A structural model for sales in the e-retailing industry

Carlos Serrano-Cinca (), Yolanda Fuertes () and C Mar-Molinero
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C Mar-Molinero: University of Kent

Journal of the Operational Research Society, 2010, vol. 61, issue 9, 1377-1388

Abstract: Abstract This article analyses intangible constructs that affect sales on the Internet retailing industry. We suggest an explanatory model for the success of retailers that operate on the Internet. Non-financial information has been used to identify several intangible constructs: ‘web traffic generation’, ‘relevance in search engines’, ‘link popularity’, and ‘blogs popularity’. The success is measured through items derived from financial statements: sales and profits. The model has been built within a structural modelling framework. It has been estimated using Partial Least Squares with a sample of USA e-tailers. The results show that there is a significant relationship between the intangible constructs and accounting figures. This relationship is stronger when we consider Sales from Internet Operations rather than Total Sales or Net Profit.

Keywords: Partial Least Squares (PLS); structural equation model (SEM); dot com; electronic commerce; non-financial information; search engine optimization (SEO) (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1057/jors.2009.93

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