The Quality of Salesperson-Manager Relationship: The Effect of Latitude, Loyalty and Competence

Abstract

Leader-Member Exchange theory proposes both the salesperson and manager make contributions to their working relationship. Effective leadership is dependent upon developing a high quality relationship. This study tests the proposals of Leader-Member Exchange by examining the exchange of manager contributions (allowing the salesperson more operating freedom or latitude) and those of the salesperson. While the receipt of managerial latitude has a direct effect on the salesperson's evaluation of the working relationship, the salesperson's contributions also play a part. The manager allows more latitude to salespeople who are seen as more competent and loyal. These exchanges latitude for competency and loyalty) and the quality of the salesperson-manager relationship may be especially important when the sales task requires adaptive selling behaviors.