<![CDATA[Abstract: This study aims to develop a model for the digital transformation of MSMEs based on local wisdom at the KAMU (Karya Anak Muda) Market in Deli Serdang, North Sumatra. The study employs an exploratory qualitative approach using the Resource-Based View (RBV) and Dynamic Capabilities perspectives. Data were collected through in-depth interviews, observations, documentation, and focus group discussions, and were subsequently analyzed thematically. The results indicate that while digital technology has been utilized by MSME operators for promotion and communication with consumers, it has not yet been fully integrated into the creation of business value. In fact, traditional cuisine, the use of TEMPU, cultural identity, and community interactions represent local potentials that can strengthen the uniqueness of these businesses. These potentials need to be identified, managed, and translated into digital communications that are relevant to consumers. Based on these findings, the study formulated a model linking local wisdom, local value management, digitalization, digital value propositions, differentiation and market access, competitiveness, and business sustainability. This model explains how Resource-Based View (RBV) and Dynamic Capabilities can be used to understand the development of local resources through digital transformation in support of SME competitiveness and sustainability. Keywords: Digital Transformation; Local Wisdom; Digital Value Proposition; Resource-Based View (RBV); Dynamic Capabilities; Abstrak: Penelitian ini bertujuan mengembangkan model transformasi digital UMKM berbasis kearifan lokal pada Pasar KAMU (Karya Anak Muda), Deli Serdang, Sumatera Utara. Penelitian menggunakan pendekatan kualitatif eksploratori dengan perspektif Resource-Based View (RBV) dan Dynamic Capabilities. Data diperoleh melalui wawancara mendalam, observasi, dokumentasi, dan diskusi kelompok (focus group discussion), kemudian dianalisis secara tematik. Hasil penelitian menunjukkan bahwa teknologi digital telah digunakan oleh pelaku UMKM untuk promosi dan komunikasi dengan konsumen, tetapi belum sepenuhnya terintegrasi dengan penciptaan nilai usaha. Padahal, kuliner tradisional, penggunaan TEMPU, identitas budaya, dan interaksi komunitas merupakan potensi lokal yang dapat memperkuat keunikan usaha. Potensi tersebut perlu diidentifikasi, dikelola, dan diterjemahkan ke dalam komunikasi digital yang relevan bagi konsumen. Berdasarkan temuan tersebut, penelitian merumuskan model yang menghubungkan kearifan lokal, pengelolaan nilai lokal, digitalisasi, digital value proposition, diferensiasi dan akses pasar, daya saing, serta keberlanjutan usaha. Model ini menjelaskan bagaimana RBV dan Dynamic Capabilities dapat digunakan untuk memahami pengembangan sumber daya lokal melalui transformasi digital dalam mendukung daya saing dan keberlanjutan UMKM Kata kunci: Transformasi Digital; Kearifan Lokal; Local Wisdom; Digital Value Proposition; Resource-Based View (RBV); Dynamic Capabilities;]]>
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