Development And Significance Of Social Networks In Sales Organizations For Enhancing Salesperson Performance
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Abstract
In recent years, there has been a noticeable shift in the study of salesperson performance, with a growing recognition of the significance of intra organizational dynamics alongside the traditional focus on customer relationships. This evolving perspective acknowledges the intricate web of connections and interactions within sales organizations that contribute to overall sales effectiveness (e.g., Royals and Humphries 2007). By delving into the realm of intra organizational relationships, researchers are uncovering valuable insights into the factors that drive salesperson performance beyond external customer-facing activities (e.g., Brown and Peterson 1994; Szymanski 1988). The study referenced here presents a nuanced exploration of the impact of intra organizational relationships on salesperson performance, drawing on data collected from a substantial sample of 286 sales professionals in Pune (Balkundi and Harrison 2006; Wasserman and Faust 1994). Through the lens of social network analysis, the researchers scrutinized the intricate patterns of interaction and influence within the organizational context. Their findings shed light on the pivotal role played by two distinct dimensions of social network characteristics: relational centrality and positional centrality. Relational centrality, (e.g., Plouffe and Gr´egoire 2011), which reflects the prominence of salespeople within the social fabric of the organization based on their relationships and connections, emerged as a significant determinant of salesperson performance. The study further illuminates the role of political skill—an individual's ability to effectively navigate organizational dynamics and influence others—in shaping relational centrality (Hughes, Le Bon, and Malshe 2012; Plouffe and Barclay 2007) . Surprisingly, however, the researchers observed that while political skill positively correlated with relational centrality, it did not exert a similar influence on positional centrality within the social network.
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