Investigating the Relative Performance of Bricks-and-Mortar, Clicks-and-Mortar, and Pure-Click Firms in Taiwan

Irene Y L Chen,Yi-Shun Wang,Bo-Ruei Li

doi:10.3390/su13063516

Abstract

The study compares the relative performance among bricks-and-mortar, clicks-and-mortar, and pure-click firms. The research model was tested in the Taiwan service industry using a Taiwan Economic Journal dataset of 1448 firms. Using regression analysis, the study provides empirical evidence that clicks-and-mortar firms outperform pure-click firms in terms of efficiency, but not better in profitability and even worse in efficiency than bricks-and-mortar firms. Pure-click firms need to improve their accounts receivable turnover ratio and total assets turnover. While the findings are not in full congruence with past studies, we provide theoretical explanations. Based on the findings, a strategic guide on going clicks and mortar is provided to practitioners.

Highlights

The accelerating evolution of technology and the trend of digitalization have resulted in consumers being able to interact with firms across multiple channels including offline and online (e.g., Internet, social media, mobile phones, and tablets) [1].This has motivated firms to adopt a multichannel strategy and integrate offline and online channels to create a seamless shopping experience for consumers
Bricks-and-mortar firms had higher return on sales (ROS) but lower Return on assets (ROA) and return on equity (ROE) compared to the total sample, while pure-click firms had higher ROA but lower ROE
Enders and Jelassi [10] indicated that many pure-click firms experience difficulty transforming into clicks-and-mortar firms, since the required physical infrastructure triggers problems associated with supplier integration, our findings reveal that clicks-and-mortar firms are more profitable and efficient

Summary

Introduction

The accelerating evolution of technology and the trend of digitalization have resulted in consumers being able to interact with firms across multiple channels including offline (e.g., physical stores) and online (e.g., Internet, social media, mobile phones, and tablets) [1]. This has motivated firms to adopt a multichannel strategy and integrate offline and online channels to create a seamless shopping experience for consumers. Consumers can check in to the physical store through a mobile application that automatically tracks which items they choose, and deducts payment after they exit the store [5]

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Methods

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Discussion

Conclusion