Hajdas Et Al (2022)

Journal of Retailing and Consumer Services 65 (2022) 102131
Contents lists available at ScienceDirect
Journal of Retailing and Consumer Services

journal homepage: http://www.elsevier.com/locate/jretconser
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 A B S T R A C T
Keywords: There has been a shift towards providing a seamless consumer journey experience in the retail industry, resulting
Channel integration from a customer-centric approach. In the new paradigm, channels are becoming more intertwined and intricate,
Omni-channel strategy and ultimately more companies are embracing the omni-channel alternative. However, this alternative seems to
Strategy implementation
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 seamless user journey (Frazer and Stiehler, 2014), perceived usefulness
and ease of use (Silva et al., 2018a) and coherent brand experience
The transformation we have been witnessing in the retail industry (Keller, 2010); and.
may be attributed to several drivers, caused by technology development - the retail approach, where main research topics include data
and changes in consumers’ behaviors (Schoenbachler and Gordon, collection on consumers’ preferences and new market entry possibilities
2002; Duarte et al., 2018). Two of the most important factors are the (Davis and Harveston, 2000), and the decreased level of cannibalization
increasing pervasiveness of mobile phones and the development of in the case of offline stores (Herhausen et al., 2015), which is demon
technology (Brynjolfsson et al., 2013), both of which have resulted in strated by a growing or stable market share (Bell et al., 2014) or sales
changes in expectations and an increasing number of problems that growth (Cao and Li, 2015).
require retailers’ attention (Verhoef et al., 2015). In the purchase pro If we considered these perspectives in combination, the main chal
cess, customers, who have rapidly absorbed the technological in lenge that is worth investigating is how to fully integrate the marketing
novations, are now willing to use different channels (Silva et al., 2018). channels and, at the same time, optimize the consumer experience. Such
On the offer side, however, providing an effective and integrated approach would allow seamless interchangeable use of channels.
approach seems to be a significant challenge for companies. Issues In our paper we refer to the retail approach based on the perspective
related to the omni-channel alternative have been addressed in areas presented by Verhoef et al. (2015), who investigated two main ideas:
including marketing, retail, IT, and operations and services (Simone and synergetic management (where touchpoints and channels are the core
Sabbadin, 2018), with the aim of understanding whether such strategy is areas of managerial practice) and data integration (which aims to ensure
affordable and worth investing in. Therefore, we may point two main a coherent user experience, but also reduce operational costs). This
research perspectives regarding the integration of marketing channels: perspective forms the dominant logic that we further investigate.
- the consumer approach, where main research topics include 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: Monika.Hajdas@ue.wroc.pl (M. Hajdas), Joanna.Radomska@ue.wroc.pl (J. Radomska), ssilva@porto.ucp.pt (S.C. Silva).
https://doi.org/10.1016/j.jretconser.2020.102131
Received 22 May 2019; Received in revised form 19 March 2020; Accepted 12 April 2020
Available online 6 June 2020
0969-6989/© 2020 Published by Elsevier Ltd.
M. Hajdas et al. Journal of Retailing and Consumer Services 65 (2022) 102131
Jaworski and Kohli, 1996; and, more recently, Dimitrova and Rose 2. Theoretical framework
nbloom, 2010; Brynjolfsson et al., 2013; and Verhoef et al., 2015), which
has led to the development of research on channel evolution, mainly Researchers use numerous terms to describe strategy concepts based
because marketing channels are among the most important elements of on several channels, and clearly the omni-channel concept has not yet
any value chain (Krafft et al., 2015). Moreover, the cross-channel inte been fully established (Trenz, 2015). These terms include ‘channel
gration literature offers new insights into the effects of such approach, integration’, ‘cross-channel management’, ‘multi-channel manage
with discussions focusing primarily on the influence of channel inte ment’, ‘omni-channel management’, and other variations (Mirsch et al.,
gration on company performance (Homburg et al., 2014), but also ways 2016). The term ‘omni-channel’ was first mentioned in the academic
to create the synergy effect (Avery et al., 2012). Results presented by Du literature in 2012 in Aubrey and Judge’s article ‘Re-imagine retail: Why
(2018) demonstrate that there is a positive relationship between channel store innovation is key to a brand’s growth in the “new normal”, digi
diversity and the company’s profitability, on one hand, and a negative tally connected and transparent world’. The omni-channel concept is
association between channel diversity and profit volatility, on the other. based on expanded multi-channel retailing and involves using different
Both circumstances can be regarded as basic arguments for channel channels within a single transaction (Kaczorowska-Spychalska, 2017).
evolution and the introduction of an omni-channel strategy as an The main difference between the multi- and omni-channel approaches
alternative to a multi-channel one. Further, as observed by Lazaris and lies in the customer’s involvement and the retailer’s control (Beck and
Vrechopoulos (2014), we may now be witnessing a shift from a Rygl, 2015). In the first case, the intensity of channel diversity gains
multi-channel approach to an omni-channel approach, as a result of the importance, whereas in the second strategy, synergy is required (Her
more advanced integration of information and service systems and the hausen et al., 2015). Omni-channel management is defined as ‘the syn
improved coordination of the respective fragmented processes. This shift ergetic management of the numerous available channels and customer
is demonstrated by the increasing number of customers – from 72% in touchpoints, in such way that the customer experience across channels and
2011 to 83% in 2016 (E-tailing Group, 2016) – demanding a seamless the performance over channels is optimized’ (Verhoef et al., 2015: 176).
