<![CDATA[Purpose: This study aims to analyze the paradox of digital transformation among creative economy MSMEs in Bali Province by identifying the factors contributing to the low level of digital technology adoption and examining the existing policy implementation gaps. Furthermore, this study proposes a Digital Readiness Profile-Based MSME Digital Transformation Model as an adaptive policy framework to accelerate MSME digitalization. Research methods: This study employed a qualitative approach using a literature review (library research) based on secondary data analysis. The data were collected from government reports, policy documents, statistical publications, scholarly articles, and credible online news sources. Data were analyzed descriptively through identification, interpretation, and synthesis to formulate a conceptual policy framework for MSME digital transformation. Results and discussion: The findings reveal a paradox in the digital transformation of creative economy MSMEs in Bali, characterized by the coexistence of significant creative economic potential and a relatively low level of digital technology adoption. Low digital literacy, limited human resource capacity, inadequate mentoring, and a uniform policy approach were identified as the main factors hindering digital transformation. Implication: The study highlights the importance of shifting from a one-size-fits-all policy approach toward a more adaptive policy design that considers the varying levels of digital readiness among MSMEs. The proposed framework is expected to support governments in developing more targeted, effective, and evidence-based digital transformation policies.]]>
