An Empirical Study of the E-Commerce Click-and-Mortar Business Model and Performance: An Innovation Approach

After the tide of the Internet and impact of the Internet bubbled, E-Commerce business models have moved toward the click-and-mortar business models which could improve the revenue for keeping survival. This study is to explore the relationship between the click-and-mortar model and its performance based on the innovation approach. From the innovation perspective, three dimensions of the click-and-mortar, innovative service, channel integration and new market opportunity, are proposed; and its performance, including customer lock-in and new customer attraction, are measured. There are 95 samples are selected from the list of Trusted E-Commerce Stores in Taiwan, and 31 valid samples for analysis. The results show that click-and-mortar business models indeed generate benefits for the E-Commerce business, but channel conflict will affect the difficulties of adoption of the click-and-mortar and generates the negative effects to its performance. The click–and-mortar provides the convenient way for transaction online and solves the problem of payment and distribution offline, reciprocally. Besides, innovative service such as customization or personalization has more precise targeting to the customers with adding value of information. As to the price conflict on channel, the click-and-mortar business model could provide solution of bundling gifts, product differentiation, dynamic pricing strategy, or better service to the customers. Suggestions for the further research are proposed finally.