Organizing for cross-selling: Do it right, or not at all

This study draws on the structural perspective of organization theory to investigate how firms can organize for cross-selling. Specifically, it analyzes how configurations of organizational structures and steering instruments are associated with cross-selling performance. Results show that mechanistic and organic organizational cross-selling structures should be closely aligned with financial and nonfinancial steering instruments: while the interactions between mechanistic cross-selling structures and non-financial steering instruments are likely to result in high levels of cross-selling performance, organic cross-selling structures should be combined with financial steering via cross-selling incentives. Findings also reveal a U-shaped relationship between cross-selling performance and firm EBITDA. These results suggest that to enhance profits, firms should either organize for very high levels of cross-selling performance or refrain entirely from investing in cross-selling structures or steering instruments.