The role of bonus and commission schemes in value co-creation : exploring Tensions and Conflicts in Car Dealerships

Abstract: Bonus and commission schemes are common practice among firms as an incentive for the salesforce. Despite the growing body of literature on value co-creation and the practical relevance, it remains unknown how these management tools relate to each other. There is a gap in research on conflict theory but it is argued that they derive from a paradox. The purpose of this study is to investigate the role of bonus and commission schemes and the potential tensions and conflicts that are caused by different paradoxes. It shows an exploration of how these paradoxes connect to value co-creation in car dealerships from a salesforce perspective. A theoretical framework is established to review the available literature. We have conducted six in-depth interviews to pursue rich qualitative data to fully grasp the dynamics of the dealership. We have found results that indicate a number of paradoxes that exist in the dealerships. We discuss that the variety of paradoxes bring tensions and conflicts forward, but also that some of the paradoxes are harmless. We also find that our respondents implicitly support value co-creation and that long-term relationships are essential. In our discussion a model is presented to present an overview.