<![CDATA[The development of the digital economy has brought fundamental changes to local businesses, particularly for traditional Micro, Small, and Medium Enterprises (MSMEs) in Kupang City. This study aims to examine and analyze the adaptation strategies implemented by traditional MSME actors and dissect the role of social capital in facilitating the digital transition process. A descriptive qualitative approach was employed using the economic sociology frameworks of embeddedness and social capital. Data were collected through interviews and observations with MSME actors in the local culinary sector and traditional traders in Kupang City. The findings indicate that the digital adaptation of traditional MSMEs in Kupang City occurs through a hybrid socio-digital model, combining the use of responsive digital platforms (such as WhatsApp Business, Instagram, and TikTok) and electronic payment systems (QRIS) with conventional face-to-face relationships. Social capital acts as a primary accelerator through cross-generational support, community networks, and the mitigation of digital economic risks. This study underscores the importance of integrating local wisdom and social institutions in formulating inclusive digital transformation policies in Eastern Indonesia.]]>
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