Sales coordination and structural complexity: A national-international comparison

Purpose: The existing literature on key account management (KAM) has focused more on sales forces and management levels than on their evolution. This study explores how sales activities can be coordinated to accommodate national and international KAM programs.
Design/methodology/approach: A longitudinal study of the industrial conglomerate ABB 1996–2008.
Findings: The diversity associated with geography and product complexity creates demands for a more flexible organization that can provide a more complete offering portfolio across national boundaries and still handle the demands of local organizations. In addition to internal organizational contingencies, the key factors and driving forces for the development of KAM programs are the marketing and purchasing strategies that buyer and seller firms perceive and encounter.
Research limitations/implications: The data is limited to one corporation and some of its key customers in different industries. Although the internal and construct validity of the findings are strong, the external validity cannot be assessed precisely.
Originality/value: The 12-year study brings valuable insights to the development of KAM programs in multinational corporations and addresses coordination issues related to geographical and product complexity.