Information Technology, Cross-Channel Capabilities, and Managerial Actions: Evidence from the Apparel Industry

Journal of the Association for Information Systems, Forthcoming

Georgia Tech Scheller College of Business Research Paper No. 2016-056

39 Pages Posted: 9 Oct 2016

See all articles by Jifeng Luo

Jifeng Luo

Shanghai Jiao Tong University - Antai College of Economics and Management

Ming Fan

University of Washington - Michael G. Foster School of Business

Han Zhang

Georgia Institute of Technology - Scheller College of Business

Date Written: July 15, 2015

Abstract

Information technology (IT) has changed the dynamics of competition in the U.S. economy. Firms are gaining competitive advantage by competing on technology-enabled processes. For the retail industry, technology is breaking down the barriers between different retail channels and is making omnichannel retailing inevitable – an integrated sales experience that melds touch and-feel information in the physical world with online content. Omnichannel retailing is becoming a trend, critical for the success of retailers. To keep up the pace of change, existing retailers will need to create an omnichannel strategy and develop more omnichannel innovations. Based on the theories of resource-based view (RBV), IT business value, and competitive dynamics, this study examines the factors that affect cross-channel capabilities and managerial actions in the U.S. apparel industry. We have collected a longitudinal dataset on public apparel companies from 1995 to 2007. The empirical results reveal that both the quantity and scope of investments in enterprise IT applications are positively related to cross-channel capabilities. Financial resources positively moderate the relationship between enterprise IT applications and cross-channel capabilities. We find that enterprise IT applications increase the frequency and broaden the types of managerial actions. The effects of cross-channel capabilities on managerial actions are mixed. While market-oriented capabilities such as e-commerce and multi-channel cross-selling capabilities broaden the types of managerial actions, operation-oriented capabilities, such as cross-channel fulfillment, narrow the range of a firm’s managerial actions. The findings of the study provide important implications for managers in apparel and other retail sectors.

Keywords: Cross Channel Capabilities, IT Applications, IT Business Value, Managerial Actions, Omnichannel Retailing

JEL Classification: L81, L86

Suggested Citation

Luo, Jifeng and Fan, Ming and Zhang, Han, Information Technology, Cross-Channel Capabilities, and Managerial Actions: Evidence from the Apparel Industry (July 15, 2015). Journal of the Association for Information Systems, Forthcoming, Georgia Tech Scheller College of Business Research Paper No. 2016-056, Available at SSRN: https://ssrn.com/abstract=2849604

Jifeng Luo

Shanghai Jiao Tong University - Antai College of Economics and Management ( email )

1954 Huashan Road
Shanghai, Shanghai 200030
China
+862152302519 (Phone)

Ming Fan (Contact Author)

University of Washington - Michael G. Foster School of Business ( email )

Box 353200
Seattle, WA 98195-3200
United States

Han Zhang

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

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