This study aims to clarify the core success factors of digital transformation among small and medium enterprises (SMEs) and develop a framework for their digital transformation strategy. It uses a systematic literature review and thematic analysis to identify key success factors. The literature review suggests that SMEs should consider their baseline, limitations, and idiosyncratic characteristics when developing a digitalization strategy. They should start with incremental improvements and commit to investing in education and continuous learning. SMEs face survival challenges, with many failing in their first few years. Digital transformation is seen as a valuable strategy to improve organizational and financial performance. However, SMEs struggle to exploit IT potential due to limited knowledge, financial, cultural, and collaboration issues. Previous studies have focused on specific aspects of digital transformation, such as managerial, manufacturing, supply chain, and information system aspects. However, SMEs need to consider all aspects simultaneously when digitalizing their business. This study argues that existing literature contains valuable insights that can be reconstructed into new holistic knowledge regarding SMEs' digitalization success strategy. The study adopts endogenous growth theory as the conceptual foundation to develop structured knowledge regarding the digital transformation framework. The endogenous theory argues that the value of IT is determined by various aspects. This study provides a novel, comprehensive framework for SME digitalization by integrating IT with three business aspects: information systems, organizational financial, and other relevant factors. The study's contribution lies in its unique categorization of themes through thematic analysis and its integration of endogenous growth theory with business aspects to provide a holistic framework for SME digital transformation.This study aims to clarify the core success factors of digital transformation among small and medium enterprises (SMEs) and develop a framework for their digital transformation strategy. It uses a systematic literature review and thematic analysis to identify key success factors. The literature review suggests that SMEs should consider their baseline, limitations, and idiosyncratic characteristics when developing a digitalization strategy. They should start with incremental improvements and commit to investing in education and continuous learning. SMEs face survival challenges, with many failing in their first few years. Digital transformation is seen as a valuable strategy to improve organizational and financial performance. However, SMEs struggle to exploit IT potential due to limited knowledge, financial, cultural, and collaboration issues. Previous studies have focused on specific aspects of digital transformation, such as managerial, manufacturing, supply chain, and information system aspects. However, SMEs need to consider all aspects simultaneously when digitalizing their business. This study argues that existing literature contains valuable insights that can be reconstructed into new holistic knowledge regarding SMEs' digitalization success strategy. The study adopts endogenous growth theory as the conceptual foundation to develop structured knowledge regarding the digital transformation framework. The endogenous theory argues that the value of IT is determined by various aspects. This study provides a novel, comprehensive framework for SME digitalization by integrating IT with three business aspects: information systems, organizational financial, and other relevant factors. The study's contribution lies in its unique categorization of themes through thematic analysis and its integration of endogenous growth theory with business aspects to provide a holistic framework for SME digital transformation.