Discussion
The purpose of this research was to develop and empirically test a conceptual model that identifies the determinants of cross-channel integration in a multi-channel retailing context. This conceptual model was based on the innovation-diffusion perspective, including factors in three dimensions: technology-related factors, organizational characteristics, and environmental context. The empirical study of 77 publicly traded U.S. retail firms from 2008 to 2015 generally supported the model we hypothesized. Below, we discuss the obtained results embedded in the TOE context.
Technological Context
The results suggest that retailers with more advanced IT capabilities tend to adopt and implement a higher level of crosschannel integration, and that retailers selling private-label products tend to develop a higher level of cross-channel integration. Firms' retained earnings are not linked to their decisions on channel integration. Compared to firms' IT capabilities and relational resources, their internal financial resources seem less important. One plausible explanation for this is that if firms adopt cross-channel integration projects, their chances of finding investors may increase seeing that such projects are potentially linked to positive future performance and that they enable retailers to keep pace with changing consumer preferences in innovative ways. Firms' willingness to invest and risk borrowing from the capital market will depend on their motivation to innovate. We will return to this point in discussing the factor of industry concentration later in this section.