Journal of Economics and Technology 2:26-51. 2026Enterprise Resource Planning (ERP) systems have become important enablers of digital transformation by supporting business process integration, information management, and operational efficiency. This study examines the impact of ERP implementation on digital transformation and business process performance in retail SMEs in Albania. A quantitative cross-sectional approach was adopted, and data was collected through a structured Likert-scale questionnaire administered to ERP users in retail SMEs. The final sample consisted of 103 respondents from 13 enterprises. Statistical analysis was conducted using Python, applying descriptive statistics, reliability analysis, correlation analysis, and linear regression. The findings indicate that ERP implementation positively influences digital transformation and contributes to improved business process performance. In addition, management support, user training, and technical support were identified as important factors for successful ERP adoption. The results suggest that organizations with higher levels of ERP utilization report greater digitalization and operational efficiency. This study contributes to the literature by providing empirical evidence from the context of Albanian retail SMEs and highlights the strategic role of ERP systems in supporting business process modernization and organizational performance improvement.