DIGITAL SYNERGY AND COMMUNICATION STRATEGIES FOR COMPETITIVE ADVANTAGE: The Case of Food and Beverage MSMEs in Surabaya

The rapid digital transformation in urban environments has compelled micro, small, and medium enterprises (MSMEs) in the food and beverage sector to transition from traditional operations to digital ecosystems. This study explores how food and beverages MSMEs in Surabaya leverage e-commerce and digital communication strategies (such as social media engagement and online marketing) to build competitive advantage and enhance business performance. Using a qualitative exploratory approach, the research employs semi-structured interviews and thematic analysis (comprising data reduction, categorization, and interpretation) to understand the strategic decision-making dynamics of MSME actors. The findings reveal that while most MSMEs perceive e-commerce primarily as a sales and market-expansion channel, more advanced actors use it as a sophisticated strategic tool. Furthermore, digital communication often focuses on basic product information and promotion; however, enterprises that successfully integrate e-commerce with consistent, meaningful communication can achieve a stronger brand image, greater customer trust, and more stable sales performance. These results indicate that competitive advantage and business performance in urban MSMEs are not determined solely by technology adoption, but are also heavily influenced by strategic orientation, digital literacy, and consistent communication practices. Theoretically, this study contributes to the discourse on digital communication by asserting that technological integration must be balanced with strategic depth. In practice, it provides industry insights on managing technological innovation to maintain long-term sustainability and market relevance in a dynamic digital environment.