‘user journey’. Such increase is also confirmed by research indicating Mirsch et al. (2016) highlight that in the omni-channel approach,
that 76% of managers consider an omni-channel approach to be a key channels are interchangeably and seamlessly used during the search and
business priority (Melero et al., 2016), even though only 32% feel they purchase process. Since the customer’s journey is non-sequential (Hos
are effective at coordinating different channels (Econsultancy, 2015). seini et al., 2018), operational activities are more likely to cause ob
According to a research conducted in 2015 by Forbes, 84% of the global stacles. This is confirmed by Neslin et al. (2006), who point out that data
retailers pooled were of the opinion that only a uniform consumer integration and resource allocation receive less attention than the
experience across channels (Forbes, 2015) would allow them to cope overall idea of channel coordination.
with the changing digital world (see also Piotrowicz and Cuthbertson, We present the point of view that an omni-channel approach should
2014). be treated as the next level of channel integration. This evolution of
There seems to be significant interest in the omni-channel approach channels is based on two dimensions: the increasing level of integration
on both sides of the equation (demand and supply): customers are required and the growing complexity of managerial decisions (both
willing to be active members of a purchasing process in which this strategic and operational). This is presented in Fig. 1.
approach is used (Silva et al., 2018a), and, simultaneously, brands seem The first level of channel integration is a single-channel approach
to be interested in the approach and recognize that they are not as (where one type of channel is used – e.g. the traditional store), the
efficient as they would like to be in terms of the articulation of different second level is a multi-channel approach (where more types of channels
channels. However, despite the unquestionable interest in the topic from are used – e.g. the traditional retail and Internet routes to market), the
the managerial side, related literature is still scarce and omni-channel third level is a cross-channel approach (where more types of channels
theory seems to be underdeveloped (Saghiri et al., 2017). Neverthe are used and some are integrated) and the final level is an omni-channel
less, omni-channel retailing is gaining attention among researchers, approach (where many, varied types of channels are used and they are
with important research topics including the integration of data from fully integrated – e.g. store, website, mobile channel, social media and
various channels, organizational change, the pricing policy across all customer touchpoints). The main characteristics of the four concepts
various channels, and the aligned management of a broad range of are presented on Fig. 2.
channels, among others (Mirsch et al., 2016). Research regarding The numerous benefits of an omni-channel approach highlighted by
managerial practice is particularly scarce (Beck and Rygl, 2015). Spe researchers can be categorized as economic (Cao and Li, 2015; Bryn
cifically, even though a holistic perspective has been highly recom jolfsson et al., 2013) or image related (Keller, 2010; Bhattacharya and
mended (Von Briel, 2018), there is still little evidence on obstacles to the Sen, 2003). In our paper, however, we focus on obstacles that are
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. Fig. 1. Evolution of channel integration.
Source: Own elaboration based on Hübner et al. (2016c).
2
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).
connected with this approach. We explore internal obstacles companies (Webb, 2002), which in turn has a positive impact on linking the
face when implementing an omni-channel strategy; we consider the omni-channel strategy to the overall strategy (Neslin and Shankar, 2009).
company’s lack of skills and specific characteristics as the main issues Moreover, implementing a measurement process is also recommended, as
that impact the effective execution of this approach (Barwitz and Maas, it enables analysis of the current state and progress of channel integra
2018). Therefore, we divide these obstacles into two categories, tion (Hoogveld and Koster, 2016).
depending on the perspective: strategic or operational. Among the operational obstacles to implementing an omni-channel
Among the strategic obstacles to implementing an omni-channel strategy, several researchers define data integration as the main chal
strategy, researchers highlight two main perspectives: strategy-related lenge, due to the greater amount of data fueling databases in this
(vision) and employee-related. This concept is based on research by strategy, compared to multi-channel and cross-channel approaches
Hrebiniak (2008) and Higgins (2005). The employee-related factors (Brynjolfsson et al., 2013). Such data result in a lack of coherent systems,
include misaligned corporate motivations (Hübner et al., 2016a), which where the technologies and structures are not synchronized and the in
are an important part of strategy fundamentals alignment (Picot-Coupey ventory is not shared between channels (resulting in a 6.5% loss of
et al., 2016). As mentioned by Rouzies et al. (2005), there is a gap be revenue (Datex, 2018)). In fact, the omni-channel approach creates new
tween marketing and sales, which is caused by different mindsets. The data sources, especially social and mobile sources, and various data
so-called ‘silo mentality’ prevents the free flow of data and is challenging types (i.e. interactional and transactional). To benefit from these op
for information management. Researchers suggest the removal of portunities, companies must know how to integrate consumer data from
organizational borders (Stone et al., 2002), which entails breaking down all channels and be able to analyze that data (Trenz, 2015). Therefore, to
organizational silos and establishing an omni-channel mindset as part of overcome the isolation of databases, fully integrated fulfillment pro
the corporate mission. This perspective is also supported by Valos cesses are needed (Hübner et al., 2016b). Such integration requires
(2008), who argues for the reconfiguration of organizational culture, extensive financial investment in integrative technologies (Herhausen
internal structures and processes. et al., 2015), and the involvement of skilled personnel, mainly from the IT
The antecedents of misalignment are rooted in a group of strategy- department (Frazer and Stiehler, 2014), but also specific skills, such as
related factors. These include conflicts of interest across various chan customer analytics, organizational learning competencies or an
nels that are mainly caused by an inconsistent strategy (Lewis et al., information-sharing mentality (Mize, 2016).
2014), where the long-term vision is incoherent with short-term actions An important obstacle also lies in the reverse flow of the supply chain,
(Chopra, 2016). In a similar vein, Ye et al. (2018) report a loss of vision demonstrated by problems in physical stores. These seem to be not
as being among the most serious strategic challenges. Webb (2002) prepared to handle a higher amount of items returned (Grewal et al.,
mentions that such conflicts are mainly caused by incompatible goals. 2004) coming from different geographical areas. These will overcharge
For this reason, a central challenge lies in convincing different de store’s cost structure.
partments to focus on an integrated approach, where improving overall Other obstacles connected with the omni-channel approach pertain
performance is perceived as a main goal (O’Heir, 2012). Such approach to the organizational structure and the resource allocation across channels,
requires building and maintaining of an effective communication strategy which can lead to difficulties in making decisions on investments needed
3
to acquire or switch resources to achieve channel integration (Lewis events under analysis, as they indicated past actions by third parties,
et al., 2014). There is also another obstacle connected with this: chan which contributed to a more objective, solid and unbiased outcome. It
nels may be measured and evaluated separately. Although a single was necessary to cover contextual conditions because the business-
channel may not be profitable in isolation, it may support the perfor sector context is relevant to the phenomenon under study. The bound
mance of the overall omni-channel system. Therefore, the true perfor aries between the phenomenon of omni-channel obstacles, the context
mance of single channel is more difficult to evaluate. It is also important and benefits were not clear (Baxter and Jack, 2008), which made the
to achieve a consistent consumer experience – many organizations develop method suitable for studying this complex social phenomenon (Yin,
Web and mobile platforms as built-in features to existing channels. This 1994).
