Digital Transformation in the Textile Sector: ERP, Finance, and E-Commerce

Small and medium-sized enterprises (SMEs) in emerging economies are adopting enterprise software to improve performance, yet rigorous evidence in Ecuador's textile sector remains scarce. Here we address the gap by examining whether the combined use of Enterprise Resource Planning (ERP), digital financial analytics, and E-Commerce is associated with superior firm outcomes. We aim to quantify performance changes and to explain organizational enablers and barriers. We use a concurrent mixed-methods design: a survey of n = 152 textile firms and 12 executive interviews; measurement diagnostics and regression models complement thematic analysis. We find that ERP and digital financial analytics adoption are positively associated with operating margin and inventory turnover; pre/post comparisons suggest higher ROI and lower operating costs in adopters. E-Commerce adoption is associated with higher sales and customer satisfaction, while under-investment in training and cybersecurity persists. We contribute empirical evidence from a Latin American manufacturing context, practical guidance on sequencing investments, and policy-relevant insights for SME digitalization. © 2025 IEEE.