Sales–marketing encroachment effects on innovation

Abstract

The role of sales has changed dramatically during the last two decades, with sales becoming increasingly strategic and encroaching on domains that traditionally belong to marketing. Many studies address the role of marketing in new product development (NPD) success, but research on the increasing importance of sales, its changing role and changing dynamics with marketing is scarce. This empirical study of 296 Hungarian firms addresses this gap and shows that the extent to which sales encroaches on marketing's tasks is influenced by interface relations, exchange processes and sales' capabilities. The effect of sales–marketing encroachment on NPD financial success is partially mediated by customer involvement, while its effect on market success is fully mediated by customer involvement. These findings suggest that firms may improve their NPD financial performance by letting sales encroach on marketing tasks, but need to establish customer co-creation initiatives to benefit from sales–marketing encroachment in terms of superior NPD performance compared with competitors.