Competition between blended traditional and virtual sellers
Competition in many electronic markets increasingly involves blended ‘bricks and clicks’ firms and virtual firms lacking any presence offline. Firms which enter the online marketplace do so for a variety of reasons, including experimentation, foreclosing rivals, responding to customer requests, and...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Conference Paper |
| Published: |
Communication Economics and Electronic Markets Research Centre
2011
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/15383 |
| _version_ | 1848748878012088320 |
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| author | Beard, T. Madden, Gary Azam, Shah |
| author2 | Warren Kimble |
| author_facet | Warren Kimble Beard, T. Madden, Gary Azam, Shah |
| author_sort | Beard, T. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Competition in many electronic markets increasingly involves blended ‘bricks and clicks’ firms and virtual firms lacking any presence offline. Firms which enter the online marketplace do so for a variety of reasons, including experimentation, foreclosing rivals, responding to customer requests, and so on. This study utilises a unique data set of small Australian firms, and examines the relationship between the strategic motivation for entry and the actual results of entry. Utilising a bivariate ordered probit model with endogenous dummy variables, the endogeneity of firm strategic goals and implicit estimates of the parameters of the post-entry business environment is accommodated. The study finds that the goal of entry materially affects subsequent performance: firms entering to expand their market size ordinarily succeed, but those entering to reduce costs do not. Blended firms enjoy no strong advantages over pure online entrants. |
| first_indexed | 2025-11-14T07:12:02Z |
| format | Conference Paper |
| id | curtin-20.500.11937-15383 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:12:02Z |
| publishDate | 2011 |
| publisher | Communication Economics and Electronic Markets Research Centre |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-153832023-01-27T05:26:31Z Competition between blended traditional and virtual sellers Beard, T. Madden, Gary Azam, Shah Warren Kimble Gary Madden technology adoption online markets retail industries Competition in many electronic markets increasingly involves blended ‘bricks and clicks’ firms and virtual firms lacking any presence offline. Firms which enter the online marketplace do so for a variety of reasons, including experimentation, foreclosing rivals, responding to customer requests, and so on. This study utilises a unique data set of small Australian firms, and examines the relationship between the strategic motivation for entry and the actual results of entry. Utilising a bivariate ordered probit model with endogenous dummy variables, the endogeneity of firm strategic goals and implicit estimates of the parameters of the post-entry business environment is accommodated. The study finds that the goal of entry materially affects subsequent performance: firms entering to expand their market size ordinarily succeed, but those entering to reduce costs do not. Blended firms enjoy no strong advantages over pure online entrants. 2011 Conference Paper http://hdl.handle.net/20.500.11937/15383 Communication Economics and Electronic Markets Research Centre restricted |
| spellingShingle | technology adoption online markets retail industries Beard, T. Madden, Gary Azam, Shah Competition between blended traditional and virtual sellers |
| title | Competition between blended traditional and virtual sellers |
| title_full | Competition between blended traditional and virtual sellers |
| title_fullStr | Competition between blended traditional and virtual sellers |
| title_full_unstemmed | Competition between blended traditional and virtual sellers |
| title_short | Competition between blended traditional and virtual sellers |
| title_sort | competition between blended traditional and virtual sellers |
| topic | technology adoption online markets retail industries |
| url | http://hdl.handle.net/20.500.11937/15383 |