Title: Global consolidation of industries and business failures: insights from brick-and-mortar and online outlets

Authors: Joseph Amankwah-Amoah

Addresses: Kent Business School, University of Kent, Kent ME4 4TE, UK

Abstract: Although online platforms are increasingly seen as a linchpin for firms competing in the 21st century, our understanding of competition between the traditional brick-and-mortar and online outlets, and how this can lead to different types of business failures, remains limited. In the light of the disjointed nature of the current streams of research, we propose an integrated framework that classifies the differential effects of online and brick-and-mortar competition. Based on a review of the literature, the study identified four competitive dynamics, i.e., bricks vs. bricks, clicks vs. bricks, clicks vs. clicks and brick-and-click, and explores how they can lead to different kinds of business. It is contended that the failure rate is likely to rise for small firms that adopt a sole brick-and-mortar strategy largely due to the risk of becoming 'research shops'. The study contributes to comparative strategic management literature by shedding light on the evolution of online and offline management strategies and practices across the globe. In this direction, the study provides insights on some aspects both universal and country-specific features in the evolution of online and offline. The analysis highlights the importance of championing successful blending of both online and offline platforms.

Keywords: online shopping; bricks-and-mortar shops; technology; internet; business failure.

DOI: 10.1504/IJCM.2018.093247

International Journal of Comparative Management, 2018 Vol.1 No.2, pp.185 - 201

Received: 01 Jun 2017
Accepted: 20 Sep 2017
Published online: 24 Jul 2018 *

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