The impact of haggling costs on the optimal organizational design for sales forces

2021 ◽  
pp. 100770
Author(s):  
Matthias Kräkel ◽  
Anja Schöttner
2006 ◽  
Vol 24 (5) ◽  
pp. 327-345 ◽  
Author(s):  
Loïc Plé

PurposeThe purpose of this research is to explore the combining of marketing and organizational literature. This paper seeks to evaluate the relationships between multichannel coordination and customer participation, as seen through the lens of potential customer opportunism. It aims at showing the impact of this opportunism on the organizational design of multiple channels structures.Design/methodology/approachThe research reports on an exploratory case study in a French retail bank. A total of 25 in‐depth interviews were conducted, and the use of other sources enabled data triangulation.FindingsThe results show first that an increase in the number of distribution channels is liable to favor customer opportunistic behavior. To counter this, the bank mainly relies on impersonal coordination modes. An emerging result highlights the role of the customer as a “perceptual filter” between the different channels of employees.Research limitations/implicationsCustomer opportunism is studied via channels employees perceptions. An investigation using a customer survey may help to better understand this construct, e.g. to identify its antecedents, and to measure it precisely. Moreover, further qualitative and/or quantitative studies with larger sample sizes are needed to try and generalize these results.Practical implicationsIt is recommended not to forget that customers can facilitate or hinder multichannel coordination. Retail banks have the power to use them conveniently, provided that they are fully conscious of the scope of the “partial employee” role played by the customer.Originality/valueThis paper broadens understanding of how multichannel distribution structures are coordinated, and in a way belies traditional organizational design literature. The emerging result gives birth to the concept of “reversed interactive marketing”, which has interesting theoretical and practical repercussions.


AKTUELNOSTI ◽  
2017 ◽  
Vol 2 (32) ◽  
Author(s):  
Dragana Došenović

Organizational structure is a system of internal relations and links in the organization. Since adequately designed organizational structure is the key to the success of enterprises, efficient operations and achievement of the objectives of each organization, the basic issue of this paper is the process of organizational design, with particular focus on the differentfactors that affect this process.For this reason, the purpose of this paper is to describe the impact of certain internal and external factors on the organizational structure, as well as to point out their importance in the design process.Based on the conducted analysis and research, author has come to many conclusions on the basis of which has been proven that there are many internal and external factors that directly affect the organizational structure. In order to successfully operate in today's turbulent conditions, it is necessary for companies to constantly adjust to a number of factors. A successful response to new changes often requires a process of restructuring through which organizational structure adapts to new needs.


2020 ◽  
Vol 54 (5) ◽  
pp. 1025-1060 ◽  
Author(s):  
Stefan Sleep ◽  
Andrea L. Dixon ◽  
Thomas DeCarlo ◽  
Son K. Lam

Purpose This study aims to explore the changing nature of the inside sales role and the individual capabilities required for success. Additionally, it examines the influence of organizational structure on inside sales force capabilities. Although business-to-business firms are investing heavily in inside sales forces, academic research lags behind this evolution. Design/methodology/approach Using a two-study qualitative approach, the authors examine contemporary inside sales forces’ responsibilities and operational configurations. Study 1 uses a cross-industry sample of sales leaders and professionals to examine roles and responsibilities. Study 2 used the second sample of sales leaders and professionals to explore the impact of various organizational configurations. Findings The study identifies important differences between inside and outside salespeople in terms of job demands and resources; inside salespeople’s greater reliance on sales technology and analytics than outside counterparts; and existing control systems’ failure to provide resources and incentives to match with inside salespeople’s increasing strategic benefits and job demands. The study also explores four distinct inside–outside configurations. The differences among these configurations help to explain the distinct benefits and costs of each configuration regarding the company, customer and intra sales force processes, which, in turn, determine inside salespeople’s strategic benefits and job demands. Research limitations/implications The authors discuss the theoretical implications of these findings for research on the evolving roles and capabilities of the inside sales force; antecedents and consequences of firms’ choice of inside–outside sales force configurations; and the impact of technology and the inside sales force. They propose a research agenda that includes a series of specific future research questions. Practical implications This study informs managers of the unique role of the inside sales force and how it differs from their outside counterpart. The results inform managers of the issues inherent to various inside sales configurations, helping them determine, which configuration best addresses their customers’ needs. Originality/value This research provides a detailed, updated account of the differences between inside and outside sales forces and the benefits/costs of major inside–outside sales force configurations. Drawing from job demands-resources, organizational structure and strategy-context fit theories, the authors develop research propositions about the underlying structural differences of inside-outside sales force configurations; how these differences drive the inside sales force’s increasing strategic benefits and job demands; and organizational choice of inside sales force configurations. A research agenda is then presented.


