Impact of organizational capabilities and sectoral considerations on the level of marketing channel integration

Project manager: dr hab. Joanna Radomska, prof. WUEB

In the current market conditions, we can see a transformation in retail due to several factors, mainly the development of technology and changes in consumer behavior (Duarte et al., 2018). The topic of channel integration has already been explored by many researchers (e.g., Jaworski, Kohli, 1996), which has led to the development of research on channel evolution, mainly because marketing channels are among the most important elements of any value chain (Krafft et al., 2015). Moreover, as Lazaris and Vrechopoulos (2014) point out, we may now be witnessing a shift from a multi-channel approach to an omni-channel approach, as a result of more sophisticated integration of information systems and better coordination of individual processes. This shift is evidenced by the growing number of customers demanding an equal experience at every stage of the shopping process: from 72% in 2011 to 83% in 2016 (E-tailing Group, 2016). This is supported by survey results indicating that 76% of managers consider an omni-channel approach a key business priority (Melero et al., 2016), although only 32% of them are effective at coordinating different channels simultaneously (Econsultancy, 2015).

Our exploratory research, both a literature review and a case study, allowed us to propose a theoretical framework showing the range of internal barriers that require organizational capacity to overcome, as well as sectoral conditions affecting the development of channel integration. We conclude that both internal and external obstacles and how companies deal with them through their organizational capabilities relate to the level of channel integration. We treat this assumption as a theoretical proposition that forms the basis of our research model. It contains the following variables:

• Moderator: organizational capacity to overcome internal and external obstacles,
• Independent variable 1: internal obstacles, which consist of categories identified in our literature studies and then confirmed by the research conducted (case studies),
• Independent variable 2: sectoral determinants, which consist of the categories identified through the case studies,
• Dependent variable: level of channel integration.
• Control variables: will be precisely defined after Phase I of the research, the proposed variables are: size and maturity of the company, revenue dynamics.

Our research problem at this stage of our project involves verifying the relationship between organizational capabilities to overcome internal and external barriers, sectoral conditions and the level of channel integration. We want to verify and understand what is the nature and strength of the relationship between these variables.
Therefore, our research objective can be defined as follows: To verify the proposed theoretical model by clarifying the relationship between organizational capabilities to overcome internal and external barriers, sectoral conditions that cause external
obstacles, and the level of channel integration.

The study will use qualitative methods (group interviews) and quantitative methods (CATI). The respondents will be representatives of 322 companies among the 2,000 largest companies operating in Poland according to the “List of 2000” ranking of the “Rzeczpospolita” newspaper. It shows the largest companies by the criterion of revenue generated. The selection of the research sample was based on the assumption that the largest companies have different resources to implement a channel integration strategy.

The research design is based on a combination of an inductive approach (developing a theory based on analysis of collected data) and a deductive approach (using research to test the theory). This meets the standards of scientific research practice, where theory and research are linked through iterative processes moving from induction to deduction and vice versa (Babbie 2013). The expected results of the project will therefore include both: 1. theory development – based on the exploratory phase of the project; the theory proposal will respond to the identified theoretical gap regarding the lack of research highlighting the full range of internal and external obstacles associated with the evolution of marketing channel integration; 2. verification of the theory – based on the explanatory phase of the project; this will lead to clarification of the nature and strength of the relationship between the organizational capabilities needed to overcome internal and external barriers, sectoral considerations and the level of integration of marketing channels. This approach will help fill the theoretical gap in the described field of research.

Funding organization:
National Science Center

Programme:
OPUS 22

Project duration:
27/06/2022 – 26/06/2024

Funding amount:
287 052 PLN

Project status:
Project in progress