The Eclectic Paradigm of Salesperson Compensation: a New Framework for Investigating the Role of Salary versus Commission

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Numerous researchers, employing theories from either psychology or economics, have investigated the circumstances under which firms are likely to adopt salary-based versus commission-based compensation plans. This study integrates the most common theoretical bases of salesperson compensation literature into a broad framework labeled the Eclectic Paradigm of Salesperson Compensation (EPSC). The EPSC proposes that there is a positive association between a firm's salary orientation and resource commitment, and a firm's salary orientation and firm control. There should be a negative association between salary orientation and dissemination risk, and salary orientation and salesperson motivation/performance. Twenty-three hypotheses originating from the EPSC were tested ... continued below

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viii, 161 leaves : ill.

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Massad, Victor J. (Victor James) December 1995.

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  • Massad, Victor J. (Victor James)

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Description

Numerous researchers, employing theories from either psychology or economics, have investigated the circumstances under which firms are likely to adopt salary-based versus commission-based compensation plans. This study integrates the most common theoretical bases of salesperson compensation literature into a broad framework labeled the Eclectic Paradigm of Salesperson Compensation (EPSC). The EPSC proposes that there is a positive association between a firm's salary orientation and resource commitment, and a firm's salary orientation and firm control. There should be a negative association between salary orientation and dissemination risk, and salary orientation and salesperson motivation/performance. Twenty-three hypotheses originating from the EPSC were tested using a pretest sample of 48 real estate salespersons and a test sample of 311 real estate salespersons. The data were analyzed using common factor analysis, logistic regression, multivariate analysis of variance, and median tests. Of the 23 hypotheses, 10 were supported, 7 were partially supported, and 6 were not supported. The results suggest that the eclectic paradigm of salesperson compensation is a promising initial step toward developing a comprehensive model for understanding the determinants of salary versus commission.

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viii, 161 leaves : ill.

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  • December 1995

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  • March 24, 2014, 8:07 p.m.

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  • March 26, 2015, 10:32 a.m.

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Massad, Victor J. (Victor James). The Eclectic Paradigm of Salesperson Compensation: a New Framework for Investigating the Role of Salary versus Commission, dissertation, December 1995; Denton, Texas. (digital.library.unt.edu/ark:/67531/metadc277576/: accessed October 22, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; .