IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v167y2023ics0148296323004897.html
   My bibliography  Save this article

The effect of third-party delivery partnerships on firm value

Author

Listed:
  • Pasirayi, Simbarashe
  • Fennell, Patrick B.
  • Sen, Argha

Abstract

Adoption of third-party channels for last mile delivery has been a significant change for retail firms. Despite the volume of work in this space, how last-mile delivery partnerships impact a retail firm’s financial valuation has received little attention. Adopting a resource-based view, we explore how third-party delivery firms add value through their unique capabilities. Results from an event study reveal that, on average, third-party delivery partnerships improve firm performance. However, subsequent analysis reveals that firms do not equally benefit from these partnerships. In particular, the density of firms’ presence in the marketplace and retailers’ level of service provision can affect the relative benefit of third-party partnerships.

Suggested Citation

  • Pasirayi, Simbarashe & Fennell, Patrick B. & Sen, Argha, 2023. "The effect of third-party delivery partnerships on firm value," Journal of Business Research, Elsevier, vol. 167(C).
    • Handle: RePEc:eee:jbrese:v:167:y:2023:i:c:s0148296323004897
    DOI: 10.1016/j.jbusres.2023.114130
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296323004897
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2023.114130?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michelle L. Zorn & Christine Shropshire & John A. Martin & James G. Combs & David J. Ketchen Jr., 2017. "Home Alone: The Effects of Lone-Insider Boards on CEO Pay, Financial Misconduct, and Firm Performance," Strategic Management Journal, Wiley Blackwell, vol. 38(13), pages 2623-2646, December.
    2. Lien Lamey & Els Breugelmans & Maya Vuegen & Anne ter Braak, 2021. "Retail service innovations and their impact on retailer shareholder value: evidence from an event study," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 811-833, July.
    3. Santiago Gallino & Antonio Moreno, 2014. "Integration of Online and Offline Channels in Retail: The Impact of Sharing Reliable Inventory Availability Information," Management Science, INFORMS, vol. 60(6), pages 1434-1451, June.
    4. Zhang, Sha & Pauwels, Koen & Peng, Chenming, 2019. "The Impact of Adding Online-to-Offline Service Platform Channels on Firms' Offline and Total Sales and Profits," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 115-128.
    5. Ray, Arghya & Dhir, Amandeep & Bala, Pradip Kumar & Kaur, Puneet, 2019. "Why do people use food delivery apps (FDA)? A uses and gratification theory perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 221-230.
    6. Manlu Chen & Ming Hu & Jianfu Wang, 2022. "Food Delivery Service and Restaurant: Friend or Foe?," Management Science, INFORMS, vol. 68(9), pages 6539-6551, September.
    7. Rajagopal, 2019. "Consumer Behavior: Internal Factors," Springer Books, in: Contemporary Marketing Strategy, chapter 0, pages 3-33, Springer.
    8. Rafi M. M. I. Chowdhury, 2019. "The Moral Foundations of Consumer Ethics," Journal of Business Ethics, Springer, vol. 158(3), pages 585-601, September.
    9. Punel, Aymeric & Stathopoulos, Amanda, 2017. "Modeling the acceptability of crowdsourced goods deliveries: Role of context and experience effects," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 18-38.
    10. Daniel Minh McCarthy & Elliot Shin Oblander, 2021. "Scalable Data Fusion with Selection Correction: An Application to Customer Base Analysis," Decision Analysis, INFORMS, vol. 40(3), pages 459-480, May-June.
    11. Mani Subramani & Eric Walden, 2001. "The Impact of E-Commerce Announcements on the Market Value of Firms," Information Systems Research, INFORMS, vol. 12(2), pages 135-154, June.
