The omni-channel approach: A utopia for companies?

Journal of Retailing and Consumer Services xxx (xxxx) xxx

Please cite this article as: Monika Hajdas, Journal of Retailing and Consumer Services, https://doi.org/10.1016/j.jretconser.2020.102131

0969-6989/© 2020 Published by Elsevier Ltd.

The omni-channel approach: A utopia for companies?

Monika Hajdas, PhD a, Joanna Radomska, PhD b, Susana C. Silva, PhD b,c,*

a Marketing Management Department, Wrocław University of Economics and Business, Komandorska 118/120, Wrocław, 53-345, Poland b Strategic Management Department, Wrocław University of Economics and Business, Komandorska 8/120, 53-345, Wrocław, Poland c Cat�olica Porto Business School, Universidade Cat�olica Portuguesa, Rua Diogo Botelho 1327, 4169-005, Porto, Portugal

A R T I C L E I N F O

Keywords: Channel integration Omni-channel strategy Strategy implementation

A B S T R A C T

There has been a shift towards providing a seamless consumer journey experience in the retail industry, resulting from a customer-centric approach. In the new paradigm, channels are becoming more intertwined and intricate, and ultimately more companies are embracing the omni-channel alternative. However, this alternative seems to be difficult for companies to operationalize. Such difficulty is due to several factors that need to be identified and disentangled. Therefore, in this study we consider the barriers faced by firms and categorize them to understand whether it is possible to successfully implement the omni-channel approach. We use four case studies to investigate the obstacles, looking for brands that operate in different industries, represent different levels of channel integration and have had different experiences in the retail industry. We identify two types of obstacles: internal, including operational and strategic barriers (employee-related, organizational and vision-related fac-tors); and external, including product-related, customer-related, legal and competitive drivers. We propose a theoretical framework that shows the scope of industry drivers affecting the implementation of an omni-channel strategy, as well as a model showing how internal and external factors affect the evolution of channel integration. As a result, we claim that for some industries and products, even if internal obstacles are significantly reduced, because of industry drivers, successful implementation of the omni-channel approach may ultimately be a utopia.

1. Introduction

The transformation we have been witnessing in the retail industry may be attributed to several drivers, caused by technology development and changes in consumers’ behaviors (Schoenbachler and Gordon, 2002; Duarte et al., 2018). Two of the most important factors are the increasing pervasiveness of mobile phones and the development of technology (Brynjolfsson et al., 2013), both of which have resulted in changes in expectations and an increasing number of problems that require retailers’ attention (Verhoef et al., 2015). In the purchase pro-cess, customers, who have rapidly absorbed the technological in-novations, are now willing to use different channels (Silva et al., 2018). On the offer side, however, providing an effective and integrated approach seems to be a significant challenge for companies. Issues related to the omni-channel alternative have been addressed in areas including marketing, retail, IT, and operations and services (Simone and Sabbadin, 2018), with the aim of understanding whether such strategy is affordable and worth investing in. Therefore, we may point two main research perspectives regarding the integration of marketing channels:

- the consumer approach, where main research topics include

seamless user journey (Frazer and Stiehler, 2014), perceived usefulness and ease of use (Silva et al., 2018a) and coherent brand experience (Keller, 2010); and.

- the retail approach, where main research topics include data collection on consumers’ preferences and new market entry possibilities (Davis and Harveston, 2000), and the decreased level of cannibalization in the case of offline stores (Herhausen et al., 2015), which is demon-strated by a growing or stable market share (Bell et al., 2014) or sales growth (Cao and Li, 2015).

If we considered these perspectives in combination, the main chal-lenge that is worth investigating is how to fully integrate the marketing channels and, at the same time, optimize the consumer experience. Such approach would allow seamless interchangeable use of channels.

In our paper we refer to the retail approach based on the perspective presented by Verhoef et al. (2015), who investigated two main ideas: synergetic management (where touchpoints and channels are the core areas of managerial practice) and data integration (which aims to ensure a coherent user experience, but also reduce operational costs). This perspective forms the dominant logic that we further investigate.

Channel integration has been discussed in several studies (e.g.

* Corresponding author. Cat�olica Porto Business School, Universidade Cat�olica Portuguesa, Rua Diogo Botelho 1327, 4169-005, Porto, Portugal. E-mail addresses: [email protected] (M. Hajdas), [email protected] (J. Radomska), [email protected] (S.C. Silva).

Contents lists available at ScienceDirect

Journal of Retailing and Consumer Services

journal homepage: http://www.elsevier.com/locate/jretconser

https://doi.org/10.1016/j.jretconser.2020.102131 Received 22 May 2019; Received in revised form 19 March 2020; Accepted 12 April 2020

https://doi.org/10.1016/j.jretconser.2020.102131


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Jaworski and Kohli, 1996; and, more recently, Dimitrova and Rose-nbloom, 2010; Brynjolfsson et al., 2013; and Verhoef et al., 2015), 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, the cross-channel inte-gration literature offers new insights into the effects of such approach, with discussions focusing primarily on the influence of channel inte-gration on company performance (Homburg et al., 2014), but also ways to create the synergy effect (Avery et al., 2012). Results presented by Du (2018) demonstrate that there is a positive relationship between channel diversity and the company’s profitability, on one hand, and a negative association between channel diversity and profit volatility, on the other. Both circumstances can be regarded as basic arguments for channel evolution and the introduction of an omni-channel strategy as an alternative to a multi-channel one. Further, as observed by Lazaris and Vrechopoulos (2014), we may now be witnessing a shift from a multi-channel approach to an omni-channel approach, as a result of the more advanced integration of information and service systems and the improved coordination of the respective fragmented processes. This shift is demonstrated by the increasing number of customers – from 72% in 2011 to 83% in 2016 (E-tailing Group, 2016) – demanding a seamless ‘user journey’. Such increase is also confirmed by research indicating that 76% of managers consider an omni-channel approach to be a key business priority (Melero et al., 2016), even though only 32% feel they are effective at coordinating different channels (Econsultancy, 2015). According to a research conducted in 2015 by Forbes, 84% of the global retailers pooled were of the opinion that only a uniform consumer experience across channels (Forbes, 2015) would allow them to cope with the changing digital world (see also Piotrowicz and Cuthbertson, 2014).

There seems to be significant interest in the omni-channel approach on both sides of the equation (demand and supply): customers are willing to be active members of a purchasing process in which this approach is used (Silva et al., 2018a), and, simultaneously, brands seem to be interested in the approach and recognize that they are not as efficient as they would like to be in terms of the articulation of different channels. However, despite the unquestionable interest in the topic from the managerial side, related literature is still scarce and omni-channel theory seems to be underdeveloped (Saghiri et al., 2017). Neverthe-less, omni-channel retailing is gaining attention among researchers, with important research topics including the integration of data from various channels, organizational change, the pricing policy across various channels, and the aligned management of a broad range of channels, among others (Mirsch et al., 2016). Research regarding managerial practice is particularly scarce (Beck and Rygl, 2015). Spe-cifically, even though a holistic perspective has been highly recom-mended (Von Briel, 2018), there is still little evidence on obstacles to the omni-channel approach (Picot-Coupey et al., 2016). Therefore, we aim to identify the challenges of implementing a more complex option for channel integration in order to understand whether this approach is even possible, considering that there seem to be many problems in this context related to the managerial field.

