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Articles

The Effects of Platform Service and Logistics Service on Online Store Owners' Confidence

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  • Tsinghua University, Beijing 100084, China

Received date: 2014-07-01

  Revised date: 2015-02-04

  Online published: 2015-07-22

Abstract

Unlike the traditional retailing context, store owners on e-commerce platforms have to rely on services provided by the platforms as well as third-party logistics services to serve their customers. Store owners' confidence in their business, in general, determines their future investment decisions and also plays an important role in the long-term development of the platform. However, no current research has investigated the effects of the two kinds of service, platform services and logistics services, on store owners' confidence in the context of e-commerce platforms. This study aims to explore the effects of platform service and logistic service on online store owners' confidence, and how such effects differ for stores with different levels of reputation. To test the research model,a large-scale survey on Taobao, the largest e-commerce platform in China was carried out, and responses from 3995 store owners were collected. Based on the survey data, ordered logistic model was adopted to analyze the role of platform and logistics service played on store owners' confidence. The results show that platform service and logistics service both have significant effects on online store owners' confidence. Moreover, the impact of platform service is larger for stores with higher reputation, while the impact of logistics service does not vary significantly for stores with different levels of reputation. Also, stores with higher reputation rely on platform service more than logistics service. These findings shed some light on the practical decisions of platform managers in terms of how to distribute limited resource into platform and logistic service. The results also contribute to the literature on e-commerce platforms and online services.

Cite this article

HE Xi-ming, HU Sai-quan, YI Cheng, LIU Xia . The Effects of Platform Service and Logistics Service on Online Store Owners' Confidence[J]. Chinese Journal of Management Science, 2015 , 23(6) : 83 -90 . DOI: 10.16381/j.cnki.issn1003-207x.201.06.011

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