<![CDATA[This research is motivated by the strategic role of tofu processing MSMEs, which have economic prospects but are vulnerable to various operational challenges, such as fluctuations in soybean raw material prices, technological limitations, and a lack of digital marketing management. This study aims to examine and analyze the business development strategy of the tofu industry in improving MSME performance in Karijawa Subdistrict, Dompu Regency. The method used is a descriptive qualitative approach with field data collection techniques through observation, in-depth interviews, and documentation involving seven main informants. The results indicate that the MSME has attempted to implement development strategies through the consistency of natural tofu quality without preservatives, punctuality in delivery, informal human resource skill improvement (on-the-job training), and the adoption of a diesel grinding machine. In the discussion section, the analysis shows that the optimization of internal capabilities based on the Resource-Based View (RBV) approach has successfully improved MSME performance qualitatively; this is evidenced by a stable production capacity of 200-300 kg per day, maintained operational efficiency, and strong customer loyalty amidst fluctuating raw material prices. The practical implication of this research emphasizes the need for MSMEs to adopt separate financial bookkeeping and utilize social media for digital marketing to strengthen business sustainability. The originality of this research lies in an empirical study that comprehensively integrates the RBV theory with five dimensions of business development strategy (product, marketing, human resources, technology, and management) within the local context of a micro-scale tofu industry in Dompu.]]>
