The curvilinear and contingent effect of ethical climate on salesperson performance

The curvilinear and contingent effect of ethical climate on salesperson performance
Jeff S. Johnson, Scott B. Friend
European Journal of Marketing, Vol. 59, No. 2, pp.445-474

The purpose of this paper is to provide empirical understanding germane to ethical climate’s contingent, nonlinear relationship with salesperson performance. While research shows a positive relationship between a firm’s ethical climate and salesperson performance, current examinations of this effect have been limited to linear hypothesizing and testing. The job demands-resource model, however, suggests that the relationship between ethical climate and salesperson performance is nonlinear.

To test the theorized nonlinear and moderated nonlinear relationships, the authors use a sample of 485 business-to-business salespeople and structural equations path modeling.

Results reveal an increasing incremental threshold effect between ethical climate and salesperson performance. Findings further support postulations that conditions which increase (e.g. competitive intensity) or decrease (e.g. role autonomy) the extent to which the sales environment is challenging correspondingly increase or decrease the magnitude of the nonlinearity.

Because the study required variance in environmental-level (e.g. competitive intensity) and organizational-level (e.g. role autonomy) moderators, data used to test the hypotheses came from a cross-sectional, self-reported survey.

The results produce the managerial insight that there are increasing returns to salesperson performance as the ethical climate increases. Insights from the analysis of moderating conditions further inform managers that in highly competitive industries they should be especially attuned to their ethical climate.

To the best of the authors’ knowledge, the findings are the first to advance insight into ethical climate’s curvilinear and contingent salesperson performance implications. Furthermore, this study advances moderated nonlinear relationships suggested by theory.

​The purpose of this paper is to provide empirical understanding germane to ethical climate’s contingent, nonlinear relationship with salesperson performance. While research shows a positive relationship between a firm’s ethical climate and salesperson performance, current examinations of this effect have been limited to linear hypothesizing and testing. The job demands-resource model, however, suggests that the relationship between ethical climate and salesperson performance is nonlinear. To test the theorized nonlinear and moderated nonlinear relationships, the authors use a sample of 485 business-to-business salespeople and structural equations path modeling. Results reveal an increasing incremental threshold effect between ethical climate and salesperson performance. Findings further support postulations that conditions which increase (e.g. competitive intensity) or decrease (e.g. role autonomy) the extent to which the sales environment is challenging correspondingly increase or decrease the magnitude of the nonlinearity. Because the study required variance in environmental-level (e.g. competitive intensity) and organizational-level (e.g. role autonomy) moderators, data used to test the hypotheses came from a cross-sectional, self-reported survey. The results produce the managerial insight that there are increasing returns to salesperson performance as the ethical climate increases. Insights from the analysis of moderating conditions further inform managers that in highly competitive industries they should be especially attuned to their ethical climate. To the best of the authors’ knowledge, the findings are the first to advance insight into ethical climate’s curvilinear and contingent salesperson performance implications. Furthermore, this study advances moderated nonlinear relationships suggested by theory. Read More