Improving marketing success: The role of tacit knowledge exchange between sales and marketing

a r t i c l e i n f o Keywords: Tacit knowledge exchange Salespeople Marketing success Marketing process innovation Marketing efficiency Marketing effectiveness Social networks Successful organizations adapt their marketing strategies to marketplace changes. Boundary spanners, such as salespeople, because they are able to embed themselves in social networks outside the organization, play a key role in developing marketplace knowledge. However, if this knowledge remains solely with the boundary spanners , it cannot be used effectively to improve firm performance. This study investigates tacit knowledge exchange between sales and marketing and its ability to enhance marketing success (i.e., marketing program innovativeness, relative efficiency, and relative effectiveness). In addition, by examining five antecedents hypothesized to influence tacit knowledge exchange, it provides guidance to sales and marketing managers, who desire to improve tacit knowledge exchange, and, in turn, marketing success. To be successful, firms must adapt their marketing strategies to environmental changes. However, though marketplace knowledge is important , it means little if it remains with an organization's boundary spanners. To be useful, knowledge must be disseminated throughout the organization (Kohli & Jaworski, 1990). Some knowledge (i.e., explicit knowledge) can be codified and, therefore, can be transferred using information technology systems (Speier & Venkatesh, 2002). However, other knowledge (i.e., tacit knowledge), because it cannot be written down, can only be transferred using a give-and-take process by which participants develop, over time, an understanding of the complexities involved in a situation (Inkpen & Dinur, 1998). Tacit knowledge use enables firms to apply important knowledge in operational activities, which results in improved efficiency, value creation , and better financial performance (Teece, 1998; Tsai & Li, 2007). For example, when a salesperson learns more about the needs of a c-level executive in a major customer's organization, they can use it to better tailor the message, develop a stronger solution, and improve the chance of increasing revenue. Thus, tacit knowledge can be a source of competitive advantage and, therefore, it is important to understand how tacit knowledge is exchanged (Kale, Singh, & Perlmutter, 2000). A key factor for successful tacit knowledge transfer is the development and use of social networks (Granovetter, 1985; Haldin-Herrgard, 2000). Salespeople, because of their boundary spanning positions, are prime sources of both customer and competitor knowledge Venkatesh, 2002). They develop relationships with key customers that allow them to gather both explicit (e.g., knowledge of competitors' products and strategies) and tacit …