Channel integration puzzle: internal obstacles, industry drivers and omnichannel capabilities

Purpose In this paper, we aim to advance the research on how companies navigate channel integration by examining the internal and external challenges they encounter. Specifically, we investigate how internal obstacles and external industry drivers affect the level of channel integration. Design/methodology/approach In our quantitative study, we collected the relevant data from 412 firms operating in over 20 diverse industries and offering both online and offline channels. We also explore how organizational omnichannel capabilities moderate the relation between internal and external factors and the level of channel integration. Findings Our results indicate that channel integration is hindered by internal barriers, including limitations in operational efficiency, strategy and organizational culture. Additionally, external pressures stemming from industry-specific factors contribute to these challenges. Conversely, positive influences may arise from micro-environmental factors, such as an existing customer base already literate with omnichannel solutions or competitors advanced in omnichannel strategies. Originality/value To evaluate the effects of channel integration, we examine its influence on performance across multiple dimensions (short-term, long-term and comparative), extending prior research that has predominantly emphasized short-term performance metrics.