The differing effects of technology on inside vs. outside sales forces to facilitate enhanced customer orientation and interfunctional coordination

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 within an organization. While current literature touts the benefits of an outside sales force, our results suggest that this type of structure, when coupled with eLearning and technological tools, leads to even greater positive outcomes of an outside sales force. By utilizing different forms of technology in conjunction with an outside sales force, this research offers a new dynamic technological environment to further improve salesperson performance. A number of researchers have pointed out the significant changes occurring in the sales function with Ingram, LaForge and Leigh (2002) proclaiming " the sales function is in the midst of a renaissance — a genuine rebirth and revival (pg. 559). " These changes are driven by a number of factors including the need for all areas of the organization to operate more efficiently, changes in customer demands and the use of multiple channels (Piercy, 2006). One response from a sales perspective has been to rethink the way the sales function is structured with one such change being a move towards increased utilization of inside salespeople (Gessner and Scott, 2009). US Census data shows that from 2002 to 2007 the number of firms engaged in call center activities increased from 3344 to 3519 with a corresponding increase in employees from 348,253 to 419,657 and sales from just over $11 billion to just over $14 billion. There has also been a continued transition from transactional selling to more relational or consultative sales approaches. Restructuring the sales function by using more inside salespeople, while being effective with regard to reducing costs, may lead to a decrease in the enhancement of customer relationships that are an antecedent to positive financial outcomes. However, Lawrence and Hubbard (2008) suggest that inside salespeople can effectively build rapport with customers and propose one way to do this is via the utilization of technology and business intelligence tools. As this restructuring occurs, however, there is likely to be a blurring of the traditional roles between inside and outside salespeople. For example, Marshall and Vredenburg (1991) acknowledge that inside salespeople are increasingly …