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The Journal of Personal Selling and Sales Management
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EXAMINING THE IMPACT OF SERVANT LEADERSHIP ON
SALES FORCE PERFORMANCE
Much has been written about the importance of focusing on customers to drive organizational success
aspects of manager-salesperson relationships are examined as drivers of deeper customer focus in salesp
interactions. In particular, managers' servant leadership, a leadership style emphasizing genuine concern f
welfare, is examined as a catalyst of parallel concern by salespeople for their customers. Salesperson percep
ers' servant leadership empirically relate to salesperson customer orientation, in turn driving adaptive sel
customer-directed extra-role behaviors, and sales performance outcomes. Other results and implications fo
and sales leadership research are presented.
Journal of Personal Selling & Sales Management, vol. XXIX, no. 3 (summer 2009), p
© 2009 PSE National Educational Foundation. All rights reser
ISSN 0885-3134 / 2009 $9.50 + 0.00.
DOI 10.2753/PSS0885-3134290304
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258 Journal of Personal Selling & Sales Management
that a sales manager's actions can significantly affect sales force be the focal point in implementing an organizational culture
performance (e.g., Mulki, Jaramillo, and Locander 2005). that focuses on responding to customer expectations (Bowen,
Leadership researchers have been particularly interested in Siehl, and Schneider 1989). Servant leadership should be
identifying factors that may explain how sales leaders can especially helpful in implementing a market-oriented culture.
influence the performance of their followers (Ingram et al. As Greenleaf asserts, managers who possess servant leadership
2005). To that end, numerous studies have shown that sales qualities believe that firms have a moral obligation to serve
leadership can affect sales performance both directly and "those who produce and those who use" (2002, p. 155).
indirectly (e.g., MacKenzie, Podsakoff, and Rich 2001). The This core premise is in line with Kirka, Jayachandran, and
indirect effect of sales leadership can be explained by its re- Bearden's (2005) meta-analysis. They found that top man-
lationship with many factors, including job satisfaction (e.g., agement actions are critical in the development of a market-
Shoemaker 1999), organizational commitment (e.g., Dubin- oriented culture in which employees follow the marketing
sky, Yammarino, andjolson 1994), role stress (e.g., Dubinsky concept. However, empirical research examining whether
et al. 1995), self-esteem (e.g., Kohli 1985), motivation (e.g., servant leader actions in specific impact the degree to which
Weitz, Sujan, and Sujan 1986), and effort (e.g., Jaramillo salespeople practice the marketing concept is still lacking.
and Mulki 2008). Such indirect mechanisms are especially To address this gap in the literature, our study posits that
relevant for the current study. Our central proposition is that salespeople who are supervised by servant leaders respond to
the servant style of leadership leads to heightened degrees of the leader's genuine concern for them with a parallel genuine
customer orientation. Subsequently, this heightened customer concern for their customers. We test a model that (1) exam-
orientation should spark a set of indirect effects leading to ines the direct effect of servant leadership on salespersons'
higher levels of performance. Thus, mediated through cus- customer orientation (Saxe and Weitz 1982), (2) tests whether
tomer orientation, servant leadership may activate a chain this proposed link is moderated by the role of sales experi-
of effects that lead to higher performance. These proposed ence, and (3) tests how the leader-customer orientation link
notions are consistent with the prevailing rationale behind sparks additional effects that lead to enhanced performance
the leadership- performance relationship. (e.g., through adaptive selling) (Weitz, Sujan, and Sujan
Effective leaders get things done in organizations. They help 1986). As part of the latter, we also explore whether the ser-
create a positive work environment in which employees have vant leadership-to-performance link operates only through
clearer job expectations, are happier with their jobs, become the proposed mediating effects, or if there is a direct servant
more committed to the organization, gain greater confidence leadership-to-performance link (i.e., full versus partial media-
in their capabilities, and ultimately respond with additional tion). Figure 1 depicts our conceptualization. Rationale for
motivation to work harder and smarter (e.g., Ingram et al. each part of the model is built in the sections that follow.
