Examining the Antecedents and Consequences of Adaptive Selling Capability: Study from Microfinance Institutions in Indonesia

Abstract

In the heated business competition of today’s financial services sector, small conventional banks such as microfinance institutions (MFIs) must maintain superior salespeople with adaptive selling capabilities to increase sales performance. Therefore, it is critical to investigate the determinant factor and consequences of salespeople’s adaptive selling capability. This study proposed to examine the effect of psychological empowerment dimensions, namely: meaning, competence, self-determination, and impact, on adaptive selling capability. In addition, this research also scrutinises the link between adaptive selling capability and sales performance by examining innovative selling behavior as a mediating variable. A total of 205 salespeople from 34 MFIs in Central Java, Indonesia, participated in the survey. Based on structural equation modelling (PLS-SEM) analyses, this study found that psychological empowerment dimensions significantly affect adaptive selling capability. Findings also demonstrate that adaptive selling capability positively influences innovative selling behaviour. Finally, the results revealed that innovative selling behaviour mediates the relationship between adaptive selling capability and sales performance. This research provides insight for MFI managers to improve sales performance by cultivating employee psychological empowerment, which impacts adaptive selling capability and innovative selling behavior.