Cross-Divisional Orientation: Antecedents and Effects on Cross-Selling Success

Purpose: To determine which company internal prerequisites must be in place and managed to realize a successful cross-selling strategy and to find answers on how to overcome cross-selling obstacles.

Methodology/approach: Qualitative and quantitative data from various industries provide insights into the implementation of a successful cross-selling strategy. Qualitative data serve to derive the hypotheses and constructs and design quantitative measures. Structural equation modeling with data from a management survey of an industrial glass manufacturer tests the proposed effects.

Findings: The cross-divisional orientation of a company affects the realization of cross-selling potential and the number of product divisions a salespersons sells. These factors then influence the salesperson's motivation and readiness to engage in cross-selling activities, which finally affect the company's overall cross-selling success. A salesperson's state of mind has the greatest impact on cross-selling success.

Research implications: Similar results might be expected for various other industries, which need to be tested. The findings could be enhanced by incorporating a wider range of customer characteristics into the analysis, as well as other mediating or moderating variables.

Practical implications: There is a clear need to enable cross-divisional acting and thinking among salespeople. Managers should foster cross-selling motivation and invest in specific training and recruitment to increase the dissemination of knowledge across divisions and reassure salespeople about offering various products.

Originality/value/contribution: This contribution to current practice clarifies why cross-selling often does not work and why it remains so challenging to realize. The combination of three sources of data—qualitative, objective, and quantitative—advances cross-selling research by considering internal obstacles to cross-selling and revealing ways to overcome them.