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The key to success in the internet business lies in how you carry out the integration between virtual and physical channels. The purpose of this paper is to aim at defining the solution to the integration.

Channel coordination is grounded on a new governance of integration strategy which bridges the channels. This study proposes a novel research model with three stages: first, click-and-brick strategies; second, channel coordination for three purchase stages; and third, synergy realizations. A survey was conducted for collecting empirical data. PLS was used for path analysis. In total, three separate statistical analyses were performed for three defined integration strategies.

Click-and-brick strategies have different degrees of impact on channel coordination in different purchase stages and in turn, different degrees of impact on synergy benefits. Specifically, the in-house division strategy is more important in determining channel coordination in the three purchase stages.

Customers initially perceive online services with a nature of low trust and view them as highly risky. This integration is useful for a firm to successfully start a new online business. Further, it provides insight into allocating a firm’s resources to critical multi-channel activities to realize synergy benefits.

Multi-channel marketing is dynamic and complex in nature. Existing theories provide limited insight into effectively defining them. This study attempted to define a strategy-based implementation model. This model demonstrated the capability to effectively reduce the complexity of defining channel integration.

Supply chain literature highlights that environmental uncertainty (EU) encourages firms to integrate their business strategies and develop strategic flexibility (SF). The authors’ use the dynamic capability view (DCV) to explain why the EU motivates firms to develop SF and integrate business strategies for better supply chain coordination (SCC) and enhanced performance. This study tests the role of SCC as a mediator between (1) business strategy integration (BSI) and operational performance, and (2) SF and operational performance. The study also measures the contingent effect of structural constructs on the relationship between EU, BSI and SF.

Data of 356 firms drawn from the continuous innovation network (CINet) are used in this paper. Structural equation modeling (SEM) is used to test the direct, indirect and moderation hypotheses.

The paper finds that EU enhances SF and BSI. Further, BSI has a significant positive impact on SCC that drives operational performance. The paper also finds that SF has no direct impact on SCC rather it affects SCC through BSI. SCC mediates the relationship between (1) SF and operational performance, and (2) BSI and operational performance. The organization's structural factors including connectedness and formalization moderate the effect of EU on BSI and SF.

The paper extends debate at the interface of supply chain risk and strategy literature and provides a specific understanding of the “external-internal-external” mechanism in the context of the turbulent business environment. This mechanism helps to understand why and under what structural conditions EU (external) leads to BSI and SF (internal). Further, BSI and SF (internal) help firms to manage SCC (external) effectively that in turn improve operational performance.

The purpose of this research is to substantiate the processes of implementing the electronic forms of business integration under the conditions of digital transformation by market players.

The methods used in this research include cooperative game theory, systemic analysis and statistical analysis.

This research presents the substantiation of the processes of implementing the electronic forms of business integration under the conditions of digital transformation by market players. The proprietary methodology of evaluation of the set problems includes three procedures: analysis of the electronic forms of business integration that are used in the digital economy in the world, which envisages their systematisation; evaluation of the effectiveness of implementing the processes of business integration with the use of such forms and their forecast estimation under the condition of individual development of the market environment's players, as well as determination of advantages; and development of the practical implications for managing the electronic forms of business integration for the national companies of developing countries (with forecasting based on the cooperative game theory). The modern electronic forms of business integration include electronic cash (e-cash), electronic data interchange, electronic banking (e-banking), electronic marketing (e-marketing), electronic insurance (e-insurance) and electronic trade (e-trade). Analysis of the effectiveness of implementing the processes of business integration with the use of the electronic forms is performed based on electronic trade, which is used under the conditions of the functioning of digital trade platforms (Internet stores). Such digital trade platforms, as the forms of business strategies, are Amazon and eBay Inc. These two American companies were selected because the United States has the leading position in this sphere. The comparative analysis showed the advantages of participation of players in partnership with the use of electronic trade within two digital platforms, connected to cost saving on advertising and organisation of trade. The practical implications of implementing the electronic forms of business integration for the national companies of developing countries are also presented; they are formed based on the practice of implementing the advantages revealed in the activities of the digital trade platforms Amazon and eBay Inc.