may result in having different product ranges, offers and price levels
across the various channels, which may be frustrating for omni-channel 3.2. Case selection
customers (Cook, 2014). Therefore, it is recommended that any in
consistencies between different channels (e.g. charging different prices) During the case selection process, theoretical sampling was applied,
should be eliminated (Chatterjee & Kumar, 2017), and any problems with the aim of identifying a sample that could provide insights in terms
with coherent information and responses across channels removed of the researched concepts (Strauss and Corbin, 1998). Therefore, our
(Rangaswamy and Van Bruggen, 2005), as these can influence the cases were selected intentionally, with a particular purpose in mind, due
overall image of the company (Oh et al., 2012). To sum up our study, the to their specific usefulness in revealing insights regarding the investi
scope of the omni-channel obstacles is presented in Fig. 3. gated categories (Remenyi et al., 1998). As stated by Eisenhardt and
Although the omni-channel concept has been discussed in the Graebner (2007), theoretical sampling is recommended in exploratory
channel literature in recent years, no comprehensive perspective has yet research. Cases are selected purposefully due to their particular useful
been proposed in terms of exploring the different types of obstacles that ness in exposing the relationships between the investigated constructs,
companies encounter and ways to deal with them. This research gap is which allows the researcher to formulate the findings based on gener
connected with companies’ decisions regarding the omni-channel alizations and theoretical propositions, but not statistical relations (Yin,
approach, especially dealing with the difficulties that implementing 2003). We investigated context-specific cases. Our informants were all
this approach causes. Therefore, we propose the following research based in Portugal. We wanted the selected cases to all be from the same
questions (RQs): RQ1: What are the main obstacles to the omni-channel country so that we could find differences regarding their industry, size
approach, according to companies? RQ2: How do companies cope with and idiosyncrasies associated with their activity along. By choosing
obstacles connected to the omni-channel approach? To answer these companies from the same country we were also able to control the
RQs proposed, we use the case study method. political-level variables. Additionally, we could easily communicate
with the most appropriate informant in each firm, considering that these
3. Research method people were located at the same country as one of the authors.
Furthermore, we also believe that even though these companies were
3.1. Research design operating in Europe, and not in the US or China, their experiences are
valuable. In addition, while some firms were more advanced in their
To accomplish the research goal, a multiple case research method implementation of channel integration, the growing pains of imple
was implemented. This approach enables a ‘replication’ logic (Yin, mentation were equally interesting to study. Indeed, we obtained very
2003), where the series of cases is treated like a series of experiments, rich information from key respondents in each of our cases. We aimed to
and each case study allows the researcher to confirm or disconfirm the understand their successful experiences, but also to focus on the diffi
observations made in previous cases. The approach is more challenging culties these companies faced, so to better understand obstacles asso
than using a single case study, but enables more-reliable models and ciated with the implementation of an omni-channel approach and thus
insights to be inducted (Bourgeois and Eisenhardt, 1988). meet the objectives of this research. We searched for brands that oper
We chose the case research method to explore obstacles to the omni- ated in different industries, represented different levels of channel
channel approach because of the types of research questions – ‘what’ integration and had different experiences in the retail industry in an
and ‘how’ – we pose. The method entailed absolutely no control over the attempt to ensure case diversity, as recommended by Flick (2014). At
Fig. 3. Research framework – scope of multi-channel obstacles.

Source: Own elaboration
4
the same time, the cases are comparable because they all started offline 4. Findings
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 4.1. Four brands and their omni-channel approaches – narrative
suggested number of analyzed cases spans from 4 to 10. Detailed de descriptions
scriptions of our cases are presented in Table 1.
4.1.1. Sonae
3.3. Data sources and collection
4.1.1.1. Company description. Sonae is a multinational corporation that
Qualitative data dominate exploratory research (Eisenhardt and manages a wide portfolio of companies in retail, financial services,
Graebner, 2007); therefore, we conducted four face-to-face, in-depth technology, shopping centers and telecommunications (including the
interviews with managers responsible for the omni-channel strategies of retail brands Continente, Zippy, Wells, Mo, Note and Worten), operating
the above companies. As a result we present a context-specific, rather in 90 countries. It was founded in 1959 to operate in the wood
than general, level of analysis. The research tool was a semi-structured agglomerate sector. The group is one of the 20 firms listed in the
interview scenario (Arsel, 2017), and the questions were based on the Euronext PSI-20, in Lisbon. In the first semester of 2018, the company
categories identified in the research framework shown in Fig. 3. 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.
3.4. Data analysis and presentation 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
The data obtained were analyzed to examine relationships between also renowned for its activity in different sectors, and for its closeness to
the level of channel integration, the obstacles encountered and ways of clients.
overcoming those obstacles (Eisenhardt, 1989). Cross-case patterns and
similarities were also analyzed to understand which obstacles were 4.1.1.2. Background. The company operates various distribution for
present across cases and whether the companies were able to overcome mats, along with the traditional brick and mortar approach: in terms of
them in similar ways. In the next section, ‘thick descriptions’ of the picking, formats include warehouse picking and store picking; but they
omni-channel strategies of each company are presented. The interviews also do click and collect and home delivery. Because of the demand for
lasted 1 h, on average. The interviews were recorded and later tran consistency and integration, and in order to hasten the distribution
scribed for content analysis. During the coding procedure, the etic speed, Sonae uses Chronopost’s services to better cover the country
approach was used (Charmaz, 2014). As recommended by Goulding (faster and more extensively) and to deliver products to Worten stores (a
(2005), we used ‘constant comparison’ method to ensure consistency chain of around 180 stores operating in consumer electronics and also
and enhance the possibility of making generalizations. Therefore, we belonging to the group).
