The Impact of the Online Channel on Retailers' Performances: An Empirical Evaluation

Yusen Xia · G. Peter Zhang

100 citations0/0 files storedDecision Sciences

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Supply Chain and Inventory Management Consumer Retail Behavior Studies Digital Innovation in Industries

Abstract

ABSTRACT The use of the Internet as an additional sales channel offers traditional retailers opportunities to reach expanded markets while improving the efficiency of their operations. Although the potential benefits of the online channel are clear, there are significant variations in the scope and depth of online channel use among retailers. Drawing from data on more than 100 publicly traded companies, this study examines the impact of online‐channel use on retailers’ performance. The results suggest that the online channel provides significant improvements in sales, cost, inventory, and return on investments. In addition, we find that the timing of online‐channel adoption does not play a significant role in performance improvement, but having a local store presence does.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1997Dynamic capabilities and strategic management 1984A resource‐based view of the firm 2000A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation1 2001Strategy and the Internet.2002Service Quality Delivery through Web Sites: A Critical Review of Extant Knowledge 2003E-LOYALTY: YOUR SECRET WEAPON ON THE WEB

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