<![CDATA[The rapid development of digital technology has increased the need for traditional market traders to adopt digital practices in order to remain competitive. However, many traders still experience barriers to digital transformation, such as limited digital literacy, inadequate infrastructure, high implementation costs, insufficient training, technological complexity, and security concerns. These barriers may discourage digital technology adoption and reduce the ability of traders to achieve sustainable competitive advantage. Therefore, this study examines the effect of Digital Transformation Barriers on Sustainable Competitive Advantage through the mediating role of Digital Technology Adoption among traditional market traders in Bali. A quantitative approach with an associative research design was employed. Data were collected from 200 traditional market traders using a structured questionnaire with a five-point Likert scale. The research model consists of Digital Transformation Barriers (X) as the independent variable, Digital Technology Adoption (Z) as the mediating variable, and Sustainable Competitive Advantage (Y) as the dependent variable. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings indicate that Digital Transformation Barriers have a negative and significant effect on Digital Technology Adoption (β = −0.483; t = 8.463; p < 0.001). Meanwhile, Digital Technology Adoption positively and significantly affects Sustainable Competitive Advantage (β = 0.640; t = 15.611; p < 0.001). Furthermore, Digital Technology Adoption significantly mediates the relationship between Digital Transformation Barriers and Sustainable Competitive Advantage (β = −0.309; t = 6.364; p < 0.001). These findings emphasize that reducing digital transformation barriers is essential for increasing digital technology adoption and strengthening the long-term competitiveness of traditional market traders in Bali. Keywords: Digital Transformation Barriers, Digital Technology Adoption, Sustainable Competitive Advantage, Traditional Market Traders, PLS-SEM.]]>
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