2005; Jaramillo and Mulki 2008; MacKenzie, Podsakoff,
and Rich 2001). Studies based on this rationale have en-
CONCEPTUAL FRAMEWORK AND
hanced our understanding of the leadership-performance
HYPOTHESES
process. However, such studies tend to present only part of
the story because they are mostly grounded in what happens Sales Leadership
inside the organization and thus disregard the effect that the
leader may have on what occurs outside the boundaries of Sales managers have always been called upon to be
the organization, in the market. Specifically, the actions of in the sense that they serve in capacities such as articu
the leader should also affect salesperson's interactions with a vision; communicating that vision to salespeople; p
the customer. As Chebat and Kollias state, "if managers treat ing resources to salespeople in their ever more chall
their employees well, the employees will then reciprocate by quest to serve customers; and facilitating quick inform
treating customers well" (2000, p. 68). We propose a specific gathering, processing, and decision making in order to
instance of this connection between sales leadership and a competitive advantage in the marketplace. As lead
sales force performance: servant leaders help the firm create thought has grown and provided new insights, the
a culture in which serving the customer becomes the central the sales manager has adapted and must continue to
organizational principle, which in turn produces desired We have seen sales managers' roles change due to techno
performance outcomes. automation, empowerment, team selling, and relatio
Schein (1985) argues that organizational leaders are pri- selling (Cravens 1995). Sales managers must recognize th
marily responsible for creating and managing organizational times of rapid change, innovation and knowledge are es
culture, defined as the shared set of assumptions, values, and for success. The servant leadership paradigm may rep
beliefs that employees hold. Company leaders therefore must another impetus for change in the sales manager's role.
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Summer 2009 259
Figure 1
Impact of Servant Leadership on Sales Force Performance
Sales
Experience
I H4 /-
| x / Customer- X
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/ / c Servant ♦ ' ' H1 ^
Servant ♦ ' ' ( Customer
I Leadership i H1
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All scale items are n. '^^ ^/ / >/ /
allowed to load on the '. / ^^^ /
corresponding construct ^'^^ ^^ ^'/ ^^^^^^^^ /
method bias factor /^^ ^ ^^' - >l Stress j yS
and on the common ^
'^
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260 Journal of Personal Selling & Sales Management
the reward systems for motivating goal achievement (House servant leadership paradigm takes a different approach to the
1971; 1996). Path goal theory also posits that a strategic leader- follower relationship. Serving the needs of the follower
function of the leader is to enhance the psychological well- becomes a leader's priority and an end in itself rather than a
being of employees to attain greater employee motivation to means to achieve organizational objectives (Ehrhart 2004).
perform (House 1971; 1996). Path goal theory shows that Levering and Moskowitz (2000) assert that servant leadership
leaders employ two styles to motivate employees, initiating has been practiced in some of America's "best" firms. These
structure and leadership consideration (Greene 1979; Kohli "best" companies are characterized by how their employees
1989). Initiating structure, which is also called instrumental are treated. Human resource practices in these companies are
leadership, characterizes leaders who employ a directive man- driven by the following principles: (1) openness and fairness,
agement style - they set what and how things should be done (2) camaraderie and friendliness, (3) providing employees
and use the reward system to achieve compliance (Greene with opportunities, (4) instilling pride in their work and their
1979; Harris and Ogbonna 2001; House 1971). Leadership company, (5) giving adequate compensation, and (6) offering
consideration depicts leaders who create an environment of security.
psychological support and friendliness (House 1971). This As Greenleaf (2002) notes, leaders have responsibilities
is achieved when the leader employs a participative- and a that transcend contributing to the economic success of orga-
supportive-leadership style (Greene 1979; Harris and Ogbonna nizations. A company leader is "not only responsible for the
2001; House 1971). Participative leaders listen and respond success of the organization but also to his or her subordinates,
to employee feedback by incorporating subordinate's sugges- the organization's customers, and other organizational stake-
tions into the decision-making process. Supportive leaders holders" (Ehrhart 2004, p. 68). The implication of this, as
help employees achieve higher performance by collaborating will be shown later, is that servant leadership values held by
with them and by providing the resources that are needed for sales managers have a significant effect on salesperson values
goal completion (Rafferty and Griffin 2006). Research has about customer interactions, ultimately affecting salesperson
found that leadership consideration has a positive effect on performance.