searched for links between the concepts analyzed, which allowed us to As the main aim of the company is to provide the client with the best
better explain the investigated constructs. As a result, we were able to possible experience throughout the whole customer journey, Sonae has
compose some core categories (Glaser and Straus, 1967) that allowed us implemented the philosophy of providing the most seamless experience
to develop theoretical findings supported by collected data. The pro possible, regardless of the channel used. At the time of our study they
cedure had three stages (initial codes, themes and aggregated di had five online formats: ‘home delivery’ (in which the company held a
mensions), as recommended by Gioia et al. (2013); these are presented 70% share of the market, and had 500,000 registered customers that
in the framework in the appendix. Reliability was ensured in the con could choose among more than 50,000 stock keeping units (SKU) and
structs extracted using two approaches. First, we implemented investi benefit from the same promotions available in the store); mobile app
gator triangulation to heighten our confidence in the findings, as (with 78,000 registered users, which represent approximately 20% of
suggested by Archibald (2015). For this reason, we coded the research the firm’s online turnover); ‘click & collect’ (ability to leverage store
results separately and then compared our evaluations, aiming to develop estate with online ordering and store collection option); ‘drive-through’
a broader and deeper understanding of the issues analyzed. Second, we (options available only in the Algarve, Lisbon and Porto); and ‘same-day
used an iterative path of coding. After the first round of coding, the delivery’ (nationwide delivery seven days per week). Each channel
initial categories emerged and were further developed into second-order provides a different experience to the client that the company aims to
themes. Afterwards, we came back to the collected data to clarify the homogenize. As its clients want consistency above all else, the company
concepts created. As a result, we were able to modify the first constructs adopts a customer-centric approach in its strategy. As a consequence, its
and, based on these, create the final framework. 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 Brand Location Operational Revenue (2017, Product Category Informant
No. thousand Euros)
C1 Sonae Porto 432.8 Retail, financial services, technology, shopping centers and Head of E-commerce Department
telecommunications
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 Lisbon 63.3 Porcelain and home decor E-commerce Coordinator
Alegre
5
strategies, which seem to be crucial for further development: ‘We don’t obstacles suggested by other researchers, such as logistics (operational –
see ourselves in a situation without omni-channel for the time being.’ The organizational obstacles; see Fig. 3) and different mindsets between
company is satisfied with its level of channel integration, as confirmed departments (strategic – employee-related obstacles; see Fig. 3). Both of
by the statement ‘We are undoubtedly at the maximum integration level these obstacles are internal. Our informant also highlighted product-
possible. I would say that we are at the same level as the best in this field, and I related issues, namely operating in a food sector, as an obstacle to
would also dare say that there is no one that is 100% omni-channel. The wards an omni-channel approach. This obstacle is more external in na
small distance missing for the 100% has to do with the processes.’ ture, which reveals new insight not mentioned in previous research.
To measure and monitor the omni-channel strategy execution, Sonae
has several key performance indicators (KPIs), but its net promoter score 4.1.2. Parfois
(NPS) is the focus. Moreover, it has mathematical models that attempt to
predict the value of relationships with clients, including when the 4.1.2.1. Company description. Parfois is a women’s fashion accessories
number of channels clients use increases. Sonae is able to monitor what brand created in 1994 in Porto, Portugal. It has been very strongly ori
happens to the client when they start buying through various channels, ented towards fashion and design since its inception. The company has
as well as analyze the lifetime value. To do this, it relies on predictive always had an international focus, which has been achieved through
models that include several variables, bearing in mind the relational franchising, initially to Spain. The company has around 1000 stores, and
proximity to the client. At the same time, our respondent admitted: the average annual growth over the last six years has been 24%. Its
‘Obviously, we know that the more complex the system, the higher the odds of products are available in more than 70 countries via a range of sales
problems. For instance, when the app doesn’t work, we know that the con channels. The channel that has been growing most rapidly is the online
sequences may be terrible, and that bad experience can have an impact on the channel, which has been boosted through the increased brand awareness
in-store shop.’ For this reason, Sonae still has several challenges at hand; received from brick and mortar channels. Before consolidating opera
most of them are common to all companies, mainly relating to materials, tions in the online channel, the company invested significantly in un
systems and physical operations. However, the industry seems to be derstanding the local idiosyncrasies of the markets in which it was
important as well, as mentioned by our informant: ‘The fact that we are present. Besides the dozens of markets in which the company operates in
dealing with food products instead of clothing, for instance, adds additional Europe and in the US, it has been playing a relevant role in several
complexity: the delivery can only be made in the presence of the client, the countries.
time window for the delivery should be short and the perishability of the goods
is high.’ 4.1.3. Background
Another factor that was mentioned by our informant as an opera The company perceives its strategy as omni-channel, which the
tional challenge was logistics. In his opinion, operating within one respondent defined as ‘a practice through which companies interact with
country makes the omni-channel strategy easier as the homogenous consumers via multiple channels (as much as possible) in order to create a
context of action does not involve different currencies and taxes, which 360� seamless brand experience for customers’. Therefore, the company is
would add complexity to the process. The approach is supported by a now strongly focused on achieving much more multi-channel success. It
well-developed information system, with the whole customer journey understands the model, is committed to this philosophy and is investing
mapped and all the ‘magic moments’ and ‘pain points’ identified. In fact, in both financial and staff resources to strengthen this mentality in the
the level of knowledge is even higher: ‘We know how many clients we have short and long term. Its intention is to have coherent and aligned visi
in each stage, how much they buy, where they concentrate and where they are bility in order to have a single customer view, to find the best way to
going to focus next. We anticipate what they will be doing next.’ work with marketing automation platforms and to create a common
The organizational learning process seems to be extremely impor message across all channels. For that reason, the company’s long-term
tant, as mentioned by our respondent: ‘We also deal with these obstacles vision is reflected in all its marketing and operational investments,
and we also learn from them as time passes by. … The most difficult obstacles which are based on omni-channel thinking. To achieve this consistency,
are human based.’ The mindset is, therefore, also a factor. In fact, areas of a communication strategy was created: ‘Since it is a mentality that is born
company that are more exposed to the end user perceive the relevance of from the highest charges in the company, the communication strategy cas
marketing to the approaches they follow. However, employees working cades down to all positions and departments of the company.’ However,
in areas that are not so exposed to the final consumer do not see the although the overall mentality of the company shows awareness of the
relevance of maintaining alignment in terms of the service provided or importance of being present in all channels that connect it with con
the relational approach followed. This may become an issue; therefore, sumers, the offline departments tend to lose visibility of the impact of
it is important that all company employees are aware of the challenges mixed models with aligned messages and with unique experiences and
of the online channel and are committed to fully delivering the best ideas. Sometimes it is difficult for them to understand that the reach of
service possible. To achieve this goal, extensive communication is non-physical platforms is practically unlimited, and that it is not about
required, and some relevant actions were mentioned by our informant: competing for the sales but rather being able to achieve an organic and
‘We reflect this preoccupation in our hiring and formation policies: we hire attractive experience to retain customers.
