<![CDATA[Digital transformation has become an essential strategy for improving the competitiveness of traditional market traders amid the rapid development of digital technology. However, its adoption among traditional market traders remains limited, reducing their ability to exploit business opportunities and sustain competitive advantage. This study aims to analyze the effect of digital transformation on sustainable competitive advantage through the mediating role of digital transformation opportunity among traditional market traders in Denpasar City. This research employed a quantitative approach with an associative research design. The sample consisted of 100 traditional market traders selected using purposive sampling. Data were collected through a structured questionnaire using a five-point Likert scale. The variables examined were Digital Transformation as the independent variable, Digital Transformation Opportunity as the mediating variable, and Sustainable Competitive Advantage as the dependent variable. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings reveal that Digital Transformation has a positive and significant effect on Digital Transformation Opportunity (β = 0.476; t = 5.856; p < 0.001). Furthermore, Digital Transformation Opportunity has a positive and significant effect on Sustainable Competitive Advantage (β = 0.584; t = 9.275; p < 0.001). The mediation analysis confirms that Digital Transformation Opportunity significantly mediates the relationship between Digital Transformation and Sustainable Competitive Advantage (β = 0.278; t = 4.056; p< 0.001). These findings indicate that successful digital transformation enhances sustainable competitive advantage by expanding market access, improving operational efficiency, strengthening customer relationships, and increasing business adaptability among traditional market traders. Keywords: Digital Transformation, Digital Transformation Opportunity, Sustainable Competitive Advantage, Traditional Market Traders, PLS-SEM.]]>