    12. Daniel Minh McCarthy & Elliot Shin Oblander, 2021. "Scalable Data Fusion with Selection Correction: An Application to Customer Base Analysis," Marketing Science, INFORMS, vol. 40(3), pages 459-480, May.
    13. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    14. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    15. Oecd, 2019. "Good practice guide on consumer data," OECD Digital Economy Papers 290, OECD Publishing.
    16. Mitsukuni Nishida, 2017. "First-Mover Advantage Through Distribution: A Decomposition Approach," Marketing Science, INFORMS, vol. 36(4), pages 590-609, July.
    17. Bolos, Laura Andreea & Lagerkvist, Carl Johan & Nayga, Rodolfo M. Jr., 2019. "Consumer Choice and Food Waste: Can Nudging Help?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 34(1), February.
    18. Cao, Lanlan & Li, Li, 2015. "The Impact of Cross-Channel Integration on Retailers’ Sales Growth," Journal of Retailing, Elsevier, vol. 91(2), pages 198-216.
    19. DeYoung, Robert & Goddard, John & McKillop, Donal G. & Wilson, John O. S., 2019. "Who Consumes the Credit Union Tax Subsidy?," QBS Working Paper Series 2019/08, Queen's University Belfast, Queen's Business School.
    20. Feng, Cong & Fay, Scott, 2021. "Chief stores officer and retailer performance," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    21. Xu, Xun & Yan, Nina & Tong, Tingting, 2021. "Longer waiting, more cancellation? Empirical evidence from an on-demand service platform," Journal of Business Research, Elsevier, vol. 126(C), pages 162-169.
    22. Devari, Aashwinikumar & Nikolaev, Alexander G. & He, Qing, 2017. "Crowdsourcing the last mile delivery of online orders by exploiting the social networks of retail store customers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 105-122.
    23. Kumar, Sushant & Shah, Arunima, 2021. "Revisiting food delivery apps during COVID-19 pandemic? Investigating the role of emotions," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    24. David J. Reibstein & Paul W. Farris, 1995. "Market Share and Distribution: A Generalization, a Speculation, and Some Implications," Marketing Science, INFORMS, vol. 14(3_supplem), pages 190-202.
    25. Alnaggar, Aliaa & Gzara, Fatma & Bookbinder, James H., 2021. "Crowdsourced delivery: A review of platforms and academic literature," Omega, Elsevier, vol. 98(C).
    26. Kathleen M. Eisenhardt & Claudia Bird Schoonhoven, 1996. "Resource-based View of Strategic Alliance Formation: Strategic and Social Effects in Entrepreneurial Firms," Organization Science, INFORMS, vol. 7(2), pages 136-150, April.
    27. Carhart, Mark M, 1997. "On Persistence in Mutual Fund Performance," Journal of Finance, American Finance Association, vol. 52(1), pages 57-82, March.
    28. Lanlan Cao & Li Li, 2015. "The Impact of Cross-Channel Integration on Retailers’ Sales Growth," Post-Print hal-02009466, HAL.
    29. Chris Forman & Anindya Ghose & Avi Goldfarb, 2009. "Competition Between Local and Electronic Markets: How the Benefit of Buying Online Depends on Where You Live," Management Science, INFORMS, vol. 55(1), pages 47-57, January.
    30. Pasirayi, Simbarashe & Fennell, Patrick B., 2021. "The effect of subscription-based direct-to-consumer channel additions on firm value," Journal of Business Research, Elsevier, vol. 123(C), pages 355-366.
    31. Pauwels, Koen & Neslin, Scott A., 2015. "Building With Bricks and Mortar: The Revenue Impact of Opening Physical Stores in a Multichannel Environment," Journal of Retailing, Elsevier, vol. 91(2), pages 182-197.
    32. Benedicktus, Ray L. & Brady, Michael K. & Darke, Peter R. & Voorhees, Clay M., 2010. "Conveying Trustworthiness to Online Consumers: Reactions to Consensus, Physical Store Presence, Brand Familiarity, and Generalized Suspicion," Journal of Retailing, Elsevier, vol. 86(4), pages 322-335.
    33. Bhattacharya, Abhi & Sardashti, Hanieh, 2022. "The differential effect of new product preannouncements in driving institutional and individual investor ownership," Journal of Business Research, Elsevier, vol. 149(C), pages 811-823.
