STRATEGIC DYNAMICS OF SFCS: LEADERSHIP STYLES AND DECENTRALIZATION IN FOSTERING SALESPERSON LOYALTY

Salesperson loyalty has become critical for business success, necessitating a deeper understanding of its drivers. This study advances Sales Force Control System (SFCS) literature by addressing prior inconsistencies and adapting traditional frameworks to today’s sales environment, characterized by decentralization and digital transformation. Distinctively, it investigates how SFCS decentralization influences salesperson loyalty toward their immediate managers compared to the organization, extending prior research beyond organizational commitment. Using a survey of US-based B2B sales professionals, the study examines the mediating role of perceived fairness and the moderating impacts of traditional leadership styles and new-normal sales constructs, including flexible work arrangements and technology-enabled selling. Results confirm that decentralization within SFCS positively influences salesperson loyalty, with Loyalty to the organization slightly surpassing managerial loyalty. Fairness perceptions significantly mediated these relationships, highlighting fairness as a crucial psychological mechanism. Contrary to expectations, neither transactional nor servant leadership significantly moderated these effects, likely due to managers' dual roles as evaluators and implementers of SFCS and salespeople's growing dependence on technological resources over traditional managerial interactions. Notably, technology-enabled selling emerged as a significant moderator, enhancing fairness perceptions and loyalty outcomes. These findings underscore a critical shift in contemporary sales management, indicating investments in sales technologies may effectively complement or even surpass traditional managerial roles. Results offer practical guidance for optimizing salesperson retention, engagement, and performance by strategically calibrating SFCS, fostering fairness, redefining managerial roles, and integrating advanced sales technologies into organizational practices.