How does Sharing a Sales Force between Multiple Divisions Affect Salespeople?

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.