The dual mechanism of sales capabilities in influencing organizational performance

In most companies, sales organizations play an increasingly strategic role in creating a competitive advantage for the firm. In contrast to marketing capabilities, sales capabilities are not well-defined and are therefore overlooked both conceptually and empirically. This study distinguishes between sales force management capabilities and personal selling capability, examines their interplay, and ultimately analyzes their impact on the firm's performance. The findings indicate that sales capabilities have a dual mechanism in enhancing performance: directly through a well-structured sales force and indirectly by leveraging personal selling capability through nurturing sales talent and targeting customers. By developing, identifying, and validating sales force management and personal selling capability empirically, this research contributes to the literature on sales as well as to the literature on capabilities, in general, and to the connection between sales capabilities and performance.