Top 8 Key Risk Factors of Developing E-business in Traditional Retail Trade are Analyzed with Interpretative Structural Model

Abstract

The top 8 risk factors of developing e-business in traditional retail trade are analyzed with interpretative structural model: there are risk of market transparency, marketing service risk, IT facilities construction risks, human resource risk, online and offline coordination risk, organizational strategic risk, operating data risk, logistics distribution risk, and its interpretative structural model is established. The result illustrates that the relationship among the top 8 risk factors of developing e-business in traditional retail trade is interactive, human resource risk and risk of market transparency are at the bottom of the structure, those are the root risks. Marketing service risk, logistics distribution risk and operating data risk are at the top of the structure. The above five risk factors are the most critical risk factors. The purpose of this paper is to find the root risks and the relationship among the top 8 risk factors, so as to guide the enterprise invest the fund and manpower into the root risks according the priority order while doing risk management, in time to avoid the loss of these risks to the enterprise.