Our research is grounded in a retailer-centric approach (Chen, 2013). We want to respond to the following questions: (1) Do companies highlight obstacles other than those mentioned by researchers? and (2) Is it possible to implement an omni-channel strategy? Through our research, we develop existing theory on the obstacles to an omni-channel strategy; on this basis, we highlight some key issues for empirical testing. We aim to identify the key omni-channel barriers and to propose a framework that indicates obstacles influencing the possi-bilities for channel integration. To this end, we investigate the imple-mentation of an omni-channel strategy by uncovering the key managerial dimensions of decisions that enable brands to implement such strategy, and consider the obstacles and their influence on the final outcome.

2. Theoretical framework

Researchers use numerous terms to describe strategy concepts based on several channels, and clearly the omni-channel concept has not yet been fully established (Trenz, 2015). These terms include ‘channel integration’, ‘cross-channel management’, ‘multi-channel manage-ment’, ‘omni-channel management’, and other variations (Mirsch et al., 2016). The term ‘omni-channel’ was first mentioned in the academic literature in 2012 in Aubrey and Judge’s article ‘Re-imagine retail: Why store innovation is key to a brand’s growth in the “new normal”, digi-tally connected and transparent world’. The omni-channel concept is based on expanded multi-channel retailing and involves using different channels within a single transaction (Kaczorowska-Spychalska, 2017). The main difference between the multi- and omni-channel approaches lies in the customer’s involvement and the retailer’s control (Beck and Rygl, 2015). In the first case, the intensity of channel diversity gains importance, whereas in the second strategy, synergy is required (Her-hausen et al., 2015). Omni-channel management is defined as ‘the syn-ergetic management of the numerous available channels and customer touchpoints, in such way that the customer experience across channels and the performance over channels is optimized’ (Verhoef et al., 2015: 176). Mirsch et al. (2016) highlight that in the omni-channel approach, channels are interchangeably and seamlessly used during the search and purchase process. Since the customer’s journey is non-sequential (Hos-seini et al., 2018), operational activities are more likely to cause ob-stacles. This is confirmed by Neslin et al. (2006), who point out that data integration and resource allocation receive less attention than the overall idea of channel coordination.

We present the point of view that an omni-channel approach should be treated as the next level of channel integration. This evolution of channels is based on two dimensions: the increasing level of integration required and the growing complexity of managerial decisions (both strategic and operational). This is presented in Fig. 1.

The first level of channel integration is a single-channel approach (where one type of channel is used – e.g. the traditional store), the second level is a multi-channel approach (where more types of channels are used – e.g. the traditional retail and Internet routes to market), the third level is a cross-channel approach (where more types of channels are used and some are integrated) and the final level is an omni-channel approach (where many, varied types of channels are used and they are fully integrated – e.g. store, website, mobile channel, social media and all customer touchpoints). The main characteristics of the four concepts are presented on Fig. 2.

The numerous benefits of an omni-channel approach highlighted by researchers can be categorized as economic (Cao and Li, 2015; Bryn-jolfsson et al., 2013) or image related (Keller, 2010; Bhattacharya and Sen, 2003). In our paper, however, we focus on obstacles that are

Fig. 1. Evolution of channel integration. Source: Own elaboration based on Hübner et al. (2016c).

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connected with this approach. We explore internal obstacles companies face when implementing an omni-channel strategy; we consider the company’s lack of skills and specific characteristics as the main issues that impact the effective execution of this approach (Barwitz and Maas, 2018). Therefore, we divide these obstacles into two categories, depending on the perspective: strategic or operational.

Among the strategic obstacles to implementing an omni-channel strategy, researchers highlight two main perspectives: strategy-related (vision) and employee-related. This concept is based on research by Hrebiniak (2008) and Higgins (2005). The employee-related factors include misaligned corporate motivations (Hübner et al., 2016a), which are an important part of strategy fundamentals alignment (Picot-Coupey et al., 2016). As mentioned by Rouzies et al. (2005), there is a gap be-tween marketing and sales, which is caused by different mindsets. The so-called ‘silo mentality’ prevents the free flow of data and is challenging for information management. Researchers suggest the removal of organizational borders (Stone et al., 2002), which entails breaking down organizational silos and establishing an omni-channel mindset as part of the corporate mission. This perspective is also supported by Valos (2008), who argues for the reconfiguration of organizational culture, internal structures and processes.

The antecedents of misalignment are rooted in a group of strategy- related factors. These include conflicts of interest across various chan-nels that are mainly caused by an inconsistent strategy (Lewis et al., 2014), where the long-term vision is incoherent with short-term actions (Chopra, 2016). In a similar vein, Ye et al. (2018) report a loss of vision as being among the most serious strategic challenges. Webb (2002) mentions that such conflicts are mainly caused by incompatible goals. For this reason, a central challenge lies in convincing different de-partments to focus on an integrated approach, where improving overall performance is perceived as a main goal (O’Heir, 2012). Such approach requires building and maintaining of an effective communication strategy

(Webb, 2002), which in turn has a positive impact on linking the omni-channel strategy to the overall strategy (Neslin and Shankar, 2009). Moreover, implementing a measurement process is also recommended, as it enables analysis of the current state and progress of channel integra-tion (Hoogveld and Koster, 2016).

Among the operational obstacles to implementing an omni-channel strategy, several researchers define data integration as the main chal-lenge, due to the greater amount of data fueling databases in this strategy, compared to multi-channel and cross-channel approaches (Brynjolfsson et al., 2013). Such data result in a lack of coherent systems, where the technologies and structures are not synchronized and the in-ventory is not shared between channels (resulting in a 6.5% loss of revenue (Datex, 2018)). In fact, the omni-channel approach creates new data sources, especially social and mobile sources, and various data types (i.e. interactional and transactional). To benefit from these op-portunities, companies must know how to integrate consumer data from all channels and be able to analyze that data (Trenz, 2015). Therefore, to overcome the isolation of databases, fully integrated fulfillment pro-cesses are needed (Hübner et al., 2016b). Such integration requires extensive financial investment in integrative technologies (Herhausen et al., 2015), and the involvement of skilled personnel, mainly from the IT department (Frazer and Stiehler, 2014), but also specific skills, such as customer analytics, organizational learning competencies or an information-sharing mentality (Mize, 2016).

An important obstacle also lies in the reverse flow of the supply chain, demonstrated by problems in physical stores. These seem to be not prepared to handle a higher amount of items returned (Grewal et al., 2004) coming from different geographical areas. These will overcharge store’s cost structure.

