Design and Governance of Multichannel Sales Systems

The provided text is an excerpt from a 2020 journal article by Homburg et al. titled "Design and Governance of Multichannel Sales Systems: Financial Performance Consequences in Business-to-Business Markets," which examines how the design and management of sales systems affect financial outcomes in B2B markets. Drawing on multiple agency theory and governance value analysis, the authors investigate the impact of direct and indirect channel usage on manufacturer performance, contingent on governance mechanisms like formalization and centralization. The research finds that the effectiveness of governance strategies depends critically on alignment with channel design; for example, formalization benefits indirect channel usage while centralization and information exchange are more beneficial for direct channel usage. This study utilizes a unique matched manufacturer–sales partner dataset to explore these complex interactive effects on agency conflicts and subsequent financial performance. The authors assert that managers must strategically align multichannel design with effective governance to maximize financial returns.