents

    many

    challenges

    for

    firms

    from

    the

    high replacement costs, demanding training requirements, loss of

    learning and experience effects, reduced morale among the

    remaining

    organizational

    members

    and

    the

    critical

    financial

    performance

    consequences

    (Reiche,

    2008). Established

    business

    relationships may be undermined, and valuable knowledge

    regarding certain export markets, as well as personal networks,

    may

    be

    lost.

    In

    addition,

    the

    export

    sales

    organizations

    will

    incur

    a

    significant

    replacement

    cost,

    whereas

    it

    may

    take

    many

    years

    before sales performance reaches previous levels in the affected

    markets. Thus, export sales organizations can benefit greatly by

    minimizing

    turnover

    rates

    among

    these

    employees.

    Surprisingly,

    the

    relevant

    literature

    devotes

    limited

    research

    on

    the

    factors

    the

    influence the role perceptions, job-related attitudes and behavior,

    work outcomes, and turnover rates of export sales personnel.

    The

    present

    study

    aims

    to

    enhance

    the

    existing

    body

    of

    knowledge

    regarding

    the

    determinants

    of

    export

    success

    by

    focusing on the role of the export sales manager. A review ofthe pertinent export marketing literature indicates that the vast

    majority

    of

    previous

    studies

    on

    export

    performance

    have

    exam-

    ined

    the

    impact

    of

    export

    marketing

    strategy

    elements,

    firm-

    specific factors and external/environmental influences (e.g.,

    Cavusgil & Zou, 1994; Leonidou, Katsikeas, & Samiee, 2002;

    Morgan,

    Kaleka,

    &

    Katsikeas,

    2004;

    Murray,

    Gao,

    &

    Kotabe,

    2011).

    Furthermore,

    within

    the

    rich

    research

    stream

    that

    examines

    the

    performance outcomes of export marketing strategy, attention has

    focused on the export strategy planning process and the planned

    export

    marketing

    strategy,

    whereas

    the

    implementation

    of

    planned export marketing strategy has been largely ignored

    (Morgan,Katsikeas,&Vorhies, 2012).Wepropose that export sales

    managers

    play

    a

    crucially

    important

    role

    in

    the

    implementation

    of

    export marketing strategies in specific foreignmarkets, as they arecommonly the only company personnel that have direct personal

    contacts with current and prospective foreign customers/distri-

    butors

    to

    promote

    exports

    and

    negotiate

    sales

    deals.

    As

    a

    result

    of

    their

    personal

    visits

    to

    foreign

    markets,

    export

    sales

    managers

    acquire valuable knowledge and first-hand experience regarding

    foreign customers needs and preferences and local market

    conditions,

    while

    at

    the

    same

    time

    have

    the

    opportunity

    to

    develop

    successful

    business

    relationships.

    In

    addition,

    export

    sales

    managers can directly assess export customers response to the

    strategic actions enacted by a firms export marketing plan.

    Therefore,

    export

    sales

    managers

    can

    significantly

    enhance

    an

    exporting

    firms

    external

    implementation

    effectiveness,

    as

    defined

    by

    Morgan, Katsikeas, and Vorhies (2012, p. 273).

    When

    an

    experienced

    export

    sales

    manager

    quits

    his/her

    job,the

    export

    organization

    loses

    a

    valuable

    resource

    that

    is

    extremely

    difficult,

    costly,

    and

    time

    consuming

    to

    replace,

    whereas

    in

    the

    meantime established profitable relationships with specific export

    customers may deteriorate. To safeguard the long-term perfor-

    mance

    of

    exporting

    operations

    exporting

    organizations

    must

    adopt

    appropriate

    management

    practices

    that

    will

    enable

    them

    to

    retain

    their most competent export sales managers on a long-term basis.

    This study aims to fill a notable gap in the extant export marketing

    literature

    by

    offering

    a

    comprehensive

    conceptual

    framework

    that

    explains

    how

    export

    sales

    managers

    form

    intentions

    to

    quit

    the

    export sales organization. The findings of this study provide useful

    insights to export executives in terms of the action they can take in

    order

    to

    predict

    quitting

    intentions

    and

    take

    appropriate

    measures

    in

    order

    to

    reduce

    this

    undesirable

    outcome.

    Our study makes also an important contribution to sales

    management

    theory

    by

    demonstrating

    that

    organizational

    struc-

    ture and management control systems are distinct but comple-

    mentary mechanisms that enable the export sales organization to

    direct the attitudes and behavior of export sales personnel toward

    desirable

    outcomes.

    Previous

    research,

    conducted

    predominantly

    in

    a

    domestic

    sales

    context,

    has

    focused

    on

    sales

    management

    control systems which are commonly implemented at the level of

    field salesmanagerswho are responsible formonitoring, directing,

    evaluating,

    and

    rewarding

    field

    salespeople

    (Anderson

    &

    Oliver,

    1987;

    Challagalla

    &

    Shervani,

    1996).

    In

    contrast,

    less

    research

    attention has been devoted on the role of organizational structure,

    which is an alternative form of control, usually determined at

    higher

    levels

    in

    the

    organizational

    hierarchy,

    but

    which

    can

    still

    be

    very

    effective

    in

    directing,

    influencing,

    and

    shaping

    the

    attitudes

    and behavior of salespeople (Jaworski, 1988). We posit that the

    role of organizational structure is increasingly important in the

    case

    of

    export

    sales

    organizations.

    The

    personal

    interaction

    between

    export

    sales

    managers

    (travelling

    abroad)

    and

    their

    immediate supervisors (based in the home-market) is seriously

    constrained as a result of the large geographicaldistances involved,

    and

    therefore

    traditional

    management

    control

    approaches

    become

    less

    effective.

    Organizational

    structure

    can

    eliminate

    this

    flaw

    by

    setting the decision-making boundaries for export sales managers,clarifying their lines of responsibility and authority, and deter-

    mining

    the

    nature

    of

    their

    relationship

    with

    their

    immediate

    supervisors.

    Finally, we expand the existing sales management literature by

    providing empiricalevidence regarding the chain-of-effectsamong

    key

    organizational,

    supervisory-related,

    and

    psychological

    factors

    that

    ultimately

    lead

    to

    the

    reduction

    of

    export

    sales

    managers

    intentions to leave the organization. Our study also theorizes, and

    empirically confirms, that within the export sales context, it is

    imperative

    to

    consider

    factors

    which

    reflect

    the

    inherent

    complexities in international business activities, or enable

    managers to deal with this complexity. In this respect, we examine

    the

    moderating

    effects

    of

    psychic

    distance

    and

    export

    sales

    managers experience.The rest of the article is organized as follows. The next section

    presents the conceptual framework of the study and develops

    research

    hypotheses.

    Section

    three

    presents

    the

    research

    method-

    ology,

    and

    section

    five

    reports

    the

    results

    of

    statistical

    analysis.

    The

    article concludes with a discussion of the key findings, managerial

    implications, limitations and directions for future research.

    2.

