Abstract Nowadays “Touch the Internet” is becoming a key word for the Chinese brick-and-mortar retail industry, with dramatic changes of consumer lifestyle brought about by the Internet technology. Whether and how brick-and-mortar retailers should “Touch the Internet” is now becoming an urgent practical issue. From the perspective of retail technical efficiency and based on the data of Chinese chain retailers in 2013, this paper empirically estimates the effect of “Touch the Internet” strategies on the performance of retailers. We run two models based on the related theory of output distance function, stochastic frontier analyses and data envelop analyses, and reach the two meaningful conclusion: first, “Touch the Internet” can promote the performance of brick-and-mortar retailers; second, brick-and-mortar retailers should be very prudent about building their own shopping websites, and focus on cooperation with the third-party platforms. This research provides empirical revelation and advice for the brick-and-mortar retailers.
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