Author(s):  
Fang Zhao

Over the past decade, with the advent of the Internet, organizations have changed the way they communicate internally and externally, the way they are configured, and the way they build partnerships. Today’s complex and volatile business world calls for changes and alternatives to the old and conventional paradigm of organizational design and new ways of doing business with others. E-business becomes one of the most important forces shaping today’s business. Virtual corporations and e-partnerships become increasingly popular in the perception of managers and in business operations.


Author(s):  
Suwatin Miharti ◽  
Rafael Wittek ◽  
Bart Los ◽  
Liesbet Heyse

Background: The decentralization of the Indonesian healthcare system, launched in the year 2000, allowed the authorities of local community health centers (CHCs) to tailor their services to the needs of their clients. Many observers see this as an opportunity to increase CHC efficiency. Building on the Context Design Performance Framework, this paper assesses the extent to which efficiency variations between CHCs can be explained by the degree of fit between their organizational design characteristics and aspects of the communities in which they are embedded. Methods: Data envelopment analysis (DEA) was applied to construct a measure of CHC efficiency for a sample of 598 CHCs in 2011, drawn from a publicly available Ministry of Health (MoH) dataset. Tobit regression analysis was applied to assess the impact of organization design and community characteristics and their interplay on efficiency. Results: Large variations in CHC efficiency were discovered, suggesting that not all CHCs are equally capable of finding the optimal design to operate most efficiently. A significant inverted U-shape relationship was found for the organization design-efficiency link: efficiency is highest for CHCs with 1-2 horizontal units and decreases for CHCs exceeding or not reaching this number. No significant association was found between community characteristics (proportion of poor people, remote location of CHC) and CHC efficiency. Conclusion: Organizational design matters for CHC efficiency, but no evidence was found for the hypothesis that a better fit between community characteristics and CHC design increases efficiency. A potential reason for this might be that CHC management’s main design challenge is how to cope with the scarce availability of well-trained health personnel.


2020 ◽  
Vol 84 (5) ◽  
pp. 117-136 ◽  
Author(s):  
Arnd Vomberg ◽  
Christian Homburg ◽  
Olivia Gwinner

Although reacquiring customers can lead to beneficial outcomes, reacquisition processes are often unpleasant for employees, who may be required to admit and address failures. Because many organizational environments reward success and punish failure, companies need to understand how to create an organizational environment that stimulates customer reacquisitions. This study investigates the impact of failure-tolerant cultures and formal reacquisition policies on successful customer reacquisition management. Drawing on organizational design theory and psychological ownership theory, the authors find that failure-tolerant cultures have an inverted U-shaped effect on reacquisition performance because moderate failure tolerance increases reacquisition attempts while not inducing more failures or increasing their severity. Formal reacquisition policies, in contrast, have a positive linear relationship. Notably, formal reacquisition policies do not conflict with failure-tolerant cultures but enhance the beneficial effects of failure tolerance on reacquisition performance; formal reacquisition policies provide guidance for reacquisition attempts that failure-tolerant cultures inspire. Finally, results show that customer reacquisition performance is positively related to overall firm financial performance, a finding that emphasizes the managerial and organizational-level importance of reacquisition management.


2011 ◽  
Vol 1 (2) ◽  
pp. 39-56
Author(s):  
Josune Sáenz ◽  
Nekane Aramburu

This paper analyzes the impact of different organizational enablers on the degree of success of different people-focused knowledge sharing initiatives. Considering company size and technology intensity as two of the most relevant contingent variables in terms of organizational conditions (Mintzberg, 1979), the moderator role of these variables will be examined. For these relationships to be tested, an empirical study has been carried out among Spanish manufacturing firms with more than 50 employees which carry out R&D activities. Structural equation modelling (SEM) based on partial least squares (PLS) has been applied in order to test the main hypotheses of the research. The results obtained show that organizational design and organizational culture play a substantial role when it comes to explaining the degree of success of implementation of people-focused knowledge sharing initiatives. Conversely, the influence of information and communication technologies (ICT) is less relevant. Some interesting differences arise depending on technology intensity and company size.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Borge Obel ◽  
Igor Gurkov

Purpose The purpose of this paper is to address issues related to better identification of strategic orientation of the firm and the impact of strategic orientation on sustainable development of the firm. Design/methodology/approach The paper presents an overview of the existing literature on strategic orientation of the firm, reexamines the major findings and fills the discovered gaps in theoretical constructs and models by new models. Findings In this paper, a new model of strategic orientation is proposed based on the type of relationship of aa firm with its stakeholders who are considered as suppliers of key strategic resources. Relationship between the firm and its particular stakeholder is presented on an input-output like scheme and the variants of the position of the firm towards all its stakeholders serve as foundation for determining strategic orientation types. Next, the authors present orientation of firms of different strategic types towards sustainability. Research limitations/implications The paper outlines several novels problems for strategic management and organizational design theory. Originality/value The paper provides a novel treatment of strategic orientation and particular strategic types.


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