Other obstacles connected with the omni-channel approach pertain to the organizational structure and the resource allocation across channels, which can lead to difficulties in making decisions on investments needed

Fig. 2. Main characteristics of single-channel, multi-channel, cross-channel and omni-channel strategies. Source: Own elaboration based on Rigby (2011), Piotrowicz and Cuthbertson (2014), Beck and Rygl (2015), Verhoef et al. (2015) and Picot-Coupey et al. (2016).

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to acquire or switch resources to achieve channel integration (Lewis et al., 2014). There is also another obstacle connected with this: chan-nels may be measured and evaluated separately. Although a single channel may not be profitable in isolation, it may support the perfor-mance of the overall omni-channel system. Therefore, the true perfor-mance of single channel is more difficult to evaluate. It is also important to achieve a consistent consumer experience – many organizations develop Web and mobile platforms as built-in features to existing channels. This may result in having different product ranges, offers and price levels across the various channels, which may be frustrating for omni-channel customers (Cook, 2014). Therefore, it is recommended that any in-consistencies between different channels (e.g. charging different prices) should be eliminated (Chatterjee & Kumar, 2017), and any problems with coherent information and responses across channels removed (Rangaswamy and Van Bruggen, 2005), as these can influence the overall image of the company (Oh et al., 2012). To sum up our study, the scope of the omni-channel obstacles is presented in Fig. 3.

Although the omni-channel concept has been discussed in the channel literature in recent years, no comprehensive perspective has yet been proposed in terms of exploring the different types of obstacles that companies encounter and ways to deal with them. This research gap is connected with companies’ decisions regarding the omni-channel approach, especially dealing with the difficulties that implementing this approach causes. Therefore, we propose the following research questions (RQs): RQ1: What are the main obstacles to the omni-channel approach, according to companies? RQ2: How do companies cope with obstacles connected to the omni-channel approach? To answer these RQs proposed, we use the case study method.

3. Research method

3.1. Research design

To accomplish the research goal, a multiple case research method was implemented. This approach enables a ‘replication’ logic (Yin, 2003), where the series of cases is treated like a series of experiments, and each case study allows the researcher to confirm or disconfirm the observations made in previous cases. The approach is more challenging than using a single case study, but enables more-reliable models and insights to be inducted (Bourgeois and Eisenhardt, 1988).

We chose the case research method to explore obstacles to the omni- channel approach because of the types of research questions – ‘what’ and ‘how’ – we pose. The method entailed absolutely no control over the

events under analysis, as they indicated past actions by third parties, which contributed to a more objective, solid and unbiased outcome. It was necessary to cover contextual conditions because the business- sector context is relevant to the phenomenon under study. The bound-aries between the phenomenon of omni-channel obstacles, the context and benefits were not clear (Baxter and Jack, 2008), which made the method suitable for studying this complex social phenomenon (Yin, 1994).

3.2. Case selection

During the case selection process, theoretical sampling was applied, with the aim of identifying a sample that could provide insights in terms of the researched concepts (Strauss and Corbin, 1998). Therefore, our cases were selected intentionally, with a particular purpose in mind, due to their specific usefulness in revealing insights regarding the investi-gated categories (Remenyi et al., 1998). As stated by Eisenhardt and Graebner (2007), theoretical sampling is recommended in exploratory research. Cases are selected purposefully due to their particular useful-ness in exposing the relationships between the investigated constructs, which allows the researcher to formulate the findings based on gener-alizations and theoretical propositions, but not statistical relations (Yin, 2003). We investigated context-specific cases. Our informants were all based in Portugal. We wanted the selected cases to all be from the same country so that we could find differences regarding their industry, size and idiosyncrasies associated with their activity along. By choosing companies from the same country we were also able to control the political-level variables. Additionally, we could easily communicate with the most appropriate informant in each firm, considering that these people were located at the same country as one of the authors. Furthermore, we also believe that even though these companies were operating in Europe, and not in the US or China, their experiences are valuable. In addition, while some firms were more advanced in their implementation of channel integration, the growing pains of imple-mentation were equally interesting to study. Indeed, we obtained very rich information from key respondents in each of our cases. We aimed to understand their successful experiences, but also to focus on the diffi-culties these companies faced, so to better understand obstacles asso-ciated with the implementation of an omni-channel approach and thus meet the objectives of this research. We searched for brands that oper-ated in different industries, represented different levels of channel integration and had different experiences in the retail industry in an attempt to ensure case diversity, as recommended by Flick (2014). At

Fig. 3. Research framework – scope of multi-channel obstacles. Source: Own elaboration

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the same time, the cases are comparable because they all started offline and then moved online. We selected four cases, which is in line with suggestions by Yin (2003), who stated that in multiple case research the suggested number of analyzed cases spans from 4 to 10. Detailed de-scriptions of our cases are presented in Table 1.

3.3. Data sources and collection

Qualitative data dominate exploratory research (Eisenhardt and Graebner, 2007); therefore, we conducted four face-to-face, in-depth interviews with managers responsible for the omni-channel strategies of the above companies. As a result we present a context-specific, rather than general, level of analysis. The research tool was a semi-structured interview scenario (Arsel, 2017), and the questions were based on the categories identified in the research framework shown in Fig. 3.

3.4. Data analysis and presentation

The data obtained were analyzed to examine relationships between the level of channel integration, the obstacles encountered and ways of overcoming those obstacles (Eisenhardt, 1989). Cross-case patterns and similarities were also analyzed to understand which obstacles were present across cases and whether the companies were able to overcome them in similar ways. In the next section, ‘thick descriptions’ of the omni-channel strategies of each company are presented. The interviews lasted 1 h, on average. The interviews were recorded and later tran-scribed for content analysis. During the coding procedure, the etic approach was used (Charmaz, 2014). As recommended by Goulding (2005), we used ‘constant comparison’ method to ensure consistency and enhance the possibility of making generalizations. Therefore, we searched for links between the concepts analyzed, which allowed us to better explain the investigated constructs. As a result, we were able to compose some core categories (Glaser and Straus, 1967) that allowed us to develop theoretical findings supported by collected data. The pro-cedure had three stages (initial codes, themes and aggregated di-mensions), as recommended by Gioia et al. (2013); these are presented in the framework in the appendix. Reliability was ensured in the con-structs extracted using two approaches. First, we implemented investi-gator triangulation to heighten our confidence in the findings, as suggested by Archibald (2015). For this reason, we coded the research results separately and then compared our evaluations, aiming to develop a broader and deeper understanding of the issues analyzed. Second, we used an iterative path of coding. After the first round of coding, the initial categories emerged and were further developed into second-order themes. Afterwards, we came back to the collected data to clarify the concepts created. As a result, we were able to modify the first constructs and, based on these, create the final framework.

