SURVIVING IN THE DIGITAL ERA: A PHENOMENOLOGICAL STUDY ON THE ADAPTATION STRATEGIES OF BALINESS LOCAL MSMES IN THE E-COMMERCE TRENDS

Abstrak

Culturally, Bali's MSMEs operate within a strong creative economy ecosystem where craft, culinary, and art products often carry local cultural values as commodities. These cultural values become a comparative advantage if MSMEs are able to formalize product storytelling, quality, and packaging standards for the online market; but at the same time, they present a dilemma between maintaining the authenticity of tradition and meeting the demands of larger-scale production. This study aims to understand the adaptation strategies of local Bali Micro, Small, and Medium Enterprises (MSMEs) in facing the digital wave through the utilization of e-commerce. Using a phenomenological qualitative approach, the study involved ten MSME actors who have transitioned to digital platforms. Data were collected through in-depth interviews and analyzed thematically to reveal the experiences, challenges, and meanings of digital adaptation for business actors. The results indicate that e-commerce plays a significant role in the development of Bali MSMEs, not only as a survival strategy but also as an opportunity to expand market reach, improve operational efficiency, and strengthen product branding. Digital transformation encourages MSMEs to develop a more strategic long-term vision and create product innovations according to market demand. The findings also reveal that e-commerce becomes an important means of introducing Balinese cultural values through digital narratives that strengthen local identity in the global market. However, the digital adaptation of Balinese MSMEs still faces challenges, particularly related to limited digital skills, logistics costs, and service quality consistency. This emphasizes that the success of e-commerce utilization is determined not only by technology but also by the readiness of human resources and the support of the business ecosystem. This study concludes that the digital adaptation strategies of Bali SMEs are proactive in creating new growth opportunities and are not limited to survival efforts. The practical implications of these findings highlight the importance of collaboration between the government, e- commerce platform providers, financial institutions, and the community to create a digital ecosystem that supports the sustainability of local SMEs in the era of global competition