<![CDATA[Digital transformation requires Small and Medium Enterprises not only to adopt new technologies but also to develop strategic capabilities that enable them to remain viable in increasingly volatile business environments. This study aims to provide an in depth explanation of how dynamic capabilities, consisting of sensing, seizing and transforming, contribute to the development of digital resilience in SMEs in the context of digital transformation. A Systematic Literature Review approach was employed, guided by the PRISMA 2020 framework. Relevant studies were identified through major scientific databases and accredited national journals, then screened using strict inclusion and exclusion criteria, resulting in 30 eligible articles for analysis. Thematic synthesis reveals that sensing capabilities underpin absorptive resilience by enhancing SMEs’ ability to recognise technological change, digital market dynamics and platform based opportunities. Seizing capabilities are associated with adaptive resilience through strategic adjustment, digital innovation and the exploitation of new business models. Transforming capabilities contribute to transformative resilience by enabling organisational reconfiguration, continuous learning and long term business model renewal. The review confirms that digital resilience in SMEs is the outcome of accumulated dynamic capability processes rather than a short term reaction to crisis. Theoretically, this study strengthens the application of Dynamic Capabilities Theory in digitally driven SME contexts, while practically it offers guidance for policymakers and SME practitioners in designing more structured resilience strategies in the era of digital transformation.]]>
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