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How does sharing a sales force between multiple divisions affect salespeople?

How does sharing a sales force between multiple divisions affect salespeople? An increasing number of firms are sharing a sales force between multiple divisions of their companies. Although this practice may increase organizational efficiency by reducing unit selling costs, it is not clear how it affects outcomes at the level of the individual salesperson. This study examines the effects of sharing a sales force between multiple divisions on salespeople’s role perceptions, satisfaction, and performance. The results indicate that sharing is associated with higher levels of role stress and lower levels of work satisfaction and nonfinancial performance. The association between sharing and financial performance is not significant. Formalization and centralization of the sales organization moderate the relationships between sharing and the outcome variables. Higher levels of formalization lessen the effects of sharing on salespeople’s role conflict, role ambiguity, and work satisfaction. Conversely, higher levels of centralization exacerbate the effects of sharing on role ambiguity and work satisfaction. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of the Academy of Marketing Science Springer Journals

How does sharing a sales force between multiple divisions affect salespeople?

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References (72)

Publisher
Springer Journals
Copyright
Copyright © Academy of Marketing Science 1996
ISSN
0092-0703
eISSN
1552-7824
DOI
10.1177/0092070396243001
Publisher site
See Article on Publisher Site

Abstract

An increasing number of firms are sharing a sales force between multiple divisions of their companies. Although this practice may increase organizational efficiency by reducing unit selling costs, it is not clear how it affects outcomes at the level of the individual salesperson. This study examines the effects of sharing a sales force between multiple divisions on salespeople’s role perceptions, satisfaction, and performance. The results indicate that sharing is associated with higher levels of role stress and lower levels of work satisfaction and nonfinancial performance. The association between sharing and financial performance is not significant. Formalization and centralization of the sales organization moderate the relationships between sharing and the outcome variables. Higher levels of formalization lessen the effects of sharing on salespeople’s role conflict, role ambiguity, and work satisfaction. Conversely, higher levels of centralization exacerbate the effects of sharing on role ambiguity and work satisfaction.

Journal

Journal of the Academy of Marketing ScienceSpringer Journals

Published: Jun 1, 1996

Keywords: Role Conflict; Business Unit; Role Ambiguity; Work Satisfaction; Role Stress

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