The benefits of social networking professional groups for salespersons social capital salespersons performance

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Minh Thien

THE BENEFITS OF SOCIAL
NETWORKING PROFESSIONAL
GROUPS FOR SALESPERSONS:
SOCIAL CAPITAL & SALESPERSONS
PERFORMANCE

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Minh Thien

THE BENEFITS OF SOCIAL
NETWORKING PROFESSIONAL
GROUPS FOR SALESPERSONS:
SOCIAL CAPITAL & SALESPERSONS
PERFORMANCE

ID: 22110058

MASTER OF BUSINESS (Honours)
SUPERVISOR
Dr. Le Nhat Hanh

Ho Chi Minh City – Year 2014


ABSTRACTS
Recently social networking professional groups (SNPG) are increasing and
becoming popular in various social media sites such as Facebook, LinkedIn, Twitter,
Google+, Pinterest, Forum, and Blog. Many people using them as tools to share
information together, acquire existing & new connections, and maintain relationships.
Typically, salesperson has demand to connect and maintain with customers every day,
and the SNPG is a very useful tool for them to build up, develop, and nourish
relationships with their business partners. By drawing on the social capital theory, there
are three kinds of benefits that salesperson can attain from SNPG, including SNPG
bridging, SNPG bonding, and SNPG maintaining. This study attempts to investigate the
effects of these SNPG benefits on salesperson’s self-efficacy, which in turn influence
salespersons performance. The data were collected from 120 salespersons, and the result
shows that among the social capital benefits of SNPG, only bringing is positively
associated with self-efficacy of salespersons. Besides, self-efficacy of salespersons is
found to significantly increase salespersons performance. These findings implies that, in
order to improve salesperson performance, salespersons need to enhance their selfefficacy, and two sub-dimensions of SNPG bridging can help salespersons enhance this
factor is bridging involvement and bridging devotion.
Keywords
SNPG, Social Capital, Self- Efficacy of Salespersons, Salespersons Performance.


TABLE OF CONTENTS
Abstract

List of tables
Chapter 1: Introduction………………………………………………………….1
1.1 Research Background………………………………………………………….1
1.2 Research Problems……………………………………………………………..3
1.3 Research Objectives……………………………………………………………4
1.4 Research Methodology and Scopes……………………………………………4
1.5 The Structure of Research……………………………………………………..5
Chapter 2: Literature Review and Hypothesis Development…………………7
2.1 Social Networking Professional Groups (SNPG)……………………………..7
2.2 Social Capital Benefits: Bridging, Bonding, and Maintaining…………….......7
2.3 Self-Efficacy of Salespersons …………………………………………………9
2.4 Salespersons Performance……………………………………………………13
Chapter 3: Research Methodology…………………………………………......16
3.1 Research Process……………………………………………………………...16
3.2 Measurement Scale…………………………………………………………...17
3.2.1 Measures of Social Capital…………………………………………………17
3.2.2 Measures of Self-Efficacy of Salespersons………………………………...18
3.2.3 Measures of Salespersons Performance…………………………………….18
3.3 Data Collection Method………………………………………………………19
3.4 Qualitative Research………………………………………………………….21


3.5 Quantitative Research……………………………………………………..22
3.6 Data Analyzing Method…………………………………………………...23
Chapter 4: Data Analysis and Results……………………………………...25
4.1 Characteristic of Sample ………………………………………………….27
4.2. Reliability Analysis: Cronbach’s Alpha Testing………………………....28
4.3 Exploratory Factor Analysis………………………………………………33
4.4. Revised Research Model…………………………………………………40
4.5 Multiple Regression Analysis……………………………………………..41

Chapter 5: Conclusions, Implications and Limitations……………………54
5.1 Conclusion………………………………………………………………...54
5.2 Managerial Implications…………………………………………………..56
5.3 Limitation and Future Research………………………………………….. 58
References…………………………………………………………………… 59
Appendix A…………………………………………………………………...63
Appendix B………………………………………………………………….. .71
Appendix C……………………………………………………………… ..…79
Appendix D…………………………………………………………………...82
Appendix E…………………………………………………………………...85


