This study aims to analyse how digital transformation contributes to the strategic, operational, and financial sustainability of MSMEs in Tegalalang District, Gianyar, Bali. Using a descriptive phenomenological approach and the lens of Resource-Based View (RBV) theory, this study explores the lived experiences of 10 MSME owners in integrating technology into their tradition-based businesses. Data were collected through in-depth interviews and observations, then analysed using Reflexive Thematic Analysis (RTA). The results indicate that digitalization plays a role in conserving the value of taksu (artistic spirit), which is a key competitive advantage in the global market. Operationally, the use of WhatsApp and social media improves customer service agility across time zones. Financially, the QRIS system improves bookkeeping transparency despite creating obstacles to the spiritual practice of dana punia (charity offerings). This study uncovers a paradox between digital efficiency and the preservation of social capital in the paruman tradition. The study's conclusions confirm that business sustainability is achieved through a hybrid innovation model that balances technological advancement with local wisdom. This study recommends the importance of developing a "Cultural Digitalization" strategy to maintain the cultural identity of MSMEs amidst global transformation.
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