The originality and value of this research are due to the further development of provisions on the specifics of the process of implementing the electronic forms of business integration under the conditions of digital transformation by market players.

The purpose of this paper is to explore the extent of strategic integration between business strategy and human resource (HR) policies and their impact on organizational performance of public listed companies in Nepal.

Exploratory cum descriptive research design is followed with structured questionnaire distributed to 105 publicly listed individual organizations as a unit of analysis and secondary source of information used to verify the performance result of perceptual measurement.

Formulation of explicit mission and business strategies indicate that around half of the organizations are doing business without business strategy and just one-fourth organizations formulate explicit HR strategy in order to support business strategies. Among the respondent organizations, few organizations meet the requirement of high strategic integrating organizations that were performing better than organizations that were low integrating.

This study provides sufficient evidences to Nepalese decision makers and academics that integration of business and HR strategies will have better impact on organizational performance. The result of this study motivates decision makers and academics, particularly South Asian, to understand the importance of investing in HR to raise organizational performance.

Examining strategic integration for organizational performance is perhaps the first study which certainly contributes to the overall assessment HRM and its impact on organizational performance to the developing countries of South Asia, like Nepal and add values to the process of theoretical development as well as HR management.

This paper analyzes what factors drive a company’s decision to align financial and management accounting policies as a measure of integration of management accounting and financial accounting at the highest hierarchy levels of a company.

Research hypotheses for six different determinants are developed: company size, number of operating segments and subsidiaries, internationality of the business, business strategy, company life cycle stage, and leverage. The hypotheses are tested using International Financial Reporting Standards 8 (IFRS 8) segment report data from a large sample of 175 German publicly listed companies.

A higher internationality of the business causes companies to choose a lower degree of integration. Companies with a prospector (defender) strategy choose a lower (higher) degree of integration. Companies in later life cycle stages and with higher leverage choose a lower degree of integration as well. Company size does not impact integration.

Companies have to decide whether, and to what extent, to integrate financial and management accounting and align the two sets of accounting policies. German companies have traditionally kept the two sets separate. As the research reported in this paper sheds light on when companies do not consider integration to be beneficial, it is useful for practitioners.

The legal reporting requirements in Germany as well as German accounting traditions make the German setting particularly suited for examining the integration of management accounting and financial accounting. Using the number of adjustments to financial accounting policies made for management accounting purposes is a novel approach, and the number of adjustments is a more fine-grained measure of integration at the highest hierarchy levels of a company than the measures used in prior literature.

To elaborate on the model terms for the effective integration in Russia's special economic zones in the long term.

The statistical method, comparative method and a formalised model of game theory are used in this research.

The research is aimed at determining the model conditions for effective integration in Russia's special economic zones. The proprietary methodology envisages the following stages: establishment of the case experience of the development of Russia's special economic zones and determination of requirements that are set to residents (players) for entrance; comparison of the functioning of players of one of the studied integration structures under the conditions of individual development and the conditions of business integration; description of advantages; development of the practical implications to improve the business strategies of residents (players). The analysis is performed based on the materials of the development of Industrial Production SEZ ‘Alabuga’ (Republic of Tatarstan) and its residents, as well as the evaluation of the system of regulation of the parameters of joining special economic zones of different types. The assessed residents of Industrial Production SEZ ‘Alabuga’ (Republic of Tatarstan) are Trakya Glass Rus and Automotive Glass Alliance Rus (in 2021, the name was changed to Shishejam Automotive Rus), which started functioning within the association in 2017.

The originality and scientific value of this research are due to the description of the specific features and perspective directions of integration in Russia's special economic zones.

