›› 2019, Vol. 31 ›› Issue (5): 139-146.

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The Impacts of Online Retail on Innovation of Traditional Retail

Wang Yu1,2, Li Wei3, Zhang Weijin2   

  1. 1. School of Marxism, Northeastern University, Shenyang 110169;
    2. School of International Studies, Shenyang University, Shenyang 110096;
    3. Institute of Industrial Economics of CASS, Beijing 100836
  • Received:2018-08-21 Online:2019-05-28 Published:2019-05-31

Abstract:

Innovation is the primary driving force for development. The rapid development of online retail has exerted a significant impact on the traditional retail industry and changed the retail market structure and retail mode to a large extent. Scholars have extensively studied the impact of online retailers, but little attention has been paid to the impact of online retailers on retailer innovation. In order to solve this problem, this paper constructs an innovation decision-making model of traditional retailers in the two cases of online retailers and non-online retailers, and investigates the impact of the emergence and development of online retailers on the innovation of traditional retailers through a comparative analysis. On the whole, the impact of the emergence of online retail on the innovation level of traditional retailers is related to the degree of competition between online retailers and traditional retailers. When the competition between online retail and traditional retail is fierce, the emergence of online retail will promote the innovation of traditional retailers. On the contrary, the emergence of online retail will inhibit the innovation of traditional retailers. From the perspective of specific influencing factors, with the increase of sales cost of online retailers, the innovation level of traditional retailers declines. With the improvement of competition between online retailers and traditional retailers, the innovation level of traditional retailers rises. The above conclusions have a good explanatory power for the innovation behavior of traditional retailers in the real economy and enrich the research on the influence of online retail.

Key words: innovation, online retailer, traditional retailer, E-commerce