DIGITAL BUSINESS STRATEGY ADOPTION IN A TRADITIONAL FOOD MSME: A CASE STUDY OF DODOL MEK LUH PENGLATAN, BULELENG, INDONESIA

Abstract

The rapid advancement of digital technology has transformed the business environment, requiring Micro, Small, and Medium Enterprises (MSMEs) to adopt digital business strategies to remain competitive and sustainable. Traditional food-based MSMEs, however, often face challenges in implementing digital transformation due to limited technological capabilities and resources. This study aims to examine the implementation of digital business strategies at Dodol Mek Luh Penglatan MSME in Buleleng Regency by investigating its initial business conditions, digital business strategy implementation, supporting and inhibiting factors, and the resulting impact on business development. A qualitative approach with a case study design was employed to obtain an in-depth understanding of the phenomenon. Data were collected through semi-structured interviews, direct observation, and document analysis, and were analyzed using an interactive qualitative analysis model involving data collection, reduction, display, and conclusion drawing. The findings reveal that the enterprise initially relied on conventional marketing methods with limited market coverage. Digital transformation has gradually been implemented through the utilization of social media platforms, improvements in product packaging and branding, and the initial adoption of online marketplaces. The implementation has contributed to broader market access, stronger customer engagement, enhanced product visibility, and improved business competitiveness. Nevertheless, digital literacy, limited human resources, financial constraints, and inconsistent digital marketing practices remain significant challenges. The study highlights that successful digital transformation requires not only technological adoption but also continuous organizational learning, managerial commitment, and external institutional support. These findings contribute to the literature on digital transformation by providing empirical evidence from a traditional food-based MSME and offer practical insights for entrepreneurs and policymakers seeking to strengthen MSME competitiveness and long-term business sustainability in the digital economy.