Creating Competitive Advantage from Channel Extension Strategies : The Importance of Internal Capabilities and Customer Lock-In

This study addresses the important but yet unresolved question of how firms can create competitive advantage from their multichannel marketing strategy. More specifically, the authors investigate the antecedents of channel extension strategies and their performance implications. Results from an empirical study including top managers from 308 firms indicate that in addition to environmental factors, a firm's channel expansion is directly related to its strategic channel management capability, and that this capability is more important in turbulent environments. Furthermore the study reveals that firms need an appropriate customer lock-in strategy to benefit from innovative channel additions or traditional channel expansion.