• The Journal of Information Technology
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• v.7 no.1
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• pp.69-86
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• 2004

In this paper, a conceptual framework describing the dynamics of click and mortar businesses is provided. It directs our attention to the many potential sources of synergy that are available to firms that choose to integrate e-commerce with their existing traditional forms of business. It further emphasizes the many actions that firms can take to minimize channel conflicts and help achieve the benefits of synergy. Finally, it describes four categories of synergy-related benefits from the integration of e-commerce with traditional businesses, including potential cost saving, gains due to enhanced differentiation, improved trust, and potential extensions into new markets. The utility of the framework was demonstrated using the case of an electronics retailer that has chosen to tightly integrate its large chain of retail stores with its Web-based electronic store. The framework was also used to develop a series of propositions that can guide future empirical research. The discussion points to the need to develop new types of metrics to better judge the contributions of e-commerce channels, and provides some guidance for future empirical research that can test whether, and under what conditions, integrated click and mortar business models work well. Thus, the purpose of this study is to present the combining physical and virtual presence in e-commerce.