Organizational Cross-Selling

Determinants: Aligning Organizational

Structures and Steering Instruments for
Successful Cross-Selling
Christian Homburg, University of Mannheim
Sina Böhler, University of Mannheim
Sebastian Hohenberg, University of Mannheim

Keywords: cross-selling, sales force management, organizational structures, steering instruments

Description: This study draws on the structural perspective of organization theory to examine how firms can
orchestrate organizational determinants for superior cross-selling success.

EXTENDED ABSTRACT
organizational determinants and steering instruments for
Cross-selling represents a major success factor for firms superior cross-selling success?
Research Question

(Johnson and Friend 2015; Kamakura 2008). However,

evidence indicates that firms struggle with conducting
cross-selling successfully (Baldwin 2008; Rosen 2004). We conducted a large-scale survey with sales managers
Method and Data

Previous research has therefore begun examining cross-
selling determinants to provide initial insights. However,
existing research is subject to at least three limitations.
First, prior studies have examined antecedents to cross-
selling success at either the individual or team level (Jas-
mand, Blazevic, and De Ruyter 2012; Patterson, Yu, and
Kimpakorn 2014; Schmitz 2013; Schmitz, Lee, and Lilien
2014). Thus, important antecedents at the organizational
level (Burns and Stalker 1961) have been neglected. Sec-
ond, previous research has focused on financial incentives,
when examining salesperson steering regarding cross-sell-
ing (Schmitz, Lee, and Lilien 2014). Thus, it is unclear
how nonfinancial steering instruments affect cross-selling
success. Third, the majority of previous cross-selling
research has focused on business-to-consumer (B2C) set-
tings (Jasmand, Blazevic, and De Ruyter 2012; Kumar,
George, and Pancras 2008; Reinartz, Thomas, and Bascoul
across various B2B industries. Specifically, we invited 3125
sales managers to participate in our survey. To increase key
informant reliability, we surveyed two sales managers from
every business unit (Homburg et al. 2012). To further reduce
common method variance, we conducted the survey in two
waves (Rindfleisch et al. 2008). In the first questionnaire, we
collected information about the exogenous variables, the
second questionnaire focused on the endogenous variable
cross-selling success. Realizing a response rate of 18%, we
received 549 usable questionnaires from sales managers,
444 of whom also participated in the second survey wave.
These respondents represent a total of 212 business units. To
test our hypotheses, we conducted ordinary least squares
(OLS) regressions using STATA 14.
Findings reveal that organizational cross-selling structures
Summary of Findings

2008). Thus, knowledge is scarce on how firms can con- and steering instruments must be closely aligned to maxi-
duct successful cross-selling in business-to-business (B2B) mize cross-selling success. For example, financial steering
settings. Based on these limitations, we investigate the fol- instruments enhance the positive impact of organic struc-
lowing research question: How can B2B firms orchestrate tures on cross-selling success but weaken the positive

For further information contact: Sina Böhler, University of Mannheim (sina.boehler@bwl.uni-mannheim.de).

2017 Summer AMA Proceedings N-31

influence of mechanistic structures on cross-selling suc-
cess. By contrast, nonfinancial steering instruments
enhance the impact of mechanistic structures but reduce
the influence of organic structures. Moreover, a cross-sell-
ing supportive organizational culture has an impact only
on cross-selling success when being employed with steer-
ing instruments. Overall, the findings reveal that aligning
organizational cross-selling structures and steering instru-
ments may increase firms’ cross-selling success by up to
178%.
This study makes three major contributions. First, this study
Key Contributions
investigates how organizational factors determine cross-sell-
N-32
ing success. Thus, this study is the first to systematically
examine organizational antecedents to cross-selling. Second,
this study investigates the interactions of both nonfinancial
(i.e., cross-selling training and systematic job rotation) and
financial (i.e., cross-selling incentives) steering instruments
with organizational structures. Third, we investigate organi-
zational cross-selling antecedents through a cross-industrial
multiphase and multisource survey. Specifically, we conduct
a large-scale survey with 212 sales managers from B2B
industries at two points in time. To validate the obtained
information, we collect data from a second manager from
the same business unit.
References are available on request.
2017 Summer AMA Proceedings
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