IT and E-Channel Performance in Small Retailers: The Mediation Mechanism of Resource Complementarities

Abstract Although small local retailers have been increasingly adopting e-channels, survey-based studies on this industry sector are relatively rare. This paper examines the effect of an IT resource on e-channel performance in small brick-and-click retailers. The research model includes both the direct and indirect effects of e-IT competence on e-channel performance. Empirical data gathered from 147 North American florists who use a website as an e-channel verify these mediation effects. The results show that the direct effect of e-IT competence on e-channel performance is significant in the absence of the mediators but is eliminated by introducing mediators, which demonstrates a true mediation mechanism. The findings of this research provide important implications for managing an e-retail system, particularly for small retailers with limited resources.