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The Effect of Cross-Channel Integration on Cost Efficiency

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  • Tagashira, Takumi
  • Minami, Chieko

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.

Suggested Citation

  • Tagashira, Takumi & Minami, Chieko, 2019. "The Effect of Cross-Channel Integration on Cost Efficiency," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 68-83.
    • Handle: RePEc:eee:joinma:v:47:y:2019:i:c:p:68-83
    DOI: 10.1016/j.intmar.2019.03.002
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