View of Automotive Salespeople Performance: Political Skill, Relationship Building, and Deviance

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JKBM (Jurnal Konsep Bisnis dan Manajemen), 9 (2) Mei 2023

JKBM

(JURNAL KONSEP BISNIS DAN MANAJEMEN)

ISSN 2407-2648 (Print) 2407-263X (Online), DOI 10.31289/jkbm.v9i2.8616 Available online http://ojs.uma.ac.id/index.php/bisman

Automotive Salespeople Performance: Political Skill, Relationship Building, and Deviance

Abigail Gracia¹⁾, Yokie Radnan Kristiyono²⁾*

1)Business and Marketing Department, Faculty of Economics, Universitas Pelita Harapan, Lippo Village, Tangerang, Indonesia

2)Business and Marketing Lecturer, Faculty of Economics, Universitas Pelita Harapan, Lippo Village, Tangerang, Indonesia

Submitted : 15-12-2022; Reviewed : 28-05-2023; Accepted : 31-05-2023

*Coresponding Email: [email protected] Abstract

This study explores the relationship between political skill, customer-relationship-building competence, customer-oriented selling, and customer-directed deviance, and investigates whether these relationships affect the sales performance of PT. Astra International Tbk. This study included 220 automotive salespeople as sample using nonprobability sampling, purposive sampling method technique, with various showroom branches of PT Astra International – Tbk’s automotive dealerships as the study’s setting. Structural Equation Modeling is used to test the study’s hypotheses. Results suggest that political skill positively affects customer-relationship-building competence and sales performance yet negatively affects customer-oriented selling and customer-directed deviance. Customer-relationship-building competence positively affects sales performance yet negatively affects customer-oriented selling and customer-directed deviance. Customer-oriented selling positively affects customer-directed deviance and customer-directed deviance negatively affects sales performance. Theoretical and managerial implications for future research are provided.

Keywords: Political Skill; Customer-Relationship-Building Competence; Customer-Oriented Selling; Customer-Directed Deviance; Sales Performance.

How to Cite: Gracia, A, & Kristiyono, Y.R. (2023). Automotive Salespeople Performance: Political Skill, Relationship Building, and Deviance. JKBM (Jurnal Konsep Bisnis dan Manajemen). 9 (2): 216-215

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INTRODUCTION

The automotive sector is very important for a country's ability to grow economically, especially in Indonesia. This sector generates 28% of Indonesia's total GDP. Other industries such as banking, insurance, consumer financing, infrastructure, and steel mining are all closely related to the automotive industry (Syah, 2019). Automotive sales are the main source of income for PT Astra International - Tbk, therefore, salespeople have the responsibility to understand consumer needs and encourage purchase commitments.

In a condition where buyers try several experiences that can influence purchasing deci- sions, salespeople often produce strategic performance through customer-focused behaviors (Grewal & Sridhar, 2021).

In 2022, the automotive segment of PT. Astra International decreased by 1% from 2021, while other business segments experienced an increase. As a company centered on the automotive segment, if sales of motorized vehicles continue to decline until the end of the fourth quarter in 2022, PT. Astra International, Tbk. may decline even if it is supported by other segments (kemenperin, 2021). As a frontliner in sales activities, automotive salespeople are required to improve their performance, skills, and character because national competition is faced by automotive manufacturers who have multinational automotive brands. Thus, one of the main keys in restoring and advancing the automotive segment of PT. Astra International, Tbk. is by improving the performance of the salespeople who are in charge and have the main responsibility for increasing company sales, where sales performance shows the ability and work results of salespeople that are carried out in accordance with their duties and obligations, both in terms of quantity and quality (Garaika, 2020). Based on previous studies, political skills are related to deviance, both morally, ethically, and the basic rules set by the organization itself (Crawford &

Paglen, 2021). Most deviances are done to influence others to fulfill one's own interests.

Thus, this research wants to see whether salespeople often commit deviances to achieve personal targets set by the company, or whether these deviances are carried out for the sake of long-term close relationships with customers as a sign of good sales performance (Yoon et al., 2020).

