Understanding the value of omnichannel practices in retailing : A business model multi-case exploration

Abstract: In step with the development of digitalization, information technology has created an opportunity for retail organizations to offer new transaction mechanisms to their customers that can be used to their advantage and benefit value creation. Hence, many retail organizations today work to differentiate themselves by establishing omnichannel practices in which the company’s digital and physical channels are integrated to create a seamless and convenient customer experience. The aim of this study is to produce new knowledge regarding the value generated by omnichannel practices, and is based on a qualitative research method in which a multi-case exploration of six different companies has been carried out. The empirical data consist of nine semi-structured interviews with the organizations involved as well as on observations of the organizations’ omnichannel practices. Based on the results of the study, it is shown that omnichannel providers manage to create value by activating all business model themes, i.e. efficiency, novelty, lock-in and complementarities, in different ways and to varying degrees. It is also noted that various retail organizations have different ease of activating the four different value-creating sources and that this value creation is dependent on the retail organization's main activities and target group.