The Hidden Minefields in the Adoption of Sales Force Automation Technologies

The Hidden Minefields in the Adoption of Sales Force Automation Technologies

The Hidden Minefields in the Adoption of Sales Force Automation Technologies

Author(s): Cheri Speier and Viswanath Venkatesh

Source: Journal of Marketing, Vol. 66, (Jul., 2002), pp. 98-111 Published by: American Marketing

The Hidden Minefields in the Adoption of Sales Force Automation Technologies

Abstract

Sales force automation technologies are increasingly used to support customer relationship management strategies; however, commentary in the practitioner press suggests high failure rates.
The authors use identity theory as a lens to better understand salesperson perceptions associated with technology rejection.

They collected survey data from 454 sales people across two firms that had implemented sales force automation tools.
The results indicate that immediately after training, salespeople had positive perceptions of the technology. However, six months after implementation, the technology had been widely rejected, and salesperson absenteeism and voluntary turnover had significantly increased. There were also significant decreases in perceptions of organizational commitment, job satisfaction, person-organization fit , and person-job fit across both firms. Finally, salespeople with stronger professional commitment indicated more negative job-related perceptions as experience with the technology increased.
The Hidden Minefields in the Adoption of Sales Force Automation Technologies

Terminologies
Sales Force Automation sales force automation is a technique of using software to automate the business tasks of sales, including order processing, contact management, information sharing, inventory monitoring and control, order tracking, customer management, sales forecast analysis and employee performance evaluation. SFA is often used interchangeably with CRM; however, CRM does not necessarily imply automation of sales tasks.

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Variables

Individual Characteristics
Age : influence both individual perception about technology (i.e. older workers shown more negative perception about technology) Sex: Women shows more negative perception about adoption of technology

Disposition towards Technology

Self-efficacy : assess the degree to which a person believes that he or she has the ability to use a technology to accomplish a particular tasks Playfulness : Persons tendency to act imaginatively and spontaneously with computer.
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Role Perception

Cont .

Role Clarity : Uncertainty regarding the type of job behavior to perform in a specific situation Role Conflict : Experiencing incompatible expectations that need to satisfied simultaneously

Organizational Characteristics
Voluntariness User Involvement User Participation Management Support

Individual perceptions of Technology

Relative Advantage : extent to which a system perceived as better that its precursor Visibility : The extent to which the system is seen in the organization Compatibility: Compatibility of System with organizational norms. Complexity : free from physical and mental efforts Results demonstrability : amendable to demonstrate

The Hidden Minefields in the Adoption of Sales Force Automation Technologies

Cont .

Person Technology Fit

Job Fit: The degree to which SFA tools enhance the job Professional Fit: the degree to which the SFA tools enhance professional development or long-term career Opportunities.

Professional State
Professional commitment
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Hypothesis

H1 : Individual characteristic will influence individual perception of the SFA Technology H2 :Role perception will positively influence individual perception of the SFA Technology H3 : Role perception will negatively influence subjective outcomes H4: Role perceptions will negatively influence objective outcomes H5: Organizational characteristics will positively influence individual perceptions of the SFA technology H6 : Individual perception of the SFA Technology will positively influence perception of the job and professional fit
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Hypothesis

Cont

H7 :Person Technology fit (job fit and professional fit) will positively influence subjective outcomes H8: Person Technology will positively influence objective outcomes. H9 : Professional commitment will negatively influence person technology fit. H10 : Professional commitment will negatively influence subjective outcomes H11 : With increasing experience with SFA technology, subjective and objective outcomes will become more negative compared with outcomes earlier in the implementation process
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Hypothesis

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Research Method

Organizations & Participant

Firm 1: Telecom :399 Salespeople (277 provided all Firm 2: Real Estate :251 Salespeople (177 provided all data at all points of measurements)
data at all points of measurements)

Data Collection
Data collected over 6 months( perceptual data
collected after 2 months) &( objective data collected in 6 months) 3 trainings are giving T1, T2 & T3 Paper-pencil survey after 6 weeks

Measures
Collected through surveys (table 1)
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Results

Measurement Model

EQS 3.0 was used to perform confirmatory factor analysis (CFA) and test the Structure model t-values Comparative fit Index

Structure Model
EQS used to test the research model

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Construct Measures and Reliabilities based on CFA

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Research Model Testing

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Comparison of Subjective and Objective outcomes over time

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Limitations
SFA Technologies studied are similar to and representatives of many other SFA implementation, thus increasing the potential generalizability of the current work With reference to internal validity, there were no changes in sales force compensation, structures, quotas, so forth over the duration of study

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Implementation

This model provides the more complete understandings SFA implementation in a particular and employee acceptance in general

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Conclusion
This research demonstrates empirically that technology, and specifically SFA tools, can generate excessive within-salesperson conflict that results in significant organizational costs-a loss of not only financial investment but also valued employees. By understanding and proactively assessing the potential for this conflict and then implementing mechanisms to manage this conflict appropriately, firms will stand a much better chance of obtaining successful SFA implementation

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