This dissertation examines the innovations in electronic commerce and their managerial impacts. In the first essay, we investigate the importance of product and retailer uncertainty in a customer's online purchase decision as well as the uncertainty-reduction effects of retailer characteristics. In the second essay, we examine online pricing strategies of B2C retailers, with an aim to understand whether and how the driving factors of price dispersion evolve over time. Based on the theories of resource-based view (RBV), IT business value, and competitive dynamics, the third essay examines the factors that affect cross-channel capabilities and competitive actions in the apparel industry in the U.S.