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The relationship between financial compensation and salesperson performance in a Sabah retail sector: the mediating role of organizational commitment
Toh, Pei Sung1, Iklima Husna Abdul Rahim2, Arsiah Bahron3, Teo, Wan Lee4.
The Wholesale and Retail are one of the selected sectors of economic opportunity
under the 12 National Key Economic Areas, especially shopping mall has become the concerns
in boosting Malaysia as one of the worlds’ leading shopping destination. Apart from that, the
salesperson plays a vital role in providing excellent performance in terms of services to the
customers. The shopper nowadays has concerns about the customer service besides the price,
quantity and quality of the product itself. It has been noting that financial compensation, such
as salary and reward would able to attract and motivate employees in order to provide an
excellent job performance. Furthermore, the salary and reward would influence the employees
to be committed and thus, increase their performance. Therefore, the study is aimed to examine
the relationship between compensation and salesperson performance. Organizational
commitment is examined on the relationship between compensation and salesperson
performance in the mechanism. Quantitative approach has been applied in this study by using
questionnaires through a survey. The data are analysed by using the Smart PLS 3.0 software.
The findings suggested that the reward had a significant relationship to salesperson
performance. It also has suggested that both salary and reward have a significant relationship
to organizational commitment. Lastly, the findings suggested that only normative commitment
had a mediating effect on the hypothesized relationship.
Affiliation:
- Universiti Malaysia Sabah, Malaysia
- Universiti Malaysia Sabah, Malaysia
- Universiti Malaysia Sabah, Malaysia
- Universiti Malaysia Sabah, Malaysia
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