Market Mavericks in Emerging Economies: Redefining Sales Velocity and Profit Surge in Today’s Dynamic Business Environment
Abstract
:1. Introduction
2. Literature Review and Hypotheses Development
3. Materials and Methods
3.1. The Purpose of the Paper
3.2. Data Analysis
3.3. Data Collection
4. Results
5. Discussion
6. Conclusions and Future Studies
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Abbv. | Description | Source |
---|---|---|
Sales Excellence—SE | ||
SE1 | The company has a well-defined sales territory management system | Kaur et al. (2024) Mercer (2024) Lulaj et al. (2024a) Kääriä and Shamsuzzoha (2024) Lulaj et al. (2023) Peesker et al. (2024) |
SE2 | Sales targets are based on thorough market analysis | |
SE3 | The company conducts regular customer satisfaction surveys | |
SE4 | Salespeople effectively handle challenging sales situations | |
SE5 | Salespeople sell effectively and increase sales | |
SE6 | The company continually invests in the growth and improvement of salespeople’s skills | |
SE7 | Salespeople manage the sales pipeline effectively | |
SE8 | Salespeople proactively identify new business opportunities | |
SE9 | Salespeople understand the competitive environment | |
SE10 | The company provides adequate resources to support the salespeople | |
Sales Capability—SC | ||
SC1 | Sales strategy is clearly defined and achievable | Conde et al. (2024) Wei et al. (2024) |
SC2 | Salespeople provide quality customer service | |
SC3 | Salespeople are knowledgeable about the company’s products/services | |
Market Alignment—MA | ||
MA1 | Products/services meet customer expectations | Reed (2023) Nansubuga and Kowalkowski (2024) Lulaj and Iseni (2018) |
MA2 | Sales forecasts are accurate and reliable | |
MA3 | Pricing strategy is competitive in the marketplace | |
Strategic Responsiveness—SR | ||
SR1 | Salespeople are responsive to customer inquiries and requests | Seker (2024) Zhang and Song (2024) Lulaj et al. (2024b) |
SR2 | Sales efforts are aligned with corporate strategy | |
SR3 | Sales strategy is challenging but realistic | |
Dynamic Sales Management—DSM | ||
DSM1 | The company regularly researches and analyzes sales data | Giovannetti et al. (2024) Rice et al. (2024) Lulaj (2023) |
DSM2 | The company has a clear sales program | |
DSM3 | Salespeople are motivated and engaged in their work | |
DSM4 | Salespeople adapt to changing market conditions |
Variables | Sub-Variables | Frequency | Percent |
---|---|---|---|
Company type | Manufacturing company | 64 | 35.6 |
Service company | 71 | 39.4 | |
Commercial company | 45 | 25.0 | |
Position | Worker | 23 | 12.8 |
Manager | 31 | 17.2 | |
Financial Manager | 32 | 17.8 | |
Accountant | 31 | 17.2 | |
Director/Owner | 30 | 16.7 | |
Internal Auditor | 14 | 7.8 | |
Investor/Shareholder | 19 | 10.6 |
Item | Construct | Factor Loading λ | KMO and Bartlett’s Test | Variance Explained (VE) Cronbach’s Alpha | Interpretation |
---|---|---|---|---|---|
Sales Excellence—SE | |||||
SE1 | The company has a well-defined sales territory management system | 0.682 | KMO = 0.880 χ2 = 559.308 df = 45 Sig. = 0.000 | 43.9% α = 0.851 | Kaiser (1970) Kaiser (1974) Cronbach (1951) Cronbach (2004) Valid results |
SE2 | Sales targets are based on thorough market analysis | 0.615 | |||
