Integrationof the sales force - Integration of the Sales Force An Empirical Examination Author(s Erin Anderson and David C Schmittlein Source The RAND

Integrationof the sales force - Integration of the Sales...

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Integration of the Sales Force: An Empirical Examination Author(s): Erin Anderson and David C. Schmittlein Source: The RAND Journal of Economics, Vol. 15, No. 3 (Autumn, 1984), pp. 385-395 Published by: Wiley on behalf of RAND Corporation Stable URL: . Accessed: 22/06/2014 22:48 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected] . Wiley and RAND Corporation are collaborating with JSTOR to digitize, preserve and extend access to The RAND Journal of Economics. This content downloaded from 185.44.77.28 on Sun, 22 Jun 2014 22:48:59 PM All use subject to JSTOR Terms and Conditions
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Rand Journal of Economics Vol. 15, No. 3, Autumn 1984 Integration of the sales force: an empirical examination Erin Anderson* and David C. Schmittlein* This article develops and tests a model of integration of a marketing function, personal selling. The model, derived from transaction cost analysis as developed principally by Williamson, is formulated as a logistic function, which is estimated with data from the electronic components industry. As expected, integration is associated with increasing levels of asset specificity, difficulty of performance evaluation, and the combination of these two factors. Contrary to the transaction cost model, neither frequency of transactions nor interaction of specificity and environmental uncertainty is significantly related to integration. The transaction cost model improves significantly upon the fit of a simple model relating integration to company size alone. These results suggest that for studying transactions of this kind, it is fruitful to view the firm as a governance structure. 1. Introduction * In recent years considerable attention has been paid to the question of when vertical integration takes place (Williamson, 1979; Klein, Crawford, and Alchian, 1978; Holmstrom, 1979). These approaches consider contracts in far more detail than their predecessors did; and, at least implicitly, they recognize the behavioral phenomena of bounded rationality and opportunism and make allowances for the environmental phenomenon of uncertainty. But these and other recent treatments have been subject to little empirical testing other than by selected case studies.' Discussions of vertical integration typically focus on manufacturing. This leads to emphasis on the valuation of physical assets, which may or may not be specialized to the user. Although it has been recognized that human assets are also relevant (Williamson, 198 lb; Monteverde and Teece, 1982), less attention has been paid to their role. We focus on the integration of a particular marketing function, personal selling (as opposed to * University of Pennsylvania.
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  • Fall '16
  • alej
  • Sales, The Land, sales force, JSTOR Terms, direct sales force, Oliver Williamson

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