The rapid advancements in digital technology compelled Small and Medium-sized enterprises (SMEs) to undergo a vigorous transformation, adopting digital technology in their workspace and management to maintain competitiveness and sustainability. The pace and degree of Malaysian SMEs’ digital transformation still remain uneven, highlighting the need to understand the underlying drivers for a successful digital transformation. This paper examines the effect of government support, organisational readiness, technology innovativeness, and personality traits on digital transformation adoption in Malaysian SMEs, aiming to develop a comprehensive understanding. To achieve this, the study has integrated two theoretical perspectives. The Technology Organisation—Environment (TOE) framework and Social Cognitive Theory (SCT) are integrated to provide a robust basis for identifying both organisational and individual-level factors that influence digital adoption. A conceptual model is proposed to link these key drivers to the outcomes of digital transformation. The proposed research employs a quantitative research approach using a structured questionnaire to gather data from SME owners and managers across Malaysia. Purposive sampling will be used to target SMEs that are currently undergoing or planning digital initiatives. Data will be analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine the hypothesised relationships. The research findings would provide empirical insights into the critical enablers of digital transformation in SMEs and valuable theoretical knowledge to policymakers, SME practitioners, and technology enablers for formulating effective future digitalisation strategies.