The Effect of Cross-Channel Integration on Cost Efficiency

Abstract

In multichannel retailing, cross-channel integration, which is the integration of different channels, such as brick-and-mortar stores, e-commerce, and mobile retailers, has been a key strategy. However, the effectiveness of cross-channel integration for firm performance remains uncertain. This study examines the impact of cross-channel integration on firm performance–cost efficiency. It uses stochastic frontier analysis to estimate cost efficiency and employs a dynamic panel model to assess the relationship between cross-channel integration, firm-level characteristics, and cost efficiency. The results reveal that cross-channel integration is positively associated with cost efficiency and that the extent of a retailer's experience with e-commerce and level of face-to-face services reduce its effectiveness.

When cross-channel integration can benefit firm innovation and performance: the moderating role of e-commerce type

“…Although there are some study demonstrate the impact of CCI on firm performance (Cao and Li 2015;Tagashira and Minami 2019), little research discusses its influence on firm innovation. Specifically, we find that the impact of CCI on exploratory and exploitative innovation differs in terms of E-commerce situations.…”

“…Haier integrates online and offline channels to expand its marketplace (Du et al 2018). Although the effects of CCI on firm performance has been widely recognized in retail firms (Cao and Li 2015;Oh et al 2012;Tagashira and Minami 2019), few research studies the issue in the manufacturing context. Research posits that most manufacturing enterprises face the problem of employing CCI because of insufficient accumulation in e-commerce operations (Du et al 2018).…”

“…The concern about the effect of CCI on firm performance is increasing (Cao and Li 2015;Tagashira and Minami 2019), but few studies reveal the underlying mechanism. Specifically, innovation perspective has been proposed (Cao and Li 2018) but not empirically examined in extant research.…”

“…Literature on firm innovation argues that firm characteristic can influence innovation by influencing firm's access and ability to knowledge management (Díaz-Díaz et al 2008). In multichannel marketing, EC enterprises use tremendous information technology (Tagashira and Minami 2019) and have extensible access to external new knowledge (Pentina and Hasty 2009). Wang (Wang 2010) proposed that ecommerce-related knowledge management can exert an effect on firm' innovation.…”

“…Furthermore, existing literature has studied the boundary condition about CCI. For example, Cao and Li (2015) and Tagashira and Minami (2019) explored the moderating role of firm-level characteristics like physical store presence, EC experience between CCI and firm performance. Besides, Pentina and Hasty (2009) proposed that EC outsourcing may detract from firm's competitive advantage and weaken the effect of CCI on firm performance.…”