<![CDATA[The rise of digital transformation presents both challenges and opportunities for micro, small, and medium enterprises (MSMEs) in Indonesia. This study aims to explore the adaptive strategies employed by MSMEs in response to the rapid digital shift, focusing on how they modify their business operations, customer engagement practices, and resource management. Using a qualitative approach, we conducted in-depth interviews with 15 MSME owners across various industries, gathering insights into their strategic responses to digitalization pressures. Thematic analysis reveals three primary adaptation strategies: digital skill enhancement, process innovation, and flexible resource allocation. Findings suggest that MSMEs with a proactive digital approach and resource flexibility are more resilient in facing digitalization challenges. This study contributes to the literature on MSME adaptability, offering practical implications for business owners and policymakers to support MSMEs in leveraging digital transformation for sustained growth]]>
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