Salesperson turnover intention: a tale of two countries

Abstract

PurposeA significant amount of research has shown that drivers of employee attitudes, and behaviors leading to outcome variables such as turnover intentions, are strongly influenced by national culture. This study focuses on the difference in relationships among some critical variables between two emerging economies with similar cultural indices.Design/methodology/approachSurvey questionnaire was used to collect responses from salespeople in two countries. Correlation analysis and structural equation modeling were used to provide support for the stated hypotheses.FindingsResults indicate that Mexican and Indian salespeople differ in how their level of trust in supervisor, regulation of emotion, interpersonal conflict and felt stress related to drive turnover intention. Findings also confirm a strong positive relationship between felt stress and turnover intention.Research limitations/implicationsThis study is based on survey responses and should be interpreted with the associated limitations of method bias. The hypothesized model of relationships among constructs was based on theory and prior research, but researchers understand that there could be other statistically equivalent models with equal fit. Moreover, stress can result from numerous other combinations of variables in addition to those used in this model. The relationships among constructs as presented could also be due to the absence of other key variables. This study looked at turnover intentions from an employee perspective using responses made when economic conditions worldwide were robust. This is not the case today because of the global pandemic. Economic conditions wield substantial influence on employee responses as well as on turnover intentions. In addition, economic downturn lowers turnover potential and heightens stress level.Practical implicationsFindings confirm a strong positive relationship between felt stress and turnover intention. Efforts to keep stress within a productive range should be encouraged, because while the direct costs of turnover can be substantial, indirect costs may be even greater. For example, when salespeople leave an organization, the customer relationships they formed and developed may be at risk, exposing their companies to potential reduction in revenue. Sales organizations that pay inadequate attention to high turnover rate among their salespeople become susceptible to a phenomenon Dudley and Goodson (1988) identified as “low sales recruiting ceiling syndrome.”Social implicationsMost of the current studies results from developing countries have been compared to those from developed countries where the theories and seminal research originated. The outcome of the authors' research lends yet another argument in favor of more comparative studies on East versus East or developing economies versus developing economies. Such effort could further delineate the applicability of “foreign” theories and inform the development of “local” theories for richer insight on local management practice. The current drive to inject diversity, equity and inclusion in the workplace should be reflected in the development of theory and the conduct of research. No one country or individual or group of individuals can claim ownership of theory development and standards for assessing theories originating elsewhere. Diversity, equity and inclusion have a place in academic research and should be encouraged. Second, the results obtained in this paper offer a cautionary note against over-generalization. Just as small details matter in life, likewise, small differences in variables that explain a phenomenon can make a big difference. Third, the findings confirm a strong positive relationship between felt stress and turnover intention. This is true for the two countries examined in this research.Originality/valueThis study seeks to understand why potential drivers of turnover intention might manifest differently in countries that have a similar cultural outlook. The current research leverages the contingency theory and zeroed in on turnover intention. In addition, two additional cultural dimensions (long-term orientation and uncertainty avoidance) were incorporated, and the model was tested using salespeople (rather than plant workers).