Logistic Regression Using the SAS System: Theory and Application
Logistic Regression Using the SAS System: Theory and Application
Principles of Corporate Finance with Cdrom
Principles of Corporate Finance with Cdrom
Brand Equity and Vertical Product Line Extent
Marketing Science
Sourcing By Design: Product Complexity and the Supply Chain
Management Science
Association Between Supply Chain Glitches and Operating Performance
Management Science
Supply Chain Choice on the Internet
Management Science
Survival analysis using sas®: a practical guide
Survival analysis using sas®: a practical guide
Supply Chain Choice on the Internet
Management Science
Inventory and distribution strategies for retail/e-tail organizations
Computers and Industrial Engineering
Drivers of Finished-Goods Inventory in the U.S. Automobile Industry
Management Science
An algorithm for solving the multi-period online fulfillment assignment problem
Mathematical and Computer Modelling: An International Journal
Impact of Variety and Distribution System Characteristics on Inventory Levels at U.S. Retailers
Manufacturing & Service Operations Management
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Internet technology has allowed for a higher degree of decoupling between the information-intensive sales process and the physical process of inventory management than its brick-and-mortar counterpart. As a result, some Internet retailers choose to outsource inventory and back-end operations to focus on the sales/marketing aspects of e-commerce. Nonetheless, many retailers keep fulfillment capabilities in-house. In this paper, we identify and empirically test factors that persuade firms to integrate inventory and fulfillment capabilities with virtual storefronts. Based on the extant literature and previous research in e-commerce, we formulate nine theoretical predictions. We then use data from a sample of over 50 public Internet retailers to test whether empirical data are consistent with these hypotheses. Finally, given the strategic importance and financial magnitude of the inventory investment decision, we analyze the effect of this decision on the economic success of Internet retailers during the period of study. We find that there are many circumstances in which it is prudent to own fulfillment capabilities and inventory. Empirical data are consistent with hypotheses that this tendency is higher for older firms selling small, high-margin products, offering lower levels of product variety, and facing lower demand uncertainty. We also discover that firms making inventory ownership decisions that are consistent with an empirical benchmark derived from environmental and strategic factors are less likely to go bankrupt than those making inconsistent inventory choices.