Resource Utilization of Salespeople and Prospecting Performance

Every day, salespeople span boundaries, coordinate internal and external expertise, leverage social capital, mobilize the tangible and intangible resources of their firm, and try to create value for all stakeholders. Recognizing the important roles of salespeople, Evans et al. (2012) and Lassk et al. (2012) call for more research on the usage of skills, knowledge, people, strategies, expertise, and other resources of salespeople to produce the desired outcomes. Responding to their calls, this study specifically focuses on how salespeople utilize their available and finite resources across four types of customers (new customers, short term customers, long term customers, and win-back customers) to identify and qualify new sales opportunities during the prospecting stage. The dissertation focuses on seven types of resources (capturing both internal and firm related resources) available for salespeople: (1) firm tangible, (2) firm intangible, (3) firm market based, (4) present resources, (5) skills, (6) knowledge, and (7) accumulated successes. The study further explores the moderating roles of organizational identification, competitive intensity, and customer dependence on the relationship between resources utilized and performance during the prospecting stage. The resource utilization scale is developed and tested for robustness. Next, using a final dataset of 346 responses from salespeople, the results reveal that salespeople adaptively utilized various resources across new customers, short-term customers, long-term customers, and win-back (lost) customers. Overall, performance during prospecting stage are more strongly influenced by utilization of internal resources (presence, knowledge, skills and success) than firm related factors. Further, successful prospecting performance requires the usage of skills and knowledge resources with new customers, only skills resources with short-term and long-term customers, but present resources, knowledge, and firm tangible resources with win-back customers. In addition, organizational identification and competitive intensity moderate the relationship between resource utilization and prospecting performance for all customer types, whereas customer dependence is an important moderator for long-term customers. The paper makes several contributions to key areas such as resource allocations in the context of personal selling, and how firms can strategically enhance the performance of their salespeople. Theoretically, the study develops resource utilization scale, and empirically tests its effects on prospecting performance. From a managerial stand point, this dissertation offers additional insights into the effectiveness of each type of resources to plan for selective development of resources, as well as focused sales training.