    Conceptual

    framework

    and

    research

    hypotheses

    Given the ubiquity of empirical studies devoted to employee

    turnover

    in

    the

    literature,

    it

    is

    incongruous

    to

    suggest

    that

    still

    little

    insight

    is

    available

    into

    why

    people

    quit

    their

    jobs

    (Lee,

    Gerhart, Weller, & Trevor, 2008). Turnover refers to the actual

    number

    of

    employees

    that

    leave

    an

    organization

    within

    a

    specifiedtime

    period

    (Jaramillo,

    Mulki,

    &

    Boles,

    2013). A

    high

    turnover

    rate

    has

    significant

    negative

    consequences

    for

    the

    firm

    that

    include

    increased costs and reduced effectiveness and efficiency in serving

    existing customers and prospects (Sager, Varadarajan, & Futrell,

    1988).

    Although

    salespeople

    may

    leave

    the

    organization

    for

    various

    reasons,

    most

    research

    attention

    has

    been

    devoted

    on

    identifying the factors that drive them to voluntarily resign from

    theirjob. Mobley (1977) proposes a model of the turnover process

    that

    includes

    various

    psychological

    and

    behavioral

    stages

    that

    precede

    an

    employees

    final

    decision

    to

    quit.

    A

    key

    proposition

    of

    this model is that a salesperson withdraws from thejob and starts

    exhibiting dysfunctional behavior (e.g., absenteeism, passive job

    behavior)

    well

    before

    actually

    quitting

    the

    job.

    Moreover,

    as

    Mobleys

    model

    suggests,

    job

    attitudes

    are

    more

    directly

    related

    E. Katsikea et al./ International Business Review xxx (2014) xxxxxx2

    G Model

    IBR-1140; No. of Pages 13

    Please

    cite

    this

    article

    in

    press

    as:

    Katsikea,

    E.,

    et

    al.

    Why people

    quit:

    Explaining

    employee

    turnover

    intentions

    among

    export

    sales

    managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009

    http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
  • 7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli

    3/13

    to withdrawal cognitions associated with the decisions to leave

    and

    only

    indirectly

    related

    to

    the

    actual

    turnover

    behavior

    (Mowday, Koberg, & McArthur, 1984, p.80). A number of empirical

    studies find that propensity to leave/intention to quit is the

    stronger predictor of actual turnover behavior (Johnston, Varadar-

    ajan,

    Futrell,

    &

    Sager,

    1987;

    Sager

    et

    al.,

    1988).

    The

    present

    study

    aims

    to

    expand

    the

    pertinent

    literature

    on

    salespeoples turnover to the context of export sales managers. As

    previously discussed, the negative consequences associated with

    export

    sales

    managers

    turnover

    are

    even

    more

    severe.

    Domestic

    sales

    organizations

    are

    often

    able

    to

    fill

    vacant

    sales

    positions

    in

    particular sales territories through transfers from nearby territo-

    ries. Although redesigning sales territories can still have devastat-

    ing

    effects

    on

    existing

    customersalesperson

    relationships,

    at

    least

    replacements

    will

    still

    operate

    within

    a

    familiar

    business

    environment. However, export sales organizations face a

    completely different situation. Finding a competent person to fill

    a

    vacant

    sales

    position

    in

    a

    specific

    export

    market

    may

    be

    extremely

    difficult,

    as

    valuable

    knowledge

    regarding

    environmen-

    tal and market conditions, business practices, and relationship

    norms that prevail in foreign markets accumulates after many

    years

    of

    personal

    experience

    and

    repeat

    visits

    to

    each

    market.

    Therefore,

    retaining

    competent

    and

    experienced

    export

    sales

    managers should be an important priority for export salesorganizations. Academic research can assist export sales organiza-

    tions

    to

    reduce

    turnover

    rates

    by

    investigating

    the

    factors

    that

    drive

    export

    sales

    managers

    to

    form

    turnover

    intentions,

    and

    this

    was the primary motive for the execution of this study.

    Given the lack of relevant studies in an export marketing

    context,

    we

    reviewed

    the

    mainstream

    sales

    management

    literature

    for

    insights

    regarding

    the

    key

    antecedents

    of

    salespeoples

    propensity to leave a sales organization. Our objective was not

    only to identify the immediate precursors of intentions to leave,

    but

    also

    to

    adopt

    a

    backward

    induction

    process

    in

    order

    to

    establish a sequence of effects that ultimately leads to export sales

    managers propensity to leave. We also tried to develop a concise

    conceptual

    model,

    capable

    of

    explaining

    a

    significant

    percentage

    of

    the variance of propensity to leave, but without adding unneces-sary complexity by including variables whose contribution in

    explaining additional variance is negligible.

    Drawing

    on

    the

    extant

    sales

    management

    literature,

    and

    integrating

    insights

    from

    our

    pre-study

    interviews,

    we

    developed

    the conceptual model outlined in Fig. 1. In particular, we propose

    that

    export

    sales

    managers

    propensity

    to

    leave

    is

    directly

    influenced by their level of job satisfaction. In turn, job stress, as

    determined by role ambiguity and role conflict, is the main

    antecedent of export salesmanagersjob satisfaction. Based on our

    conceptualization,

    export

    sales

    organizations

    can

    reduce

    export

    sales

    managers

    role

    stress

    by

    employing

    appropriate

    control

    mechanisms, at two different levels. At the lower level, the export

    sales management control system focuses on the working

    relationship

    between

    an

    export

    sales

    manager

    and

    his/her

    immediate

    supervisor.

    In

    this

    study,

    we

    focus

    on

    sales

    manage-

    ment behavior control, which involves the activities which

    supervisors undertake in order to influence the behavior of export

    sales

    managers

    and

    provide

    appropriate

    encouragement,

    guidance

    and

    support

    (Anderson

    &

    Oliver,

    1987;

    Challagalla

    &

    Shervani,

    1996). At a higher level, the top management of an export sales

    organization designs an appropriate organizational structure that

    determines

    the

    job

    duties

    and

    responsibilities

    of

    export

    sales

    managers

    and

    their

    immediate

    supervisors,

    the

    delegation

    of

    decision making authority at different hierarchical levels, and the

    rules, policies and procedures that organizationalmembers should

    follow

    in

    performing

    their

    job.

    According

    to

    Jaworski

    (1988,

    p.

    27)

    although

    structure

    is

    not

    part

    of

    the

    traditional

    management

    control system, it should be considered as an additional form ofcontrol, insofar as it directs, influences, and shapes individual and

    group

    behavior.

    Furthermore,

    as

    a

    higher-level

    control

    mechanism,

    organizational

    structure

    influences

    the

    employment

    of

    an

    effective

    sales management control system.

    Our conceptual model includes also two moderating variables,

    psychic

    distance

    and

    export

    sales

    managers

    experience,

    which

    capture

    to

    some

    extent

    the

    unique

    circumstances

    faced

    by

    export

    sales organizations. Psychic distance is defined as the perceived

    differences between the home country and the foreign country in

    terms

    of

    economic

    development,

    climatic

    conditions,

    lifestyles,

    consumer preferences, language, education, and cultural values

    (Sousa&Bradley,2006). The internationalizationprocess literature

    suggests

    that

    firms

    are

    more

    familiar

    with

    psychologically

    close

    countries, and therefore canmanage better their operation in thesecountries than in more distant ones (Johanson & Vahlne, 1977).