salesperson's attitudes and performance (e.g., Jaramillo and Servant leadership brings the core values of the leader to
Mulki 2008; Kohli 1989). the forefront in a time when organizations seem to be moving
The above discussion provides evidence that salespeople to management by values (Dolan and Garcia 2002). Servant
are responsive to the sales-leader influence, particularly when leadership has been discussed from the perspective of its vi-
the leader helps the salesperson grow by performing activi- ability as a leadership theory, as a subset of other theories such
ties that go beyond the mere administration of rewards and as transformational leadership, and as a conceptual idea (e.g.,
punishment. Salespeople are particularly willing to reciprocate Pawar and Eastman 1997; Rainey and Watson 1996). The
actions of leaders who employ a transformational or considerate conceptual innovations of those who have studied servant
style, responding with positive job attitudes, greater effort, leadership (e.g., Ehrhart 2004; Greenleaf 1970, 2002) have
and ultimately higher performance (e.g., Jaramillo and Mulki resulted in the specification of a broad domain for servant
2008; MacKenzie, Podsakoff, and Rich 2001). Although trans- leadership as will be presented in this paper. Agreeing with
formational ana considerate leadership depict sales leaders who Bass (2000), servant leadership requires substantial empirical
care about their subordinates more so than instrumental lead- investigation. There is intrinsic strength in the movement
ers, the primary priority still is on "achieving organizational toward servant leadership as ideas such as follower learning,
objectives." Thus, even these "kinder" leadership styles share growth, and empowerment suggest that servant leadership has
the same underlying principle with other leadership styles that its basis in both tested and untested theory.
appear less friendly to the subordinate - effectively motivating The servant leadership literature has its roots in Greenleaf s
others to engage in actions that help the firm achieve its ob- ( 1 970) seminal work in which he asserts that servant leaders
jectives. Following Yukl's (2001) directive, servant leadership must walk the walk of being servants first. Greenleaf charac-
contrasts with transformational and considerate leadership in terized a servant leader this way:
one very important way - the focus of transformational leader-
ship is on the organization. Yet servant leadership is about a It begins with the natural feeling that one wants to serve, to
serve first. Then, conscious choice brings one to aspire to
genuine focus on followers.
lead. Such a person is sharply different from one who is a
leader first, perhaps because of the need to assuage an unusual
Servant Leadership power drive or to acquire material possessions. (1998, p. 123,
emphasis in original)
The servant leadership style has been discussed more fre-
quently in the literature in recent years (e.g., Chonko 2007; The servant leader takes great pains to ensure that others'
Sauser 2005; Sendjaya, Sarros, and Sanatoria 2008). The needs are a priority as depicted in Laub's definition: "Servant
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Summer 2009 261
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262 Journal of Personal Selling & Sales Management
they believe that senior leadership is genuinely interested in Hypothesis 4: More experienced salespeople will exhibit
the well-being of others and thus "willing to walk the walk." higher levels of customer orientation.
Together, these notions lead to the following hypotheses:
Research also shows that the response of the salesperson to
Hypothesis 1: The more the salesperson views his or her sales supervisor's actions is contingent on the salesperson's experi-
manager as a servant leader, the greater the salespersons ence. Allen (2006) asserts that new employees entering organi-
customer orientation. zations often feel disoriented and are prone to experiencing a
reality shock. Thus, they have a high need to obtain information
Hypothesis 2: The more the salesperson views his or her sales
to understand the new environment. Supervisors play a fun-
manager as a servant leader, the greater the salespersons
damental role in newcomers learning about the organization,
customer-directed extra-role performance.
job tasks, and their work roles (Ostroff and Kozlowski 1992).
