Evolutionary Stages of e-Trailers and Retailers: Firm Value Determinants Model

We have studied the evolutionary stages of pure e-tailers, click and mortar (C&M) and brick and mortar (B&M) retailers for three points of time: June 1999, June 2000, and June 2001. To evaluate the dynamic stages of e-tailing business as an innovative venture, we propose four stages: explora...

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Main Authors: LEE, Jae Kyu, KANG, Heegoo, LEE, Hoe Kyung, LEE, Hansoo
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Language:English
Published: Institutional Knowledge at Singapore Management University 2002
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Online Access:https://ink.library.smu.edu.sg/sis_research/1153
http://hdl.handle.net/10203/5481
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spelling sg-smu-ink.sis_research-21522010-12-22T08:24:06Z Evolutionary Stages of e-Trailers and Retailers: Firm Value Determinants Model LEE, Jae Kyu KANG, Heegoo LEE, Hoe Kyung LEE, Hansoo We have studied the evolutionary stages of pure e-tailers, click and mortar (C&M) and brick and mortar (B&M) retailers for three points of time: June 1999, June 2000, and June 2001. To evaluate the dynamic stages of e-tailing business as an innovative venture, we propose four stages: exploration, breakeven, growth, and maturity. The stages are measured by the impact of revenue and income on the firm value, and a regression model is adopted to formulate the model. To empirically examine the stages of e-tailers and retailers, we have collected 14 e-tailers, 112 C&M, and 75 B&M from the U.S. stock markets. According to this study, the proposed stage model explains the evolution of pure e-tailers very meaningfully. E-tailers were in the late exploration stage in 1999, breakeven stage in 2000, and growth stage in 2001. Unlike our hypothetical expectation, the stage model could not adequately explain the effect of online business to C&M. In this regard, the impact of online channel to traditional retailers was not revolutionary. In 1999 and 2000, the primary contributing factor to firm value of C&M was income, but in 2001, it was revenue. According to this result, investors were very conservative to the risky investment on the click business of traditional retailers. However, it turned out that C&M has performed better than B&M in terms of revenue, income, income/ revenue, stock price, and market capitalization. It is noteworthy that the revenue effect of C&M in 2001 was significantly higher than that of B&M. 2002-01-01T08:00:00Z text https://ink.library.smu.edu.sg/sis_research/1153 info:doi/10.4018/jgim.2002070102 http://hdl.handle.net/10203/5481 Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Electronic commerce e-tailer stage theory retailer click and mortar electronic marketing Computer Sciences Management Information Systems
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Electronic commerce
e-tailer
stage theory
retailer
click and mortar
electronic marketing
Computer Sciences
Management Information Systems
spellingShingle Electronic commerce
e-tailer
stage theory
retailer
click and mortar
electronic marketing
Computer Sciences
Management Information Systems
LEE, Jae Kyu
KANG, Heegoo
LEE, Hoe Kyung
LEE, Hansoo
Evolutionary Stages of e-Trailers and Retailers: Firm Value Determinants Model
description We have studied the evolutionary stages of pure e-tailers, click and mortar (C&M) and brick and mortar (B&M) retailers for three points of time: June 1999, June 2000, and June 2001. To evaluate the dynamic stages of e-tailing business as an innovative venture, we propose four stages: exploration, breakeven, growth, and maturity. The stages are measured by the impact of revenue and income on the firm value, and a regression model is adopted to formulate the model. To empirically examine the stages of e-tailers and retailers, we have collected 14 e-tailers, 112 C&M, and 75 B&M from the U.S. stock markets. According to this study, the proposed stage model explains the evolution of pure e-tailers very meaningfully. E-tailers were in the late exploration stage in 1999, breakeven stage in 2000, and growth stage in 2001. Unlike our hypothetical expectation, the stage model could not adequately explain the effect of online business to C&M. In this regard, the impact of online channel to traditional retailers was not revolutionary. In 1999 and 2000, the primary contributing factor to firm value of C&M was income, but in 2001, it was revenue. According to this result, investors were very conservative to the risky investment on the click business of traditional retailers. However, it turned out that C&M has performed better than B&M in terms of revenue, income, income/ revenue, stock price, and market capitalization. It is noteworthy that the revenue effect of C&M in 2001 was significantly higher than that of B&M.
format text
author LEE, Jae Kyu
KANG, Heegoo
LEE, Hoe Kyung
LEE, Hansoo
author_facet LEE, Jae Kyu
KANG, Heegoo
LEE, Hoe Kyung
LEE, Hansoo
author_sort LEE, Jae Kyu
title Evolutionary Stages of e-Trailers and Retailers: Firm Value Determinants Model
title_short Evolutionary Stages of e-Trailers and Retailers: Firm Value Determinants Model
title_full Evolutionary Stages of e-Trailers and Retailers: Firm Value Determinants Model
title_fullStr Evolutionary Stages of e-Trailers and Retailers: Firm Value Determinants Model
title_full_unstemmed Evolutionary Stages of e-Trailers and Retailers: Firm Value Determinants Model
title_sort evolutionary stages of e-trailers and retailers: firm value determinants model
publisher Institutional Knowledge at Singapore Management University
publishDate 2002
url https://ink.library.smu.edu.sg/sis_research/1153
http://hdl.handle.net/10203/5481
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