<![CDATA[Digital transformation has become an important strategy for strengthening the competitiveness of rural Micro, Small, and Medium Enterprises (MSMEs). However, many rural MSMEs still experience challenges in utilizing digital technologies due to limited digital literacy and weak market-oriented capabilities. This study examines the relationship between digital commerce utilization and perceived MSME performance by investigating the mediating roles of digital literacy and market orientation among MSMEs in Babussalam Village, Rokan Hulu Regency, Riau Province. A quantitative cross-sectional survey design was employed involving 150 MSME owners and managers. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine the structural relationships among digital commerce utilization, digital literacy, market orientation, and perceived MSME performance. The results indicate that digital commerce utilization is positively associated with perceived MSME performance. Furthermore, digital literacy and market orientation partially mediate the relationship between digital commerce utilization and perceived performance, indicating that digital technologies generate greater business value when supported by entrepreneurial capabilities and strategic market understanding. These findings suggest that rural digital transformation requires not only access to digital platforms but also continuous development of digital competencies and market-oriented capabilities. The study provides empirical insights for designing sustainable digital empowerment strategies to enhance rural MSME competitiveness.]]>
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