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Should a small-sized store have both online and offline channels? An efficiency analysis of the O2O platform strategy

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  • Kim, Hongbum
  • Ryu, Min Ho
  • Lee, Daeho
  • Kim, Jang Hyun

Abstract

The emergence of online-to-offline (O2O) has been changing the business environment of the retail industry and making businesses more competitive. Since the relationship between O2O and productivity is of interest, this study examines whether adoption of the O2O platform is effective in improving the efficiency of small-sized online stores. A two-stage approach consisting of stochastic frontier analysis and meta-frontier analysis is applied to estimate and compare the efficiencies between firms using the O2O platform and firms using other methods. Based on stochastic frontier analysis and meta-frontier analysis, our findings show that adopting the O2O platform is an innovative and competitive strategy for small-sized online stores.

Suggested Citation

  • Kim, Hongbum & Ryu, Min Ho & Lee, Daeho & Kim, Jang Hyun, 2022. "Should a small-sized store have both online and offline channels? An efficiency analysis of the O2O platform strategy," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:joreco:v:64:y:2022:i:c:s0969698921003891
    DOI: 10.1016/j.jretconser.2021.102823
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    References listed on IDEAS

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    Cited by:

    1. Datta, Alotosh & Sarkar, Biswajit & Dey, Bikash Koli & Sangal, Isha & Yang, Liu & Fan, Shu-Kai S. & Sardar, Suman Kalyan & Thangavelu, Lakshmi, 2024. "The impact of sales effort on a dual-channel dynamical system under a price-sensitive stochastic demand," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    2. He, Peng & Shang, Qi & Chen, Zhen-Song & Mardani, Abbas & Skibniewski, Miroslaw J., 2024. "Short video channel strategy for restaurants in the platform service supply chain," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    3. Sarkar, Biswajit & Dey, Bikash Koli, 2023. "Is online-to-offline customer care support essential for consumer service?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    4. Sarkar, Mitali & Dey, Bikash Koli & Ganguly, Baishakhi & Saxena, Neha & Yadav, Dharmendra & Sarkar, Biswajit, 2023. "The impact of information sharing and bullwhip effects on improving consumer services in dual-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    5. Tsai, Pei-Hsuan, 2024. "Exploring consumer purchase intention in cross-boundary retail alliances with gamified OMO virtual-physical fusion services," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).

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