<![CDATA[The Micro, Small, and Medium Enterprises (MSME) sector plays a vital role in the Indonesian economy; however, MSMEs in rural areas continue to face significant challenges in digital adaptation. This study aims to formulate a digital adaptation strategy that can create a sustainable competitive advantage for rural MSMEs by integrating the Resource-Based View (RBV) and Diffusion of Innovation (DOI) theories. This study employs a qualitative approach based on a systematic literature review and secondary data analysis. Data were collected from 45 relevant scientific articles, both national and international, published between 2020 and 2026, as well as from official reports issued by the Ministry of Cooperatives and Small and Medium Enterprises of Indonesia. The analysis was conducted using a thematic approach and narrative synthesis to identify patterns in digital adaptation strategies. The results indicate that digital literacy and managerial capabilities function as strategic resources (RBV) that influence the rate of technology adoption (DOI), which, in turn, strengthens strategic management and sustainable competitive advantage. This study highlights the importance of an inclusive approach that combines community-based training programs with the development of digital infrastructure in rural areas. The practical implications include policy recommendations for the government to prioritize human resource capacity development alongside technological support and infrastructure provision.]]>