SE3 | The company conducts regular customer satisfaction surveys | 0.611 | |||
SE4 | Salespeople effectively handle challenging sales situations | 0.672 | |||
SE5 | Salespeople sell effectively and increase sales | 0.714 | |||
SE6 | The company continually invests in the growth and improvement of salespeople’s skills | 0.587 | |||
SE7 | Salespeople manage the sales pipeline effectively | 0.686 | |||
SE8 | Salespeople proactively identify new business opportunities | 0.675 | |||
SE9 | Salespeople understand the competitive environment | 0.627 | |||
SE10 | The company provides adequate resources to support the salespeople | 0.741 | |||
Sales Capability—SC | |||||
SC1 | Sales strategy is clearly defined and achievable | 0.803 | KMO = 0.686 χ2 = 112.277 df = 3 Sig. = 0.000 | 65.3% α = 0.734 | Valid results |
SC2 | Salespeople provide quality customer service | 0.803 | |||
SC3 | Salespeople are knowledgeable about the company’s products/services | 0.817 | |||
Market Alignment—MA | |||||
MA1 | Products/services meet customer expectations | 0.762 | KMO = 0.670 χ2 = 136.475 df = 3 Sig. = 0.000 | 67.4% α = 0.756 | Valid results |
MA2 | Sales forecasts are accurate and reliable | 0.859 | |||
MA3 | Pricing strategy is competitive in the marketplace | 0.837 | |||
Strategic Responsiveness—SR | |||||
SR1 | Salespeople are responsive to customer inquiries and requests | 0.786 | KMO = 0.650 χ2 = 79.154 df = 3 Sig. = 0.000 | 59.9% α = 0.666 | Valid results |
SR2 | Sales efforts are aligned with corporate strategy | 0.806 | |||
SR3 | Sales strategy is challenging but realistic | 0.729 | |||
Dynamic Sales Management—DSM | |||||
DSM1 | The company regularly researches and analyzes sales data | 0.699 | KMO = 0.733 χ2 = 138.300 df = 6 Sig. = 0.000 | 54.7% α = 0.772 | Valid results |
DSM2 | The company has a clear sales program | 0.700 | |||
DSM3 | Salespeople are motivated and engaged in their work | 0.816 | |||
DSM4 | Salespeople adapt to changing market conditions | 0.738 |
Observed Variable | Latent Variable | Standardized Regression Weights | Estimate | S.E. | C.R. | p-Value | Asterisk | Confidence Level of 99.9% |
---|---|---|---|---|---|---|---|---|
SE1 | SE | 0.634 | 1.000 | - | Statistically Significant | |||
SE2 | 0.561 | 0.741 | 0.116 | 6.415 | p < 0.001 | *** | ||
SE3 | 0.555 | 0.909 | 0.143 | 6.357 | p < 0.001 | *** | ||
SE4 | 0.615 | 0.894 | 0.129 | 6.924 | p < 0.001 | *** | ||
SE5 | 0.673 | 0.951 | 0.128 | 7.433 | p < 0.001 | *** | ||
SE6 | 0.533 | 0.858 | 0.140 | 6.143 | p < 0.001 | *** | ||
SE7 | 0.638 | 1.079 | 0.151 | 7.128 | p < 0.001 | *** | ||
SE8 | 0.624 | 0.864 | 0.123 | 7.003 | p < 0.001 | *** | ||
SE9 | 0.584 | 1.025 | 0.154 | 6.634 | p < 0.001 | *** | ||
SE10 | 0.709 | 1.036 | 0.134 | 7.738 | p < 0.001 | *** | ||
SC1 | SC | 0.653 | 1.000 | - | Statistically Significant | |||
SC2 | 0.711 | 1.062 | 0.140 | 7.600 | p < 0.001 | *** | ||
SC3 | 0.710 | 1.164 | 0.153 | 7.590 | p < 0.001 | *** | ||
MA1 | MA | 0.638 | 1.000 | - | Statistically Significant | |||
MA2 | 0.768 | 1.842 | 0.251 | 7.333 | p < 0.001 | *** | ||
MA3 | 0.753 | 1.266 | 0.173 | 7.297 | p < 0.001 | *** | ||
SR1 | SR | 0.654 | 1.000 | - | Statistically Significant | |||
SR2 | 0.677 | 1.039 | 0.151 | 6.870 | p < 0.001 | *** | ||
SR3 | 0.574 | 0.800 | 0.131 | 6.104 | p < 0.001 | *** | ||
