ITAA - KSCT Joint Symposium

E-Sourcing Experience on B2B E-marketplace and Firm Performance: A Causal Analysis in US and India Fashion Industry Context 

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Abstract

This study compares the causal relationship between e-sourcing experience (EE) and firm performance (FP) among fashion firms in the United States and India, guided by Resource-Based View and using Direction Dependence Analysis (DDA) with data collected from Alibaba in 2018. Using a general e-sourcing experience index (GEE) and perceived firm performance (PFP) measures, results show that the causal direction from FP to EE is stronger than the reverse. FP significantly predicts GEE (R² = .702), with a notable interaction by country: Indian firms show a stronger positive relationship, while U.S. firms show no significant causal direction, suggesting potential confounding factors. Several GEE dimensions—efficiency, competitiveness, IT capability, and friendliness—positively contribute to EE. Findings reveal that in India, higher-performing firms gain better e-sourcing experience, while in the U.S., EE is shaped by additional strategic factors. The study offers insights for tailoring B2B marketplace strategies to different national contexts.

Keywords: e-sourcing, causal direction, firm performance

How to Cite:

Liu, Y. J. & Zhao, L., (2025) “E-Sourcing Experience on B2B E-marketplace and Firm Performance: A Causal Analysis in US and India Fashion Industry Context ”, International Textile and Apparel Association Annual Conference Proceedings 82(1). doi: https://doi.org/10.31274/itaa.21576