    Therefore, export sales managers should be more familiar with

    business

    practices

    and

    market

    conditions

    in

    psychologically

    close

    countries,

    and

    have

    a

    thorough

    knowledge

    and

    understanding

    of

    Formalization

    Centralization

    Export Sales

    Management

    Control

    Role

    Ambiguity

    Role

    Conflict

    Job

    Satisfaction

    Propensity to

    Leave

    Psychic Distance

    Psychic Distance

    Export sales

    manager

    experience

    Fig. 1. A conceptual model of organizational structure, export sales management control, job satisfaction, and propensity to leave.

    E. Katsikea et al./ International Business Review xxx (2014) xxxxxx 3

    G Model

    IBR-1140; No. of Pages 13

    Please

    cite

    this

    article

    in

    press

    as:

    Katsikea,

    E.,

    et

    al.

    Why people

    quit:

    Explaining

    employee

    turnover

    intentions

    among

    export

    sales

    managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009

    http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
  • 7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli

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    export customers characteristics, preferences, requirements, and

    purchasing

    habits.

    Therefore,

    we

    expect

    that

    control

    mechanisms

    (i.e., organizational structure and sales management control) will

    have a stronger impact on export sales managers role stress in

    more distant export markets. Similarly, experienced export sales

    managers

    are

    more

    capable

    in

    coping

    with

    the

    uncertainty

    and

    complexity

    inherent

    in

    international

    business

    activities.

    Conse-

    quently, an export sales management control system is likely to be

    more effective in reducing the role stress of less experiencedexport

    sales

    managers.

    We develop

    the

    rational

    for

    each

    of

    the

    hypothesized

    relationships

    in

    the

    following

    paragraphs.

    2.1. Organizational structure and role stress

    During

    the

    past

    four

    decades,

    empirical

    research

    examined

    the

    negative influence of role stress on important sales job outcomes

    like job satisfaction, organizational commitment and job perfor-

    mance

    (Netemeyer,

    Brashear-Alejandro,

    &

    Boles,

    2004).

    By

    contrast,

    the

    organizational

    factors

    that

    can

    potentially

    contribute

    towards reducing role stress receivedmuch less researchattention.

    Role stress consists of role ambiguity and role conflict (Johnson &

    Sohi,

    2014). Role

    ambiguity

    is

    the

    extent

    to

    which

    an

    individual

    is

    uncertain

    about

    the

    expectations

    of

    role

    partners,

    whereas

    role

    conflict refers to the perceived incompatibility among roleexpectations and demands (e.g., from supervisors, customers,

    policies)

    (Rizzo,

    House,

    &

    Lirtzman,

    1970). Thus,

    in

    order

    to

    effectively

    handle

    feelings

    of

    role

    stress

    among

    their

    export

    sales

    managers, export sales organizations must find ways to reduce the

    uncertainty surrounding their job, and assist them in handling

    conflicting

    requests

    and

    demands.

    Organizational

    structure

    can

    serve

    as

    an

    effective

    control

    mechanism

    and

    contribute

    signifi-

    cantly towards achieving these objectives.

    The structural constructs that have attracted most research

    attention

    in

    the

    relevant

    literature

    include

    formalization

    and

    centralization (Chi & Sun, 2013). Formalization is the degree to

    which rules define roles, authority relations, communications,

    norms

    and

    sanctions

    and

    procedures

    (Hall,

    Johnson,

    &

    Haas,

    1967).

    As implied in this definition, formalization provides guidance toproblem solving, creates less confusion, lowers divergent inter-

    pretations to similar activities, reduces double standards, clarifies

    role

    expectations,

    and

    shifts

    the

    risk

    and

    attribution

    of

    failure

    to

    management

    (Auh

    &

    Menguc,

    2007;

    Michaels,

    Cron,

    Dubinsky,

    &

    Joachimsthaler, 1988). Therefore, provided that the content of

    formal rules and procedures is appropriately determined (Jaworski

    &

    Kohli,

    1993),

    formalization

    can

    potentially

    reduce

    perceptions

    of

    role

    ambiguity.

    The relationship between formalization and role conflict is

    more controversial. In particular, some authors suggest that

    formalization

    increases

    role

    conflict

    by

    reducing

    the

    flexibility

    available

    to

    salespeople

    to

    deal

    with

    conflicting

    demands

    and

    preventing them from adapting to idiosyncratic circumstances

    (Agarwal,

    1993).

    Although

    these

    claims

    have

    some

    merit,

    they

    arebased

    on

    the

    assumption

    that

    formal

    standards

    and

    policies

    are

    very

    strict

    and

    prevent

    salespeople

    from

    exercising

    any

    discretion

    when negotiating with customers. However, our pre-study inter-

    views revealed that the main objective of exporting firms when

    developing

    formal

    standards

    and

    policies

    is

    to

    determine

    the

    boundaries

    within

    which

    export

    sales

    managers

    can

    operate.

    Formalization makes export sales managers less vulnerable to the

    pressures and unreasonable demands of foreign customers, and

    enables

    them

    to

    devote

    their

    time

    and

    selling

    efforts

    on

    the

    most

    promising

    customers

    and

    prospects.

    Formal

    rules

    and

    procedures

    can be viewed as a guiding framework that serves as a point of

    reference for export sales managers when dealing with foreign

    customers.

    Therefore,

    formalization

    is

    expected

    to

    reduce

    percep-

    tions

    of

    role

    conflict.

    Limited

    empirical

    evidence

    also

    supports

    a

    negative relationship between formalization and role stressors

    (Michaels

    et

    al.,

    1988).

    H1.

    Formalization

    relates

    negatively

    to

    role

    ambiguity

    H2. Formalization relates negatively to role conflict

    In a highly centralized export sales organization, export sales

    managers

    have

    restricted

    decision-making

    authority.

    However,

    the

    boundary-spanning

    nature

    of

    their

    job

    often

    forces

    them

    to

    makedecisions and resolve conflicts between foreign customer expec-

    tations and demands and company offerings (Sohi, 1996).

    Furthermore, greater centralization prevents export sales man-

    agers from participating in determining company policies and

    standards whereas their input, thoughts and ideas are excluded

    from the decision making process (Auh & Menguc, 2007). In such a

    working environment, they are less likely to understand the

    expectations of their supervisors or devote effort on defining their

    role requirements (Sohi, 1996). Moreover, they may feel that

    company policies and standards do not reflect market realities

    overseas and impose unreasonable constraints on their behavior

    (Walker, Churchill, & Ford, 1975). Similarly, centralization con-

    strains export salesmanagersflexibility and reduces their ability to

    resolve conflicting demands between customers expectations and

    company standards, increasing perceptions of role conflict. Based

    on the above discussion, we posit the following:

    H3.

    Centralization

    relates

    positively

    to

    role

    ambiguity

    H4.

    Centralization

    relates

    positively

    to

    role

    conflict

    2.2.

    Organizational

    structure

    and

    export

    sales

    management

    behavior

    control

    Previous

    research

    has

    devoted

    limited

    research

    attention

    on

    the

    factors

    that

    either

    guide

    the

    choice

    of

    a

    particular

    control

    system

    or

    determine its effective implementation (Baldauf,Cravens,& Piercy,

    2005). The existing typologies of sales management control

    (Anderson

    &

    Oliver,

    1987;

    Challagalla

    &

    Shervani,

    1996)

    emphasize

    the

    working

    relationship

    between

    a

    supervisor

    and

    his/her

    subordinates. However, they do not explicitly examine the factors

    that determine the particular type of control system that an

    organization

    adopts

    or

    the

    hierarchical

    level

    at

    which

    this

    decision

    is

    made.