Political skill itself is an ability to effectively understand other people in an organization or workplace, as well as the ability to influence others in the work environment with the aim of being able to do something that can achieve personal or organizational goals or targets (Ferris et al., 2019), so it is a skill that is quite valuable in

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the sales context. In previous research regarding the influence of political skills in the in- ternal context of the company (Ferris et al., 2019), political skills are often also applied in the relationship between salespeople and customers. In addition, customer-relationship- building competence understands what it takes to cultivate intimate relationships with their most important customers, so there is considerable risk of how easy it is to destroy customer relationships accidentally and thoughtlessly through demonstrated inconsistent and insensitive behavior. such as deviance (Kanyan et al., 2015). In addition, customer- oriented selling is a sales approach that includes efforts to increase customer satisfaction, loyalty, and business by identifying customer needs and working to solve these problems (Amenuvor et al., 2022). Research is conducted to investigate the influence of political skills, customer-relationship-building competence, client-oriented selling, and customer- directed deviance on sales performance. (Plouffe, (2018); Yang & Tsai, (2019)).

Therefore, based on the problems, theoretical basis, and empirical studies, several research hypotheses are proposed as follows:

People with high political skills are reliable negotiators, able to make good deals, and good at managing conflict. They also can read non-verbal signals and emotions from others, which is important for customer-relationship-building competence. Salespeople with high political skills can exploit customer-relationship-building competence to obtain useful information and resources (Li et al., 2017). Therefore, the first hypothesis is:

H1: Political skills have a positive effect on customer-relationship-building competence.

Political skills combine social awareness with good interpersonal communication skills (Velasquez & Rojas, 2017). In this regard, theory and research in political skills and customer orientation supplement the sales framework between salespeople and customers by explaining individual social motives, situationally adaptive behavior, dynamics of influence, and the lens of perception that affects social exchange and sales, which then affects both parties concerned, namely the salesperson as the seller and the customer or buyer. Previous research from Ferris et al., (2019) supports this by proving that political skills have a positive impact on customer-oriented sales. Therefore, the second hypothesis is:

H2: Political skills have a positive effect on customer-oriented selling.

Previous research showed the positive and significant impact of political skills on sales performance Li et al., (2017), they did not examine the relationship between political skills and sales performance in detail, i.e., salespeople in the automotive sector. Some pre-

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vious studies have also shown that individuals who have political skills do not necessarily use their political skills for high-level job performance or career success in an organization. Yang & Tsai, (2019) stated that there was a negative relationship between work conflicts. Previous research (Munyon et al., (2021); Kimura et al., (2019) supports this by stating that political skills have a positive impact on sales performance. Therefore, the third hypothesis is:

H3: Political skills have a positive effect on sales performance.

Salespeople who have political skills use their skills to create the “right customer path”. Those who succeed in using political skills without the elements of coercion or ma=nipulation will tend not to carry out misleading actions that are motivated.

(Customer-directed deviance). Focusing on manipulative actions and belonging to political skills (such as exaggerating profits, using coercion or fraud to obtain sales, and deliberately selling defective products) designed to conduct sales regardless of customer losses, belongs to customer-directed deviance (Darrat et al., 2017). The positive potential of political skills Frieder & Basik, (2016) suggests it can be used to influence others constructively, including customers. This is supported by previous research Schwepker &

Good, (2021) that demonstrated political skills have a negative impact on the frequency of customer-directed deviance. Therefore, the fourth hypothesis is:

H4: Political skills negatively affect the frequency of customer-directed deviances.

Seller power that adopts customer orientation relies on the idea that the seller’s beliefs and values should be directed to the best interests of the customer while priori- tizing the fulfillment of their needs (Baber et al., 2018). For example, a customer-oriented sales force tends not to focus customer attention on the product just because it is only beneficial to the seller (Hughes et al., 2019). The adoption of this perspective relies on the belief that customer-oriented sales produce a market differential advantage. This is supported by previous research results Yang & Tsai, (2019) that stated that customer- relationship-building competence positively affects customer-oriented sales. Therefore, the fifth hypothesis is:

H5: Customer-relationship-building competence has a positive effect on customer- oriented selling.