LIST OF TABLES
Table 4.1 Frequently of Salespersons using SNPG…………………………………….26
Table 4.2 Characteristic of Sample……………………………………………………..27
Table 4.3 Reliability Statistics for SNPG Bridging…………………………………….28
Table 4.4 Item-Total Statistics for SNPG Bridging…………………………………….28
Table 4.5 Reliability Statistics for SNPG Bonding……………………………………..29
Table 4.6 Item-Total Statistics for SNPG Bonding…………………………………….29
Table 4.7 Reliability Statistics after deleting Bonding3………………………………..30
Table 4.8 Reliability Statistics for SNPG Maintaining…………………………………30
Table 4.9 Item-Total Statistics for SNPG Maintaining…………………………………30
Table 4.10 Reliability Statistics for Self-Efficacy………………………………………31
Table 4.11 Item-Total Statistics for Self-Efficacy………………………………………31
Table 4.12 Reliability Statistics for Salespersons Performance………………………....32
Table 4.13 Item-Total Statistics for Salespersons Performance…………………………32
Table 4.14 KMO and Bartlett's Test …………………………………………………….33
Table 4.15 Total Variance Explained...………………………………………………….35
Table 4.16 Rotated Component Matrix...………………………………………………..35
Table 4.17 Rotated Component Matrix …………………………………………………36

Table 4.18 Correlations………………………………………………………………….43
Table 4.19 Model Summary……………………………...……………………………...44
Table 4.20 ANOVA……………………………………………………………………...45
Table 4.21 Coefficients of multiple linear regression analysis in first running …………46


Table 4.22 Model Summary…………………………………………………………….46
Table 4.23 ANOVA…………………………………………………….……………….47
Table 4.24 Coefficients of multiple linear regression analysis in second running……..48


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CHAPTER 1: INTRODUCTION
1.1 Research Background
According to We Are Social, a new kind of globe agency combines an innate
understanding of social media with digital, public relation, and marketing skills, entirely
focused

on

innovative,

creative

and

effective

social

media

marketing

and

communications. Following this agency’s report of South East Asia (SEA) consist of
Vietnam in January, 2014: SEA has nearly 196 million internet users with 31% Internet
Penetration and nearly 162 active social networks users with 26% social networking
penetration (Kemp, 2014)
For further details, Internet Live Stats (2014) show a report: there are about 40
million internet users in Vietnam as of July 01st , 2014. Internet users grow 9% compare
with 2013 in the same period. And internet penetration shares 1.28% country’s share of
World Internet Users, and ranges at No.14 of Global rank. And We Are Social has just
updated the report of Vietnam in Jan , 2014 significant social indicators: social media
penetration as of percentage of the total population is 38%, the average time that internet
users spend using the internet each day through all devices: 6 hours and 20 minutes.
While, the average time social media users spend on social media each day: 2hours and
23 minutes. Specially, report also represent Vietnam situation in social media use: 97%
of Vietnam internet users have any social network’s account: Facebook, Google+,
Twitter, LinkedIn, Pinterest and 81% all of them use one of these social network in the


2

previous month. With the more detail in percentage of social media usage: 67%
Facebook, 34% Google+, 16% Twitter, 8% LinkedIn, 5% Pinterest. Kemp (2014) also
state that: communities or social networking professional groups (SNPG): we can
categorise audience in the common group by instead, look for the interests, motivations

and attitudes that the people we want to engage have in common, and use these
commonalities to define your audience. People are drawn to others whom they feel
affinity for, and when it comes to the borderless internet, this affinity is far more
dependent on passion than it is on place around their shared motivation. Currently, in
Vietnam now there are many groups or e-communities in social networking. They are
established everyday to invite the new members anytime whom have the common
professional or interests or fan club. So that, they can connect together, sharing
experiences, new things or interesting topic.
From this report, we observe Vietnam internet user, typically the benefits of social
network is very large. The development of social networking in Vietnam very fast which
make many organizations cannot overlook this opportunity. This is the big chance for
salespersons whom need to connect people, customer engagement, building new
customer, approach new prospect or maintain relationship with customer for building
customer service or simply for product warranty or new product introduction.
However, in order to understand in-depth SNPG in Vietnam, salesperson need to
know what people think and feel when joining these professional groups. Furthers detail,