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 4.1.4. Omni-channel obstacles
that have a [more] exterior exposition. We also have internal teams working One of the obstacles the company faces pertains to its measurement
on conjoint solutions.’ Additionally, exterior training is implemented, as system, as admitted by our informant: ‘It’s really difficult trying to measure
staff attend conferences and events where omni-channel topics are omni-channel achievements for now. We have reliable commercial analytical
covered. measures such as traffic, conversion (online and offline) and, above all,
To reduce the negative impact of omni-channel obstacles, Sonae is retention. I think that, ideally, in the short term, we will be able to draw a
trying to build an effective ecosystem of business partnerships. “lifeline of our customers” to offer them a unique, highly personalized
Orchestrating the relations in an extensive network is very complicated experience and to analyze sense connections between platforms and users.’
and could jeopardize Sonae’s relationships with clients. This is partic Based on this, certain organizational obstacles can be mentioned. One of
ularly true where there is a high volume of services, which adds these concerns understanding the model for sharing stock across all
complexity to the system. However, in the long term, such networking platforms. As mentioned by our respondent: ‘In my opinion, the difficulty
seems to add value and supports the overall learning process by using can be more operative and administrative (in the sense of the communication
benchmarking, as well as the recognition of best practices. of what is in stocks and also of accounting between channels, when we speak
Referring to our RQs, the Sonae case research confirms some
6
about offline and online). The ability to connect stocks and shares of different and is considered the oldest active bookshop in the world. It was very
origins gives you the ability to expand your catalog to an exponential per interesting to hear how a brand with such a long tradition has coped
centage and to be much more competitive in terms of delivery services (having with the digital transformation of retail and has increased its channel
multiple platforms to serve your customers).’ Therefore, it is important to integration step by step.
make sure that a firm’s managers are very aware of the potential and One of the key milestones for Bertrand was when the company was
opportunities that an online sales model gives and that it complements bought by Porto Editora in 2006. Before 2006, Bertrand had approxi
(and does not compete) with physical platforms. The challenge is to mately 60 stores with 500 employees. The brand’s online presence at
create a mindset where the importance of all channels working in that time was very poor – many processes lacked efficiency, with all
alignment in terms of catalog, content, image and even voice is high online sales being supplied by a single store. It was very difficult to
lighted. On the other hand, it is important to develop the awareness that differentiate the products, as the offering was exactly the same as that of
to create omni-channel chain visibility, the location or origin of stock, the company’s competitors. The company soon realized that the only
from where products come, is less important for clients. As mentioned by thing that could be differentiated was the customer experience, which
our informant: ‘It is true that the niche market for sales in the online model is required changes in its services and facilities.
much more powerful but should never monopolize all the attention within the The first managerial decisions after the purchase by Porto Editora
stock assignments.’ For this reason, reverse logistics was noted as one of concerned the centralization of suppliers. All contracts were renego
the most strategic points of improvement for 2019. The company’s tiated and a centralization fee was charged. This diminished the picking
objective is for returns to be as functional and fluid as purchases are, in costs, the cost per box and the costs connected with invoice control. The
terms of technology, costs and operations. Therefore, it wants to centralization fee charged to suppliers enabled the company to rent a
‘educate’ its clients on the reverse logistics process, which will lead to e- storehouse and develop software. In terms of improving the service and
commerce models, including pick-up points, slogans and ticket offices, sales efficiency, a mystery shopper program was launched. These de
that enable a sufficiently extensive network so that the highest per cisions resulted in a sales increase of 10% – this was achieved despite the
centage of the population has the possibility to return any product difficult environment, namely the decreasing market (a 36% market loss
without moving and without having to be at home for a collection. This since 2010) due to changing entertainment behavior patterns.
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] 4.1.5.2. Background. In 2012, the company decided to close its out-of-
the business costs for these operations in order to offer these services for free date website and give it a major makeover. In fact, it built a completely
quickly and globally.’ new e-commerce site from scratch, using the Porto Editora platform for
The last type of obstacle is connected with employees on either an online sales. While working on the new website, the company central
operational or strategic level. As mentioned by our respondent, there are ized all operations (having one logistics center in Maia, near Porto, with
many very powerful and very simple omni-channel models that allow the best facilities). In 2014, Bertrand’s new website went live; since
the integration of information and data across all channels. Obviously, then, it has been managed by Bertrand itself. Our informant stated that
these require time to be implemented. However, to do this, companies this was a real milestone that facilitated discussion of an omni-channel
must be able to count on IT personnel with experience in multi-channel approach, as the company finally had the necessary infrastructure to
integrations and a clear vision of the omni-channel objectives of the implement such strategy – books that were sold online all came out of
company. Thus, people who work on omni-channel projects must have the logistics center in Maia. This allows the client to return a book in 18
very mature e-commerce knowledge but, above all, a global and broad days.
awareness of the possibilities and potential of a model that connects and In 2013, before launching the new online platform, a change was
aligns all channels. Experience in the operational processes of physical introduced regarding the loyalty program. The company switched from
stores is highly valued because they are the most difficult to understand. a typical loyalty card, where customers collected points, to collecting
As highlighted by our informant: ‘When you understand both worlds and euros. This was done in response to customers’ expectations – it allowed
work towards generating an omni-channel chain vision that allows you to them to obtain an immediate benefit versus a delayed one, and gain
have visibility and 360� functioning, you are ready to work in omni-channel.’ money versus points. This resulted in a significant increase in the client
Working with a perpendicular and non-parallel mentality allows de base, achieving 10 million visits annually to physical stores. At the time
partments and positions to be shared between channels, which ensures of the research Bertrand had an average of 40,000 titles, and the process
that the customer experience is logical, aligned and complementary. of providing a unique reference to each product is well centralized. All
Referring to our RQs, the Parfois case confirms several obstacles that editors send their references to central headquarters, where a special
have been suggested in previous research, such as differences in mind unit responsible for opening and centralizing titles opens a new refer
sets between departments (strategic, employee-related; see Fig. 3), a ence. The website informs clients about the physical stock of a SKU.