There are only a few studies that focus on customer-directed deviance. Some of these studies do not include the impact on customer-directed deviance of salespeople (Darrat et al., 2017). However, the researchers formulated a negative relationship between custo-

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mer-oriented selling and customer-directed deviance. We suggest right/wrong actions for customers are actions related to long-term customer relationship. The association betweenining customer relationship by the sales force indicates more customer-oriented sales will be bound to a little customer-directed deviance. This is supported by previous research findings Harindranath et al., (2019) that stated that customer-oriented selling negatively affects the frequency of customer-directed deviance. Therefore, the sixth hypothesis is:

H6: The use of customer-oriented selling has a negative effect on the frequency of customer-directed deviances.

Customer-directed deviance refers to the deviant behavior of the seller's power directed at the customer or their prospects as the deviance directed on the customer.

These deviant activities include deliberately selling defective products, forcing consumers to complete a purchase; abusing, condemning, or discriminating against customers or prospects (Darrat et al., 2017). These deviances are directed for a variety of reasons, from the influence of bureaucracy Lo Iacono et al., (2016); competitiveness; working longer Lo Iacono et al., (2016) and work and family conflicts. Thus, in previous studies Darrat et al., (2017), customer-directed deviance was negatively influenced by close relationships between sales and buyers. Therefore, the seventh hypothesis is:

H7: Customer-relationship-building competence has a negative effect on customer- directed deviance.

Previous study on the influence of customer-relationship competence Darrat et al., (2017), found that the ability to engage between salespeople and customers had a significant impact on sales performance, while other studies Ferdinand & Wahyuningsih, (2018) stated the opposite where there was no significant influence between the two.

Furthermore, according to Habel et al., (2020), companies should motivate their salespeople to the same as in an individual customer relationship. Companies also need to have the ability to consistently analyze customer needs, which is assisted by salespeople’s ability to improve good and close relationships with customers. This is supported by previous research Munksgaard & Frandsen, (2019) that has shown that developing customer relationships will lead to higher performance and performance. Therefore, the eighth hypothesis is:

H8: Customer-relationship-building competence has a positive effect on sales performance.

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The extent of deviance Rostami et al., (2019) suggests customer-directed deviance generally occurs in the sales environment, mainly due to the high emphasis on measurable work performance outcomes. The more frequently customer-directed deviances are used, the more likely they can affect sales performance. Some studies mainly focus on deviance motivation (Hochstein et al., 2016). The researchers suggested focusing specifically on the impact of customer-directed deviance on sales performance, which typically involves activities related to generating sales because understanding the factors affecting sales performance in an automotive company is important to the course of the company itself. This is supported by previous research Plouffe, (2018) that stated that the frequency of customer-directed deviance negatively affects sales performance. Therefore, the Ninth hypothesis is:

H9: The frequency of customer-directed deviances has a negative effect on sales performance.

RESEARCH METHODS

This research uses a quantitative approach method where the data collection method used is a survey. This research itself applies a descriptive research design, which aims to determine the effect between variables to reconfirm the results of previous research (Good & Schwepker Jr., 2022). The sample collection technique for this research is nonprobability, purposive sampling methods (Sugiyono, 2019). The specified sample criteria are active employees who work as salespersons in the sales operations of PT. Astra International, Tbk.

This study consists of five variables, including political skill, customer-relationship- building competence, customer-oriented selling, and customer-directed deviance as independent variables and sales performance as the dependent variable. The survey data collection instrument used was an online questionnaire created through Google Forms platform. The questionnaire given was close-ended questions where the respondents give their opinions and perceptions of the questions taken from the indicators of each variable.

There was a filtering question to filter out respondents who fit the sample criteria or not.

