Abstract
The sample of this study consists of 70 MSMEs selected through purposive sampling, based on the following criteria: MSMEs that use digital marketing, have been operating for at least 2 years, and are willing to complete the questionnaire. Data were collected through questionnaires and analyzed using SmartPLS software.
The results of the study indicate that digital transformation and market orientation significantly enhance the competitive advantage of MSMEs. Additionally, digital transformation, market orientation, and competitive advantage have a positive and significant impact on the marketing performance of MSMEs. Competitive advantage is proven to mediate the influence of digital transformation and market orientation on the marketing performance of MSMEs.