Researchers have also hypothesized that sales management However, as employees gain experience, additional knowledge
leadership can affect salesperson's performance directly. For is more efficiently acquired through other sources, such as
instance, researchers have argued that transformational lead- observing others and by means of trial and experimentation
ership has a positive effect on performance because transfor- (Ostroff and Kozlowski 1992). This supports the long-held
mational leaders inspire salespeople to perform beyond the notion that less-experienced salespeople are more receptive
minimum organizational expectations (e.g., Dubinsky et al. and responsive to managerial actions (Kohli 1989). Rapp et
1995; MacKenzie, Podsakoff, and Rich 2001). In their study al. (2006) found that sales managers have a smaller impact on
of employees of a production and distribution company, motivating salespeople to put forth higher effort as salespeople
Liden et al. (2008) found that servant leadership explains a become more experienced. In view of this, it is also likely
significant amount of variance of subordinates' in-role perfor- that experience moderates the effect of servant leadership on
mance beyond that explained by transformational leadership customer orientation. This leads to the following hypothesis:
and leader- member exchange. Earlier we stated that servant
Hypothesis 5: Salespersons experience moderates the impact
leaders are highly concerned about the well-being and growth
of servant leadership on customer orientation. The impact of
of their subordinates. Salespeople may reciprocate by engag-
servant leadership on customer orientation gains importance
ing in actions that benefit the leader and the organization.
when the salesperson is inexperienced.
Therefore,
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Summer 2009 263
Control Variables
Researchers have also hypothesized that customer orienta-
tion may affect performance indirectly, via adaptive selling
Research indicates that one primary way sales leaders are able
(Franke and Park 2006). Salespeople who are concerned
to stimulate salespeople to achieve higher performance is by
about their customers are more likely to spend the necessary
time and effort in assessing customer problems and respond-
helping to create an employee-friendly work environment
(e.g., Martin and Bush 2006). The underlying principle is
ing to them with customized solutions. Thus, a positive effect
of customer orientation on adaptive selling is expected. that salespeople reciprocate managerial actions that positively
affect their well-being with higher performance. This should
Hypothesis 8: The greater a salespersons customer orienta- be especially true under an extremely other-focused leadership
tion, the more he or she will exhibit adaptive selling. style such as servant leadership. To capture this, our study uses
two attitudinal variables (job satisfaction and organizational
Borman et al. (2001) argue that the predictors of in-
commitment) and an overall measure of job stress. Because
role performance and extra-role performance are differ-
these outcomes of leadership are known to influence job per-
ent. Specifically, the antecedents of in-role performance
formance, we use them as control variables on performance
are contextual and thus vary by occupation. For instance,
itself, and as partial mediators of the servant leadership and
adaptive behaviors are desirable traits in sales jobs but may
outcome performance relationship (Figure 1). Prior models
be detrimental in some manufacturing jobs where quality
examining the impact of sales leadership on performance have
is defined in terms of conformance with predefined stan-
used job Stressors (e.g., MacKenzie, Podsakoff, and Rich 2001;
dards. Borman et al. (2001) assert that extra- role behaviors
Netemeyer et al. 1997) and job attitudes (e.g., Hampton,
such as cooperating and volunteering are the same for most
Dubinsky, and Skinner 1986; Piercy et al. 2006) as media-
jobs. Research has shown that employees with positive job
tors or partial mediators. Because sales experience affects job
attitudes reciprocate by putting forth a greater amount of
attitudes and stress perceptions (e.g., Behrman and Perreault
effort into their jobs (e.g., Ehrhart 2004). Researchers have
1984), sales experience is also used as a control variable.
