As Indonesia advances its commitments to digital transformation and environmental sustainability, Micro, Small, and Medium Enterprises (MSMEs) face structural constraints that limit the adoption of high-cost green and digital technologies. Existing frameworks often treat digitalization and sustainability as separate and resource-intensive processes, creating barriers for MSMEs operating with limited capital and capabilities. This study develops a conceptual Hybrid Green Technology Readiness Model that integrates the Twin Transition framework with principles of frugal innovation. Using a structured synthesis of recent literature on MSME digital maturity, sustainability readiness, and low-cost technology adoption, this study proposes a readiness matrix based on two dimensions: digital maturity and ecological awareness. The model demonstrates that basic digital tools, such as cloud-based services, digital payments, route optimization, and simple inventory systems, can simultaneously enhance operational efficiency and reduce environmental impact. By reframing sustainability as an efficiency-driven and value-creating process rather than a compliance burden, the proposed framework offers a practical pathway for MSMEs in developing economies. This study contributes to sustainability and entrepreneurship literature by providing a context-sensitive and accessible model to support inclusive green and digital transformation in Indonesian MSMEs.
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