Evaluating ERP System Efficiency In The Indian Apparel Retail Industry: An Exploratory Study Using A Mixed Method Approach”

19 May

Authors: Dr. Arpita Pandey, Abhishek Ananthanarayanan

Abstract: The Indian retail sector is marked by high product complexity, volatile demand patterns, and intense competition, necessitating robust digital systems for operational integration and efficiency. Enterprise Resource Planning (ERP) systems are widely adopted across retailers; however, empirical evidence on their actual efficiency outcomes in the Indian retail context remains limited. This study investigates the effectiveness of ERP systems in enhancing operational efficiency and organizational performance in Indian retail firms, using a mixed-method approach. Primary data were collected from retail professionals through a structured questionnaire, supplemented by qualitative insights. Advanced analytical techniques—Partial Least Squares Structural Equation Modelling (PLS-SEM) and Analytic Hierarchy Process (AHP)—were employed to strengthen analytical rigor. The SEM results reveal that ERP implementation effectiveness has a significant positive impact on operational efficiency, which in turn strongly influences organizational performance, indicating a partial mediation effect. AHP findings prioritize inventory management and supply chain management as the most critical ERP modules driving efficiency in retail. The study contributes to the ERP and retail management literature by providing India-specific empirical evidence and a dual-method analytical framework. From a managerial perspective, the findings highlight the importance of strategic ERP module prioritization, continuous employee training, and change management to maximize ERP returns. The study offers actionable insights for retail managers, ERP vendors, and policymakers involved in the digital transformation of the sector.

DOI: http://doi.org/10.5281/zenodo.20284571