lack of skilled personnel (operational, employee-related; see Fig. 3), Some clients buy exclusively online (e.g. if they do not have a bookshop
problems with the measurement system (strategic, vision; see Fig. 3), nearby); others buy both offline and online. There is also the possibility
problems with inventory sharing between channels (operational, orga to use the online channel to reserve a book in a physical bookshop. When
nizational; see Fig. 3), and reverse logistics (operational, organizational; customers go to the store to pick up these orders, they usually end up
see Fig. 3). All of these obstacles are internal. However, our informant buying something else in addition. Payments are made in euros via ATM
also highlighted the necessity of changing customers’ attitudes towards machine, Internet banking, MB WAY (an app that eases the process of
the omni-channel approach. This obstacle is more external in nature and money transfer among users) or credit card. Bertrand also operates a
is related to customers’ usage and attitude factors. The Parfois case re pick-up network using Chronopost. The return rate is just 2% (by com
lates to the following managerial decisions, strategies and tactics: parison, in Germany, the fashion and apparel industry experiences a
investing in a strengthening mentality towards the omni-channel 70% return rate, according to our informant).
approach, and developing and implementing an internal communica
tion strategy aimed at building a common vision and educating cus 4.1.5.3. Omni-channel obstacles. Our informant highlighted three major
tomers on the reverse logistics process. obstacles in transforming Bertrand’s approach from single channel to
cross-channel, and thinking about an omni-channel approach:
4.1.5. Bertrand
� strategic – conceiving the process
4.1.5.1. Company description. Bertrand has been in business since 1732 � logistic – centralizing systems
7
� operational – human resource management. India).
In his opinion, the most relevant problems the company encounters 4.1.6.2. Background. Our informant stated that the omni-channel
are not strategic but operational. approach in Vista Alegre is still very limited, even though the com
One of the ways in which Bertrand aims to overcome the obstacles pany has implemented a policy in which there is some degree of align
mentioned is by learning from others. Twice per year, the company at ment between the channels. The company’s website has online store
tends special meetings with other specialized retailers in Belgium, where functionality, where products can not only be purchased but also added
issues such as the percentage of online sales, sales per square meter and to a wish list. Online orders can be picked up in one of the 22 physical
efficiency levels are discussed and compared. When asked why the stores in Portugal; in such cases, no shipping costs are charged. Other
retailer attends meetings in Belgium, rather than Portugal, the informant wise, there is a shipping fee, which varies according to the customer’s
explained, ‘Because Bertrand is part of the largest specialized retailer in location. Currently, customers are required to pay for returns, and the
Portugal, so, in order to grow, it needs to look for inspiration beyond its cost depends on the courier. However, the company is planning to
market.’ As mentioned by our informant, the implementation of an change this policy in the near future to offer online clients the possibility
omni-channel strategy is still ongoing: ‘As for the future, we want to of returning orders to its physical stores free of charge.
continue to improve our engagement levels and reinforce existing relation The company has launched a policy of assisting online clients
ships with our clients. This is already a very large challenge.’ through a dedicated phone number, which customers can call for
Referring to our RQs, the Bertrand case confirms some obstacles that assistance with the online purchasing process. This service is only
have been suggested in previous research, such as centralizing logistics available in Portugal, despite the company’s presence abroad.
systems (operational, organizational; see Fig. 3) and human resources
management (operational, employee-related; see Fig. 3). Both of these 4.1.6.3. Omni-channel obstacles. Among the major obstacles connected
obstacles are internal. Our informant also mentioned another internal with achieving the next level of channel integration, our informant
obstacle that has not been mentioned in previous research – this refers to highlighted the lack of knowledge on current Vista Alegre clients and
the strategic level of conceiving the process of company transformation their major concerns in terms of online shopping: ‘What we would really
towards an omni-channel approach. Another new category of obstacles like to know is whether these concerns regard possible product damage? Or
that has not been highlighted in previous research is the lack of the need for touch? Or do they fear using a credit card?’ Such consumer
benchmarks within the industry, especially if a company holds the research has not yet been conducted by the company. The omni-channel
leader position among competitors. This obstacle is more external in obstacles are also connected with the types of products offered (which
nature and is related to the competitive environment and competitors’ are fragile) and the policy of developing Vista Alegre into a highly
practices of performing omni-channel approach. It reveals new insights recognizable, ultra-premium brand.
not mentioned in previous research. The Bertrand case highlights the Based on the information obtained, Vista Alegre can be classified as
following managerial decisions, strategies and tactics: the centralization an example of a company moving from a single-channel approach to
of suppliers and all other operations, and the ability to respond to cus wards cross-channel integration. Our informant confirmed that Vista
tomers’ expectations and learn from others – outside the sector and even Alegre still has a long way to go in order to achieve a high level of
outside the country, where necessary. channel integration, and that its current online presence should be
considered a supplementary way to sell. She also expressed hope that if
4.1.6. Vista Alegre the company manages to provide a good online customer journey
experience in the future, clients will buy more in both channel types,
4.1.6.1. Company description. Established in 1824, Vista Alegre was the online and offline.
first company to produce porcelain in Portugal. This was due to special Referring to our RQs, the Vista Alegre case did not highlight any of
authorization obtained from D. Joa ~o VI, king of Portugal, which gave the internal obstacles mentioned in previous research. Both major obstacles
company founder a royal license to operate this business. The company that were mentioned by our informant were external: the lack of
became known as the first free entrepreneurial initiative in a country knowledge on current Vista Alegre clients, and customers’ major con
marked by centralization of economic activities. Since the early years, cerns in terms of online shopping and the type of product (which is
the company has displayed a very modern way of managing, with a fragile). The first obstacle relates to customers’ needs, and the second to
specific focus on marketing, which has pushed the company to maintain product characteristics. It is likely that the low awareness of internal
a presence at international exhibitions and European tableware fairs. obstacles related to the omni-channel approach is due to the fact that the
The company earned a guarantee seal provided by the Portuguese royal firm is still in the very early stages of channel integration.
