Choi, JooyoungLee, Chul HoCeran, YasinChung, Sunghun2021-12-242021-12-242022-01-04978-0-9981331-5-7http://hdl.handle.net/10125/79393Amazon Go, the pioneering smart retailer, has been opening physical stores in metropolitan areas of the USA, and seductively distracted customers from adjacent competitors by provisioning quick-and-easy service. This study focuses on how the appearance of the smart retailer affects adjacent competing businesses. We constructed a panel dataset with various features and reviews of restaurants from Yelp.com, and created two dummies, 𝐴𝑑𝑗𝑎𝑐𝑒𝑛𝑡, one if the restaurant is in a certain radius of a smart retailer and zero outside, and 𝐴𝑓𝑡𝑒𝑟, one after the introduction and zero before. By using Difference-in-Difference estimation, we find that (1) negative impacts on the adjacent restaurants after Amazon Go compared to non-adjacent and before the appearance, and (2) less negative impact on adjacent fine-dining restaurants than fast-food restaurants. After Amazon Go, customers’ sentiments about the adjacent restaurants have changed more negatively. This paper may provide businesses with useful implications for their strategies.10 pagesengAttribution-NonCommercial-NoDerivatives 4.0 InternationalDigital Platforms and Industry Transformationcomplementdifference in difference (did)smart retailsubstituteyelptext10.24251/HICSS.2022.063