Sales Force Downsizing and Firm-Idiosyncratic Risk: The Contingent Role of Investors' Screening and Firm's Signaling Processes

Panagopoulos, Nikolaos G.; Mullins, Ryan; Avramidis, Panagiotis

doi:10.1509/jm.16.0501

Cited by 10 publications

(11 citation statements)

References 44 publications

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“…We address these concerns by using the control function approach (Petrin & Train, 2010). As the exclusion instrument, we use the average level of buyer participation in the buyer's industry (defined per the four-digit NAICS code), excluding the buyer participation of the buyer firm itself (see, e.g., Han, Mittal, &Zhang, 2017, andPanagopoulos, Mullins, &Avramidis, 2018, for a similar practice). We expect the average industry-level buyer participation to be a strong instrument, as it is likely that a buyer's level of participation in an NPD project is similar to the participation level of its peers in the same industry, as they face the same market conditions (Germann, Ebbes, & Grewal, 2015).…”

Section: Addressing Endogeneitymentioning

confidence: 99%

Buyer participation in outsourced new product development projects: The role of relationship multiplexity

Slot

Wuyts

Geyskens

2020

J of Ops Management

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In business markets, firms increasingly participate in new product development (NPD) activities that they outsource to suppliers. Such buyer participation can be complicated by relationship multiplexity-that is, the buyer may simultaneously be a competitor, supplier, and/or partner of the supplier firm. Drawing on role theory, we theorize how relationship multiplexity moderates the effect of buyer participation on project success. We analyze 140 NPD projects that were executed by a contract R&D organization in the aerospace industry and find that buyer participation lowers the buyer's and the supplier's perceptions of project success for buyer-as-supplier multiplexity. Buyer participation increases the perceptions of project success in the case of buyer-as-partner multiplexity, but only when these partnerships are emergent, as opposed to engineered. Buyer participation decreases the buyer's perception of project success for relationships featuring buyer-as-competitor multiplexity but does not affect the supplier's perception in the case of buyer-as-competitor multiplexity. Our results provide tactical insights as to when buyer participation helps or hurts.

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Section: Addressing Endogeneitymentioning

confidence: 99%

Buyer participation in outsourced new product development projects: The role of relationship multiplexity

Slot

Wuyts

Geyskens

2020

J of Ops Management

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“…Our theorizing on the effect of collective layoff announcements on advertising elasticity is grounded in the informative and persuasive roles of advertising (Ackerberg 2001;Byzalov, and Shachar 2004;Narayanan and Manchanda 2009;Narayanan, Manchanda, and Chintagunta 2005). If the announcement of a collective layoff creates uncertainty among consumers (as shown by, e.g., Homburg, Klarmann, and Staritz [2012]), advertising may offer a means of learning about the prospects of the layoff firm and their capacity to continue their relationship with the firm (Panagopoulos, Mullins, and Avramidis 2018). This informative role of advertising in the presence of consumer uncertainty may lead to an increase in advertising elasticity for the layoff firm in the wake of the collective layoff announcement.…”

Section: The Effect Of Collective Layoff Announcements On Advertisingmentioning

confidence: 99%

The Commercial Consequences of Collective Layoffs: Close the Plant, Lose the Brand?

Landsman¹,

Stremersch²

2020

Journal of Marketing

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This article examines the effects of collective layoff announcements on sales and marketing-mix elasticities, accounting for supply-side constraints. The authors study 205 announcements in the automotive industry using a difference-in-differences model. They find that, following collective layoff announcements, layoff firms experience adverse changes in sales, advertising elasticity, and price elasticity. They explore the moderating role of announcement characteristics on these changes and find that collective layoff announcements by domestic firms and announcements that do not mention a decline in demand as a motive are more likely to be followed by adverse marketing-mix elasticity changes. On average, sales for the layoff firm in the layoff country are 8.7% lower following a collective layoff announcement than their predicted levels absent the announcement. Similarly, advertising elasticity is 9.8% lower and price elasticity is 19.2% higher than absent the announcement. Conversely, layoff firms typically decrease advertising spending in the country where collective layoffs have occurred, yet they do not change prices. These findings are relevant to marketing managers of firms undergoing collective layoffs and to analysts of collective layoff decisions.

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“…However, such interpersonal relationships can be easily disrupted (Boichuk et al 2019;Panagopoulos, Mullins, and Avramidis 2018;Shi et al 2017), whether by managerial fiat (e.g., sales organization restructurings, account strategies, territory alignments) or through individual decisions (e.g., career path, retirement, turnover). A relationship disruption 1 refers to a change of salesperson in the relationship with the customer, that is, from one salesperson to another employed by the selling firm.…”

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confidence: 99%

Understanding the Impact of Relationship Disruptions

Schmitz¹,

Friess²,

Alavi³

et al. 2019

Journal of Marketing

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Personal relationships between salespeople and customers are essential for the success of business-to-business relationships, and research has shown that a change of the salesperson can severely harm financial performance. However, such interpersonal relationship disruptions may also have positive effects by encouraging vitalizing reexplorations of the relationship. Using multilevel loyalty theory and relationship life cycle theory, the authors offer a comprehensive conceptualization of potentially countervailing consequences of relationship disruptions. In particular, disruptions may have different effects on resale revenue (from previously sold products) versus new sale revenue (from newly sold products), contingent on both the history and expected future development of the relationship. Therefore, this study examines moderators on the firm-level relationship prior to disruption and salesperson relationship management afterward. Longitudinal data from 2,040 customers of an international business-to-business firm reveal that a disruption can increase overall performance by more than 29%, depending on the firm-level relationship before disruption and the new salesperson’s relationship management. Managers can use these findings proactively to evaluate and manage the risks and opportunities involved in relationship disruptions.

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Sales Force Downsizing and Firm-Idiosyncratic Risk: The Contingent Role of Investors' Screening and Firm's Signaling Processes

Cited by 10 publications

References 44 publications

Buyer participation in outsourced new product development projects: The role of relationship multiplexity

Buyer participation in outsourced new product development projects: The role of relationship multiplexity

The Commercial Consequences of Collective Layoffs: Close the Plant, Lose the Brand?

Understanding the Impact of Relationship Disruptions

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