ADAPTIVE MANAGEMENT AND DIGITAL TRANSFORMATION IN STRENGTHENING SUSTAINABLE RURAL ECONOMIES: EVIDENCE FROM LOCAL BUSINESSES

Abstract

This study aims to examine how local businesses implement adaptive management and digital transformation in response to the dynamics of the business environment, as well as their implications for strengthening sustainable rural economies within the context of global sustainable development. This study employs a qualitative case study approach, utilizing data collection techniques such as in-depth interviews and field observations to explore adaptive strategies, digital practices, and the operational challenges faced by business actors. The findings reveal that business actors actively implement adaptive strategies, such as price adjustments, product diversification, and service quality improvements in response to market changes. Furthermore, the use of digital platforms enables expanded market access, improved operational efficiency, and the utilization of customer feedback as a basis for continuous evaluation. However, this study also identifies challenges, such as increased competition on digital platforms, dependence on platform systems, and operational cost pressures. These findings indicate that the integration of adaptive management and digital transformation can strengthen business resilience and sustainability, while contributing to the development of more inclusive and competitive rural economic systems. This study contributes by presenting an integrative perspective that links micro-level business adaptation with digital transformation in supporting sustainable rural economic development.