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    Competition between blended traditional and virtual sellers

    Access Status
    Fulltext not available
    Authors
    Beard, T.
    Madden, Gary
    Azam, Shah
    Date
    2011
    Type
    Conference Paper
    
    Metadata
    Show full item record
    Citation
    Beard, T. Randolph and Madden, Gary and Azam, Md. Shah. 2011. Competition between blended traditional and virtual sellers, in G. Madden and W. Kimble (ed), 5th Africa-Asia-Australasia Regional Conference of the International Telecommunications Society, Nov 13-16 2011. Perth, WA: ITS and Curtin University.
    Source Title
    Proceedings of the International Telecommunications Society 5th Africa-Asia-Australasia regional conference
    Source Conference
    International Telecommunications Society 5th Africa-Asia-Australasia Regional Conference
    School
    School of Economics and Finance
    URI
    http://hdl.handle.net/20.500.11937/15383
    Collection
    • Curtin Research Publications
    Abstract

    Competition in many electronic markets increasingly involves blended ‘bricks and clicks’ firms and virtual firms lacking any presence offline. Firms which enter the online marketplace do so for a variety of reasons, including experimentation, foreclosing rivals, responding to customer requests, and so on. 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 bivariate ordered probit model with endogenous dummy variables, the endogeneity of firm strategic goals and implicit estimates of the parameters of the post-entry business environment is accommodated. The study finds that the goal of entry materially affects subsequent performance: firms entering to expand their market size ordinarily succeed, but those entering to reduce costs do not. Blended firms enjoy no strong advantages over pure online entrants.

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