Sales force leadership during strategy implementation: a social network perspective

Abstract

Many new marketing strategies falter in the execution phase where managers fail to make frontline employees fully committed to implementing the new initiatives. While formal managers can apply transformational and transactional leadership behaviors to increase salespeople’s strategy commitment, peers can also exert a great deal of informal influence on salespeople. Building on recent social network perspectives of leadership, this paper investigates the interplay between the sales manager’s leadership styles and peer effects during the implementation of a new strategy in a large sales organization. The authors find that salespeople with high network centrality but low strategy commitment not only lower their peers’ commitment but also hurt the effectiveness of a transformational manager. Specially, the influence of a central salesperson becomes stronger when the sales group has lower external connectivity. However, sales managers’ transactional leadership can decrease the non-committed central salesperson’s influence over peers.