Small Firm Performance in Online Markets

Firms which enter the online marketplace do so for a variety of reasons. The effects of the motive for entry on the ultimate success of entry, for both online and ‘blended’ firms, are largely unknown. This study utilises a unique data set of small Australian firms and examines the relationship betwe...

Full description

Bibliographic Details
Main Authors: Madden, Gary, Azam, Md. Shah, Beard, T
Format: Journal Article
Published: Routledge 2013
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/30910
_version_ 1848753226498703360
author Madden, Gary
Azam, Md. Shah
Beard, T
author_facet Madden, Gary
Azam, Md. Shah
Beard, T
author_sort Madden, Gary
building Curtin Institutional Repository
collection Online Access
description Firms which enter the online marketplace do so for a variety of reasons. The effects of the motive for entry on the ultimate success of entry, for both online and ‘blended’ firms, are largely unknown. 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 trivariate probit model with exogenous ‘reason for entry’ dummy variables, estimates of aftermarket business performance are obtained. The study finds that the entry goal materially affects subsequent performance: firms entering to expand their market size ordinarily succeed, but those entering to reduce costs are often disappointed. Blended firms enjoy no strong advantages over pure online entrants.
first_indexed 2025-11-14T08:21:09Z
format Journal Article
id curtin-20.500.11937-30910
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T08:21:09Z
publishDate 2013
publisher Routledge
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-309102017-09-13T15:10:08Z Small Firm Performance in Online Markets Madden, Gary Azam, Md. Shah Beard, T technology adoption online markets retail industries Firms which enter the online marketplace do so for a variety of reasons. The effects of the motive for entry on the ultimate success of entry, for both online and ‘blended’ firms, are largely unknown. 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 trivariate probit model with exogenous ‘reason for entry’ dummy variables, estimates of aftermarket business performance are obtained. The study finds that the entry goal materially affects subsequent performance: firms entering to expand their market size ordinarily succeed, but those entering to reduce costs are often disappointed. Blended firms enjoy no strong advantages over pure online entrants. 2013 Journal Article http://hdl.handle.net/20.500.11937/30910 10.1080/10438599.2012.706062 Routledge restricted
spellingShingle technology adoption
online markets
retail industries
Madden, Gary
Azam, Md. Shah
Beard, T
Small Firm Performance in Online Markets
title Small Firm Performance in Online Markets
title_full Small Firm Performance in Online Markets
title_fullStr Small Firm Performance in Online Markets
title_full_unstemmed Small Firm Performance in Online Markets
title_short Small Firm Performance in Online Markets
title_sort small firm performance in online markets
topic technology adoption
online markets
retail industries
url http://hdl.handle.net/20.500.11937/30910