Effects of Multichannel Coordination and E-Commerce Outsourcing on Online Retail Performance

This article assesses the role of multichannel coordination strategy in impacting online performance, and the need for E-commerce functions outsourcing at the initial stages of multichannel integration. Our findings indicate that a higher degree of interchannel coordination increases retailers' online sales. The article also concludes that integrated retailers that outsource more E-commerce functions, such as Web site hosting, site design, content development, order processing, E-mail marketing, Web performance monitoring, and E-logistics, do not show higher online sales performance than those who develop them in-house. Managerial implications of these findings are proposed, and directions for future research are outlined. Based on prior conceptual research, the article develops and empirically tests the construct of multichannel coordination.