4. Findings

4.1. Four brands and their omni-channel approaches – narrative descriptions

4.1.1. Sonae

4.1.1.1. Company description. Sonae is a multinational corporation that manages a wide portfolio of companies in retail, financial services, technology, shopping centers and telecommunications (including the retail brands Continente, Zippy, Wells, Mo, Note and Worten), operating in 90 countries. It was founded in 1959 to operate in the wood agglomerate sector. The group is one of the 20 firms listed in the Euronext PSI-20, in Lisbon. In the first semester of 2018, the company registered profits of almost 100 million euros, a value that is 34.5% larger than the first semester of 2017 the homologous in the year before. At the time of our study it was the largest employer in Portugal, with 50,000 employees. Besides its reputation as the largest employer, it is also renowned for its activity in different sectors, and for its closeness to clients.

4.1.1.2. Background. The company operates various distribution for-mats, along with the traditional brick and mortar approach: in terms of picking, formats include warehouse picking and store picking; but they also do click and collect and home delivery. Because of the demand for consistency and integration, and in order to hasten the distribution speed, Sonae uses Chronopost’s services to better cover the country (faster and more extensively) and to deliver products to Worten stores (a chain of around 180 stores operating in consumer electronics and also belonging to the group).

As the main aim of the company is to provide the client with the best possible experience throughout the whole customer journey, Sonae has implemented the philosophy of providing the most seamless experience possible, regardless of the channel used. At the time of our study they had five online formats: ‘home delivery’ (in which the company held a 70% share of the market, and had 500,000 registered customers that could choose among more than 50,000 stock keeping units (SKU) and benefit from the same promotions available in the store); mobile app (with 78,000 registered users, which represent approximately 20% of the firm’s online turnover); ‘click & collect’ (ability to leverage store estate with online ordering and store collection option); ‘drive-through’ (options available only in the Algarve, Lisbon and Porto); and ‘same-day delivery’ (nationwide delivery seven days per week). Each channel provides a different experience to the client that the company aims to homogenize. As its clients want consistency above all else, the company adopts a customer-centric approach in its strategy. As a consequence, its approach to channel integration is expected to be fully omni-channel.

4.1.1.3. Omni-channel obstacles. The omni-channel approach is perceived as a management philosophy and arises at all levels in Sonae. As confirmed by our respondent, the approach ‘is not just top-down; it is also bottom-up and horizontally strategized’. For the past five to six years, Sonae has been devoting attention to multi-channel and omni-channel

Table 1 Case descriptions.

Case No.

Brand Location Operational Revenue (2017, thousand Euros)

Product Category Informant

C1 Sonae Porto 432.8 Retail, financial services, technology, shopping centers and telecommunications

Head of E-commerce Department

C2 Parfois Porto 196.3 Handbags and fashion accessories Omni-channel, Client & Digital Director

C3 Bertrand Lisbon 45 Books Board Member Responsible for E- commerce

C4 Vista Alegre

Lisbon 63.3 Porcelain and home decor E-commerce Coordinator

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strategies, which seem to be crucial for further development: ‘We don’t see ourselves in a situation without omni-channel for the time being.’ The company is satisfied with its level of channel integration, as confirmed by the statement ‘We are undoubtedly at the maximum integration level possible. I would say that we are at the same level as the best in this field, and I would also dare say that there is no one that is 100% omni-channel. The small distance missing for the 100% has to do with the processes.’

To measure and monitor the omni-channel strategy execution, Sonae has several key performance indicators (KPIs), but its net promoter score (NPS) is the focus. Moreover, it has mathematical models that attempt to predict the value of relationships with clients, including when the number of channels clients use increases. Sonae is able to monitor what happens to the client when they start buying through various channels, as well as analyze the lifetime value. To do this, it relies on predictive models that include several variables, bearing in mind the relational proximity to the client. At the same time, our respondent admitted: ‘Obviously, we know that the more complex the system, the higher the odds of problems. For instance, when the app doesn’t work, we know that the con-sequences may be terrible, and that bad experience can have an impact on the in-store shop.’ For this reason, Sonae still has several challenges at hand; most of them are common to all companies, mainly relating to materials, systems and physical operations. However, the industry seems to be important as well, as mentioned by our informant: ‘The fact that we are dealing with food products instead of clothing, for instance, adds additional complexity: the delivery can only be made in the presence of the client, the time window for the delivery should be short and the perishability of the goods is high.’

Another factor that was mentioned by our informant as an opera-tional challenge was logistics. In his opinion, operating within one country makes the omni-channel strategy easier as the homogenous context of action does not involve different currencies and taxes, which would add complexity to the process. The approach is supported by a well-developed information system, with the whole customer journey mapped and all the ‘magic moments’ and ‘pain points’ identified. In fact, the level of knowledge is even higher: ‘We know how many clients we have in each stage, how much they buy, where they concentrate and where they are going to focus next. We anticipate what they will be doing next.’

The organizational learning process seems to be extremely impor-tant, as mentioned by our respondent: ‘We also deal with these obstacles and we also learn from them as time passes by. … The most difficult obstacles are human based.’ The mindset is, therefore, also a factor. In fact, areas of company that are more exposed to the end user perceive the relevance of marketing to the approaches they follow. However, employees working in areas that are not so exposed to the final consumer do not see the relevance of maintaining alignment in terms of the service provided or the relational approach followed. This may become an issue; therefore, it is important that all company employees are aware of the challenges of the online channel and are committed to fully delivering the best service possible. To achieve this goal, extensive communication is required, and some relevant actions were mentioned by our informant: ‘We reflect this preoccupation in our hiring and formation policies: we hire people and we educate them within the firm so that they have the omni- channel approach in mind. We are specifically worried about the teams that have a [more] exterior exposition. We also have internal teams working on conjoint solutions.’ Additionally, exterior training is implemented, as staff attend conferences and events where omni-channel topics are covered.

To reduce the negative impact of omni-channel obstacles, Sonae is trying to build an effective ecosystem of business partnerships. Orchestrating the relations in an extensive network is very complicated and could jeopardize Sonae’s relationships with clients. This is partic-ularly true where there is a high volume of services, which adds complexity to the system. However, in the long term, such networking seems to add value and supports the overall learning process by using benchmarking, as well as the recognition of best practices.

Referring to our RQs, the Sonae case research confirms some

obstacles suggested by other researchers, such as logistics (operational – organizational obstacles; see Fig. 3) and different mindsets between departments (strategic – employee-related obstacles; see Fig. 3). Both of these obstacles are internal. Our informant also highlighted product- related issues, namely operating in a food sector, as an obstacle to-wards an omni-channel approach. This obstacle is more external in na-ture, which reveals new insight not mentioned in previous research.

