A multi-level analysis of sales force compensation: Adopting a contingency theory perspective

This study adopts a contingency approach to extend the existing literature on sales force compensation. We propose that the effectiveness of type of compensation cannot be adequately assessed without consideration of individual-level, SBU-level, and corporate-level factors. It is hypothesized that the fit between compensation and these variables will determine the overall effectiveness of the compensation program. Essentially, this study addresses the following key research question: Does a good fit between the type of compensation and other variables impact employee satisfaction and/or turnover intentions?