    To be effective, a particular sales management control system

    must be centrally developed and implemented consistently

    throughout an export sales organization. In particular, organiza-

    tion-wide

    policies,

    rules,

    and

    directives

    must

    define

    the

    nature

    of

    the working relationship between export sales managers and their

    immediate supervisors. Upper management should specify the

    preferred form, frequency and content of information exchange

    between

    the

    two

    parties

    (e.g., informal

    meetings

    versus

    formal

    reports). Moreover, the responsibilities of supervisors in terms ofproviding constructive feedback, guidance and support to export

    sales managers must be formally specified. Otherwise, the

    effectiveness of the control system will depend solely on the

    discretion and eagerness of individual supervisors. Based on this

    discussion, this study proposes that an export sales organization is

    more likely to develop and implement an effective sales

    management control system under a formalized and centralized

    organizational structure.

    H5.

    Formalization

    relates

    positively

    to

    sales

    management

    behav-

    ior control

    H6.

    Centralization

    relates

    positively

    to

    sales

    management

    behav-

    ior

    control

    E. Katsikea et al./ International Business Review xxx (2014) xxxxxx4

    G Model

    IBR-1140; No. of Pages 13

    Please

    cite

    this

    article

    in

    press

    as:

    Katsikea,

    E.,

    et

    al.

    Why people

    quit:

    Explaining

    employee

    turnover

    intentions

    among

    export

    sales

    managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009

    http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
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    2.3. Export sales management behavior control and role stressors

    Behavior control systems concentrate on developing and

    maintaining relationships and encourage long-term results rather

    than short-term outcomes (Baldauf, Cravens, & Grant, 2002).

    Behavior

    control

    systems

    emphasize

    managerial

    coaching

    and

    mentoring

    designed

    and

    implemented

    to

    develop

    subordinate

    skills and capabilities (Mallin, Asree, Koh, & Hu, 2010). Challagalla

    and Shervani (1996) make a distinction between two types of

    behavioral

    control,

    namely

    activity

    control

    and

    capability

    control.

    Activity

    control

    concentrates

    on

    the

    routine

    activities

    that

    employees are expected to perform on a regular basis, the

    monitoring of actual behavior and the administering of rewards

    and

    punishments

    on

    the

    basis

    of

    the

    performance

    of

    specified

    activities.

    Capability

    control

    emphasizes

    the

    development

    of

    individual skills and abilities, and represents an attempt to

    influence performance by ensuring that employees possess the

    set

    of

    skills

    and

    abilities

    that

    enable

    good

    performance

    (Challagalla

    &

    Shervani,

    1996,

    p.

    90).

    The effective implementation of a behavior-based control

    system requires the close cooperation and richer communication

    between

    export sales managers

    and

    their immediate

    supervisors.

    Supervisors

    are induced

    to

    commit time

    and

    effort in

    monitoring

    and providing feedback to export sales managers, as well as inassessing their skills and capabilities and providing guidance and

    support

    for improvement.

    Through

    this

    interaction,

    export

    sales

    managers

    acquire

    a

    greater

    knowledge and

    understanding of

    their supervisors expectations, and recognize what activities and

    behaviors are consistent with the export sales strategy and are

    likely

    to

    lead

    to

    desired

    end-results

    (Challagalla &

    Shervani,

    1996).

    Moreover,

    under a

    behavior-based

    control

    system, export

    sales managers can work closely with their supervisors and rely

    on their guidance and support in order to handle effectively

    customers

    demands

    and

    requests that

    may

    be

    incompatible

    with

    company policies and standards. Therefore, behavior control is

    expected to lower export sales managers role ambiguity and

    role

    conflict.

    Available empirical

    evidence also supports

    a

    negative relationship between behavior control and role stress(Challagalla & Shervani, 1996; Jaworski, Stathakopoulos, &

    Krishan, 1993).

    H7. Sales management behavior control relates negatively to role

    ambiguity

    H8. Sales management behavior control relates negatively to role

    conflict

    2.4. Role stressors and job satisfaction

    During

    the

    past

    four

    decades

    numerous

    studies

    have

    examined

    the effects of job satisfaction on important work outcomes like

    organizational

    commitment,

    job

    performance,

    and

    turnoverintentions

    (Netemeyer,

    Johnston,

    &

    Burton,

    1990;

    Netemeyer,

    Brashear-Alejandro, & Boles, 2004; Singh, Verbeke, & Rhoads,

    1996).Although thefindings of these studies have not always been

    consistent

    (particularly

    regarding

    the

    causal

    direction

    between

    job

    satisfaction

    and

    other

    work

    outcomes)

    conventional

    wisdom

    suggests that high levels of job satisfaction are desirable. The

    extant literature has also devoted significant research attention on

    the

    antecedents

    of

    job

    satisfaction.

    In

    particular,

    previous

    research

    has

    studied

    extensively

    the

    effects

    of

    role

    ambiguity

    and

    role

    conflict (Netemeyer et al., 1990). Theoretically, role stress leads to

    tensions and pressures due to job requirements, including the

    psychological

    and

    physical

    consequences

    of

    such

    pressures,

    and

    therefore

    reduces

    job

    satisfaction

    (Fry,

    Futrell,

    Parasuraman,

    &

    Chmielewski,

    1986).

    Furthermore,

    empirical

    research

    indicates

    that both role ambiguity and role conflict have a significant

    negative

    effect

    on

    job

    satisfaction

    (Fry

    et

    al.,

    1986).

    H9.

    Role

    ambiguity

    relates

    negatively

    to

    job

    satisfaction

    H10. Role conflict relates negatively to job satisfaction

    2.5. Job satisfaction and propensity to leave

    Propensity to leave is defined as the subjective estimation of anindividual regarding the possibility to quit the organization in the

    near future (Mowday et al., 1984). This construct represents a

    behavioral intention that precedes actual salesperson turnover

    (Brown & Peterson, 1993). Conceptually, the contention that

    intention to leave predicts actual turnover is consistent with the

    Fishbeins (1967) model of attitudes, intentions, and behavior.

    Previous research provides consistent evidence that propensity to

    leave is the most effective predictor of salespeople turnover

    (Brown & Peterson, 1993).

    A low turnover rate among salespeople is desirable because it

    reduces significantly replacement costs and keeps knowledgeable

    and experienced personnel in the sales organization (Good, Page,&

    Young, 1996). Understanding the underlying causes of turnover

    can provide insights into how to control the phenomenon (Goodet al., 1996). Therefore, intention to leave is a key construct

    examined in models of salespeoples role perceptions, job

    attitudes, behavior, and performance (Johnston, Parasuraman,

    Futrell, & Black, 1990; Netemeyer et al., 1990, 2004; Sager, 1994;

    Singh

    et

    al.,

    1996).

