Antecedents and consequences of Internet channel performance

Abstract

Internet distribution channels may be either advantageous or detrimental for a company. Therefore, this study analyzes their performance, antecedents, and effect on company performance. Using survey data from multichannel retailers and structural equation model methodology, the authors show that Internet channel performance contributes to both financial and strategic company performance, with a greater effect on the latter. Similar and uncoordinated channels hinder Internet channel performance, but experience with direct channels and channel power are not required to pursue an Internet channel successfully. Customer migration and managerial commitment to the Internet channel have strong positive influences on financial performance. Overall, the results encourage the adoption and development of Internet channels. © 2008 Elsevier Ltd. All rights reserved.