    34. Brown, Stephen J. & Warner, Jerold B., 1985. "Using daily stock returns : The case of event studies," Journal of Financial Economics, Elsevier, vol. 14(1), pages 3-31, March.
    35. Humphery-Jenner, Mark & Lisic, Ling Lei & Nanda, Vikram & Silveri, Sabatino Dino, 2016. "Executive overconfidence and compensation structure," Journal of Financial Economics, Elsevier, vol. 119(3), pages 533-558.
    36. Wilbur, Kenneth C. & Farris, Paul W., 2014. "Distribution and Market Share," Journal of Retailing, Elsevier, vol. 90(2), pages 154-167.
    37. Deleersnyder, B. & Geyskens, I. & Gielens, K.J.P. & Dekimpe, M.G., 2002. "How cannibalistic is the internet channel? A study of the newspaper industry in the United Kingdom and the Netherlands," Other publications TiSEM 16dcb25c-7ea9-4c75-bdf6-5, Tilburg University, School of Economics and Management.
    38. Timm Teubner & Marc T. P. Adam & Florian Hawlitschek, 2020. "Unlocking Online Reputation," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(6), pages 501-513, December.
    39. Oecd, 2019. "Understanding online consumer ratings and reviews," OECD Digital Economy Papers 289, OECD Publishing.
    40. Fama, Eugene F. & French, Kenneth R., 1993. "Common risk factors in the returns on stocks and bonds," Journal of Financial Economics, Elsevier, vol. 33(1), pages 3-56, February.
    41. Santiago Gallino & Antonio Moreno & Ioannis Stamatopoulos, 2017. "Channel Integration, Sales Dispersion, and Inventory Management," Management Science, INFORMS, vol. 63(9), pages 2813-2831, September.
    42. Anuj Kumar & Amit Mehra & Subodha Kumar, 2019. "Why Do Stores Drive Online Sales? Evidence of Underlying Mechanisms from a Multichannel Retailer," Service Science, INFORMS, vol. 30(1), pages 319-338, March.
    43. Elena Huergo & Jordi Jaumandreu, 2004. "How Does Probability of Innovation Change with Firm Age?," Small Business Economics, Springer, vol. 22(3_4), pages 193-207, April.
    44. Brown, Stephen J. & Warner, Jerold B., 1980. "Measuring security price performance," Journal of Financial Economics, Elsevier, vol. 8(3), pages 205-258, September.
    45. Cao, Lanlan & Liu, Xin & Cao, Wenbin, 2018. "The Effects of Search-Related and Purchase-Related Mobile App Additions on Retailers’ Shareholder Wealth: The Roles of Firm Size, Product Category, and Customer Segment," Journal of Retailing, Elsevier, vol. 94(4), pages 343-351.
    46. Thangamani, 2019. "Impact of Branding on Consumer Behaviour," Shanlax International Journal of Management, Shanlax Journals, vol. 6(3), pages 74-79, January.
    47. Saravanan Kesavan & Vidya Mani, 2013. "The Relationship Between Abnormal Inventory Growth and Future Earnings for U.S. Public Retailers," Manufacturing & Service Operations Management, INFORMS, vol. 15(1), pages 6-23, May.
    48. Archetti, Claudia & Savelsbergh, Martin & Speranza, M. Grazia, 2016. "The Vehicle Routing Problem with Occasional Drivers," European Journal of Operational Research, Elsevier, vol. 254(2), pages 472-480.
    49. Maria José Hötzel & Marina A. G. von Keyserlingk, 2019. "Gene-edited livestock: consumers may say no," Nature, Nature, vol. 568(7752), pages 316-316, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peng Vincent Zhang & Seoyoung Kim & Anindita Chakravarty, 2023. "Influence of pull marketing actions on marketing action effectiveness of multichannel firms: A meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 51(2), pages 310-333, March.
    2. Timoumi, Ahmed & Gangwar, Manish & Mantrala, Murali K., 2022. "Cross-channel effects of omnichannel retail marketing strategies: A review of extant data-driven research," Journal of Retailing, Elsevier, vol. 98(1), pages 133-151.
    3. Neslin, Scott A., 2022. "The omnichannel continuum: Integrating online and offline channels along the customer journey," Journal of Retailing, Elsevier, vol. 98(1), pages 111-132.
