The dynamic nature of survival determinants in e-commerce

Abstract

Longitudinal data on 460 e-tailers are used to test the dynamic effects of survival determinants in e-commerce. The model includes elements of competitive strategy, industry structure, firm and product characteristics, and the macro environment. The study demonstrates that very few of the factors affecting survival have a constant effect over time. For example, order of entry advantages are observed, but they are short-lived meaning that etailers cannot rely on early entry as a strategic move in the long run. This finding reconciles the arguments about the existence of pioneering advantages in the empirical literature. Retailers benefit from multiple channels throughout their lives...