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Digital transformation has become a key factor in increasing the competitiveness of Micro, Small, and Medium Enterprises (MSMEs), especially in the era of a technology-based economy. However, the adoption of digital technology among MSMEs still faces various challenges, such as limited resources, lack of digital literacy, and resistance to change. This study aims to analyze the effect of innovation diffusion on the adoption of digital technology in increasing business opportunities for MSMEs in Manado City. Using a quantitative approach, this study adopts Rogers' innovation diffusion model to measure factors that influence the level of digital technology adoption, namely relative advantage, compatibility, complexity, trialability, and observability. Data were collected through a survey of 71 MSME owners in Manado City and analyzed using multiple linear regression. The results show that relative advantage, trialability, and observability have a positive and significant effect on digital technology adoption, whereas compatibility and complexity have no significant effect. Simultaneously, the five diffusion-of-innovation variables significantly affect digital technology adoption (F = 29.586; p < .001), with a coefficient of determination (R²) of .695. Trialability and observability are the strongest predictors.
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Saerang et al. (2026) studied this question.
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