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salesperson need to understand what factor impact to salesperson when participate SNPG
and from this salesperson can enhance their skill and improving their working
performance when using SNPG.
1.2 Research Problems
SNPG in Facebook, Twitter, LinkedIn, Google Plus, Pinterest, Forum, Blog… are
becoming an indispensable part of every societies, with many people using them as tools
to share information together, acquire existing & new connections, maintain relationships
online & offline. SNPG not only facilitate individuals to connect together but also allow
business organizations to find-out more customers and help generate new customers,
identify potential customers, build customer relationship effectively, and even solve

customer complaints on time. As salespersons playing the role of boundary-spanners in
business organizations, they can utilize SNPG for both personal and professional
purposes which might improve the quality of their lives, and enhance their working
capacity, thus leading to better performance in their job.
Besides, the reason of joining of salespersons in SNPG from different reasons, for
instance, customer service for customer orientation, attracts and finding new customers,
while company think about their business, do some marketing campaign and public
relation activities to pose on SNPG. Depending on particular purposes and objectives,
each subject will develop their account in right way.


4

According to social capital theory, SNPG bring three kinds of benefits including
SNPG bridging, SNPG bonding, and SNPG maintaining to the users within the networks
(Ellison et al, 2007). The benefits or values of SNPG are perceived as supportive among
salespersons upon their joining the groups (Madanka et al, 2013). A comprehensive and
intensive literature review on the application of social capital theory reveals that there is a
lack of research that apply the theory in online environment, especially so far no research
has been done on explaining the benefits and values that salesperson attain from SNPG to
improve their working performance. Therefore, the purpose of the current research thesis
is to investigate the relationships mechanism that three aforementioned benefits of social
capital (i.e., SNPG Bridging , SNPG Bonding, and SNPG Maintaining) pertaining to
Salespersons Performance and Self-Efficacy of Salespersons at work.
1.3 Research Objectives
The overall objective of this study is to examine SNPG benefits to Salespersons
performance. Typically, it investigates:


The relationship between SNPG Bridging and Self-Efficacy of Salespersons



The relationship between SNPG Bonding and Self-Efficacy of Salespersons



The relationship between SNPG Maintaining and Self-Efficacy of Salespersons



The relationship between Self-Efficacy of Salespersons and Salespersons

Performance
1.4 Research Methodology and Scopes


5

The research method that many researchers are using lately is the combination of
qualitative and quantitative research. It helps increase the accuracy and sufficiency of the
study. Applying qualitative research to collect the ideas and opinions allows the
adjustment of the study is made. While, the quantitative research guarantees many people
take the survey and allows the researcher to carry out the data analysis with more reliable
results.
The researcher uses Statistical Package for the Social Science software (SPSS), an
effective tool to analyze the data. The first step is to study the Descriptive Statistics. The
second one is to test the reliability of the scales (Cronbach’s Alpha), Factor Analysis.
Finally, the Regression is used to examine the relationship between independents
variables and dependent variables.

This study is to research salespersons performance in SNPG in Vietnam, so, the
scope of this research is restricted to all salespersons who mostly live in Hanoi City and
Ho Chi Minh City. Because these cities are the two biggest city of Vietnam with the huge
number of population, have modern technology and stable infrastructure, people who are
living in these areas have better facilities to access social networking sites than other
people in other areas. Certainly, the respondents of this study must know about SNPG
and have created an account on it; otherwise, their answers are not qualified and cannot
be used in the data analysis.


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1.5 The Structure of Research
Structure of the research
The structure of this study consists of five chapters:
Chapter 1: Introduction
This chapter presents research background of the study, as well as, research
problems, research objectives, research scopes.
Chapter 2: Literature Review and Hypotheses Development
This chapter provides the literature review and previous studies. Still, the
conceptual model of the study and the hypotheses are also presented.
Chapter 3: Methodology
In this chapter, the researcher introduces the method used to design and implement
the research base on the research objectives and scopes, the processes of doing the
research are also reported.
Chapter 4: Data Analysis
All the data collected from the survey are analyzed and translated in this section.
Depending on withdrawal results from the analyzing, each factor will be deeply discussed
how it affects the attitude toward participating in SNPG.
Chapter 5: Conclusions, Implications and Limitations

