<![CDATA[Purpose: to examine the effects of digital transformation and entrepreneurial orientation on tourism MSME performance in Semarang City, Indonesia, with competitive advantage serving as a mediating variable. Method: this study employed a quantitative explanatory approach using a cross-sectional survey of 200 tourism MSME owners or managers in Semarang City, Indonesia, selected through purposive sampling. Data were collected through structured questionnaires and analysed using PLS-SEM in SmartPLS 4 to evaluate the measurement model and test the proposed hypotheses. Findings: digital transformation and entrepreneurial orientation positively influence tourism MSME performance and competitive advantage. Competitive advantage also positively affects business performance and partially mediates the relationships between digital transformation, entrepreneurial orientation, and MSME performance. These findings highlight the importance of integrating digital capabilities and entrepreneurial strategies to strengthen competitive advantage and improve tourism MSME performance. Implications: integrating digital capabilities and entrepreneurial strategies can strengthen competitive advantage and improve tourism MSME performance. Originality: lies in integrating digital transformation and entrepreneurial orientation to explain tourism MSME performance, with competitive advantage serving as a mediating mechanism.]]>
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