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. 5. Discussion
Currently, the company receives designer trainees from all over the
world within several protocols celebrated with different schools of The obtained findings are in line with those of previous researchers
design in Europe. The company is also known for producing unique who have highlighted internal obstacles towards implementing an omni-
models in partnership with artists from all over the world. Presently, the channel approach (Mirsch, 2016; Herhausen et al., 2015; Frazer and
company offers porcelain tableware, decorative pieces, giftware, hotel Stiehler, 2014; Mize, 2016). Summarizing four companies’ stories, our
ware, high-quality glass and crystal, and stainless steel cutlery. In first conclusion concerns the growing importance of employee-related
addition to using state-of-the-art production techniques, the company factors as channel integration increases. This aspect is even more com
employs over a dozen hand painters, who are responsible for decorating mon in case of those that are classified as strategic. At the lower level,
the pieces produced; this has enabled Vista Alegre to form a reputation organizational factors seem to prevail; however, as the complexity of
for its products in all countries in which it operates. The brand is obstacles grows, the mindset and alignment gain importance. An inter
recognized as a high-quality porcelain manufacturer, and has been esting relation can be observed regarding the overall consciousness and
awarded Excellence Status by the prestigious organization Superbrands awareness of strategic factors. The lower stage of channel integration
for several years in a row. results in not only a lower number of obstacles but also a lower level of
The company currently operates 22 physical stores in Portugal and their recognition. Strategic awareness also leads to awareness of the
several abroad (two in Spain, one in Brazil, one in Angola, two in growing need to search for inspiration (new knowledge and new skills)
Mozambique, one in Kuwait, one in Namibia, one in the US and one in beyond the industry and micro-environment, which is represented by
8
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.
Fig. 4. Omni-channel industry drivers.
Among the product-related drivers, product characteristics are an
extremely important factor; this was mentioned by our informants
channel integration for this type of product/brand. This brings about the
operating in the food sector (C1) and in porcelain (C4), who highlighted
consideration of another factor in the analysis: the digital proficiency of
that the nature of the product gives rise to certain conditions that make
clients in the domestic market, if this represents the main target market
implementing an omni-channel strategy more challenging, if not totally
for the firm (C4). In fact, in our study, the context was a European
unrealistic. In addition, ultra-premium brands (C4) may face a different
market where the percentage of online shoppers was below the Euro
set of obstacles in terms of implementing an omni-channel strategy, as
pean average. According to Eurostat (2018), even though around 60% of
their main tactic is based on building and maintaining certain logistics
Europeans between 16 and 54 years old regularly buy online, that figure
barriers to protect the rarity of their offering, which again seems to make
is only 37% in the Portuguese case, which suggests that another obstacle
adopting an omni-channel approach challenging – though, in this case,
to the implementation of an omni-channel strategy pertains to the dig
not impossible. Products that are less perishable and have less need for
ital and e-commerce profile of the target market. Moreover, Portugal is a
touch, such as books (C3), ultimately enable the easier implementation
commercially dense country (Brand experts, 2018), which decreases the
of omni-channel strategies, ceteris paribus. Moreover, for luxury prod
interest in online purchases. Thus, companies that choose to target the
ucts/brands, as the most appropriate distribution strategy is expected to
global market are more interested in full channel integration, whereas
be selective or exclusive, the multiplication of channels may bring some
those with a local scope of action are less interested in investing in that
difficulties in dealing with clients who are interested in exclusivity. This
area. Interestingly, our case company with a local emphasis, and selling
is not to say that such goods cannot be distributed using multiple
mostly perishable goods, was the one most interested in the
channels, but such approach is overall less likely to be accepted and
omni-channel approach (C1); this may have been rooted in the product
demanded compared to for other products/brands. This factor is also
characteristics – the company may have been trying to compensate
connected with the global appeal of the product.
perishability by approaching more markets.
Among the market-related factors, customer needs and attitudes
The next set of drivers concerns competitive factors. Nowadays,
should also be analyzed. This brings attention to the issue connected
companies are benchmarking not only entities within the same industry,
with client education, which could be necessary because the older the
but also other firms outside the radars of their clients, from which new,
client, the more difficult it could be to guarantee that they have the
alternative business models may emerge and give rise to new competi
digital skills needed to regard the digital channel as a purchasing
tors. These new business models, which are mostly digitally based, in
alternative (C2). Online convenience is not so valued by Generation
crease competition, even if the firms do not sell the same products or
Xers, and outdated behaviors in senior consumers may inhibit full
services or do not consider themselves to be competitors (Beynon-Da
vies, 2018). Therefore, of concern to managers is not conventional
Table 2 competitors’ moves but the moves that could come from unexpected
Summary of the four companies’ obstacles to implementing an omni-channel sources, which brings the VUCA (Volatility, Uncertainty, Complexity,
approach. Ambiguity) paradigm into the equation (Du and Chen, 2018). Looking at
Case Categories of Obstacles New Categories of Obstacles
what others are doing and still trying to proactively innovate necessi
No. Identified in the Model 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
C1 Employee-related (mindset and Product characteristics, homogeneous
alignment) and organizational marketing and legal context of concerns the networking perspective. This perspective is also repre
activities sented in cases of growing levels of channel integration. Using the
C2 Employee-related (mindset and Customers’ attitudes towards an coopetition approach, as well as building and maintaining external re
skills), omni-channel vision and omni-channel approach (the need to lations with clients and cooperators, allows companies to reduce the
logistics educate customers)
C3 Organizational and Product characteristics and a lack of
obstacles identified. This confirms the view of Silva et al. (2012, 2018)
centralization knowledge within the industry; need that networking elicits herding behavior that is able to promote
to look for inspiration beyond the second-hand knowledge and is crucial for anticipating market ten
industry and geographical market dencies (Rojo et al., 2016), as well as stimulating knowledge-sharing
C4 Organizational Product characteristics, low
processes (Heavey et al., 2015). All of these actions are part of the
awareness of omni-channel challenges
and customers’ attitudes towards an organizational learning process, which seems to be extremely important.
omni-channel approach This means that being part of the right business networks assists firms in
9
dealing with these difficulties (C1 and C3), which suggests that there is a efforts to integrate the channels in the omni-channel approach. We
kind of liability in outsidership (Johanson and Vahlne, 2009) that may understand that in order to fully evaluate the possibilities of imple
limit a firm’s ability to benefit from an omni-channel approach. menting an omni-channel strategy, industry analysis should be per
The last group of factors concerns the legal drivers, where tariffs and formed in advance, namely by observing products’ characteristics,
taxes could be considered the obstacles that need to be overcome. Since competitors’ positioning and other market elements, including cus
the publication of Frey and Kinnear’s (1979) paper, practitioners have tomers’ needs and attitudes towards technologies’ use (which may vary
been aware of the importance of legal issues in harmonizing an inter from market to market, from client type to client type, and even
national marketing approach, and such issues are no less relevant when depending on generational cohort). We claim that in the case of some
it comes to distribution matters, which are difficult to standardize due to industries and products, even if the internal obstacles are significantly
the differences in regulatory framing. As proposed by Ferrell et al. reduced, the omni-channel approach (with its inherent difficulties) may
(2017), the legal and regulatory environment creates the need to mini indeed be a utopia.