4.1.2. Parfois

4.1.2.1. Company description. Parfois is a women’s fashion accessories brand created in 1994 in Porto, Portugal. It has been very strongly ori-ented towards fashion and design since its inception. The company has always had an international focus, which has been achieved through franchising, initially to Spain. The company has around 1000 stores, and the average annual growth over the last six years has been 24%. Its products are available in more than 70 countries via a range of sales channels. The channel that has been growing most rapidly is the online channel, which has been boosted through the increased brand awareness received from brick and mortar channels. Before consolidating opera-tions in the online channel, the company invested significantly in un-derstanding the local idiosyncrasies of the markets in which it was present. Besides the dozens of markets in which the company operates in Europe and in the US, it has been playing a relevant role in several countries.

4.1.3. Background The company perceives its strategy as omni-channel, which the

respondent defined as ‘a practice through which companies interact with consumers via multiple channels (as much as possible) in order to create a 360� seamless brand experience for customers’. Therefore, the company is now strongly focused on achieving much more multi-channel success. It understands the model, is committed to this philosophy and is investing in both financial and staff resources to strengthen this mentality in the short and long term. Its intention is to have coherent and aligned visi-bility in order to have a single customer view, to find the best way to work with marketing automation platforms and to create a common message across all channels. For that reason, the company’s long-term vision is reflected in all its marketing and operational investments, which are based on omni-channel thinking. To achieve this consistency, a communication strategy was created: ‘Since it is a mentality that is born from the highest charges in the company, the communication strategy cas-cades down to all positions and departments of the company.’ However, although the overall mentality of the company shows awareness of the importance of being present in all channels that connect it with con-sumers, the offline departments tend to lose visibility of the impact of mixed models with aligned messages and with unique experiences and ideas. Sometimes it is difficult for them to understand that the reach of non-physical platforms is practically unlimited, and that it is not about competing for the sales but rather being able to achieve an organic and attractive experience to retain customers.

4.1.4. Omni-channel obstacles One of the obstacles the company faces pertains to its measurement

system, as admitted by our informant: ‘It’s really difficult trying to measure omni-channel achievements for now. We have reliable commercial analytical measures such as traffic, conversion (online and offline) and, above all, retention. I think that, ideally, in the short term, we will be able to draw a “lifeline of our customers” to offer them a unique, highly personalized experience and to analyze sense connections between platforms and users.’ Based on this, certain organizational obstacles can be mentioned. One of these concerns understanding the model for sharing stock across all platforms. As mentioned by our respondent: ‘In my opinion, the difficulty can be more operative and administrative (in the sense of the communication of what is in stocks and also of accounting between channels, when we speak

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about offline and online). The ability to connect stocks and shares of different origins gives you the ability to expand your catalog to an exponential per-centage and to be much more competitive in terms of delivery services (having multiple platforms to serve your customers).’ Therefore, it is important to make sure that a firm’s managers are very aware of the potential and opportunities that an online sales model gives and that it complements (and does not compete) with physical platforms. The challenge is to create a mindset where the importance of all channels working in alignment in terms of catalog, content, image and even voice is high-lighted. On the other hand, it is important to develop the awareness that to create omni-channel chain visibility, the location or origin of stock, from where products come, is less important for clients. As mentioned by our informant: ‘It is true that the niche market for sales in the online model is much more powerful but should never monopolize all the attention within the stock assignments.’ For this reason, reverse logistics was noted as one of the most strategic points of improvement for 2019. The company’s objective is for returns to be as functional and fluid as purchases are, in terms of technology, costs and operations. Therefore, it wants to ‘educate’ its clients on the reverse logistics process, which will lead to e- commerce models, including pick-up points, slogans and ticket offices, that enable a sufficiently extensive network so that the highest per-centage of the population has the possibility to return any product without moving and without having to be at home for a collection. This approach is believed to significantly influence the results, as stated by our respondent: ‘We aim to improve the flow and reduce [as far as possible] the business costs for these operations in order to offer these services for free quickly and globally.’

The last type of obstacle is connected with employees on either an operational or strategic level. As mentioned by our respondent, there are many very powerful and very simple omni-channel models that allow the integration of information and data across all channels. Obviously, these require time to be implemented. However, to do this, companies must be able to count on IT personnel with experience in multi-channel integrations and a clear vision of the omni-channel objectives of the company. Thus, people who work on omni-channel projects must have very mature e-commerce knowledge but, above all, a global and broad awareness of the possibilities and potential of a model that connects and aligns all channels. Experience in the operational processes of physical stores is highly valued because they are the most difficult to understand. As highlighted by our informant: ‘When you understand both worlds and work towards generating an omni-channel chain vision that allows you to have visibility and 360� functioning, you are ready to work in omni-channel.’ Working with a perpendicular and non-parallel mentality allows de-partments and positions to be shared between channels, which ensures that the customer experience is logical, aligned and complementary.

Referring to our RQs, the Parfois case confirms several obstacles that have been suggested in previous research, such as differences in mind-sets between departments (strategic, employee-related; see Fig. 3), a lack of skilled personnel (operational, employee-related; see Fig. 3), problems with the measurement system (strategic, vision; see Fig. 3), problems with inventory sharing between channels (operational, orga-nizational; see Fig. 3), and reverse logistics (operational, organizational; see Fig. 3). All of these obstacles are internal. However, our informant also highlighted the necessity of changing customers’ attitudes towards the omni-channel approach. This obstacle is more external in nature and is related to customers’ usage and attitude factors. The Parfois case re-lates to the following managerial decisions, strategies and tactics: investing in a strengthening mentality towards the omni-channel approach, and developing and implementing an internal communica-tion strategy aimed at building a common vision and educating cus-tomers on the reverse logistics process.

4.1.5. Bertrand

4.1.5.1. Company description. Bertrand has been in business since 1732

and is considered the oldest active bookshop in the world. It was very interesting to hear how a brand with such a long tradition has coped with the digital transformation of retail and has increased its channel integration step by step.

One of the key milestones for Bertrand was when the company was bought by Porto Editora in 2006. Before 2006, Bertrand had approxi-mately 60 stores with 500 employees. The brand’s online presence at that time was very poor – many processes lacked efficiency, with all online sales being supplied by a single store. It was very difficult to differentiate the products, as the offering was exactly the same as that of the company’s competitors. The company soon realized that the only thing that could be differentiated was the customer experience, which required changes in its services and facilities.

The first managerial decisions after the purchase by Porto Editora concerned the centralization of suppliers. All contracts were renego-tiated and a centralization fee was charged. This diminished the picking costs, the cost per box and the costs connected with invoice control. The centralization fee charged to suppliers enabled the company to rent a storehouse and develop software. In terms of improving the service and sales efficiency, a mystery shopper program was launched. These de-cisions resulted in a sales increase of 10% – this was achieved despite the difficult environment, namely the decreasing market (a 36% market loss since 2010) due to changing entertainment behavior patterns.

