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The authors examine whether reputation concerns affect how manufacturers structure their sales organization. Using reputation theory, they examine whether reputation-related perceptions and beliefs affect whether a manufacturer that currently uses an outside selling organization (i.e., a “rep”) intends to vertically integrate the selling function or switch to a new rep. In particular, they propose that a manufacturer's intentions to replace its current manufacturers’ rep with a company sales force or a different rep is a function of its perceptions of the reputation of itself and the rep and its beliefs about how high-reputation manufacturers in the industry typically organize their selling function. Survey data support the plausibility of these reputation-based arguments as factors that influence sales organization structure decisions. These results provide some important extensions to reputation theory. The authors discuss the study's implications for both managerial behavior and the literature on channels and organizational governance.

How can multiline providers induce their salespeople to sell house brands? Using both unobtrusive measures (archival data) and direct questions, the authors model the extent to which salespeople adopt house brands, as well as the salesperson's perception that selling house brands can pose contractual hazards and his or her dependence upon the employer. Results indicate that adoption of house brands is most pronounced for salespeople who are habitually successful, are more dependent on the firm, or receive high levels of company training. In contrast, salespeople who resist house brands perceive that selling these products threatens their customer bond, have greater experience as a salesperson, and are more oriented to external than to internal sources of information. The authors discuss implications of the findings in terms of developing ways for multiline providers to manage independent-minded salespeople.

The Robinson, Faris, and Wind buyclass framework has been called one of the most useful concepts in organizational buyer behavior, yet the entire model has received little empirical attention. Part of the explanation is the difficulty of obtaining valid data from members of the buying center. The authors study the buyclass framework using a novel approach: querying the managers of salesforces about the behavior their salespeople encounter on the part of their industrial customers. In phase 1, model development, the authors study the model's applicability in a relatively homogeneous, controlled setting (one industry, few firms). In phase 2, model replication, they extend and validate the phase 1 findings using multiple firms and industries. Much of what salespeople observe is found to correspond closely to the buyclass theory of organizational buyer behavior. Also, the “problem newness” and “information needs” dimensions are found to be strongly related, as expected. However, “seriousness of consideration of alternatives” seems to be a separate dimension that does not operate entirely as predicted by the buyclass framework.

Manufacturers introducing an industrial product to a foreign market face a difficult decision. Should the product be marketed primarily by captive agents (company salesforce and company distribution division) or by independent intermediaries (outside sales agents and distributors)? This is an issue of downstream vertical integration. The authors explore the issue through an empirical investigation of distribution channel choice in foreign markets by U.S. semiconductor companies. Using original interview data, they develop scales to measure key variables. With these measures they build a logistic regression model of what factors affect the form of the distribution channel chosen in various foreign markets. The results indicate that integration is associated with the degree of transaction specificity of assets in the distribution function and whether or not the product being introduced is highly differentiated. There is evidence that the product will be sold through whatever channel is already in place, if any. Further, American firms seem more likely to integrate the distribution channel in highly developed industrialized countries (Western Europe) than in Japan and Southeast Asia, which are more culturally dissimilar. Implications for managers faced with a channel choice are explored.