All data testing starts from raw data which is transferred to Microsoft Excel and then processed using SmartPLS software version 4.0.0. This study uses an inferential statistical test because this study discusses the influence between variables and will draw

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conclusions from the population specified in the study. The measurement scale used in this questionnaire is the 5-Point Likert Scale with a value of 1 to 5.

Instrument testing uses the reliability method which shows the consistency of a measurement test or research study used, as well as validity, namely the extent to which the survey measures the right elements that need to be measured (Hair & Alamer, 2022).

This study uses a reliability test with Cronbach Alpha because the level of accuracy and reliability is the highest compared to the others and uses convergent and discriminant validity tests.

RESULTS AND DISCUSSION

The respondent profile explains the characteristics of the research sample specified. The following in Table 1 will describe the characteristics of a total of 220 research samples based on gender, age, and length of work at PT. Astra International Tbk.

Table 1. Respondent Profile

Gender No. of Respondents Percentage

Male 113 51.4%

Female 107 48.6%

Age No. of Respondents Percentage

21 – 25 69 31.4%

26 – 30 71 32.3%

31 – 35 51 23.2%

36 – 40 29 13.2%

Length of Work No. of Respondents Percentage

< 1 year 31 14,09%

1 - 3 years 79 35,91%

3 - 5 years 60 27,27%

> 5 years 50 22,73%

Source: Analysis of Actual Test Data with 220 Respondents (2022)

Based on Table 1, most respondents were male with a percentage of 51.4%, this might be because males are more likely to be forceful and outgoing, which are traits that are frequently viewed as advantageous in sales, or because men are perceived to be more manly in the field of sales. Then most of the respondents were aged 26-30 years with a percentage of 32.3%, This may be the result of a variety of things, including the fact that younger people frequently exhibit greater vigor and enthusiasm, which is advantageous in sales. Younger employees may also be more receptive to new technology and method- logies, which can be vital in a field like sales that is undergoing rapid change, and for the last respondent profil was the number of employees that had worked for 1-3 years as a salesperson at PT. Astra International, Tbk. with a percentage of 35.91%. This suggests that the salesforce at PT. Astra International, Tbk. is relatively new to the company. This

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may be because of a variety of things, such the company's quick expansion or the fact that it frequently hires new salespeople. Additionally, younger employees are frequently more prone to quit employment, which may also help to explain the salesforce at PT. Astra International, Tbk.'s very short tenure. The next test is the convergent validity test which includes the loading factor and average variance extracted (AVE). Convergent validity indicates how closely the new scale is related to other variables and other measures of the same construct.

Table 2. Convergent Validity - Outer Loading and AVE

Variabel Indikator Loading Factor AVE Keterangan

Customer-Directed Deviance CDD1 0,942

0,901 Valid

CDD2 0,956 Valid

Customer-Oriented Selling COS4 0,962 0,931 Valid

COS5 0,969 Valid

Customer-Relationship-Building

Competence CRBC1 0,981 0,964 Valid

CRBC2 0,982 Valid

Political Skill

PS1 0,889

0,711

Valid

PS2 0,908 Valid

PS3 0,719 Valid

Sales Performance SP1 0,985 0,971 Valid

SP2 0,986 Valid

Based on Table 2, all indicators of the variables in this study can be declared valid because they are proven to have met the specified threshold requirements, namely >0.70 for loading factor and >0.50 for average variance extracted (Hair & Alamer, 2022). In addition to convergent validity, discriminant validity of the research variables was also tested. Discriminant validity is defined when each construct in a measurement has a weak correlation with other constructs, except for those that are theoretically related (Hair &

Alamer, 2022). One of the analyzes used in the discriminant validity test is Heterotrait- Monotrait (HTMT).

