Abstract Applying the logic of the open systems theory, this study examines how a firm’s channel diversification affects cross-channel conflict and firm’s performance, as well as the influence of moderating effect of IT capabilities, IT utilization capabilities on the relationship between channel diversification, cross-channel conflicts, and firm’s performance.By analyzing a sample of 520 collected from manufacturers, it is found that, first, channel diversification tends to cause cross-channel conflict, but promote firm’s performance. Second, IT capabilities tend to mitigate the positive effect of channel diversification on cross-channel conflict, but strengthen the positive effect of channel diversification on firm’s performance. Third, IT utilization capabilities tend to mitigate the positive effect of channel diversification on cross-channel conflict.