4.1.5.2. Background. In 2012, the company decided to close its out-of- date website and give it a major makeover. In fact, it built a completely new e-commerce site from scratch, using the Porto Editora platform for online sales. While working on the new website, the company central-ized all operations (having one logistics center in Maia, near Porto, with the best facilities). In 2014, Bertrand’s new website went live; since then, it has been managed by Bertrand itself. Our informant stated that this was a real milestone that facilitated discussion of an omni-channel approach, as the company finally had the necessary infrastructure to implement such strategy – books that were sold online all came out of the logistics center in Maia. This allows the client to return a book in 18 days.

In 2013, before launching the new online platform, a change was introduced regarding the loyalty program. The company switched from a typical loyalty card, where customers collected points, to collecting euros. This was done in response to customers’ expectations – it allowed them to obtain an immediate benefit versus a delayed one, and gain money versus points. This resulted in a significant increase in the client base, achieving 10 million visits annually to physical stores. At the time of the research Bertrand had an average of 40,000 titles, and the process of providing a unique reference to each product is well centralized. All editors send their references to central headquarters, where a special unit responsible for opening and centralizing titles opens a new refer-ence. The website informs clients about the physical stock of a SKU. Some clients buy exclusively online (e.g. if they do not have a bookshop nearby); others buy both offline and online. There is also the possibility to use the online channel to reserve a book in a physical bookshop. When customers go to the store to pick up these orders, they usually end up buying something else in addition. Payments are made in euros via ATM machine, Internet banking, MB WAY (an app that eases the process of money transfer among users) or credit card. Bertrand also operates a pick-up network using Chronopost. The return rate is just 2% (by com-parison, in Germany, the fashion and apparel industry experiences a 70% return rate, according to our informant).

4.1.5.3. Omni-channel obstacles. Our informant highlighted three major obstacles in transforming Bertrand’s approach from single channel to cross-channel, and thinking about an omni-channel approach:

� strategic – conceiving the process � logistic – centralizing systems

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� operational – human resource management.

In his opinion, the most relevant problems the company encounters are not strategic but operational.

One of the ways in which Bertrand aims to overcome the obstacles mentioned is by learning from others. Twice per year, the company at-tends special meetings with other specialized retailers in Belgium, where issues such as the percentage of online sales, sales per square meter and efficiency levels are discussed and compared. When asked why the retailer attends meetings in Belgium, rather than Portugal, the informant explained, ‘Because Bertrand is part of the largest specialized retailer in Portugal, so, in order to grow, it needs to look for inspiration beyond its market.’ As mentioned by our informant, the implementation of an omni-channel strategy is still ongoing: ‘As for the future, we want to continue to improve our engagement levels and reinforce existing relation-ships with our clients. This is already a very large challenge.’

Referring to our RQs, the Bertrand case confirms some obstacles that have been suggested in previous research, such as centralizing logistics systems (operational, organizational; see Fig. 3) and human resources management (operational, employee-related; see Fig. 3). Both of these obstacles are internal. Our informant also mentioned another internal obstacle that has not been mentioned in previous research – this refers to the strategic level of conceiving the process of company transformation towards an omni-channel approach. Another new category of obstacles that has not been highlighted in previous research is the lack of benchmarks within the industry, especially if a company holds the leader position among competitors. This obstacle is more external in nature and is related to the competitive environment and competitors’ practices of performing omni-channel approach. It reveals new insights not mentioned in previous research. The Bertrand case highlights the following managerial decisions, strategies and tactics: the centralization of suppliers and all other operations, and the ability to respond to cus-tomers’ expectations and learn from others – outside the sector and even outside the country, where necessary.

4.1.6. Vista Alegre

4.1.6.1. Company description. Established in 1824, Vista Alegre was the first company to produce porcelain in Portugal. This was due to special authorization obtained from D. Jo~ao VI, king of Portugal, which gave the company founder a royal license to operate this business. The company became known as the first free entrepreneurial initiative in a country marked by centralization of economic activities. Since the early years, the company has displayed a very modern way of managing, with a specific focus on marketing, which has pushed the company to maintain a presence at international exhibitions and European tableware fairs. The company earned a guarantee seal provided by the Portuguese royal family that designated it as a royal supplier of tableware. The company’s sense for innovation formed the basis for its founding an arts center. Currently, the company receives designer trainees from all over the world within several protocols celebrated with different schools of design in Europe. The company is also known for producing unique models in partnership with artists from all over the world. Presently, the company offers porcelain tableware, decorative pieces, giftware, hotel-ware, high-quality glass and crystal, and stainless steel cutlery. In addition to using state-of-the-art production techniques, the company employs over a dozen hand painters, who are responsible for decorating the pieces produced; this has enabled Vista Alegre to form a reputation for its products in all countries in which it operates. The brand is recognized as a high-quality porcelain manufacturer, and has been awarded Excellence Status by the prestigious organization Superbrands for several years in a row.

The company currently operates 22 physical stores in Portugal and several abroad (two in Spain, one in Brazil, one in Angola, two in Mozambique, one in Kuwait, one in Namibia, one in the US and one in

India).

4.1.6.2. Background. Our informant stated that the omni-channel approach in Vista Alegre is still very limited, even though the com-pany has implemented a policy in which there is some degree of align-ment between the channels. The company’s website has online store functionality, where products can not only be purchased but also added to a wish list. Online orders can be picked up in one of the 22 physical stores in Portugal; in such cases, no shipping costs are charged. Other-wise, there is a shipping fee, which varies according to the customer’s location. Currently, customers are required to pay for returns, and the cost depends on the courier. However, the company is planning to change this policy in the near future to offer online clients the possibility of returning orders to its physical stores free of charge.

The company has launched a policy of assisting online clients through a dedicated phone number, which customers can call for assistance with the online purchasing process. This service is only available in Portugal, despite the company’s presence abroad.

4.1.6.3. Omni-channel obstacles. Among the major obstacles connected with achieving the next level of channel integration, our informant highlighted the lack of knowledge on current Vista Alegre clients and their major concerns in terms of online shopping: ‘What we would really like to know is whether these concerns regard possible product damage? Or the need for touch? Or do they fear using a credit card?’ Such consumer research has not yet been conducted by the company. The omni-channel obstacles are also connected with the types of products offered (which are fragile) and the policy of developing Vista Alegre into a highly recognizable, ultra-premium brand.

Based on the information obtained, Vista Alegre can be classified as an example of a company moving from a single-channel approach to-wards cross-channel integration. Our informant confirmed that Vista Alegre still has a long way to go in order to achieve a high level of channel integration, and that its current online presence should be considered a supplementary way to sell. She also expressed hope that if the company manages to provide a good online customer journey experience in the future, clients will buy more in both channel types, online and offline.

Referring to our RQs, the Vista Alegre case did not highlight any of internal obstacles mentioned in previous research. Both major obstacles that were mentioned by our informant were external: the lack of knowledge on current Vista Alegre clients, and customers’ major con-cerns in terms of online shopping and the type of product (which is fragile). The first obstacle relates to customers’ needs, and the second to product characteristics. It is likely that the low awareness of internal obstacles related to the omni-channel approach is due to the fact that the firm is still in the very early stages of channel integration.