Table 3. Discriminant Validity - HTMT Variabel CDD COS CRBC PS SP

CDD

COS 0,462

CRBC 0,508 0,637

PS 0,565 0,638 0,816 SP 0,413 0,807 0,72 0,673

Through Table 3, it can be stated that the HTMT values of all research variables are valid because they have met the requirements of the set threshold, which is > 0.85 (Hair &

Alamer, 2022). After testing the validity, the reliability of the variables and research models will be reviewed. The purpose of reliability is to describe the accuracy of the instru-

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ment used in research and if a research instrument, when used in the same situation, has consistent results (Hair & Alamer, 2022). Reliability is measured using Cronbach's Alpha and Composite Reliability values.

Table 4. Reliability Cronbach’s Alpha and Composite Reliability Variable Cronbach’s Alpha Composite

Reliability Evaluation of Model

Customer-Directed Deviance 0.890 0.948 Reliable

Customer-Oriented Selling 0.927 0.934 Reliable

Customer-Relationship-Building

Competence 0.962 0.962 Reliable

Political Skill 0.789 0.792 Reliable

Sales Performance 0.970 0.970 Reliable

Based on Table 4, all variables and models used in this study are reliable because the Cronbach's Alpha and Composite Reliability values of each variable meet the requirements for a predetermined threshold value of > 0.70 (Hair & Alamer, 2022). Next, testing was carried out using the bootstrapping feature in the SmartPLS software to test the inner model which includes R-Square and Q²Predict. The R-Square test is a coefficient of determination which is useful in explaining how far a dependent data can be supported or explained by an independent data. In addition, Q² Predict testing was also carried out to measure predictive relevance to the inner model. The Q-suare predictive relevance assess- ment determines whether a model has predictive relevance or not.

Table 5. R-Square and Q²predict Results

Variable R-square Adjusted Q²predict

Customer-Directed Deviance 0,272 0,218

Customer-Oriented Selling 0,387 0,292

Customer-Relationship-Building Competence 0,502 0,491

Sales Performance 0,497 0,388

Based on Table 5, the overall value of the Q-square variable is above 0, so this research model can be declared predictively relevant and has been replicated from previous studies accurately. In addition, all R-square values generated are in the range 0 - 1, with the requirement that if a number is close to 1, the better, which means that all the variables in this study have met the predetermined value range (Hair & Alamer, 2022). The model fit summarizes, in relation to the statistical model, the difference between the actual observed data points and the expected data points. Measurement of the Fit Model in PLS- SEM uses the Standardized Root Mean Square and the Normed Fit Index, which is also known as the Bentler-Bonett Index (Hair & Alamer, 2022).

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Tabel 6. Model Fit

Goodness of Fit Saturated Model Evaluation of Model

SRMR 0.062 Good Fit

NFI 0.768 Good Fit

Based on Table 6, the SRMR value is 0.062 which means that this research has a good fit model because it meets the predetermined threshold requirements of <0.12. In addition, the value of the saturated model at NFI is 0.768, so it can be interpreted that this research model is very good because its value is close to 1.

Table 7. Original Sample, T-Statisics, and P-Values

Hypotesis Original

Sample T-

statistics P-Values Hypothesis Analysis H1: Political skills have a positive effect on

customer-relationship-building competence. 0.709 15.368 0.000 Supported H2: Political skills have a positive effect on

customer-oriented selling. -0.242 3.277 0.001 Supported

H3: Political skills have a positive effect on sales

performance. 0.290 2.553 0.005 Supported

H4: Political skills negatively affect the

frequency of customer-directed deviances. -0.241 2.782 0.003 Supported H5: Customer-relationship-building

competence has a positive effect on customer-

oriented selling. -0.431 5.961 0.000 Supported

H6: The use of customer-oriented selling has a negative effect on the frequency of customer-

directed deviances. 0.169 2.246 0.012 Supported

H7: Customer-relationship-building

competence has a negative effect on customer-

directed deviance. -0.199 2.054 0.020 Supported

H8: Customer-relationship-building competence

has a positive effect on sales performance. 0.436 3.623 0.000 Supported H9: The frequency of customer-directed

deviances has a negative effect on sales

performance. -0.059 1.154 0.124 Not

Supported Source: Analysis of Actual Test Data with 220 Respondents (2022)

Based on Table 7, all hypotheses in this study are supported by the results of data processing and statistical tests except for the ninth hypothesis because it does not meet the requirements for the T-Statistics threshold, which is > 1.65. In addition, all hypotheses in this study are significant because the P-Value is <0.05, except for the ninth hypothesis which has a value greater than 0.05 (Hair & Alamer, 2022).