consistently found that organizational commitment is a sig-
nificant driver of extra-role performance (e.g., MacKenzie,
METHODS
Podsakoff, and Ahearne 1998). Organizational commitment
is often defined as an attitude in the form of employee's psy-
Data Collection Procedure and Sample
chological identification and emotional attachment with the
firm (e.g., Allen and Meyer 1990). However, this attitude
The sample for our study was drawn with the h
can be specific to the various individuals or groups that
market research supplier company specializing in
compose the organization-^a of commitment. The focus ingof of online quantitative studies and the executi
commitment includes "co-workers, superiors, subordinates,
line focus groups. This company maintains a larg
customers, and other groups and individuals that collectively
consumer panel, initially started in 1997, now co
comprise the organization" (Reichers 1985, p. 482). It isof approximately 1.5 million people. When mem
reasonable to expect that salespeople who are committed recruited
to for the panel, information is collected,
their customers have higher levels of customer orientation. an e-mail address for contact with survey invitation
A higher level of customer orientation is thus likely to result
postal address for sending incentive checks, birth m
in customer-directed extra- role behaviors. Researchers have
year, and other descriptors such as gender and em
long claimed that customer-oriented salespeople provide information. This confidential information is protec
exceptional personal service to their customers (e.g., Beatty
secure database and is used to match respondent char
et al. 1996) and are willing to spend additional effort in tics with survey sponsor specifications. For examp
serving them (e.g., Harich and LeBahn 1998). One wouldcurrent study, we extracted a sample frame compose
anticipate that these salespeople are also willing to "go the
people whose full-time professional occupation is
extra mile" in serving the customer and would ultimately Respondents are given incentives for participa
sell more. In view of this:
amounts are in keeping with the nature of any p
survey. Incentives take the form of a mailed ch
Hypothesis 9: The greater a salespersons customer orienta-
preferred by the respondent, donation to a charity o
tion, the more likely he or she will exhibit customer-directed
her choosing. The company adheres to professiona
extra-role performance.
ethics outlined by the American Marketing Assoc
Hypothesis 10: The greater a salespersons customer-directed the Marketing Research Association, and panel me
extra-role performance, the higher his or her outcome free to opt out of membership at any time for an
performance. Data quality assurance processes included separat
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264 Journal of Personal Selling & Sales Management
invitations for each study, security measures to ensure only Measures and Measure Assessment
prerecruited members participate, one answer per e-mail
address, and no reentry to the survey system if not passing Appendix Table Al describes the constructs used in this study.
screening qualifications. The proprietary survey adminis- Servant leadership was measured with 14 items from Ehrhart
tration system also checks for "straight-line" answers and (2004). As Ehrhart asserts, this scale captures seven key
embeds "attention questions" in every survey to make sure characteristics of servant leaders:1 (1) forming relationships
respondents are not just "speeding through" a survey. Those with subordinates, (2) empowering subordinates, (3) help-
bases for disqualification help to ensure data integrity in the ing subordinates grow and succeed, (4) behaving ethically,
final respondent data set. (5) having conceptual skills, (6) putting subordinates first,
Our respondents were 501 salespeople from this database and (7) creating value for those outside the organization.
with an average of 10.3 years of sales experience (standard Customer orientation was measured with four items from Saxe
deviation [SD] = 5.3). The sample included a well-balanced and Weitz's (1982) scale. The four items selected were those
group of females (53.1 percent) and males (46.9 percent) from with the highest factor loadings reported in Martin and Bush's
diverse ethnic backgrounds - Caucasian (87.2 percent), Afri- (2006) study. Using all items from the original instrument
can American (5.2 percent), Asian (3.0 percent), and Hispanic was deemed unnecessary because the customer-orientation
(2.8 percent). Respondent ages were 18-24 (4A percent), construct is unidimensional (Bergkvist and Rossiter 2007).
25-34 (21.2 percent), 35-49 (46.5 percent), 50-54 (14.6 Customer-directed extra-role performance was assessed with
percent), and 55 and older (13.4 percent). Education levels four items from Netemeyer, Maxham, and Pullig's (2005)
were completed high school (14.0 percent), some college or scale that were slightly adapted for study context. Robinson
post-high school education (42.7 percent), college graduate et al. 's (2002) five-item scale was used to measure adaptive
(36.7 percent), and postgraduate education (6.6 percent). selling. Evans et al.'s (2007) instrument was used to measure
Household incomes were less than $25,000 (9.4 percent), outcome performance. Job satisfaction (three items) and job
$25,000 to less than $50,000 (29.1 percent), $50,000 to less stress (four items) were measured with scales found in Nete-
than $75,000 (27.3 percent), $75,000 to $100,000 (21.0 meyer, Brashear-Alejandro, and Boles (2004). Organizational
percent), more than $100,000 (13.21 percent). commitment was measured with three items from Speier and
Regarding their sales jobs specifically, our respondents Venkatesh (2002). Finally, sales experience was measured with
worked in a variety of industries, including insurance, health a single item: "How many total years have you been in sales?"
