Extending agency theory in sales management: A systematic literature review and future research agenda

Abstract

Agency theory has been widely adopted in sales research, yet much is unknown about the extent of its application to explain and predict sales behaviors in today's dynamic sales environment. Given the changing nature of the sales profession and the complexities of digital transformation, there is an increasing need to understand the suitability of agency theory to explain and predict the dynamics of sales relationships. To assess the applicability of agency theory, we employ a systematic literature review approach to identify 82 research articles that apply an agency theoretic approach to the study of sales phenomena. The review provides an analysis of the application of agency theory to sales research including key themes and insights emerging from the literature. The main themes that emerge from our review are multicultural agency theoretic perspectives on salesforce compensation, incentives, contracting and control mechanisms, and pricing decisions. in sales. Our analysis identifies the emerging trends and opportunities for agency theory scholarship in sales. For managers, we offer suggestions on how to use agency theory as a lens to understand and manage complex sales relationships in a complex sales environment.