Mediating Role of Organizational Agility on The Relationshipbetween ERP Usage and Service Differentiation Among Casual Restaurants in Makati City, Philippines

This study examines the mediating role of organizational agility in the relationship between Enterprise Resource Planning (ERP) system ‎usage and service differentiation among casual restaurants in Makati City. Specifically, it aims to determine the profile of restaurants in ‎terms of the number of years in operation, assess the level of ERP system usage, assess the organizational agility of restaurants in terms ‎of flexibility, responsiveness, competencies, and sensing capabilities, and evaluate the extent of service differentiation in the industry. ‎Additionally, the study investigates whether organizational agility significantly mediates the effect of ERP system usage on service dif-‎differentiation. A descriptive research design was employed, utilizing a survey questionnaire to gather data from 142 casual dining restaurants, selected from a total population of 351 registered restaurants in Makati City, of which 223 are classified as casual dining establishments. To ensure an unbiased selection, the study utilized the Wheel of Names, a randomized sampling tool, to fairly choose the ‎participating restaurants. The survey instrument was validated and tested for reliability, yielding a high Cronbach’s alpha value. Data ‎collection was conducted via Google Forms, and statistical analyses, including mean, frequency, percentage, and linear regression, were ‎performed using the Statistical Package for Social Sciences (SPSS). Mediation analysis was also applied to assess the indirect effect of ‎ERP system usage on service differentiation through organizational agility. The findings revealed that service differentiation in casual ‎dining restaurants is actively pursued through strategies such as customized promotions, superior customer engagement, and streamlined ‎service delivery. ERP systems are widely used, especially in functions like inventory control, sales reporting, and operational coordination, reflecting high adoption and integration. Organizational agility was rated highly, with responsiveness and flexibility contributing ‎significantly to operational adaptability and innovation. Furthermore, statistical analysis shows that ERP system usage has a direct and ‎significant positive effect on service differentiation. Mediation analysis revealed that organizational agility partially mediates this relationship, and responsiveness functions as a full mediator, indicating its critical role in translating ERP use into effective service differentiation. Flexibility and competencies also showed partial mediating effects, while sensing capability had the least impact. As a key output ‎of this study, an Information, Education, and Communication (IEC) material in the form of a coffee table book was developed. This ‎output aims to guide restaurant owners and managers in enhancing ERP utilization, fostering agility, and implementing effective service ‎differentiation strategies‎.