Cross-Divisional Orientation : Antecedents and Effects on Cross-Selling Success
Journal
Journal of Business-to-Business Marketing
ISSN
1051-712X
ISSN-Digital
1547-0628
Type
journal article
Date Issued
2011-08-23
Author(s)
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.
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.
Language
English
Keywords
cross-selling
sales rep motivation
solution selling
share of wallet
customer lock in and churn
industrial marketing
business marketing
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Routledge/Taylor and Francis
Publisher place
London
Volume
18
Number
3
Start page
253
End page
275
Pages
23
Subject(s)
Division(s)
Eprints ID
209841