5. Discussion

The obtained findings are in line with those of previous researchers who have highlighted internal obstacles towards implementing an omni- channel approach (Mirsch, 2016; Herhausen et al., 2015; Frazer and Stiehler, 2014; Mize, 2016). Summarizing four companies’ stories, our first conclusion concerns the growing importance of employee-related factors as channel integration increases. This aspect is even more com-mon in case of those that are classified as strategic. At the lower level, organizational factors seem to prevail; however, as the complexity of obstacles grows, the mindset and alignment gain importance. An inter-esting relation can be observed regarding the overall consciousness and awareness of strategic factors. The lower stage of channel integration results in not only a lower number of obstacles but also a lower level of their recognition. Strategic awareness also leads to awareness of the growing need to search for inspiration (new knowledge and new skills) beyond the industry and micro-environment, which is represented by

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implementing cross-industry benchmarks or a networking attitude. This is where the new categories of obstacles, not mentioned in previous research, begin to gain relevance.

Our findings revealed some new insights that are important for un-derstanding the omni-channel approach, adding new layers of relevant variables to the equation and expanding our knowledge on obstacles towards the omni-channel strategy. These layers show that the decisions made regarding omni-channel strategies depend more on contextual issues than one may think.

Therefore, besides the internal categories of obstacles shown in Fig. 2 (strategic and operational), our case research reveals that there are some other categories of obstacles of an external nature that the firm cannot control (or cannot fully control). Both categories of obstacles (internal, from our research framework and external, identified through case research) are presented in Table 2.

The external scope of the omni-channel obstacles that we identified on the basis of our case research is shown in Fig. 4 (the cases illustrating the factor are shown in brackets). We call this set of factors omni-channel industry drivers (OID), as we think that – depending on the industry – they may either foster or hinder omni-channel adoption.

Among the product-related drivers, product characteristics are an extremely important factor; this was mentioned by our informants operating in the food sector (C1) and in porcelain (C4), who highlighted that the nature of the product gives rise to certain conditions that make implementing an omni-channel strategy more challenging, if not totally unrealistic. In addition, ultra-premium brands (C4) may face a different set of obstacles in terms of implementing an omni-channel strategy, as their main tactic is based on building and maintaining certain logistics barriers to protect the rarity of their offering, which again seems to make adopting an omni-channel approach challenging – though, in this case, not impossible. Products that are less perishable and have less need for touch, such as books (C3), ultimately enable the easier implementation of omni-channel strategies, ceteris paribus. Moreover, for luxury prod-ucts/brands, as the most appropriate distribution strategy is expected to be selective or exclusive, the multiplication of channels may bring some difficulties in dealing with clients who are interested in exclusivity. This is not to say that such goods cannot be distributed using multiple channels, but such approach is overall less likely to be accepted and demanded compared to for other products/brands. This factor is also connected with the global appeal of the product.

Among the market-related factors, customer needs and attitudes should also be analyzed. This brings attention to the issue connected with client education, which could be necessary because the older the client, the more difficult it could be to guarantee that they have the digital skills needed to regard the digital channel as a purchasing alternative (C2). Online convenience is not so valued by Generation Xers, and outdated behaviors in senior consumers may inhibit full

channel integration for this type of product/brand. This brings about the consideration of another factor in the analysis: the digital proficiency of clients in the domestic market, if this represents the main target market for the firm (C4). In fact, in our study, the context was a European market where the percentage of online shoppers was below the Euro-pean average. According to Eurostat (2018), even though around 60% of Europeans between 16 and 54 years old regularly buy online, that figure is only 37% in the Portuguese case, which suggests that another obstacle to the implementation of an omni-channel strategy pertains to the dig-ital and e-commerce profile of the target market. Moreover, Portugal is a commercially dense country (Brand experts, 2018), which decreases the interest in online purchases. Thus, companies that choose to target the global market are more interested in full channel integration, whereas those with a local scope of action are less interested in investing in that area. Interestingly, our case company with a local emphasis, and selling mostly perishable goods, was the one most interested in the omni-channel approach (C1); this may have been rooted in the product characteristics – the company may have been trying to compensate perishability by approaching more markets.

The next set of drivers concerns competitive factors. Nowadays, companies are benchmarking not only entities within the same industry, but also other firms outside the radars of their clients, from which new, alternative business models may emerge and give rise to new competi-tors. These new business models, which are mostly digitally based, in-crease competition, even if the firms do not sell the same products or services or do not consider themselves to be competitors (Beynon-Da-vies, 2018). Therefore, of concern to managers is not conventional competitors’ moves but the moves that could come from unexpected sources, which brings the VUCA (Volatility, Uncertainty, Complexity, Ambiguity) paradigm into the equation (Du and Chen, 2018). Looking at what others are doing and still trying to proactively innovate necessi-tates firms to take the lead in the market in all respects, including the channel approach. This finding is connected with the next insight, which concerns the networking perspective. This perspective is also repre-sented in cases of growing levels of channel integration. Using the coopetition approach, as well as building and maintaining external re-lations with clients and cooperators, allows companies to reduce the obstacles identified. This confirms the view of Silva et al. (2012, 2018) that networking elicits herding behavior that is able to promote second-hand knowledge and is crucial for anticipating market ten-dencies (Rojo et al., 2016), as well as stimulating knowledge-sharing processes (Heavey et al., 2015). All of these actions are part of the organizational learning process, which seems to be extremely important. This means that being part of the right business networks assists firms in

Table 2 Summary of the four companies’ obstacles to implementing an omni-channel approach.

Case No.

Categories of Obstacles Identified in the Model

New Categories of Obstacles

C1 Employee-related (mindset and alignment) and organizational

Product characteristics, homogeneous marketing and legal context of activities

C2 Employee-related (mindset and skills), omni-channel vision and logistics

Customers’ attitudes towards an omni-channel approach (the need to educate customers)

C3 Organizational and centralization

Product characteristics and a lack of knowledge within the industry; need to look for inspiration beyond the industry and geographical market

C4 Organizational Product characteristics, low awareness of omni-channel challenges and customers’ attitudes towards an omni-channel approach

Fig. 4. Omni-channel industry drivers.

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dealing with these difficulties (C1 and C3), which suggests that there is a kind of liability in outsidership (Johanson and Vahlne, 2009) that may limit a firm’s ability to benefit from an omni-channel approach.

The last group of factors concerns the legal drivers, where tariffs and taxes could be considered the obstacles that need to be overcome. Since the publication of Frey and Kinnear’s (1979) paper, practitioners have been aware of the importance of legal issues in harmonizing an inter-national marketing approach, and such issues are no less relevant when it comes to distribution matters, which are difficult to standardize due to the differences in regulatory framing. As proposed by Ferrell et al. (2017), the legal and regulatory environment creates the need to mini-mize the risks for all stakeholders involved in new business models. Choosing an omni-channel approach is in fact a marketing channel de-cision that does not escape this rule, especially because we need to add to the legal setting framing of the offline decisions, the rules that derive from the digital world and which may vary from market to market. There are legal constraints that cannot be left out of the decision-making process on how to operationalize such channel option.

