Using dynamic capability theory, this study investigates how information technology (IT) support affects firms' online and offline cross-channel integration (CCI). In addition, it applies institutional theory to examine how the relationships between IT support and CCI are moderated by firms' institutional environments.
A sample of 308 firms in China that conduct business in online and offline channels was empirically tested through hierarchical regression analysis.
The results showed two types of IT support facilitated CCI: IT support for strategy and IT support for process. The relationship between IT support for process and CCI was stronger than that between IT support for strategy and CCI. The results further indicated institutional environment (i.e. dysfunctional competition and government support) played differing roles in these effects, such that the relationship between IT support for strategy and CCI was significantly weakened by dysfunctional competition yet enhanced by government support. However, neither dysfunctional competition nor government support had a significant moderating role in the relationship between IT support for process and CCI.
This study identifies different IT support types as antecedents of CCI. It is also one of the earliest attempts to explore the influence of institutional environment on the relationship between IT support and CCI.
