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Cross-Divisional Orientation : Antecedents and Effects on Cross-Selling Success

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abstract To determine which company internal prerequisites must be in place and managed to realize a successful cross-selling strategy and to find answers on how to overcome cross-selling obstacles.

Qualitative and quantitative data from various industries provide insights into the implementation of a successful cross-selling strategy. Qualitative data serve to derive the hypotheses and constructs and design quantitative measures. Structural equation modeling with data from a management survey of an industrial glass manufacturer tests the proposed effects.

The cross-divisional orientation of a company affects the realization of cross-selling potential and the number of product divisions a salespersons sells. These factors then influence the salesperson's motivation and readiness to engage in cross-selling activities, which finally affect the company's overall cross-selling success. A salesperson's state of mind has the greatest impact on cross-selling success.
Research implications: Similar results might be expected for various other industries, which need to be tested. The findings could be enhanced by incorporating a wider range of customer characteristics into the analysis, as well as other mediating or moderating variables.

There is a clear need to enable cross-divisional acting and thinking among salespeople. Managers should foster cross-selling motivation and invest in specific training and recruitment to increase the dissemination of knowledge across divisions and reassure salespeople about offering various products.

This contribution to current practice clarifies why cross-selling often does not work and why it remains so challenging to realize. The combination of three sources of data—qualitative, objective, and quantitative—advances cross-selling research by considering internal obstacles to cross-selling and revealing ways to overcome them.
   
type journal paper
   
keywords cross-selling, sales rep motivation, solution selling, share of wallet, customer lock in and churn, industrial marketing, business marketing
   
language English
kind of paper journal article
date of appearance 23-8-2011
journal Journal of Business-to-Business Marketing
publisher Routledge/Taylor and Francis (London)
ISSN 1051-712X
ISSN (online) 1547-0628
DOI 10.1080/1051712X.2011.541377
volume of journal 18
number of issue 3
page(s) 253-275
review not reviewed
   
citation Malms, O., & Schmitz, C. (2011). Cross-Divisional Orientation: Antecedents and Effects on Cross-Selling Success. Journal of Business-to-Business Marketing, 18(3), 253-275, DOI:10.1080/1051712X.2011.541377.