    The

    results

    of

    these

    studies

    indicate

    that

    job

    satisfaction

    is

    a

    primary

    determinant

    of

    turnover

    intentions,

    and

    a

    direct negative relationship exists between the two constructs.

    Thus, satisfied salespeople are less likely to leave the organization.

    H11. Job satisfaction relates negatively to propensity to leave

    2.6. Moderating effects

    2.6.1. Psychic distance and formalizationThe concept of distance has attracted interest to international

    business and marketing scholars who aim to explain variations in

    international

    business

    and

    marketing

    strategies

    and

    operations

    across

    foreign

    markets

    (Prime,

    Obadia,

    &

    Vida,

    2009,

    p.

    184).Psychic

    distance includes factors that can prevent the flow of information

    from and to a foreign market (Johanson & Vahlne, 1977). Examples

    include

    differences

    in

    language,

    education,

    business

    practices,

    culture

    and

    industrial

    development.

    Due

    to

    the

    geographical

    distances involved and the inherent complexities associated with

    international operations (Piercy, Low, & Cravens, 2011), which are

    more

    evident

    in

    psychologically

    distant

    markets,

    the

    prescription

    of

    clear

    rules,

    policies

    and

    guidelines

    through

    a

    highly

    formalized

    organizational structure is essential in order to reduce export sales

    managers

    perceptions

    of

    role

    conflict

    and

    ambiguity.

    On

    the

    otherhand,

    export

    sales

    managers

    are

    more

    capable

    and

    knowledgeable

    to

    deal

    with

    job

    requirements

    and

    customer

    demands

    in

    psychologically close export markets. Therefore:

    H12. The influence of formalization on export salesmanagers role

    ambiguity is stronger in psychologically distant markets

    H13. The influence of formalization on export salesmanagers role

    conflict is stronger in psychologically distant markets

    2.6.2. Psychic distance and centralization

    In

    a

    centralized

    organization,

    export

    sales

    managers

    have

    limited

    decision

    making

    authority.

    By

    contrast,

    export

    executives

    must

    initiate

    or

    approve

    all

    major

    decisions.

    Still,

    export

    executives

    E. Katsikea et al./ International Business Review xxx (2014) xxxxxx 5

    G Model

    IBR-1140; No. of Pages 13

    Please

    cite

    this

    article

    in

    press

    as:

    Katsikea,

    E.,

    et

    al.

    Why people

    quit:

    Explaining

    employee

    turnover

    intentions

    among

    export

    sales

    managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009

    http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
  • 7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli

    6/13

    are based in the companys headquarters and travel much less

    frequently

    than

    export

    sales

    managers.

    Therefore,

    their

    exposure

    to the environmental and market conditions that prevail in export

    markets is rather limited. Moreover, they may lack a thorough

    understanding of export customers needs, preferences, and

    purchasing

    habits.

    Under

    these

    circumstances,

    decisions

    made

    by

    export

    executives

    are

    unlikely

    to

    reflect

    market

    realities

    in

    export countries. In addition, export sales managers will experi-

    ence higher levels of role ambiguity and role conflict since they

    will

    have

    limited

    participation

    in

    decision

    making,

    constrained

    flexibility

    to

    respond effectively

    to

    the

    idiosyncrasies

    of

    export

    markets, and incapability to resolve conflicting demands between

    customers expectations and company standards. However, both

    export

    executives

    and

    export sales

    managers

    have

    more

    accurate

    knowledge

    with

    respect

    to

    export markets

    that

    are

    perceived

    as

    psychologically close. Consequently, export executives are better

    equipped to make decisions regarding these markets, whereas

    export

    sales

    managers

    areable

    to

    carry

    out

    more

    effectively

    their

    job

    duties

    and

    responsibilities,

    despite

    the

    constrains

    imposed

    by

    centralization. Therefore, this study expects that the negative

    influence of centralization on export sales managers role percep-

    tions

    will

    be

    stronger

    in psychologically

    more

    distant

    markets.

    H14. The influence of centralization on export sales manager roleambiguity is stronger in psychologically distant markets

    H15.

    The

    influence

    of

    centralization

    on

    export

    sales

    managers

    role

    conflict

    is

    stronger

    in

    psychologically

    distant

    markets

    2.6.3. Export sales managers experience

    Experience is an important variable that moderates relation-

    ships among salespeoples perceptions, attitudes and behavior

    (Cron,

    Dubinsky,

    &

    Michaels,

    1988).

    Compared

    to

    their

    experienced

    counterparts, inexperienced salespeople are more sensitive and

    react strongly to work related factors such as role stressors (Russ &

    McNeilly, 1995). Therefore, sales managers must devote greater

    attention

    and

    provide

    more

    extensive

    guidance

    and

    support

    to

    inexperienced salespeople. Although the authors argue thatbehavior control is an effective mechanism for reducing stress

    among all export sales managers, they expect that an individuals

    level

    of

    job

    experience

    moderates

    this

    influence.

    In

    particular,

    experienced

    export

    sales

    managers

    are

    in

    a

    better

    position

    to

    deal

    with problems and difficulties that may arise when performing

    selling activities in export markets. Moreover, they are more

    familiar

    with

    company

    policies

    and

    standards,

    and

    accustomed

    with

    organizational

    culture

    and

    top

    managements

    leadership

    style. Hence, although experienced export sales managers also

    benefit by the direction and support they receive from their

    immediate

    supervisors,

    their

    less

    experienced

    colleagues

    are

    in

    a

    much

    greater

    need

    for

    such

    assistance.

    Therefore,

    this

    study

    expects that the contribution of behavior-based control towards

    reducing

    role

    ambiguity

    and

    role

    conflict

    will

    be

    greater

    amongless

    experienced

    export

    sales

    managers.

    H16.

    The

    influence

    of

    behavior

    control

    on

    role

    ambiguity

    is

    stron-

    ger for less experienced export sales managers

    H17.

    The

    influence

    of

    behavior

    control

    on

    role

    conflict

    is

    stronger

    for less experienced export sales managers

    3.

    Research

    methodology

    3.1. Sample and data collection procedures

    This

    study

    tests

    the

    proposed

    conceptual

    model

    and

    hypotheses

    using

    data

    collected

    from

    small-

    and

    medium-sized

    exporters

    in

    the United Kingdom. The sampling frame for this study is drawn

    from

    the

    Dun

    and

    Bradstreet

    commercial

    database

    of Key British

    Enterprises. To be eligible for inclusion in the study sample, a firm

    must meet the following thresholds: exporting at least for three

    years; employ up to 500 full-time employees; and, operate in one

    of

    the

    following

    industrial

    sectors:

    textile

    mill

    products;

    apparel

    and

    other

    finished

    goods

    made

    from

    fabric

    and

    other

    similar

    materials; chemical and allied products; rubber andmiscellaneous

    plastics products; machinery except electrical; and electrical and

    electronic

    machinery,

    equipment

    and

    supplies.

    The

    selection

    of

    a

    multi-industry

    sampling

    design

    is

    necessary

    in

    order

    to

    enhance

    the generalizability of the research findings. A random sample of

    1000 eligible firms is selected for inclusion in this study.

    This

    study

    employs

    a

    mail

    survey

    methodology

    for

    data

    collection,

    following

    the

    guidelines

    provided

    by

    Dillman

    (2000).

