Multi-level leadership interactions in sales: exploring gender, performance and tenure effects

Purpose This study aims to investigate the impact of tenure, performance evaluations and gender of sales leaders at the director (Level 3) and manager (Level 2) levels on sales agent performance. Anchored in the upper echelons theory, the study explores how these leadership interactions, particularly tenure and performance, shape sales outcomes based on empirical findings. By examining cross-level interactions, the study provides a nuanced understanding of leadership effectiveness in sales organizations. This research contributes to the broader discourse on optimizing leadership strategies, emphasizing the importance of tenure, performance and demographic factors in driving organizational success. Design/methodology/approach The study uses a multi-level modeling approach to examine data from an 18-month period at a Fortune 100 financial services company. The sample comprises 605 participants and 7,692 interactions, enabling a thorough investigation of how leader characteristics impact sales agent performance. Multi-level modeling is well-suited to this research, as it accommodates the hierarchical nature of the data and facilitates the examination of interactions between leader gender, tenure, performance ratings and sales outcomes. This methodological approach yields robust insights into the relationships among these variables across different organizational levels. Findings These findings highlight the nuanced impact of leadership characteristics across organizational levels. At the manager (Level 2) tier, leader performance is the key driver of sales agent outcomes, while tenure exhibits conditional effects moderated by director (Level 3) attributes. At the director tier, tenure negatively impacts agent performance but enhances the benefits of managerial experience through cross-level interactions. Gender influences outcomes at the director level but plays a minimal moderating role overall. These results emphasize the importance of leadership effectiveness, tenure dynamics and cross-level interactions in optimizing sales performance within organizational hierarchies. Practical implications The findings offer actionable insights for optimizing sales leadership. Managerial performance is crucial for driving agent outcomes, emphasizing the need for targeted leadership development and performance management programs at the Level 2 tier. At the director (Level 3) level, tenure and performance interactions highlight the importance of balancing experience with adaptability in leadership roles. While gender has limited moderating effects, promoting diversity at higher leadership levels remains valuable for fostering inclusivity. Organizations should focus on developing leadership strategies that address cross-level interactions, ensuring alignment between director and manager roles to enhance overall sales team performance. Originality/value This study significantly extends the upper echelons theory to the sales domain, offering fresh insights into the impact of gender diversity in leadership across organizational levels. It addresses a major gap in the literature by examining how leader gender and performance ratings jointly influence sales outcomes within a multi-level framework. By exploring these intricate dynamics, the research enhances understanding of how gender, tenure and performance intersect in sales organizations. The results are relevant for organizations that strengthen leadership diversity and improve sales performance through informed talent management strategies.