The political skill variable has a positive effect on customer-relationship-building competence, where this is supported by the respondents' answers through the questionnaire that reliable political skills in building relationships with colleagues in the workplace can affect the expertise of a salesperson in building personal relationships with customers. Then, it is proven that there is an influence given by political skills to customer-

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relationship-building competence, but because the original sample value is -0.242, the influence between variables is negative where the greater the political skills possessed by the salesperson, the weaker the customer-oriented selling will be. where this is supported by respondents' answers through questionnaires that political skills are used by a salesperson to gain personal benefits so that the higher a person's political skills the greater the tendency to be self-centered rather than customer centered. On the other hand, customer-relationship-building competence has proven to have a positive effect of 0.436 on sales performance, which is also supported by the respondents' answers through the questionnaire that a reliable salesperson is influenced by the customer's desire to be served by a salesperson who can be trusted and honest in relationship between the two parties.

The sales performance variable has also been shown to be influenced by political skills which, in addition to being supported by the acquisition of T-statistics and P-Values of 2.553 and 0.005, is also supported by the theory of political skills itself, namely one's ability to build relationships with colleagues in the same line of work or supervisor for an interest, whether personal or not, which certainly provides a very large possibility for a salesperson to reap profits or awards from the company. Sales performance is also theoretically influenced by customer-directed deviances because it is common for salespersons to commit fraud or deception in order to reap more sales. The results of the hypothesis test and the original sample showed that there was a negative effect of -0.059 between the two. In addition to sales performance, the variable customer-relationship- building competence and political skills are proven to have a negative influence on customer-directed deviance through the negative original sample acquisition value.

Especially for the customer-oriented selling variable, the hypothesis testing, and the original sample results show that there is a positive effect on customer-directed deviance as well as a negative effect on customer-relationship-building competence, so that this conclusion is different and opposite from the established hypothesis even though the hypothesis is supported and significant. This is also supported by the respondents' answers through the questionnaire that most of the reasons why a salesperson deviates in selling products are so that customers can get cheaper offers even if the products sold are defective or not in prime condition.

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CONCLUSION

From the results of this study, political skill and customer-relationship-building competence variables have a positive influence on sales performance which means to improve sales performance, the ability of a salesperson to build a good network in the office and skills in building a relationship personal relationship with customers also needs to be improved. On the other hand, customer-oriented selling and customer-directed deviance have a negative effect on sales performance, so that if these factors are continuously improved, they can result in a decrease in sales performance. Customer- oriented selling is a sales approach that prioritizes the needs of the customer over the needs of the seller. It is a long-term strategy that aims to build relationships with customers by providing them with value and solutions that meet their needs. Customer- oriented selling is based on the idea that satisfied customers are more likely to become repeat customers and recommend the seller to others. Customer-directed deviance is defined as intentional behaviors that depart from the norms of a referent group in honorable ways. In other words, it is when employees breach company rules and policies to assist their customers. The reason why customer-oriented selling and customer- directed deviance have a negative effect on sales performance is that they can result in decreased profitability. Similarly, if an employee spends too much time building relationships with customers instead of making sales, it can result in lower sales performance. With the current problem, which is also the main problem in this research, namely the decline in sales of the automotive sector of PT. Astra International, Tbk. by 1%

in 2022 compared to the previous year, it can be concluded that to recover the company's automotive sector and increase sales of motorized vehicles again, officials and sales managers of PT. Astra International Tbk. it is necessary to improve the ability of salespeople to build interpersonal relationships both in relationships with customers and with colleagues as well as avoid deviances and fraud in sales activities and minimize the impact of increasing these factors so that the company's automotive sector can recover and even increase again compared previous years.

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