Sales Management Control Strategies in Banking - Strategic Fit and Performance Impact

Not only have the global financial crisis, a changing regulatory environment, increasing competitive pressure, and changes in customer behavior created an overall difficult environment for banking institutions, but they have also increased the pressure on their sales performance. Based on the results of 300 interviews with sales executives of banks in Germany, Florian Mueller empirically investigates how retail, private, and corporate banking institutions need to set up their sales management control strategy in accordance to their specific environment, business strategy, and organizational characteristics in order to increase performance. Cover......Page 1 GABLER RESEARCH......Page 3 Sales Management Control Strategies in Banking......Page 4 ISBN 9783834926531......Page 5 Acknowledgements......Page 8 Table of Contents......Page 10 List of Figures......Page 14 List of Tables......Page 18 List of Equations......Page 20 List of Abbreviations and Symbols......Page 22 1.1 Problem Definition......Page 25 1.2 Research Objectives and Contribution to Literature......Page 28 1.3 Structure of Analysis......Page 31 2.1 Overview of the German Banking Market......Page 35 2.2 The Three Pillars of the German Banking System......Page 39 2.2.1 Private Commercial Banks......Page 40 2.2.2 Savings Bank Group......Page 41 2.2.3 Cooperative Banking Group......Page 43 2.3.1 Retail Banking......Page 45 2.3.2 Private Banking......Page 47 2.3.3 Corporate Banking......Page 49 2.4 Current Development......Page 51 2.5 Summary......Page 59 3.1 Strategy and Strategic Management......Page 63 3.1.1.1 Evolution and Definition......Page 64 3.1.1.2 Levels of Strategy......Page 69 3.1.1.3 Banking Business Strategy......Page 71 3.1.2.1 Evolution and Definition......Page 74 3.1.2.2.1 Fit Concept......Page 84 3.1.2.2.2 Development of Configurations......Page 89 3.2.1 Evolution and Definition......Page 90 3.2.2 Formal Management Controls......Page 94 3.2.2.1 Behavior Control......Page 95 3.2.2.2 Compensation Control......Page 98 3.2.3.1 Self Control......Page 102 3.2.3.2 Professional Control......Page 103 3.2.3.3 Cultural Control......Page 105 3.2.4.1 Applicability of Theories......Page 106 3.2.4.2 Transaction Cost Analysis......Page 107 3.2.4.3.1 Evolution and Definition......Page 111 3.2.4.3.2 Positivist Agency Theory......Page 114 3.2.4.3.3 Principal-Agent Theory......Page 115 3.2.4.4 Organizational Control Theory......Page 119 3.3.1.1 Organizational Culture......Page 125 3.3.1.2 Organizational Centralization......Page 128 3.3.2 Environmental Parameters......Page 131 3.4 Performance......Page 135 3.4.1 Sales Organization Outcomes......Page 136 3.4.3 Salesperson Outcome Performance......Page 137 3.5 Summary......Page 139 4.1 Theoretical Framework......Page 144 4.2.1 Strategy Control Fit......Page 150 4.2.2 Organization Control Fit......Page 155 4.2.3 Influence of the Environment on Configurations......Page 168 4.3 Model Summary......Page 182 5.1 Data Gathering......Page 189 5.3 Operationalization of the Constructs......Page 200 5.3.1 Overview of the Operationalization Approach......Page 201 5.3.2 Sales Management Control Strategy......Page 207 5.3.3 Bank Strategy......Page 212 5.3.4 Organization-Specific Characteristics......Page 215 5.3.5 Environmental Parameters......Page 219 6.1.1 Criteria for the Evaluation of PLS Models......Page 225 6.1.2 General Evaluation of the Theoretical Model......Page 228 6.1.3.1 Assessment of Predictability......Page 230 6.1.3.2 Testing of Research Hypotheses......Page 232 6.1.4.1 Assessment of Predictability......Page 237 6.1.4.2 Testing of Research Hypotheses......Page 240 6.1.5.1 Assessment of Predictability......Page 249 6.1.5.2 Testing of Research Hypotheses......Page 251 6.2.1 Identification of Ideal Empirical Profiles......Page 257 6.2.2 Performance Impact of Adherence to Ideal Empirical Profiles......Page 261 6.2.3.1 Strategy Control Fit......Page 264 6.2.3.2 Organization Control Fit......Page 271 6.2.3.3 Environmental Influence on Configurations......Page 279 6.3 Discussion of the Results......Page 284 7.1 Final Comments and Recommendations......Page 289 7.2 Implications for Future Research......Page 296 Bibliography......Page 299 Appendices......Page 361 Appendix A Top 100 German Banks 2007......Page 362 Appendix B Number of Insolvencies in Germany (1950-2006)......Page 364 Appendix C Overview of Research on Sales Management Control......Page 365 Appendix D Standardized Questionnaire......Page 370 Appendix E Operationalization of Sales Management Control Strategy......Page 379 Appendix F Operationalization of Strategy......Page 384 Appendix G Operationalization of Organization-specific Characteristic......Page 386 Appendix H Operationalization of Environmental Parameters......Page 389 Appendix I Operationalization of Performance......Page 390 Appendix J Construct Operationalization - AVE Correlation Matrices......Page 394 Appendix K Construct Operationalization - Cross-Loadings......Page 398 Index......Page 402