A strategy-based model for implementing channel integration in e-commerce

Abstract

Purpose – The key to success in the internet business lies in how you carry out the integration between virtual and physical channels. The purpose of this paper is to aim at defining the solution to the integration. Design/methodology/approach – Channel coordination is grounded on a new governance of integration strategy which bridges the channels. This study proposes a novel research model with three stages: first, click-and-brick strategies; second, channel coordination for three purchase stages; and third, synergy realizations. A survey was conducted for collecting empirical data. PLS was used for path analysis. In total, three separate statistical analyses were performed for three defined integration strategies. Findings – Click-and-brick strategies have different degrees of impact on channel coordination in different purchase stages and in turn, different degrees of impact on synergy benefits. Specifically, the in-house division strategy is more important in determining channel coordination in the three purchase stages. Practical implications – Customers initially perceive online services with a nature of low trust and view them as highly risky. This integration is useful for a firm to successfully start a new online business. Further, it provides insight into allocating a firm’s resources to critical multi-channel activities to realize synergy benefits. Originality/value – Multi-channel marketing is dynamic and complex in nature. Existing theories provide limited insight into effectively defining them. This study attempted to define a strategy-based implementation model. This model demonstrated the capability to effectively reduce the complexity of defining channel integration.