care, manufacturing, financial services, technology, consumer Table 1 shows the correlation structure of the measures.
products, business services, and others. Participants report Confirmatory factor analysis (CFA) was used to examine
spending over 66 percent of their work time in direct contact the properties of the latent variables (Anderson and Gerbing
with customers, performing diverse selling jobs, including 1988). The parameters of the eight latent construct CFA
retail selling (37.9 percent), consultative or relationship model were estimated using the maximum likelihood method,
selling (25.5 percent), new business selling (12.4 percent), CALIS-Procedure of SAS 9.I.3. Results suggest a good fit
and key account selling (9.2 percent). Commissions as a (%2 = 2,174, degrees of freedom [df] = 829; root mean square
percent of income for this sample ranged from 0 percent to error of approximation [RMSEA] = 0.057, CI90% 0.054 to
100 percent, averaging approximately 26 percent of total 0.060; comparative fit index [CFI] = 0.94; normed fit index
compensation (SD = 36.2). [NFI] =0.91; Bollens nonnormed index [NNI] = 0.94). Re-
We compared various demographic groups for differences sults also showed that all indicator loadings were significant
with respect to the construct measures in our model. Sum- at a = 0.01, thus providing validity evidence in favor of the
mative scale values were computed on the constructs (Hair items used to represent the constructs. Reliability was assessed
et al. 2006), and these values were compared in one-way with Cronbachs OC and the composite reliability (pc). As shown
analysis of variance (ANOVA) models to test for potential in Appendix Table Al, both statistics are above 0.7, which
demographic differences. No significant differences were provides evidence of adequate reliability (Gerbing and Ander-
observed on any of the model constructs for gender, educa- son 1988). In addition, average variance extracted statistics
tion, or ethnicity. With respect to age, a significant ANOVA (pv) were above the desirable 0.6 level (Diamantopoulos and
was observed for one model variable - customer-directed Siguaw2000).
extra-role behaviors CF(4,496) = 4.66, p < 0.01). Post hoc Fornell and Larckers (1981) approach was used to assess
tests indicate that those 1 8 to 24 years old show significantly discriminant validity. A test of confidence intervals of factor
lower mean extra- role performance (mean [M] = 5.27) thancorrelations showed that none of the 95 percent confidence
each of the over-25 age groups (means range from 5.88 to intervals of the factor correlations included one. Also, the aver-
6.33). Thus, among some 32 demographic comparisons, 31 age variance extracted (AVE) for each of the factors is greater
were nonsignificant. than squared correlations for all pairs of factors.
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265
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266 Journal of Personal Selling & Sales Management
The maximum likelihood method, CALIS-Procedure of SAS The ¿-values and signs of the standardized coefficients of the
9.1.3 was used to test the relationships shown in Figure 1. model represented in Figure 1 were used for hypothesis testing.
The moderating effect of sales experience on the relationship Table 2 summarizes the hypothesized relationships, structural
between servant leadership (SL) and experience (E) was as- path coefficients, and the corresponding ¿-values. As shown
sessed by forming an interaction term from the corresponding in Table 2, common method bias changed the magnitude of
variables (SL * E) . This procedure is preferred to the alternative the observed relationships - either attenuating or inflating the
group comparison method because the moderator is not arbi- standardized paths (Williams and Brown 1994), ultimately
trarily partitioned (Rigdon, Schumacker, and Wothke 1998). altering the proportions of variance explained by the model.
This method is also preferred to regression-based tests because However, this impact did not alter the outcome of our hy-
the measurement error from the latent variables is taken into potheses tests.