mize the risks for all stakeholders involved in new business models. We believe that our research opens up a new direction for the omni-
Choosing an omni-channel approach is in fact a marketing channel de channel research stream, where further contextual analysis is required.
cision that does not escape this rule, especially because we need to add Due to their characteristics, some industries may have greater potential
to the legal setting framing of the offline decisions, the rules that derive for companies to implement an omni-channel strategy. The current
from the digital world and which may vary from market to market. findings add to a growing body of literature on the drivers and barriers
There are legal constraints that cannot be left out of the decision-making regarding omni-channel retailing in the developed market (see, e.g., the
process on how to operationalize such channel option. recent study by Ye et al., 2018). Conversely, some other industries may
To summarize our findings, we provide a framework in Fig. 5 that entail additional obstacles that should be analyzed and properly
explains the evolution of channel integration depending on the two managed. Hence, this work contributes to existing knowledge about
types of factors: internal and external. omni-channel strategies by presenting the concept of OID, indicating
As presented in Fig. 5, the evolution of channel integration is based factors that affect the implementation of an omni-channel strategy
on the company’s ability to overcome the internal (strategic and oper (Fig. 4). We also outline a framework of possible channel integration
ational) obstacles that determine the company’s potential regarding options based on both categories of obstacles, internal and external
implementing an omni-channel approach; the external (industry-driven) (industry-related) (Fig. 5). These propositions are based on the obtained
obstacles determine the industry’s omni-channel potential. The possi data. They may be treated as analytical generalizations (Yin, 2003),
bility to implement more advanced channel integration grows when the which means that they summarize the observed relations. These prop
impact of internal obstacles is lower, but, at the same time, it is deter ositions may be also treated as research models (Figs. 4 and 5), which
mined by the industry potential, which may not be influenced by the require testing in quantitative studies.
individual company in question.
7. Managerial implications
6. Conclusions and theoretical contribution
Our research findings have several managerial implications. With
Due to technology development and customers’ increasing expecta external, industry-specific drivers gaining relevance, it is worth noting
tions of receiving a coherent brand experience, the omni-channel that while some of these drivers are outside managers’ control (e.g. legal
concept is gaining more attention among practitioners and scholars. issues), others can be controlled (e.g. customers’ usage and attitudes).
As observed by Hossain et al. (2019), the effective implementation of a Managers should be able to identify external factors that could hinder
multichannel approach is an emerging field of research with respect to omni-channel adoption, and develop strategies and tactics to manage
service quality and multichannel service delivery that should be inves these factors, where possible.
tigated in detail. The aim of this research was to explore the main ob The first implication of our research relates to consumers’ digital
stacles to implementing an omni-channel strategy. Previous researchers literacy, which – if low – could hinder companies’ efforts towards omni-
have identified several obstacles that are internal in nature, related to channel adoption. Thus, in cases of low consumer digital literacy man
managerial capabilities of the company. Using multiple case research, agers could either educate them to improve their skills, or make omni-
we identified a number of categories that helped us to capture how channel experiences as intuitive and user friendly as possible.
managers view obstacles towards omni-channel adoption, with industry The second managerial implication relates to product characteristics.
drivers gaining relevance. This research extends our knowledge by Our research revealed that perishable or fragile product categories (such
highlighting external factors that can either foster or hinder companies’ 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.
10
8. Limitations and future research We studied companies with business models based on product owner
ship, and excluded other business models (including platforms such as
The findings in this paper are subject to at least three main limita Amazon). Future research should test the contextual factors that
tions. The first lies in the nature of case studies. As our research was emerged from this study. Moreover, we explored cases that started off
explorative and qualitative, our recommendations may be used to line and then moved online. Therefore, a fruitful avenue for further
inform quantitative studies, which means that the findings and frame research may be to consider the other pathway chosen – online–offline –
works provided should be treated as theoretical propositions that to assess the obstacles associated with an omni-channel strategy. Such
require testing in future quantitative studies. companies may face different difficulties, as they are likely to be less
The second limitation is context related. The study was performed concerned with building awareness and creating traction, compared to
among European companies based in Portugal. Although they represent those that started the other way around, and the utopia is probably more
a real segment in Europe, the cases focused on one specific country with accessible in that case. For that reason, we suggest that successfully
low rates of Internet use and online purchases. Nevertheless, most of the implementing an omni-channel approach is a utopia only for off
companies studied had an international approach to the market, since all line–online cases.
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 Acknowledgements
study. It would be interesting to conduct interviews with other com
panies and investigate other countries to provide more context-specific Authors would like to acknowledge the financial support of the
insights. As there are omni-channel companies operating in other re Ministry of Science and Higher Education in Poland under the pro
gions of the world, such as China (Ye et al., 2018) or the US (Kim, 2019), gramme “Regional Initiative of Excellence” 2019–2022 project number
case studies using firms from those regions might bring new insights to 015/RID/2018/19 total funding amount 10 721 040,00 PLN and CEGE –
this field of study. Therefore, it is suggested that future research consider Research Centre in Management and Economics, funded by the Multi
the cultural and economic context of different regions and conduct a annual Funding Programme of R&D Centers of FCT – Fundaça ~o para a
comparative analysis to identify the differential factors. Ci^encia e a Tecnologia, Portugal, under the project UIDB/00731/2020.
The third limitation pertains to the types of companies investigated.
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)
11
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Journal of Retailing and Consumer Services 65 (2022) 102131

Contents lists available at ScienceDirect

Journal of Retailing and Consumer Services

The omni-channel approach: A utopia for companies?

* Corresponding author. Cat�olica Porto Business School, Universidade Cat�

Fig. 2. Main characteristics of single-channel, multi-channel, cross-channel and omni-channel strategies.

Fig. 3. Research framework – scope of multi-channel obstacles.

4.1.1.3. Omni-channel obstacles. The omni-channel approach is

� operational – human resource management. India).

implementing cross-industry benchmarks or a networking attitude. This

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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