Determinants of Sales Force Performance: The Case of Multinational Pharmaceutical Companies operating in Ethiopia

Abstract

Sales force performance is undeniably the central interest in the field of sales force management due to the obvious link between sales performance and overall corporate performance. The aim of this study was to examine different factors affecting the performance of salesforce and identify the most powerful determinates of performance. Quantitative approach and explanatory research design was used to assess the different factors affecting sales force performance. All sales representatives working in multinational pharmaceutical companies operating in Ethiopia were included in the study. Out of 110 sales representatives, 101 responded giving response rate of 91.8%. A self-administered questionnaire was used to collect the necessary data. Data was analyzed using SPSS version 21 was used and appropriate statistical tools including person correlation and multiple linear regression analysis were utilized. The correlation analysis showed that there is strong and statistical significant association between selling skills, salary, recognition, supervisory support and performance. In addition, the results of this study showed that recognition, selling skills, basic salary, commission, career development and supervisory support explains performance by 27.7%, 37%, 29.7%, 11.3%, 11% and 16%, respectively. In conclusion, the study indicates selling skills, basic salary, recognition and supervisory support are statistically significant factors in explaining sales force performance but commission, role perception and career development are found to be ineffective factors affecting performance. This indicates that sales managers in pharmaceutical firms should work on to develop the skill level of sales force, installing right and simple acts of recognition practice, devising the right mix of salary and commission and providing more supervisory support to further improve the performance of their sales force to build high performing team.