Resource-Based Determinants of Online Channel Commitment and Performance

While some firms' entire business models revolve around online channels, others have made only limited commitments to online channel ventures. What accounts for this marked heterogeneity, and do firms reap the performance benefits of increased levels of commitment? Drawing on findings from the literature on innovation and insights from the resource-based view (RBV) of the firm, we propose an integrative conceptual framework that helps answer these questions. We ground our hypotheses in the context of retailers' online channel development efforts, and test our conceptual framework with data collected via a web-based survey of 550 retailers. We find evidence of significant positive returns to investments in online channels. Furthermore, we observe the divergent effects of different sets of capabilities on commitment and performance. Importantly, we find that even after controlling for commitment, firms' resources have a significant impact on the performance of the online channel.