Pandemics, trade conflicts, and increasing digitalization are transforming markets and customer behavior at a rapid pace. As a result, companies face the challenge of continuously developing their sales systems. However, greater agility does not automatically lead to better outcomes. This is the conclusion reached by an international research group led by Dr. Boas Bamberger from the Faculty of Management, Economics and Social Sciences (WiSo) at the University of Cologne.
The study titled “When does sales system agility lead to organizational performance?” was conducted jointly with researchers from HEC Paris, the University of Mannheim, and the University of Manchester, and was published in the International Journal of Research in Marketing. The analysis is based on surveys of sales managers from 356 predominantly European companies, as well as the examination of objective financial performance data.
The researchers show that sales system agility contributes to higher operating profit primarily when companies deliberately design and manage their sales channels. This includes an appropriate mix of direct and indirect sales channels, a clear division of responsibilities, and the avoidance of overlap between channels that compete for the same customers.
In addition, the governance of sales channels plays a crucial role. Companies benefit particularly from greater agility when key decisions are made centrally and collaboration with sales partners is continuously coordinated.
For the study, the researchers developed a new scale to measure sales system agility. This scale captures a company’s ability to quickly detect market changes, make rapid decisions, and continuously adapt sales structures. The results show that higher levels of agility can be associated with significantly higher operating profits when combined with suitable channel structure and governance.
“Agility is not a guarantee of success. In our data, rapid adaptation of the sales system only pays off when channel structure and governance are aligned accordingly,” explains Dr. Boas Bamberger.
The study thus provides important insights for companies aiming to future-proof their sales organization. At the same time, it shows how research at the WiSo Faculty contributes to scientifically grounded solutions for current challenges at the intersection of marketing, sales, and corporate management.
Publication link: When does sales system agility lead to organizational performance? - ScienceDirect