Investigating the Relative Performance of Bricks-and-Mortar, Clicks-and-Mortar, and Pure-Click Firms in Taiwan

Abstract

The study compares the relative performance among bricks-and-mortar, clicks-and-mortar, and pure-click firms. The research model was tested in the Taiwan service industry using a Taiwan Economic Journal dataset of 1448 firms. Using regression analysis, the study provides empirical evidence that clicks-and-mortar firms outperform pure-click firms in terms of efficiency, but not better in profitability and even worse in efficiency than bricks-and-mortar firms. Pure-click firms need to improve their accounts receivable turnover ratio and total assets turnover. While the findings are not in full congruence with past studies, we provide theoretical explanations. Based on the findings, a strategic guide on going clicks and mortar is provided to practitioners.