consideration (Rigdon, Schumacker, and Wothke 1998). We anticipated a direct impact of servant leadership on
Ultimately, this method renders fewer Type 1 errors (Rigdon, customer orientation, customer-directed extra-role perfor-
Schumacker, and Wothke 1998). The SL and E predictors mance, and outcome performance. Results indicate that ser-
were standardized in computing the interaction term to avoid vant leadership positively affected customer orientation (HI:
multicollinearity (Wood and Erickson 1998). ß = 0. '3-,p < 0.05). This effect is stronger when the salesperson
is inexperienced (H5: ßSL*E = -0.14, p < 0.05). Contrary to
Common Method Bias our expectations, we found that the effects of servant leader-
ship on outcome performance (H3: ß = 0.05, ^> > 0.1) and
Researchers have long shown that part of the shared variance customer-directed extra-role performance (H2: ß = 0.03,
of construct relationships can be explained by the use of the p > 0. 1) were nonsignificant. However, as will be shown later,
same method (Cote and Buckley 1987). Common method servant leadership affects these constructs indirectly through
bias threatens the validity of study findings because it can its significant influence on customer orientation.
either inflate or attenuate correlations among constructs, thus Experienced salespeople have higher levels of customer ori-
leading to significant findings in the absence of true relation- entation (H4: ß = 0.10,/? < 0.05). As expected, customer ori-
ships or insignificant findings when true relationships exist entation had a direct effect on adaptive selling (H8: ß = 0.65,
(Williams and Brown 1994). To address this issue, we allowed p < 0.01) and customer-directed extra-role performance (H9:
all indicators to load on their theoretical construct as well as ß = 0.44, p < 0.01). Customer-directed extra-role perfor-
on a latent common methods factor (Podsakoff et al. 2003). mance had a positive effect on outcome performance (H10:
This procedure allows researchers to control for method bias ß = 0.31,/? < 0.01). Our hypothesis about the direct effect of
because the response variance of the responses is partitioned customer orientation on outcome performance did not hold
into its three components - trait, method, and random error (H6: ß = -0.06, p > 0. 1). Yet adaptive selling had a significant
(Podsakoff et al. 2003). This method has been used in previ- impact on outcome performance (H7: ß = 0Äl,p < 0.1). Taken
ous studies using self-reported measures (e.g., Carson 2007; together, our findings show that customer orientation affects
MacKenzie, Podsakoff, and Rich 2001). performance indirectly through adaptive selling and customer-
directed extra-role performance. This is in line with Franke and
Model Fit Park (2006), who found that adaptive selling fully mediates
the impact of customer orientation on performance.
Results of the structural model shown in Figure 1 (Model 1) Regarding our control variables, results also confirm earlier
indicate a good fit with the data (%2 = 1,789, df = 874; findings that job attitudes, job stress, and sales experience
RMSEA = 0.046, CI90% 0.043 to 0.049; CFI = 0.96; mediate the effect of the leader on outcome performance
NFI = 0.93; Bollens NNI = 0.96). For comparison purposes, we (see Figure 2). This brings additional support to the notion
also estimated a structural model without the common method that sales leaders get things done in organizations because they
factor (see Table 2, Model 2). Results also indicate a good fit help to create a low-stress environment in which salespeople
with the data (%2 = 2,177, df = 917, /> < 0.01; RMSEA = 0.052, display positive job attitudes. Yet our findings also show that
CI90% 0.050 to 0.055; CFI = 0.95; NFI = 0.91; Bollens servant leadership may additionally affect what happens in the
NNI = 0.95). A comparison of the two models indicates that market, during salesperson's interactions with the customers.
adding the common method factor results in a statistically sig- Specifically, our findings show that servant leaders are also able
nificant reduction in %2 (A%2 = 388, Adf = 43, p < 0.01). This to affect salespersons performance through complex chains-of-
indicates that there was a significant improvement in model fit effects that involve customer orientation, customer-oriented
when the model controls for the common method factor. extra-role performance, and adaptive selling.