7

This chapter presents main conclusions and implications based on the results of
the previous chapters, some suggestions for the improvement as well as the limitations of
this study.
CHAPTER 2: LITERATURE REVIEW & HYPOTHESIS DEVELOPMENT
In this chapter, researcher presents the literature review, the research model and
the hypotheses development of the study.
2.1 Social Networking Professional Groups (SNPG)
According Scoot & Johnson (2005) SNPG or e-communities are defined as groups
of people with common interests that communicate regularly, and for some duration, in
an organized way over the Internet, they are designed to provide users with a range of
tools for learning, personal development, and collective action point, all embedded in a
complex, continuing, and personally enriching network of social relations. And Pinho
(2013) state that SNPG (e.g Facebook, Twitter, Linkedln and Pinterest) have become a
recent global phenomenon in human communication and interaction, more than a billion
individuals are globally connected through virtual communities, interacting with their
friends and working partners, exchanging valuable knowledge while being exposed to a
vast universe of brands. SNPG are becoming an indispensable part of every societies,
with many people using them as tools to share information together, acquire existing &
new connections, maintain relationships online & offline, all of them have target users
and separately benefits differently.
2.2 Social Capital: Bridging, Bonding, and Maintaining


8

According to social capital theory, the term “social capital” is what allows any

organization or individual to make requests of its followers successfully, think of social
capital as funds in a sort of intangible bank account that you add to by listening to,
engaging with, and doing favors for others (Solomon, 2013).
Huvila et al (2009) also declare social capital has been acknowledged as it opens
up relational, structural and content dimensions related to sharing. Social capital refers to
both norms and networks as facilitating collective action and encouraging cooperative
behavior, the positive effects of having a high level of social capital through networks
and through the relationships between individuals and social units. Social Capital, a
method to measuring the value of connections that resident have to each other and to their
communities (Frank, 2010).
Madanka et al (2013) define social capital is crucial & vital ingredient of
economic included: social supporting, integration, social cohesion, teamwork, density of
changes with colleagues. Adler & Kwon (2002) also define social capital is the goodwill
available to individuals or groups. Its source lies in the structure and content of the
actor’s social relations. Its effects flow from the information, influence and solidarity it
makes available to others.
Jones (1987) explained supporting of SNPG: Perceptions of their social network
support, self-esteem, time of study participation, and motivation for using social networks
(e.g., to find new friends, new customers, to share good or bad things, to obtain new


9

information) interacted with SNPG use to predict changes in affective or cognitive wellbeing or self-efficacy.
Social capital help people to share of social networking, reduced probability of
opportunism, cost of monitoring, encourage cooperative behavior, facilitating
development of new form & innovative organization, taking advantages of new
opportunities, featuring the structure, not of individual actor within social structure,
ecologic characteristic (Madanka et al, 2013). There is relation between supporting of
SNPG, interest in media such as: Internet, computer games, video games, computer, cell

phone, and television and personal’s well-being (Castella et al, 2011). And help
individual becoming strong, consistent, reciprocity, provide info people care abt, positive
way to bring benefit to someone, ask for opinion, giving back, reputation, value
contructive input, more controversial , to be involved, giving credit, encourage feedback.
(Solomon, 2010).
Ellison et al (2007) state that social capital brings three kind benefits of SNPG:
including SNPG bridging, SNPG bonding, and SNPG maintaining to the users within the
networks and distinguishes between bridging and bonding social capital. The former is
linked to what network researchers refer to as ‘‘weak ties,’’ which are loose connections
between individuals who may provide useful information or new perspectives for one
another but typically not emotional support (Granovetter, 1982).
2.3 Self-Efficacy of Salespersons


10

Based on research of Chelariu & Rodney (2011), Salesperson self-efficacy refers
to judgments about the individual’s capability to organize and execute courses of action
required to achieve designated levels of sales performance (Bandura, 1978). Self-efficacy
is not concerned with the skills one has, but with the judgment of what one can do with
whatever skills one possesses (Bandura,1986). From a cultural standpoint, self-efficacy is
often seen as being congruent with traditional Western values such as mastery, selfreliance, and achievement. (Gecas, 1989).
Sujan et al (1994) define self-efficacy is domain specific, it is a more general
construct than expectancy, which involves success at specific sales tasks, but a narrower
construct than self-esteem, which refers to success in all life’s domains. Strong selfefficacy beliefs have been consistently associated with task performance or high levels of
sales performance in general (Ryerson, 2003). Sujan et al. (1994) state that: performance
orientation motivates both “working hard” and “working smart” more so for high selfefficacious salespeople than for those who are less self-efficacious. Self-efficacy is
defined as how well one can execute courses of action required in dealing with different
situations.
Self-Efficacy, establishing the foundation, can be credited as the foremost theorist

