Path Dependence in Personal Selling : A Meso-Analysis of Vertical Integration
AbstractWe examine an unusual form of path dependence, in which suppliers that take different decision paths end up in the same position: excessive vertical integration of the personal selling function. We argue that this is the case even though outsourcing is more seriously considered than ever, and economic arguments for outsourcing the sales function are compelling. We develop an institutional explanation at the meso level (a combination of individual, organization, and environmental forces, explicitly considering how these levels combine). This meso-analysis focuses on four forces driving firms toward being locked into employee sales forces. We enumerate and classify these mechanisms, illustrating them with a simple simulation of how outsourcing sales becomes rare. We close with testable propositions about which firms are most likely to break their dependence on a vertically integrated path.
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Bibliographic InfoPaper provided by HEC Paris in its series Les Cahiers de Recherche with number 787.
Length: 52 pages
Date of creation: 01 Jul 2003
Date of revision:
path dependence; personal selling; outsourcing; sales function;
Find related papers by JEL classification:
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executives; Executive Compensation
- M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-11-03 (All new papers)
- NEP-CBE-2003-11-03 (Cognitive & Behavioural Economics)
- NEP-MFD-2003-11-03 (Microfinance)
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