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Summer 2009 267
Table 2
Hypotheses and Standardized Structural Paths
Control Variables
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268 Journal of Personal Selling & Sales Management
Figure 2
Revised Model: Impact of Servant Leadership on Sales Force Performance
Sales
Experience _^^^
I T4.07 XCustomeiX
H5 (í= 1.91) . / Directed '
SP="°15 ' 1 Fvrra-Role ^xira-KOie i
up=-o.io ' V Fvrra-Role ^xira-KOie y' ^
I Leadership )
' ' 1
' ' ' 1 Control 1 I Selling J / I
'' '' 'UP
sp=o.5i Variables '^^ J J / I
= 0.76 SP = O.1O f ^' s' /
'' 'N,
(t= 11.80)
-^r- UP -= M
(1-2.62) 0.14 M / JobJ' ^^
Satisfaction ^^ /
/
' ' SP = 0.39 ^^^^=0.52 ' T^aVqI /
' UP = 0 61 UP = 0.55 ' ^^^ V-*&) /
' (/ = 9.94) sp = 007 ^. (1-12.17) '^^ /
UP = 0.10 /^" ^N. ^^^' /
and method on
method the bias
bias common/^
factor factor /^
^' ^'__ ( ^^ Y^ (t = 2Al)
T
1
1 / Common ' PNv S ^
' Factor / | 1 SaTei 1^-
'. ^y/ ] Experience 1
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Summer 2009 269
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270 Journal of Personal Selling & Sales Management
be useful to integrate managers' and customers' responses to load on a single factor adequately explains the variance am
assess similarities and differences. the servant leadership components. In view of this, the scale
treated as unidimensional.
Our study did not compare the impact of servant leadership
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274 Journal of Personal Selling & Sales Management
Appendix Table A I
Measure Properties
Average
Factor Variance
Loading Reliability Extracted
Measure
My department manager works hard at finding ways to help others be the best 0.93
they can be.
My department manager encourages department employees to be involved in 0.65
community service and volunteer activities outside of work.
My department manager emphasizes the importance of giving back to the 0.68
community.
Customer Orientation (Saxe and Weitz 1982) 0.93; 0.93 0.77
A good salesperson has to have the customer's best interests in mind. 0.80
I try to achieve my goals by satisfying customers. 0.89
I try to find what kinds of products would be most helpful to a customer. 0.9 1
I try to give customers an accurate expectation of what the product will do 0.90
for them.
Customer-Directed Extra-Role Performance (Netemeyer, Maxham, and Pullig 2005) 0.95; 0.95 0.84
I go above and beyond the "call of duty" when serving the customers. 0.87
I am willing to go out of my way to make a customer satisfied. 0.89
I voluntarily assist customers even if it means going beyond job requirements. 0.96
I often help customers with problems beyond what is expected or required. 0.95
Adaptive Selling (Robinson et al. 2002) 0.9 1 ; 0.92 0.69
When I feel that my sales approach is not working, I can easily change to 0.79
another approach.
I like to experiment with different sales approaches. 0.78
I am very flexible in the selling approach I use. 0.93
I can easily use a wide variety of selling approaches. 0.90
I try to understand how one customer differs from another. 0.72
Outcome Performance (Evans et al. 2007) 0.92; 0.92 0.66
Contributing to your company's acquiring a good market share. 0.72
Making sales of those products with the highest profit margins. 0.84
Generating a high level of dollar sales. 0.9 1
Quickly generating sales of new company products. 0.85
Identifying major accounts in your territory and selling to them. 0.71
Exceeding sales targets and objectives during the year. 0.83
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Summer 2009 275
Average
Factor Variance
Loading Reliability Extracted
Measure
Job Satisfaction (Netemeyer, Brashear-Alejandro, and Boles 2004) 0.88; 0.88 0.72
All in all, how satisfied are you with your present line of work? 0.88
All things considered (i.e., paid promotions, supervisors, coworkers, etc.), 0.93
how satisfied are you with your present line of work?
I feel a great sense of personal satisfaction from my line of work. 0.72
Job Stress (Netemeyer, Brashear-Alejandro, and Boles 2004) 0.90; 0.90 0.69
My job tends to directly affect my health. 0.75
At the end of the day, my job leaves me "stressed out." 0.86
Problems associated with work have kept me awake at night. 0.82
I feel fidgety or nervous because of my job. 0.89
Organizational Commitment (Speier and Venkatesh 2002) 0.93; 0.93 0.82
I am proud to tell others that I am a part of this organization. 0.93
I talk up this organization to my friends as a great organization to work for. 0.93
I feel a sense of ownership for this organization rather than just being an employee. 0.86
* Factor loadings from the measurement model (X) are standardized and significant at a = 0.01.
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