Assessing the market valuation of e‐service initiatives

Purpose – This study aims to examine how e‐service initiatives affect a firm's market valuation. To provide further insight, paper also assesses the impact of technology acquisition mode, the firm's organizational position, industry characteristics, and service introduction strategy on firm value.Design/methodology/approach – Using an event study methodology, we examined the market value of e‐service initiatives through their impact on stock returns‐investors' expectations of firm performance. Based on strategy and marketing theories, we also developed a conceptual framework to examine factors that influence firm performance and value.Findings – Findings include positive abnormal returns accompanying e‐service announcements. Regression results also show market size and firm size have negative effects on valuation while firm experience has positive effects on firm value. Whereas pioneers and late entrants have an advantage over early entrants, firms acquiring needed technology through collaborative R&D or ...