    A mail package is sent to the Head of Exporting Operations to

    each of the 1000 sample firms, along with a cover letter that

    explains

    the

    purpose

    and

    objectives

    of

    the

    study,

    and

    a

    postage-

    paid

    return

    envelope.

    Recipients

    are

    instructed

    to

    pass

    on

    the

    survey packet to one individual that fulfills the export sales

    manager role in their firm. The initial mailing and two further

    waves

    produce

    160

    usable

    responses,

    for

    a

    response

    rate

    of

    16%.

    However,

    191

    of

    the

    firms

    that

    were

    initially

    included

    in

    the

    study

    sample are dropped, mainlybecause of incorrect conductdetails ortermination of their exporting operations. Thus, the effective

    response

    rate

    is

    19.8%

    (160

    of

    the

    eligible

    809

    firms).

    The

    demographic

    characteristics

    of

    the

    sample

    are

    presented

    in

    Appendix.

    3.2.

    Response

    issues

    Following ArmstrongandOverton (1977) guidelines, thedataare

    checked for non-response bias by comparing early and late

    respondents

    on all

    study

    constructs as

    well

    as

    on

    key

    company

    characteristics including number of full-time employees, export

    experience, export sales, and number of export markets. Non-

    response

    bias

    checks

    also

    involve

    comparing a

    random

    sample

    of

    75 non-respondents with respondents in terms of the aforemen-tioned company characteristics. The non-significant t-test results

    indicate thatnon-response bias isnot amajorproblem in this study.

    The

    key

    informant

    in

    this

    study

    is

    the

    export

    sales

    manager.

    This

    study

    employs

    certain

    steps

    in

    order

    to

    ensure

    the

    quality

    of

    responses. First, the cover letter explains clearly and in details the

    job activities and responsibilities of an export sales manager and

    instructs

    the

    recipients

    of

    the

    mailing

    package

    that

    the

    question-

    naire

    must

    be

    filled

    by

    a

    person

    in

    the

    exporting

    firm

    that

    performs

    this role. Second, it stresses that the study is conducted under the

    guidance of an academic institution for purely academic research

    purposes.

    Third,

    participants

    are

    promised

    anonymity

    and

    confidentiality

    of

    responses,

    and

    are

    offered

    a

    copy

    of

    the

    study

    results. Fourth, this study follows thewidely accepted practices for

    questionnaire

    design

    and

    survey

    administration.

    Further,

    a

    posthoc

    test

    for

    key

    informant

    quality

    is

    performed.

    In

    particular,

    the

    last

    section

    of

    the

    questionnaire

    includes

    four

    statements

    that

    assess respondents: (1) knowledge regarding the firms exporting

    activities; (2) involvement with the firms exporting activities; (3)

    responsibility

    for

    the

    firms

    exporting

    activities;

    and

    (4)

    confidence

    in

    answering

    the

    questions

    of

    the

    survey

    instruments.

    The

    mean

    scores for these statements range between 6.01 and 6.40 (on a

    seven-point scale anchored by Low and High) indicating that

    potential

    bias

    attributable

    to

    the

    key-informant

    is

    negligible.

    This

    study

    employs

    the

    Harmans

    one-factor

    test

    (Podsakoff

    &

    Organ, 1986) to test for common method bias (CMB). First, this

    analysis involves a principal components analysis of all constructs

    examined

    in

    this

    study.

    The

    two

    second-order

    constructs,

    namely

    export

    sales

    management

    control

    system

    and

    job

    satisfaction,

    are

    E. Katsikea et al./ International Business Review xxx (2014) xxxxxx6

    G Model

    IBR-1140; No. of Pages 13

    Please

    cite

    this

    article

    in

    press

    as:

    Katsikea,

    E.,

    et

    al.

    Why people

    quit:

    Explaining

    employee

    turnover

    intentions

    among

    export

    sales

    managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009

    http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
  • 7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli

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    represented in this analysis by the summated scales of their

    underlying

    first-order

    factors,

    whereas

    all

    other

    constructs

    by

    their

    original measurement items. The unrotated solution results in

    seven factorswith eigenvalues greater then 1.0, accounting for71%

    of the variance. No general factor emerges, whereas the first factor

    explains

    only

    25%

    of

    the

    variance.

    Second,

    a

    CFA

    approach

    to

    Harmans

    one-factor

    test

    is

    used

    in

    which

    the

    summated

    scales

    of

    the 15 first-order factors included in the structural model are

    restricted to load on a single factor. The results obtained from this

    analysis

    indicate

    a

    poor

    fit: x2(90)= 662.64, p

  • 7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli

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    Table 1

    Measurement scales, confirmatory factor analysis results, and reliabilities.

    Constructs and measurement items Standardised loadingsa

    Formalization (a= .81; CR= .82; AVE= .61) (Aiken & Hage, 1966, 1968) (seven-point scale, anchored by Strongly Disagree

    and Strongly Agree)

    How things are done here is left up to the employee doing the work (R) .63 (7.78)

    Employees here are left to do as they please (R) .92 (11.81)

    Most people here make up their own rules in the job (R) .77 (9.73)

    Centralization

    (a=

    .88;

    CR

    =

    .89;

    AVE

    =

    .72)

    (Aiken

    &

    Hage,

    1966,

    1968)

    (seven-point

    scale,

    anchored

    by

    Strongly

    Disagreeand Strongly Agree)

    Even small matters have to be referred to someone higher up for a final answer .75 (10.16)

    I have to ask my immediate manager before I do almost anything .98 (14.71)

    Any decision I make has to have my immediate managers approval .80 (11.01)

    Export sales management control (Second-order factor) (Challagalla & Shervani, 1996) (Items measured on a seven-point scale,

    anchored by Strongly Disagree and Strongly Agree)

    A. Activity Information (a= .92; CR= .92; AVE= .70) .77 (7.67)

    My immediate manager informs me about the export sales activities I am expected to perform .73b

    My immediate manager monitors my export sales activities .85 (10.05)

    My immediate manager informs me on whether I meet his/her expectations in the venture market .89 (10.62)

    My immediate manager tells me to adjust my export sales activities, if he/she feels that there is need to do so .85 (10.09)

    My immediate manager evaluates my export sales activities .85 (10.12)

    B. Activity rewards (a= .93; CR= .93; AVE= .87) .68 (7.68)

    If I perform export sales activities well my immediate manager will commend me .91b

    I would be recognized by my immediate manager if he/she was pleased with how well I perform export sales activities .95 (13.53)

    C. Activity punishment (a= .86; CR= .87; AVE= .68) .63 (6.67)

    I would receive an informal warning if my immediate manager was not pleased with how I perform export sales activities .81b

    I would receive a formal reprimand if my immediate manager was unhappy with how I perform export sales activities .93 (11.70)

    I would be put on probation if my immediate manager was unhappy with how I perform specified export sales activities .72 (9.40)

    D. Capability information (a= .93; CR= .93; AVE= .74) .83 (8.89)

    My immediate manager has standards by which my selling skills are evaluated .79b

    My immediate manager periodically evaluates the selling skills I use to accomplish a task .87 (11.89)

    My immediate manager provides guidance on ways to improve selling skills and capabilities .91 (12.79)

