<![CDATA[Digital transformation is an important strategy for Micro, Small, and Medium Enterprises (MSMEs) in increasing competitiveness in the digital economy era. One form of digital transformation widely im-plemented by MSMEs is the use of e-commerce as a marketing and business transaction medium. This study aims to analyze the effect of e-commerce use on digital transformation in MSMEs in Kudus Regency. The study uses a quantitative approach with an explanatory research type. The research sample consisted of 100 MSMEs selected using a purposive sampling technique. Data collection was carried out through dis-tributing questionnaires and analyzed using simple linear regression with the help of SPSS version 26. The results of the study indicate that the use of e-commerce has a positive and significant effect on digital transformation in MSMEs in Kudus Regency with a regression coefficient value of 0.648 and a significance value of 0.000 (<0.05). The coefficient of determination (R²) value of 0.439 indicates that the use of e-commerce is able to explain the digital transformation of MSMEs by 43.9%, while being influenced by other factors outside the study. These findings indicate that e-commerce utilization not only increases marketing and sales activities but also drives the digitalization of business processes, business innovation, and increased competitiveness of MSMEs. Therefore, efforts to improve digital literacy and mentoring for MSMEs are needed to optimize e-commerce utilization to support sustainable digital transformation.]]>
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