in the area o f self-efficacy. His original work originated from social. In simplifying the
definition of self-efficacy, Bandura (1986) propose that an appropriate measure is not o f
the skills one possesses but of the judgment of, “ what one can do with whatever skills
one possesses” (Ryerson, 2003).


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The benefits or values of SNPG are perceived as supportive among salespersons
upon their joining the networks (Madanka et al, 2013). Such is associated to improve
their professional knowledge and skills (Solomon, 2010), enable them to develop more
contacts and build relationships with both extant and potential customers (Jones, 1987),
thus enhancing their self-efficacy at work (Chelariu & Rodney, 2011), then eventually
leading to a better sales performance in their job (Sujan, 1994).
There are two types of social capital: bridging and bonding Putnam (2000).
“Bridging social capital” is accommodative. It occurs in social networks linking
individuals of different backgrounds, providing opportunities for the exchange of
new information or resources. Bridging social capital “is better for linkage to external
assets and for information diffusion” Putnam (2000). In the other words, bonding social
capital ensures a sense of social solidarity within groups, while bridging social capital
links often disparate people and provides information about opportunities outside the
groups.
Based on this prior work, we proposed the following hypothesis having relation
between Social Capital: SPNG Bridging and Self-Efficacy of Salespersons:
H1: SNPG bridging is positively associated with Self-Efficacy of Salespersons.
Putnam (2000) also state that “bonding social capital” can be monopolized. It
occurs among personal acquaintances such as family members or close friends
who provide mutual support for one another, both emotionally and physically. The
diversity of these social bonds and social capital is the result of strong interpersonal

12

connections. “Bonding social capital is good for under-girding specific reciprocity and
mobilizing solidarity”,
Patulny & Svendsen (2007) claim the beneficial outcomes that flow from bonding
social capital, such as reduced transaction costs among familiars, focuses upon secure
closed networks, in that special interest groups can cooperate to impose costs on nonmembers in pursuit of member’s interests, the gains being much greater in this regard
than from cooperative action.
Meadowcroft & Pennington (2008) define bonding social capital describes the
cohesion that exists between small groups of similar people, such as family members,
close friends, and colleagues and perhaps the members of ethnic or religious groups, the
bridging variety describes the networks that link acquaintances

who may be very

dissimilar people, such as businesswoman and her customers.
These arguments lead to following hypothesis:
H2: SNPG bonding is positively associated with Self-Efficacy of Salespersons.
Alternatively, bonding social capital is found between individuals in tightly-knit,
emotionally close relationships, such as family and close friends. After briefly describing
the extant literature on these two forms of social capital and the Internet, we introduce an
additional dimension of social capital that speaks to the ability to maintain valuable
connections as one progresses through life changes. This concept, ‘‘maintaining social
capital,’’ permits us to explore whether online network tools enable individuals to keep in
touch with a social network professional groups. (Ellison et al, 2007).


13

Penard and Poussing, (2010) state that: interesting relations between participatory
online capital, a high level of trust in others increases the probability of maintaining
social capital through the Internet.
Based on this prior work, we proposed the following hypothesis having relation
between SPNG Maintaining and Self-Efficacy of Salespersons:
H3: SNPG maintaining is positively associated with Self-Efficacy of Salespersons.
2.4 Salespersons Performance
Barling & Beattie (1983) stated a correlation between self-efficacy beliefs and
salespersons performance. The generality of self-efficacy theory in a business
environment was indicated by the relationship between self-efficacy and objective
measures of sales performance. Self-efficacy theory postulates that people will perform
better when they believe that they have the skills necessary to succeed
The definition for salespersons performance borrowed from (Michael, 2010) study
of sales performance evaluation. Measures include presentation skills, product
knowledge, customer relations, as well as quantity o f sales. The sales behaviors of sales
professionals are defined as actual assessments of what psychological and physiological
behaviors the sales professionals carry out (Anderson & Oliver, 1987).
General self-efficacy impacts on sales performance has been researched and
measured the positive relationship between self-efficacy of performance rating and sales
performance, with mixed results as to the correlation between self-efficacy and
salespersons performance (Lee and Gillen. 1989).