    My immediate manager evaluates how I make sales presentations and communicate with foreign customers .85 (11.60)

    My immediate manager assists by suggesting why using a particular sales approach may be useful .89 (12.28)

    E. Capability rewards (a= .81; CR= .80; AVE= .58) .83 (7.61)

    Assignment of better territories or accounts depends on how good my selling skills are .71b

    I am commended if I improve my selling skills .85 (8.67)

    Promotion opportunities depend on how good are my selling skills and capabilities .71 (7.65)

    F. Capability punishment (a= .93; CR= .91; AVE= .76) .64 (7.47)

    I receive an informal warning if my immediate manager is not pleased with my selling skills and capabilities .89b

    I receive a formal reprimand if my immediate manager is not pleased with my selling skills and capabilities .89 (19.95)

    I am put on probation if my immediate manager is not happy with my selling skills and capabilities .84 (14.51)

    Role conflict (a= .78; CR= .79; AVE= .50) (Rizzo et al., 1970) (seven-point scale, anchored by Never and Always)

    I work with two or more groups who operate quite differently .62 (7.16)

    I receive incompatible requests from two or more people .84 (10.35)

    I do things that are apt to be accepted by one person and not accepted by another .75 (9.07)

    I receive an assignment without adequate resources and material to execute it .57 (6.52)

    Role ambiguity (a= .90; CR= .90; AVE= .64) (Rizzo et al., 1970) (seven-point scale, anchored by Never and Always)

    I feel certain about how much authority I have (R) .76 (9.71)

    I have clear, planned goals and objectives for my job (R) .75 (9.58)

    I know what my responsibilities are (R) .87 (11.80)

    I know exactly what is expected of me (R) .87 (11.91)

    Explanation is clear of what has to be done (R) .74 (9.33)

    Job satisfaction (second-order construct) (Churchill, Ford, & Walker, 1974) (seven-point scale, anchored by Strongly Disagree

    and Strongly Agree)

    A. Satisfaction with overall job (a= .93; CR= .93; AVE= .78) .71 (6.48)

    My work gives me a sense of accomplishment .87b

    Mywork

    is

    exciting

    .88

    (13.69)My work is satisfying .93 (15.13)

    I am really doing something worthwhile in my job .86 (13.13)

    B. Satisfaction with Fellow Workers (a= .85; CR= .87; AVE= .63) .67 (6.02)

    The people I work with are very friendly .86b

    The people I work with help each other out when someone falls behind or gets in a tight spot .84 (11.80)

    My fellow workers are pleasant .90 (12.97)

    My fellow workers are selfish (R) .51 (5.99)

    C. Satisfaction with supervision (a= .90; CR= .90; AVE= .70) .60 (5.15)

    My immediate manager is up to date .71b

    My immediate manager has always been fair in dealings with me .82 (8.91)

    My immediate manager gives us credit and praise for work well done .95 (9.98)

    My immediate manager lives up to his/her promises .85 (9.20)

    D. Satisfaction with customers (a=0.87; CR=0.87; AVE=0.63) .52 (4.43)

    My customers live up to their promisesb .72b

    My customers are trustworthy .84 (8.78)

    My customers are loyal .83 (8.66)

    My customers are understanding .78 (8.25)

    E. Katsikea et al./ International Business Review xxx (2014) xxxxxx8

    G Model

    IBR-1140; No. of Pages 13

    Please

    cite

    this

    article

    in

    press

    as:

    Katsikea,

    E.,

    et

    al.

    Why people

    quit:

    Explaining

    employee

    turnover

    intentions

    among

    export

    sales

    managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009

    http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
  • 7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli

    9/13

    model. Fit statistics (x2(339)= 626.69, p

  • 7/26/2019 International Business Review Volume 24 Issue 3 2015 [Doi 10.1016%2Fj.ibusrev.2014.08.009] Katsikea, Evangeli

    10/13

    to a model in which one relationship is set free implies that the

    moderator

    variable

    has

    a

    significant

    influence

    on

    that

    relationship.

    Table

    4

    presents

    the

    results

    obtained

    from

    this

    analysis.

    Concerning psychic distance, the results indicate that the

    negative influence of formalization on role ambiguity is stronger

    when

    export

    sales

    managers

    operate

    in

    more

    distant

    export

    markets (high-distance group: b = .44, t = 3.17; low-distancegroup: b = .02, t = .19; Dx2(1)= 10.74,p .05). Even though the estimated coefficients

    for these associations are stronger in more distant markets, chi-

    square differences are not statistically significant. Therefore, no

    support

    is

    provided

    for

    H13

    and

    H14. With

    respect

    to

    export

    salesmanagers experience, the findings indicate that the export sales

    management behavior control system ismore effective in reducing

    perceptions of role ambiguity among less experienced export sales

    managers (more experienced managers groups: b = .13, t = .96;

    less experienced managers group: b = .39, t = 2.83; Dx2

    (1) = 4.58, p

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    Against the backdrop of the salespersons propensity to leave,

    this

    study

    is

    primarily

    interested

    in

    the

    control

    aspect

    of

    export

    sales

    management. Given the nature of the salespersons role and their

    characteristic flexibility, control becomes a focal sales management

    activity. Whilst researchers know a great deal about control and

    how

    it influences

    the

    attitudes

    and

    behavior

    of

    workers

    (Anderson

    &

    Oliver, 1987;

    Jaworski,

    1988)

    it

    is

    important

    to

    recognize that

    control mechanisms can be established at different hierarchical

    levels within an organizationandparticularlyhow topmanagement

    develop

    control mechanisms

    that

    define

    an

    appropriate

    framework

    for

    the

    operation

    of

    the

    sales

    organization,

    thereby

    determining

    the

    specific activities to be performed by individual members. In line

    withJaworskis (1988) theoretical assumption, this study identifies

    organizational

    structure

    as

    such

    a

    control

    mechanism.

    The

    study

    findings

    reveal

    the

    favorable

    impact

    of

    formalization

    and the unfavorable impact of centralization upon both role

    ambiguity and role conflict. Local market adaptation and the sales

    functions

    ability

    to

    customize

    their

    engagement

    activity

    are

    central

    to

    export

    strategy

    (Cavusgil

    &

    Zou,

    1994).

    When

    operating

    under conditions of centralization, this structural constraint

    handicaps the export sales managers ability to adapt according

    to

    the

    necessary

    conditions

    and

    role

    conflict

    and

    role

    ambiguity

    become

    inevitable

    consequences.

    Centralization

    effectively

    becomes a straightjacket and removes the discretion that isrequired for the export salesmanager to confront challenges in vivo

    and

    address

    appropriate

    response

    to

    customers

    in

    export

    markets.

    In

    contrast,

    formalization

    provides

    a

    framework

    and

    offers

    rules

    and procedures that govern role behavior. Although standardized,

    these rules encourage specific action responses and reduce

    confusion

    and

    judgmental

    reasoning.

    These

    benefits

    mean

    that

    role

    clarity

    and

    role

    ambiguity

    are

    less

    apparent

    under

    conditions

    of high formalization because many of the sources of these role

    stressors have been managed out by standardized practices.

