Small and Medium Enterprises (SMEs) play a crucial role in economic development but differ significantly from large enterprises in terms of structure, resources, and strategic behavior. These differences necessitate a nuanced understanding of strategic agility in SMEs, particularly in the context of digital transformation. While strategic agility has been extensively studied in large corporations, its manifestation in SMEs, especially at the micro level, remains underexplored. This study aims to identify the micro-elements of strategic agility that enable digital transformation in SMEs. Using a systematic literature review approach, this research synthesizes existing studies and applies thematic analysis to uncover key patterns. Anchored in the meta-capability’s framework of strategic agility—strategic sensitivity, leadership unity, and resource fluidity—this study identifies 16 micro-elements that shape how SMEs navigate digital transformation. The study contributes to the growing discourse on SME digital transformation by highlighting how micro-level strategic agility elements facilitate adaptability and resilience in dynamic business environments. Future research is encouraged to empirically validate these findings and explore their implications across different SME contexts.