DSM1 | DSM | 0.585 | 1.000 | - | Statistically Significant | |||
DSM2 | 0.562 | 0.953 | 0.164 | 5.795 | p < 0.001 | *** | ||
DSM3 | 0.739 | 1.241 | 0.180 | 6.888 | p < 0.001 | *** | ||
DSM4 | 0.643 | 1.106 | 0.174 | 6.362 | p < 0.001 | *** |
Path Variables | Covariances | Correlation | Interpretation | |||
---|---|---|---|---|---|---|
Estimate | S.E. | C.R. | p-Value | Estimate | ||
SE <--> SC | 0.047 ** | 0.018 | 2.591 | 0.010 | 0.263 | Cov(SE, SC, MA, SR, DSM) Cor(SE, SC, MA, SR, DSM) Positive and significant relationship |
SE <--> MA | 0.057 ** | 0.019 | 3.000 | 0.003 | 0.310 | |
SE <--> SR | 0.067 *** | 0.021 | 3.210 | 0.001 | 0.356 | |
SE <--> DSM | 0.057 ** | 0.018 | 3.145 | 0.002 | 0.341 | |
SC <--> MA | 0.092 *** | 0.021 | 4.297 | *** | 0.556 | |
SC <--> SR | 0.139 *** | 0.027 | 5.244 | *** | 0.828 | |
SC <--> DSM | 0.122 *** | 0.024 | 5.023 | *** | 0.824 | |
MA <--> SR | 0.094 *** | 0.023 | 4.118 | *** | 0.539 | |
MA <--> DSM | 0.081 *** | 0.020 | 4.044 | *** | 0.532 | |
SR <--> DSM | 0.112 *** | 0.024 | 4.671 | *** | 0.720 |
Model Fit Summary | ||||||
---|---|---|---|---|---|---|
Tests/Parameters | Default Model | Saturated Model | Independence Model | Test Clarifications and Equations | Threshold Values | Interpretation |
CMIN | ||||||
CMIN (χ2) α = 0.05 | 264.369 | 0.000 | 1610.377 | (N − 1) FML, where FML is the value of the statistical criterion (fit function) minimized in ML estimation and (N − 1) Minimum Discrepancy Function divided by Degrees of Freedom (Steiger 1980) | - | |
dfM (X2/df) | 203 | 0 | 253 | Degrees of freedom are important for understanding model fit (Eisenhauer 2008) ≤2 = acceptable fit, Tabachnick and Fidell (2006) | n/a | n/a |
0.002 | n/a | 0.000 | p-value Joreskog and Sorbom (1996) | <0.05 | Significant | |
CMIN/DF | 1.302 | n/a | 6.365 | Chi-square divided by Degree of Freedom Kline (1998); Marsh and Hocevar (1985) | Between 1 and 3 | Excellent fit |
RMR, GFI | ||||||
RMR | 0.026 | 0.000 | 0.118 | Root Mean Square Residual ≤0.05 = acceptable fit Diamantopoulos and Siguaw (2000) | The smaller the RMR value, the better | Perfect fit |
GFI | 0.890 | 1.000 | 0.382 | Goodness of Fit Index A value ≥ 0.9 indicates a reasonable fit (Hu and Bentler 1998) A value of ≥0.95 is considered an excellent fit (Kline 2005) where Cres and Ctot are the residual and total variability in the sample covariance matrix (Jöreskog 2004) | ≤1 >0.80 | Good fit |
AGFI | 0.850 | n/a | 0.326 | Adjusted Goodness of Fit Index | >0.80 | Good fit |
PGFI | 0.654 | n/a | 0.350 | Parsimony Goodness of Fit Index Mulaik et al. (1989) | n/a | n/a |
Baseline Comparisons | ||||||
NFI | 0.836 | 1.000 | 0.000 | Normed Fit Index, also referred to as Delta 1 (Bollen 1989) A value of 1 shows a perfect fit, while models valued < 0.9 can usually be improved substantially (Bentler and Bonett 1980) | >0.80 | Good fit |
RFI | 0.795 | n/a | 0.000 | Relative Fit Index | >0.70 | Good fit |
IFI | 0.956 | 1.000 | 0.000 | Incremental Fit Index | >0.90 | Perfect fit |
TLI | 0.944 | n/a | 0.000 | Tucker–Lewis coefficient | 0 to 1 >0.90 | Perfect fit |
CFI | 0.955 | 1.000 | 0.000 | Comparative Fit Index (Hu and Bentler 1998) A CFI value of ≥0.95 is considered an excellent fit for the model (West et al. 2012) (McDonald and Marsh 1990) | >0.95 | Excellent fit |
