Stores: Don’t Lock Horns with Internet Retailers, Says Study Appearing in November Management Insights

Management Insights, a new monthly feature of the journal, is a digest of important research in business, management, operations research, and management science. It appears in every issue of the monthly journal.

Note on Self-Restraint as an Online Entry-Deterrence Strategy asks the question, Should a brick-and-mortar retailer rush to open an online portal when facing the threat of market entry by an e-tailer? The authors — Yunchuan Liu of the University of Illinois, Sunil Gupta of Harvard Business School, and Z. John Zhang of the Wharton School – recommend that stores make a strategic decision not to open a related website. They conclude that in markets where price consistency across channels is a marketing imperative, the most forceful response from an incumbent retailer is to “stay put” and remain true to the original business model.

The November issue of Management Insights can be viewed online at Management Insights. The full papers associated with the Insights are available to Management Science subscribers. Individual papers can be purchased at http://institutions.informs.org. Additional issues of Management Insights can be accessed at http://mansci.pubs.informs.org/.

The Insights in the November issue are:

- Recipient Choice Can Address the Efficiency-EquityTrade-off in Kidney Transplantation: A Mechanism Design Model by Xuanming Su, Stefanos A. Zenios.

- Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators by Justin J. P. Jansen, Frans A. J. Van Den Bosch, Henk W. Volberda

- Introduction of New Technologies to Competing Industrial Customers by Sanjiv Erat, Stylianos Kavadias.

- Organizational Design and the Intensity of Rivalry by Govert Vroom.

- Network Software Security and User Incentives by Terrence August, Tunay I. Tunca

- Design of Robust Business-to-Business Electronic Marketplaces with Guaranteed Privacy by Joakim Kalvenes, Amit Basu

- A Typology of Plants in Global Manufacturing Networks by Ann Vereecke, Roland Van Dierdonck, Vlerick Leuven Gent, Arnoud De Meyer .

- Measuring and Mitigating the Costs of Stockouts by Eric T. Anderson, Gavan J. Fitzsimons, Duncan Simester.

- A Fractiles Perspective to the Joint Price/Quantity Newsvendor Model by Gal Raz, Evan L. Porteus.

- Dynamic Control of an M/M/1 Service System with Adjustable Arrival and Service Rates by Baris Ata, Shiri Shneorson.

- Research Note: Some Empirical Regularities in Market Shares by Rajeev Kohli, Raaj Sah.

- Note on Self-Restraint as an Online Entry-Deterrence Strategy by Yunchuan Liu, Sunil Gupta, Z. John Zhang

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The Institute for Operations Research and the Management Sciences (INFORMS®) is an international scientific society with 10,000 members, including Nobel Prize laureates, dedicated to applying scientific methods to help improve decision-making, management, and operations. Members of INFORMS work in business, government, and academia. They are represented in fields as diverse as airlines, health care, law enforcement, the military, financial engineering, and telecommunications. The INFORMS website is www.informs.org. More information about operations research is at www.scienceofbetter.org.

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