    As

    forms

    of

    hierarchical

    control,

    the

    study

    finds

    that

    both

    formalization and centralization relatepositively to the export sales

    managementbehavior control system. Indesigning and administer-

    ing

    a

    behavior-based

    control

    system,

    managers

    need

    to

    collate,

    map,

    and audit important export sales activities and capabilities. Thefindings show that the administrative mechanisms that therefore

    underlie this type of control system are traits of formalization for

    codification

    and

    centralization

    for

    uniformity.

    Interestingly,

    the

    findings

    also

    reveal

    how

    the

    export

    sales management

    behavior

    control system reduces role ambiguity by improving the clarity of

    export sales managers expectations because it focuses attention

    ontothecontrolledactivitiesandcapabilities.Butthisfindingwasnot

    mirrored

    forexport

    salesmanagers

    perceptions

    of

    role

    conflict

    upon

    which behavior-based control has no influence.

    Although seemingly paradoxical, the working life of the export

    sales

    manager

    benefits

    from

    formalization

    while

    simultaneously

    suffers

    from

    centralization.

    The

    implication

    of

    this

    is

    clear

    exporting firms need to improve standardization of work routines

    and

    operating

    methods

    without

    correspondingly

    centralizingdecision

    making.

    The

    challenge

    of

    this

    organizational

    solution

    provides

    tangible

    benefits

    for

    the

    outreach

    activities

    of

    the

    export

    sales manager. By formally delineating clearly the routines and

    practices required whilst also ensuring that centralized processes

    do

    not

    hinder

    their

    day-to-day

    responsibilities,

    export

    sales

    managers

    will

    benefit

    in

    their

    work

    roles

    (Steward,

    Walker,

    Hutt,

    & Kumar, 2010). The role stressors of role ambiguity and role

    conflictdeleteriously affect export salesmanagersjob satisfaction.

    It

    is

    not

    surprising

    that

    when

    these

    managers

    suffer

    an

    array

    of

    demands,

    each

    at

    variance

    with

    another,

    their

    job

    satisfaction

    declines. Correspondingly, this study finds that export sales

    managers propensity to leave is a likely consequence of this

    chain

    of

    effects.

    This,

    in

    turn,

    can

    set

    in

    train

    a

    number

    of

    consequences

    for

    management

    attention

    and

    so

    auditing

    the

    extent of role ambiguity and role conflict by encouraging feedback

    and

    open

    lines

    of

    communication

    will

    help

    to

    support

    more

    this

    key boundary spanner (Piercy, Cravens, Lane, & Vorhies, 2006).

    Moderation analysis results indicate that psychic distance

    explains important distinctions in the proposed model. For

    example,

    in

    more

    distant

    markets,

    formalization

    has

    a

    stronger

    negative

    impact

    on

    export

    sales

    managers

    role

    ambiguity.

    Similarly, the challenges that centralization imposes on export

    sales managers role conflict are also increasingly evident in more

    distant

    markets.

    For

    exporting

    firms,

    these

    emphases

    imply

    a

    greater

    need

    for

    formalization

    and

    lesser

    need

    for

    centralization

    in

    improving, respectively, role ambiguity and role conflict of their

    export sales managers. By way of export sales managers

    experience,

    this

    study

    finds

    a

    novel

    effect

    in

    that

    the

    export

    sales

    management

    behavioral

    control

    system

    is

    more

    effective

    at

    reducing perceptions of role ambiguity among less experienced

    export salesmanagers. Thismeans that the conformity that control

    systems

    engender

    invokes

    role

    clarity

    at

    earlier

    stages

    of

    an

    export

    sales

    managers

    career

    when

    learning

    and

    development

    opportu-

    nities are at their greatest. Therefore, appropriate training needs to

    be established so that less experienced export sales managers

    suffer

    less

    role

    ambiguity

    by

    better

    understanding

    the

    control

    dashboard

    that

    is

    used

    to

    monitor

    their

    behavior.

    This study has also important implications for theory develop-ment in the neglected areas of export sales management. In

    particular,

    it

    highlights

    the

    critical

    role

    of

    export

    sales

    managers

    in

    export

    success,

    and

    emphasizes

    the

    need

    to

    retain

    these

    personnel

    in the firm on a long-term basis. The extant research on exporting

    focuses on the export strategic planning process, and integrates

    relevant

    theories

    like

    the

    resource-based

    view

    of

    the

    firm,

    and

    the

    industrial

    organization

    theory,

    in

    an

    effort

    to

    explain

    the

    drivers

    of

    superior export performance. Numerous studies on exporting

    during the past four decades have contributed to the development

    of

    a

    rich

    body

    of

    knowledge

    regarding

    export-related

    issues.

    Surprisingly; however, these studies paid limited attention to the

    fact that export sales managers are commonly the only firm

    personnel

    that

    visit

    foreign

    markets

    to

    meet

    prospective

    buyers

    and establish mutually beneficial relationships with them.Therefore, their contribution to export success is invaluable. To

    advance further export-related theories, academic research must

    devote

    more

    effort

    on

    the

    peoples

    aspect

    of

    exporting,

    and

    examine

    appropriate

    managerial

    practices

    that

    can

    positively

    influence the job-related attitudes and behavior of export sales

    managers, and direct their behavior towards achieving organiza-

    tional

    objectives.

    The

    present

    study

    contributes

    to

    this

    emerging

    stream

    of

    research

    by

    showing

    how

    control

    mechanisms

    at

    different organizational levels contribute towards reducing export

    sales managers intention to leave, which is a highly desirable

    outcome

    with

    important

    long-term

    benefits

    for

    export

    sales

    organizations.

    Future

    studies

    must

    investigate

    other

    important

    dimensions of export sales managers job, and identify the key

    factors

    that

    either

    enhance

    or

    restrain

    export

    sales

    managersperformance.

    6. Limitations and future research

    This

    study

    has

    several

    limitations

    that

    should

    be

    addressed

    in

    future

    research.

    First,

    the

    study

    accommodates

    for

    international

    market variation in the researchmodel by incorporating ameasure

    ofpsychicdistance.Although the researchmodel explains overhalf

    of

    the

    variance

    about

    the

    mean

    of

    managers

    propensity

    to

    leave,

    inevitably

    testing

    the

    extent

    to

    which

    competing

    explanations

    offer insightful viewpoints is important. To this end, individual

    level endogenous triggers such as managers perceived ease of

    movement,

    receipt

    of

    unsolicited

    job

    offers,

    and

    work-family

    conflict

    should

    be

    considered

    while

    also

    firm

    level

    exogenous

    E. Katsikea et al./ International Business Review xxx (2014) xxxxxx 11

    G Model

    IBR-1140; No. of Pages 13

    Please

    cite

    this

    article

    in

    press

    as:

    Katsikea,

    E.,

    et

    al.

    Why people

    quit:

    Explaining

    employee

    turnover

    intentions

    among

    export

    sales

    managers. International Business Review (2014), http://dx.doi.org/10.1016/j.ibusrev.2014.08.009

    http://dx.doi.org/10.1016/j.ibusrev.2014.08.009http://dx.doi.org/10.1016/j.ibusrev.2014.08.009
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    Jaworski, B. J., Stathakopoulos, V., & Krishan, S. H. (1993). Control combinations inmarketing: Conceptual framework and


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