This article studies the problem of sales-force compensation by considering the impact of sales-force behavior on a firm’s production and inventory system. The sales force’s compensation package affects how the salespeople are going to exert their effort, which in turn determines the sales pattern for the firm’s product and ultimately drives the performance of the firm’s production and inventor...

a r t i c l e i n f o Keywords: Organizational sales force Market orientation Sales force structure eLearning This paper presents a study designed to examine outcomes of different workplace structures. Specifically, using a sample of 156 sales organizations, we review how sales force structure, eLearning, and technological tools can influence coordination and the level of customer orientation w...

I this research, we show that the interaction between territory allocation and sales force compensation—two key drivers of sales productivity—strongly affects the firm’s profitability. We analyze an agency-theoretic model that jointly considers the degree of negative or positive correlation across territory outcomes, differences in territories’ sales potentials, the agency problem with risk-ave...

Motivating salespersons is one of the most important aspects of sales force management. The prevalent sales force motivation research stream relies essentially on Vroom’s expectancy theory. In spite of its widespread use, this theory is shown to present a number of shortcomings when applied to many sales force situations. The purpose of this paper is to outline a mathematical formulation of a s...