To summarize our findings, we provide a framework in Fig. 5 that explains the evolution of channel integration depending on the two types of factors: internal and external.

As presented in Fig. 5, the evolution of channel integration is based on the company’s ability to overcome the internal (strategic and oper-ational) obstacles that determine the company’s potential regarding implementing an omni-channel approach; the external (industry-driven) obstacles determine the industry’s omni-channel potential. The possi-bility to implement more advanced channel integration grows when the impact of internal obstacles is lower, but, at the same time, it is deter-mined by the industry potential, which may not be influenced by the individual company in question.

6. Conclusions and theoretical contribution

Due to technology development and customers’ increasing expecta-tions of receiving a coherent brand experience, the omni-channel concept is gaining more attention among practitioners and scholars. As observed by Hossain et al. (2019), the effective implementation of a multichannel approach is an emerging field of research with respect to service quality and multichannel service delivery that should be inves-tigated in detail. The aim of this research was to explore the main ob-stacles to implementing an omni-channel strategy. Previous researchers have identified several obstacles that are internal in nature, related to managerial capabilities of the company. Using multiple case research, we identified a number of categories that helped us to capture how managers view obstacles towards omni-channel adoption, with industry drivers gaining relevance. This research extends our knowledge by highlighting external factors that can either foster or hinder companies’

efforts to integrate the channels in the omni-channel approach. We understand that in order to fully evaluate the possibilities of imple-menting an omni-channel strategy, industry analysis should be per-formed in advance, namely by observing products’ characteristics, competitors’ positioning and other market elements, including cus-tomers’ needs and attitudes towards technologies’ use (which may vary from market to market, from client type to client type, and even depending on generational cohort). We claim that in the case of some industries and products, even if the internal obstacles are significantly reduced, the omni-channel approach (with its inherent difficulties) may indeed be a utopia.

We believe that our research opens up a new direction for the omni- channel research stream, where further contextual analysis is required. Due to their characteristics, some industries may have greater potential for companies to implement an omni-channel strategy. The current findings add to a growing body of literature on the drivers and barriers regarding omni-channel retailing in the developed market (see, e.g., the recent study by Ye et al., 2018). Conversely, some other industries may entail additional obstacles that should be analyzed and properly managed. Hence, this work contributes to existing knowledge about omni-channel strategies by presenting the concept of OID, indicating factors that affect the implementation of an omni-channel strategy (Fig. 4). We also outline a framework of possible channel integration options based on both categories of obstacles, internal and external (industry-related) (Fig. 5). These propositions are based on the obtained data. They may be treated as analytical generalizations (Yin, 2003), which means that they summarize the observed relations. These prop-ositions may be also treated as research models (Figs. 4 and 5), which require testing in quantitative studies.

7. Managerial implications

Our research findings have several managerial implications. With external, industry-specific drivers gaining relevance, it is worth noting that while some of these drivers are outside managers’ control (e.g. legal issues), others can be controlled (e.g. customers’ usage and attitudes). Managers should be able to identify external factors that could hinder omni-channel adoption, and develop strategies and tactics to manage these factors, where possible.

The first implication of our research relates to consumers’ digital literacy, which – if low – could hinder companies’ efforts towards omni- channel adoption. Thus, in cases of low consumer digital literacy man-agers could either educate them to improve their skills, or make omni- channel experiences as intuitive and user friendly as possible.

The second managerial implication relates to product characteristics. Our research revealed that perishable or fragile product categories (such as food or porcelain) can give rise to customer anxiety when being considered for online purchase. Thus, managers working with these product categories should seek both to (1) provide the necessary infra-structure to prevent the product from spoiling or breakage, and (2) reduce customers’ anxiety related to such infrastructure, which could be reduced by providing a transparent and comprehensive communication policy on delivery modes and return options.

The third implication is related to leveraging competitors’ omni- channel strategies. If a company has competitors within its industry that are advanced in using an omni-channel strategy it may result in creating a certain channel convention for shopping that becomes familiar for customers. Therefore, managers of companies that are in earlier stages of channel integration can try to meet industry standards and benefit from already existing conventions, e.g. by using similar technology. On the other hand, managers from the most advanced companies within an industry in terms of using an omni-channel approach should benchmark best-in-class examples outside their in-dustry and geographic region, as the omni-channel environment is very dynamic and requires continuous innovation.

Fig. 5. Channel integration options.

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8. Limitations and future research

The findings in this paper are subject to at least three main limita-tions. The first lies in the nature of case studies. As our research was explorative and qualitative, our recommendations may be used to inform quantitative studies, which means that the findings and frame-works provided should be treated as theoretical propositions that require testing in future quantitative studies.

The second limitation is context related. The study was performed among European companies based in Portugal. Although they represent a real segment in Europe, the cases focused on one specific country with low rates of Internet use and online purchases. Nevertheless, most of the companies studied had an international approach to the market, since all were international and one fully global, with a presence in more than 70 countries, which defined it as a very relevant case for the purpose of the study. It would be interesting to conduct interviews with other com-panies and investigate other countries to provide more context-specific insights. As there are omni-channel companies operating in other re-gions of the world, such as China (Ye et al., 2018) or the US (Kim, 2019), case studies using firms from those regions might bring new insights to this field of study. Therefore, it is suggested that future research consider the cultural and economic context of different regions and conduct a comparative analysis to identify the differential factors.

The third limitation pertains to the types of companies investigated.

We studied companies with business models based on product owner-ship, and excluded other business models (including platforms such as Amazon). Future research should test the contextual factors that emerged from this study. Moreover, we explored cases that started off-line and then moved online. Therefore, a fruitful avenue for further research may be to consider the other pathway chosen – online–offline – to assess the obstacles associated with an omni-channel strategy. Such companies may face different difficulties, as they are likely to be less concerned with building awareness and creating traction, compared to those that started the other way around, and the utopia is probably more accessible in that case. For that reason, we suggest that successfully implementing an omni-channel approach is a utopia only for off-line–online cases.

Acknowledgements

Authors would like to acknowledge the financial support of the Ministry of Science and Higher Education in Poland under the pro-gramme “Regional Initiative of Excellence” 2019–2022 project number 015/RID/2018/19 total funding amount 10 721 040,00 PLN and CEGE – Research Centre in Management and Economics, funded by the Multi-annual Funding Programme of R&D Centers of FCT – Fundaç~ao para a Ciencia e a Tecnologia, Portugal, under the project UIDB/00731/2020.

Appendix A. Supplementary data

Supplementary data to this article can be found online at https://doi.org/10.1016/j.jretconser.2020.102131.

AppendixData structure (coding procedure)

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