PACIS 2021 Proceedings

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The retail industry has been at the forefront of digital transformation since the emergence of the Internet and the rise of e-commerce. In recent years, and now accelerated by COVID19-induced lockdowns, e-commerce and m-commerce have gained considerable market share, putting brick-and-mortar retailers at risk of replacement. However, augmenting the sensory experience available in physical stores with digital technology provides vast opportunities for business models that can compete with online retail. Therefore, we have developed a taxonomy of digital retail business models. This taxonomy combines conceptual research findings and empirical evidence from 44 companies. The taxonomy structures the complexity of digital technologies’ potentials for retail business models and provides an overview of the differentiating characteristics of business models. For practice, it provides a tool for evaluating current and future business models and adopting digital technology for digital business models.



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