Social networks, vertical core competencies and sales management in Korea
Horak, S. and Nihalani, K. (2016). Social networks, vertical core competencies
and sales management in Korea. Management Decision, 54(8): 1929-1946. DOI:
10.1108/MD-06-2015-0230
Link:
https://doi.org/10.1108/MD-06-2015-0230
Abstract
Purpose: This study investigates the influence of informal Korean social
networks (Yongo) on sales activities in Korea, by focusing in particular on
required vertical core competencies.
Design/methodology/approach: We draw on expert interview data gathered in Korea
in two waves (2009 and 2012). Whereas first-wave interviews served to identify
the influence of Yongo on sales management in general, second-wave interviews
data – gathered from a Korean auto maker, a Korean supplier, and an
international supplier – served to derive vertical core competencies vital for
sales executives in Korea.
Findings: We find Yongo to be an indispensable aspect of relationship management
in Korea. Further, we propose 10 vertical core competencies and skills sales
managers in Korea need to possess, e.g., respecting strong hierarchical
supplier–customer relations, the ability to engage in relational contracts,
establish trustful relationships, and perform in a risk-taking manner in a
dynamic environment.
Originality/value: So far neither Yongo nor its impact on successful sales
management in Korea has been analyzed. Hence, this research provides initial
insights into the modes of action of Yongo in sales management, which is of
particular importance for management consultants and international sales
managers and executives.
Keywords
Informal social networks, Yongo, Korea, vertical core competencies, sales
management, relationship management