Retail service team performance : the role of team efficacy and team goal orientation

Abstract

Simultaneous achievement of both sales and service performance goals by retail service teams is of critical importance to retail organisations. The success of retail organisations as a whole is essentially reliant on the combined sales and service efforts of frontline service teams where issues of performance management and goal setting central to achieving high performing teams. Yet, with much of the current literature centred on the processes and outcomes of teamwork and team behaviours, little attention has been paid to the psychological foundations of teams that guide team performance. Thus, this study identifies team-level perceptions of ability (team efficacy) and motivation (team goal orientation) as critical components of retail service team performance and three key questions are addressed: (i) what are the antecedents of team efficacy?; (ii) what is the effect of team goal orientation on sales and service performance?; and (iii) how do the constructs of team efficacy and team goal orientation interact to influence the sales and service performance of retail service teams?

This research reviews the retail service team context, social cognitive theory and goal theory to construct a conceptual model of retail service team performance. The model was then tested using data gathered from 13 in-depth interviews and the partial least square analysis of a quantitative survey of 319 retail service teams. Results indicate that integrating performance awareness tasks and promoting team connectedness develops strong efficacy beliefs that positively influence sales and service performance. In addition, the results support the argument for a three-dimensional model of team goal orientation through identifying differing effects of the two performance dimensions on team performance.

Theoretically, the most significant contribution of this research is that it offers insight into team-level concepts only previously explored at the individual level of analysis, with the study presenting empirical evidence of team efficacy and team goal orientation as drivers of team performance in the retail services context. Managerial contributions of the research include guidance on how to direct resources towards improving team efficacy and managing team goal orientation to most effectively improve both the sales and service performance of retail service teams.