Sustainable Competitive Advantage in the Development of Digital MSMEs in Bali

This study aims to examine the effect of digital transformation and innovation on sustainable competitive advantage, as well as the influence of digital transformation, innovation, and sustainable competitive advantage on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Bali Province. The population of this research includes all MSMEs operating in Bali. The sampling technique employed is purposive sampling. Data were collected through a survey method using questionnaires. The analytical tool used in this study is Smart PLS version 3. The results indicate that digital transformation has a positive effect on sustainable competitive advantage. However, digital transformation does not have a significant positive effect on MSME performance. Innovation positively influences both sustainable competitive advantage and MSME performance. Additionally, sustainable competitive advantage has a positive impact on MSME performance.