This paper reviews the existing literature on the digital adoption of SMEs in developed and developing economies, with a specific focus on the Western Balkans and Albania. The aim of the paper is to examine the interplay between internal organizational capabilities and external ecosystem enablers and to analyze scholarly papers, policy documents, and case studies to identify the differences in SME digital adoption between different economic contexts. The review covers the Western Balkans as a region where national digital infrastructure is advancing, but business-level technology adoption remains slow. In particular, Albania presents a paradox, with advanced e-government systems that exist alongside some limited adoption of digital technologies by SMEs. The results suggest that public sector digitalization efforts have not been effectively translated to the business sector. The study identifies the main barriers hindering SME digital transformation in developing economies, like the fragmented digital infrastructure, especially in rural areas, limited access to financing for technology investments, and a gap between the skills available in the workforce and the technological demands of SMEs. The findings call for context-specific strategies and challenge the applicability of universal models of digital transformation. This review contributes to academic discussions by proposing strategies for digital adoption by small and medium enterprises (SMEs) identifies gaps in current research on SME digitalization, and offers practical recommendations for policymakers and business support organizations. These insights can serve as an orientation tool for future efforts, strategies and policies that aim to bridge the digital divide in transitional economies and stimulate future research on SME digitalization in the Western Balkans and beyond.