A CAUSAL RELATIONSHIP THAT EFFECT COMPETENCY AND DISTRIBUTOR’S PERFORMANCE IN MULTI-LEVEL MARKETING

Abstract

The objectives of this research article were to 1) identify and verify the consistency of a causal relationship model distributor competency and performance that influences Multi-Level Marketing (MLM) distributor performance, and 2) establish and verify the consistency of a causal relationship model distributor competency and performance that influences Multi-Level Marketing (MLM) distributor performance. 3) To construct and test the causal relationship model's coherence using empirical data demonstrating that a distributor's competency affects the distributor's multi-level marketing performance. Quantitative and qualitative research approaches were used in this study. Data was gathered using questionnaires and in-depth interviews. The sample size was 400 samples and the population was 11.18 million distributors. The respondents were distributors, and the sampling techniques were specific. Seven distributor experts served as key informants in the in-depth interviews. The structural equation model was used to examine the data. 1) The component is MLM's organization interactions and big 5 personality, which has a positive direct and indirect influence on a distributor's performance, according to this study. 2.1) MLM's organization, which was the recruitment process, is the most significant component of the causal elements 2.2) relationship, i.e., the client relationship 2.3) Agreeableness was one of the five major personality qualities. 2.4) attitude, which was competent.                 2.5) performance, as determined by the commission 3) The hypothesis model's concordance index was discovered using confirmatory component analysis with the structural equation model. Index value X² /df = 1.758 p-value = 0.0892 passed the acceptance criteria, CFI = 1.00, GFI = 1.00, AGFI = 0.950. It was determined that the structural equation modeling model was appropriate. Compatible with empirical data and regarded as a new knowledge.