Knowledge Creation Series: Do Activity Based Incentives Work

Sep 03, 2020 - Sep 03, 2020

Centre for Business Markets at ISB is pleased to announce a series of Knowledge Creation Seminars. This seminar aims to create new knowledge in the marketing and sales domain. During the session, an academic expert will make a presentation of their current work for 20 minutes. Following the presentation, the researcher and 1-2 executives who are experts in that area will provide their insights and the relevance of the presented research for practice. A Q&A with the participants will follow the session. The goal of the Knowledge creation seminar is to provide a platform that allows for easy exchange of ideas and better collaboration between academicians and practitioners.

The first seminar in this series is a discussion on Activity-Based Incentives (ABI) for salespersons and sales managers. Despite the widespread prevalence of ABIs in practice, there is a distinct lack of empirical work studying the sales productivity effects of ABI pay that can provide the boundaries of this practice. With the cooperation of a large pharmaceutical firm, we investigated the impact of ABIs on sales productivity and identified conditions under which they work and on whom (salespersons or managers).