Size Effects on Sales Mangement Practices Of Small Firms: A Study of Industrial Distributors

Abstract

Previous research identified that sales management practices differ among disparately-sized large firms although this topic has not been studied among different sizes of small firms. This study focuses on industrial distributors which are generally smaller than the average manufacturer. It finds that the managers of small distributors face different sales management situations and use different salesforce compensation and evaluation techniques than medium-sized distributors. Techniques applied by both classes of distributors are similar in nature to those used by manufacturers. It is suggested, therefore, that size affects the sales management practices of small firms irrespective of their channel positions. Implications are explored.