This paper aims to first, identify the external and internal factors that a company needs to analyze when formulating its digital platform strategy. Based on the framework of PESTNPG (political economic social and culture technological population and globalization) and internal analysis a company should analyze both internal and external factors to formulate its digital platform strategy. For companies from emerging markets the institutional-based market created by national or local governments is important for digital platform strategy. Second dynamic capability theory and its linkages to digital platform strategy. The dynamic capabilities view is considered as a primary theoretical lens in the strategy literature to analyze a company’s strategies to achieve sustainable competitive advantages. To carry out a successful digital platform strategy companies need to build strong dynamic capabilities to capture or create opportunities and reconfigure their resources simultaneously. Third the advantages and disadvantages of different digital platform strategies (i.e. an independent digital platform and online–offline integration platform) and the possible consequences and risks of different strategies. It is important to evaluate different types of digital platform strategies that require different capabilities in terms of business structure product structure revenue structure organizational structure and technology architecture. A company needs to link these capabilities to a digital platform strategy to enable the integration (or separation) of online business with offline business. It also increases the accuracy and efficiency of online business. Fourth key points of digital platform strategy implementation. Companies need to identify key profit models for their digital platform to promote business growth and financial returns. It is equally important to increase customer value by leveraging its digital exhibition platform and to learn to use digital technology to foster organizational dematerialization.

Zhejiang Meorient Commerce & Exhibition Inc. (hereinafter referred to as “Meorient”) was a leading company in the exhibition industry in China. The unexpected outbreak of COVID-19 plunged Meorient into a state of emergency that forced it to fight for survival. Further, China had launched a national strategy of Digital China, which created new market opportunities for Meorient. As a result, Meorient gradually developed and launched its digital exhibition services in 2015. Meorient suffered significant losses in 2020 due to COVID-19 and had to formulate a new strategy based on a digital exhibition platform in 2021. Chairman Pan Jianjun had two options. One was a purely digital platform strategy without the original offline exhibition business. The other one was an online and offline integration strategy. Which option was the best way forward for Meorient? Pan had to make a choice. Some of the top management team members believed Meorient should completely transform into a digital platform company and provide comprehensive online digital exhibition services. Over the previous 20 years, Meorient had accumulated a large amount of data from domestic and foreign exhibitors and professional buyers and had gradually developed a digital exhibition platform. It was one of the companies that pioneered digital transformation within China’s exhibition industry. More conservative thinking held that Meorient's strategy should focus more narrowly on the integration of online and offline exhibition businesses. Toward the post-pandemic era, China’s national strategy of “Digital China” accelerated the development of digital infrastructures. During such critical transitional period, Meorient had to choose wisely if it was to sustain its profits or even survive.

The case is aimed at students in undergraduate, MBA, short course executive, EMBA or other executive education programs, especially where digital transformation is featured subject matter.

Teaching notes are available for educators only.

CSS 11: Strategy

The purpose of this study is to assess (a) the relationship between internal and external IS integration and their respective impacts on internal and external cost management strategies, (b) the relationship between internal and external cost management strategies, and (c) the effects of internal and external cost management strategies on profitability, controlling for firm size. Furthermore, this study investigates whether internal and external IS integrations produce direct significant effects on firm profitability or whether these relationships are established through cost management strategies.

The study uses survey data from a cross-section of 241 U.S. manufacturing firms. Data were analyzed using structural equation modeling.

The results indicate that neither internal IS integration nor external IS integration has a direct significant impact on firm profitability. Rather, internal cost management strategy fully mediates the relationship between internal IS integration and profitability; similarly, the relationship between external IS integration and profitability is fully mediated through external cost management strategy. The results provide evidence that firms seeking profitability solely by investing in IS integration may not necessarily realize enhanced profitability; the firms must focus their attention on intervening processes, such as business strategy, in order to determine the profitability derived from IS integration.

As far as it can be ascertained, this study is the first to explore the impact of internal and external IS integration on firm profitability within the context of internal and external cost management strategies.