14

Krishnan et al (2002) state that: the individual characteristics of self-efficacy,
competitiveness, and effort as potential antecedents of salesperson performance. Based
on different selling contexts, it is observed that whereas effort mediates the relationship
between competitiveness and sales performance, self-efficacy has both direct and indirect
effects on sales performance.

Based on this prior work, we proposed the following hypothesis having relation
between Self-Efficacy of Salespersons and Salespersons Performance
H4: Self-Efficacy of Salespersons is positively associated with Salespersons
Performance.
The Proposed Conceptual model and Hypotheses
Above mechanism, we draw-out the model for this research:

SNPG
Bridging

SNPG
Bonding

SNPG
Maintaining

H1
H3

Self- Efficacy
of Salespersons

H4

H2

Figure 2.1: The proposed Research Model

Salespersons
Performance

15



H1: SNPG bridging is positively associated with Self-Efficacy of Salespersons.



H2: SNPG bonding is positively associated with Self-Efficacy of Salespersons.



H3: SNPG maintaining is positively associated with Self-Efficacy of

Salespersons


H4: Self-Efficacy of Salespersons is positively associated with Salespersons

Performance.


16

CHAPTER 3:RESEARCH METHODOLOGY
This chapter reported the methodology the researcher used to do the research,
including the source of the data, collection method and the analysis. At this stage, the
critical factors truly affect salespersons performance when participating in social

networking professional groups will be indentified.
3.1 Research Process

Literature review

Research model
and Hypotheses

Draft
questionnaire

Revision + Back
translation

Final draft
questionnaire

Pilot survey
(n=90)

Reliability Analysis
(Cronbach’s Alpha)

Delete low itemtotal correlation
item(s) (<0.3)

(n = 107)

Exploratory Factor
Analysis (EFA)

Delete low factor
loading item(s)
(<0.5)

Main survey

Reliability
Analysis

Multiple Regression
Analysis

Figure 3.1: Research Process


17

3.2 Measurement Scale
3.2.1 Measures of Social Capital
Measures of social capital—Bridging, Bonding, and Maintaining —were created
by adapting existing scales, with wording changed to reflect the context of the study, and
creating new items designed to capture Internet-specific social capital (Ellison et al,
2007). The factors of social capital analyzed to ensure that the items reflected three
distinct dimensions:


SNPG Bridging

Bridging1: I feel I am part of the SNPG

Bridging2: I am interested in what goes on at SNPG
Bridging3: SNPG is a good place to be
Bridging4. I would be willing to contribute money to SNPG
Bridging5. Interacting with people at SNPG makes me want to try new things
Bridging6. I am willing to spend time to support general social media activities
Bridging7. At SNPG, I come into contact with new people all the time
Bridging8: Interacting with people at SNPG reminds me that everyone in the world is
connected


SNPG Bonding

Bonding1: There are several people at SNPG I trust to solve my problems
Bonding2: There is someone at SNPG I can turn to for advice about making very


18

important decisions
Bonding3: The people I interact with at SNPG would be good job references for me


SNPG Maintaining

Maintaining1: I’d be able to find out about events in another town from SNPG
acquaintance living there.
Maintainging2: I’d be able to stay with SNPG acquaintance if traveling to a different city
Maintaining3: I would be able to find information about a job or internship from a SNPG
acquaintance
Maintaining4: It would be easy to find people to invite to SNPG reunion

3.2.2 Measures of Self-Efficacy of Salespersons


Self-Efficacy of Salespersons
Measure of Self-Efficacy of Salespersons was created by adapting existing scales

from (Chelariu and Stump, 2011):
Self-Efficacy1: It’s easy for me to make my customers understand me
Self-Efficacy2: I am confident of my ability to sell
Self-Efficacy3: I feel I have the capabilities to successfully perform well in my job
Sefl-Efficacy4: I am good at selling.
3.2.3 Measures of Salespersons Performance


Salespersons Performance