Abstract

Some firms have successfully maintained their position as sales leaders for years, as evidenced by their presence on the annual Fortune 500 list. While sustained investments in both marketing and RD and investing more in R&D than in marketing enhances sales leadership maintenance in dynamic environments for highly leveraged firms. A sales leader firm that incrementally spends 1% of its five-year average sales revenue on each of marketing and R&D activities can improve its probability of sales leadership maintenance by 50%.

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