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 and Tsai and 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 and Haldin-Herrgard, 2000).
Salespeople, because of their boundary spanning positions, are prime sources of both customer and competitor knowledge (Judson et al., 2006 and Speier and 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 knowledge (e.g., how customers' strategies interact with their own organizations' strategies). However, as Mellow (1989, p. 26) emphasizes, “The challenge for management is getting all that competitive information out of the sales force's heads and back to headquarters, and then distilling it into a form that is, as they say in the intelligence business, ‘actionable.’” The problem stems from a lack internal social networks in which knowledge can be transferred.
In this study, tacit knowledge exchange between two functional areas—sales and marketing—is examined. These areas are often organized as separate functions, which can lead them to “feud like Capulets and Montagues—with disastrous results” (Kotler, Rackham, & Krishnaswamy, 2006, p. 3). However, research suggests, when they share knowledge, substantial benefits accrue (Workman, Homburg, & Gruner, 1998). This study examines the influence that tacit knowledge exchange has on marketing success (i.e., marketing program innovativeness, relative efficiency, and relative effectiveness). First, tacit knowledge exchange is examined in the context of personal selling. Second, a model that highlights the role that tacit knowledge exchange plays in encouraging marketing success is developed (see Fig. 1). Third, the model is tested using data gathered from business-to-business sales professionals. Fourth, the implications of the results are discussed.
Research suggests the importance of adapting marketing strategies tomarketplace changes. One key component in this process is the salesperson. Because they are able to embed themselves both within external networks made up of customers and internal networks made up of employees from other functional areas, they become an important source of knowledge for their organizations. The concept that knowledge is a resource that should be shared is intuitive. However, the processes, factors, and issues involved in sharing knowledge, especially tacit knowledge, are complex. This study explores just a few of the many factors involved. There is still much to be understood.
