Network centrality and multiplexity: a study of sales performance

Abstract

Network literature suggests that individual embeddedness leads to performance. The authors argue that resources from intra-firm social networks are critical for gaining advantages. The contribution of the paper lies at the performance impact of the network position. Previous studies have considered two alternative views, degree and closeness, of network centrality that have been shown to impact job promotion, innovation diffusion, and wage increase. To our knowledge no work has been done to identify the specific impact of the network on sales performance. Moreover, two different types of network relations were focused on in order to analyze the multiplexity of ties: friendship and advice. Conceptual work has suggested the impact of overlapping ties on performance, however elaborated empirical evidence is lacking. Estimates from a sample of salespeople in a focal firm of input supplies reveal that having many direct ties (degree centrality) and multi-dimensional relations (advice and friendship) positively influences a salesperson’s performance. The results demonstrate that salespeople can structure intra-firm ties in order to leverage firm resources and enhance individual performance.