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

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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.

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Author information

Authors and Affiliations

  1. the University of Nebraska-Lincoln, USA

    Ravipreet S. Sohi (assistant professor of marketing)

  2. Indiana University, USA

    Daniel C. Smith (associate professor and the Claire W. Barker Eminent Scholar in Marketing)

  3. the University of Wisconsin-Madison, USA

    Neil M. Ford (professor of marketing)

Authors
  1. Ravipreet S. Sohi
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  2. Daniel C. Smith
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  3. Neil M. Ford
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Additional information

His research interests include issues in personal selling, sales management, and channels of distribution. He has published in theJournal of Retailing, European Journal of Marketing, Journal of Macromarketing, Journal of Marketing Theory and Practice, and various conference proceedings. He received his Ph.D. from the University of Wisconsin-Madison.

His research interests include management of brand equity and competitive analysis. He has published in theJournal of Marketing Research, Journal of Marketing, Journal of Consumer Research, Journal of the Academy of Marketing Science, Journal of Personal Selling and Sales Management, Strategic Management Journal, Journal of Advertising Research, Industrial Marketing Management, andPlanning Review. He received his Ph.D. from the University of Pittsburgh.

His research interests are in the areas of personal selling and sales management. His articles have appeared in numerous journals, and one of them received the William O’Dell Award for the most outstanding article published in theJournal of Marketing Research. He has coauthored several books includingSales Force Management: Planning Implementation and Control (Irwin, 1992). He received his Ph.D. from the University of Illinois-Urbana.

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Sohi, R.S., Smith, D.C. & Ford, N.M. How does sharing a sales force between multiple divisions affect salespeople?. JAMS 24, 195–207 (1996). https://doi.org/10.1177/0092070396243001

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