Parsimony-Adjusted Measures | ||||||
PRATIO | 0.802 | 0.000 | 1.000 | Parsimony Ratio | 0 to 1 >0.50 | Good fit |
PNFI | 0.671 | 0.000 | 0.000 | Parsimony Normed Fixed Index expressing the result of parsimony adjustment (James et al. 1982) to the Normed Fixed Index (NFI) | ||
PCFI | 0.766 | 0.000 | 0.000 | Parsimony Comparative Fix Index | ||
NCP | ||||||
NCP | 61.369 | 0.000 | 1357.377 | Non-Centrality Parameter | 17.3–106.1 CI 90% | Good fit |
LO 90 | 23.401 | 0.000 | 1234.343 | Lower boundary | ||
HI 90 | 107.451 | 0.000 | 1487.871 | Upper boundary | ||
FMIN | ||||||
FMIN | 1.477 | 0.000 | 8.997 | Index of Model Fit | 0.08–0.53 CI 90% | Good fit |
F0 | 0.343 | 0.000 | 7.583 | Confidence Interval | ||
LO 90 | 0.131 | 0.000 | 6.896 | Lower boundary | ||
HI 90 | 0.600 | 0.000 | 8.312 | Upper boundary | ||
RMSEA | ||||||
RMSEA (90% CI) | 0.041 | n/a | 0.173 | Root Mean Square Error of Approximation values ≤ 0.05 are considered excellent (MacCallum et al. 1996) (Steiger 1990) (Mulaik 2009) | <0.06 | Excellent fit |
LO 90 | 0.025 | n/a | 0.165 | Lower boundary | CI 90% | |
HI 90 | 0.054 | n/a | 0.181 | Upper boundary | CI 90% | |
PClose | 0.857 | n/a | 0.000 | Close Fit Hypothesis Browne and Cudeck (1992) | >0.05 |
Hypotheses | Elaboration | Tests | Rejected/ Accepted | Future Research/ Implications |
---|---|---|---|---|
Hypothesis (H) | There is a statistically significant and positive relationship between SE, SC, MA, SR, and DSM factors | Excellent Model Fit CFA EFA C.I ≈ 99.9% 0.60 ≥ α 0.05 ≥ λ p < 0.001 (***) p < 0.01 (**) RMSEA (90% CI), p = 0.041 , p = 0.002 CFI = 96% | Accepted | The practical implications of the findings for businesses, stressing the importance of adapting and coordinating sales capabilities, market adaptability, strategic responsibility, and dynamic sales management. |
Sub. H1 | SE <--> SC | Accepted | ||
Sub. H2 | SE <--> MA | Accepted | ||
Sub. H3 | SE <--> SR | Accepted | ||
Sub. H4 | SE <--> DSM | Accepted | ||
Sub. H5 | SC <--> MA | Accepted | ||
Sub. H6 | SC <--> SR | Accepted | ||
Sub. H7 | SC <--> DSM | Accepted | ||
Sub. H8 | MA <--> SR | Accepted | ||
Sub. H9 | MA <--> DSM | Accepted | ||
Sub. H10 | SR <--> DSM | Accepted |
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Lulaj, E.; Dragusha, B.; Lulaj, D. Market Mavericks in Emerging Economies: Redefining Sales Velocity and Profit Surge in Today’s Dynamic Business Environment. J. Risk Financial Manag. 2024, 17, 395. https://doi.org/10.3390/jrfm17090395
Lulaj E, Dragusha B, Lulaj D. Market Mavericks in Emerging Economies: Redefining Sales Velocity and Profit Surge in Today’s Dynamic Business Environment. Journal of Risk and Financial Management. 2024; 17(9):395. https://doi.org/10.3390/jrfm17090395
Chicago/Turabian StyleLulaj, Enkeleda, Blerta Dragusha, and Donjeta Lulaj. 2024. "Market Mavericks in Emerging Economies: Redefining Sales Velocity and Profit Surge in Today’s Dynamic Business Environment" Journal of Risk and Financial Management 17, no. 9: 395. https://doi.org/10.3390/jrfm17090395
APA StyleLulaj, E., Dragusha, B., & Lulaj, D. (2024). Market Mavericks in Emerging Economies: Redefining Sales Velocity and Profit Surge in Today’s Dynamic Business Environment. Journal of Risk and Financial Management, 17(9), 395. https://doi.org/10.3390/jrfm17090395