    4. Pasirayi, Simbarashe & Fennell, Patrick B., 2021. "The effect of subscription-based direct-to-consumer channel additions on firm value," Journal of Business Research, Elsevier, vol. 123(C), pages 355-366.
    5. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    6. Navid Bahmani & Amit Bhatnagar & Dinesh Gauri, 2022. "Hey, Alexa! What attributes of Skills affect firm value?," Journal of the Academy of Marketing Science, Springer, vol. 50(6), pages 1219-1235, November.
    7. Vaishnav, Bharat & Ray, Sourav, 2023. "A thematic exploration of the evolution of research in multichannel marketing," Journal of Business Research, Elsevier, vol. 157(C).
    8. Alina Sorescu & Nooshin L. Warren & Larisa Ertekin, 2017. "Event study methodology in the marketing literature: an overview," Journal of the Academy of Marketing Science, Springer, vol. 45(2), pages 186-207, March.
    9. Konchitchki, Yaniv & O'Leary, Daniel E., 2011. "Event study methodologies in information systems research," International Journal of Accounting Information Systems, Elsevier, vol. 12(2), pages 99-115.
    10. Monica Martinez-Blasco & Vanessa Serrano & Francesc Prior & Jordi Cuadros, 2023. "Analysis of an event study using the Fama–French five-factor model: teaching approaches including spreadsheets and the R programming language," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-34, December.
    11. Nicolau, Juan Luis & Sharma, Abhinav, 2022. "A review of research into drivers of firm value through event studies in tourism and hospitality: Launching the Annals of Tourism Research curated collection on drivers of firm value through event stu," Annals of Tourism Research, Elsevier, vol. 95(C).
    12. Tagashira, Takumi & Minami, Chieko, 2019. "The Effect of Cross-Channel Integration on Cost Efficiency," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 68-83.
    13. Maier, Erik & Bornschein, Rico & Manss, Rico & Hesse, Damian, 2023. "Financial consequences of adding bricks to clicks," International Journal of Research in Marketing, Elsevier, vol. 40(3), pages 609-628.
    14. Olga Hawn & Aaron K. Chatterji & Will Mitchell, 2018. "Do investors actually value sustainability? New evidence from investor reactions to the Dow Jones Sustainability Index (DJSI)," Strategic Management Journal, Wiley Blackwell, vol. 39(4), pages 949-976, April.
    15. Jindal, Rupinder P. & Gauri, Dinesh K. & Li, Wanyu & Ma, Yu, 2021. "Omnichannel battle between Amazon and Walmart: Is the focus on delivery the best strategy?," Journal of Business Research, Elsevier, vol. 122(C), pages 270-280.
    16. Darima Fotheringham & Michael A. Wiles, 2023. "The effect of implementing chatbot customer service on stock returns: an event study analysis," Journal of the Academy of Marketing Science, Springer, vol. 51(4), pages 802-822, July.
    17. Cai, Ya-Jun & Lo, Chris K.Y., 2020. "Omni-channel management in the new retailing era: A systematic review and future research agenda," International Journal of Production Economics, Elsevier, vol. 229(C).
    18. Maximilian Klöckner & Christoph G. Schmidt & Stephan M. Wagner, 2022. "When Blockchain Creates Shareholder Value: Empirical Evidence from International Firm Announcements," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 46-64, January.
    19. Linnenluecke, Martina K. & Chen, Xiaoyan & Ling, Xin & Smith, Tom & Zhu, Yushu, 2017. "Research in finance: A review of influential publications and a research agenda," Pacific-Basin Finance Journal, Elsevier, vol. 43(C), pages 188-199.
    20. Vinay Patel, 2015. "Price Discovery in US and Australian Stock and Options Markets," PhD Thesis, Finance Discipline Group, UTS Business School, University of Technology, Sydney, number 27, July-Dece.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:167:y:2023:i:c:s0148296323004897. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.