In recent years, digital transformation has become a pivotal factor for Small and Medium-sized Enterprises (SMEs), empowering them to adopt emerging technologies for competitive advantage. This systematic literature review examines 60 research papers published between 2014 and 2024, using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework to explore the impact of digital technologies such as artificial intelligence, cloud computing, blockchain, and the Internet of Things (IoT) on SME performance. The review focuses on key drivers and barriers, including operational efficiency, customer engagement, and market expansion. Methodologies employed in the analyzed studies include quantitative approaches (60%), such as surveys and structural equation modelling, qualitative methods (25%), including interviews and case studies, and mixed methods approaches (15%) that combine both. A geographic distribution analysis highlights contributions from various countries, revealing regional research gaps. The results show that digital technologies have significantly improved SME operations, but challenges like limited resources and strategic focus persist. Additionally, the dominance of quantitative methods indicates a potential bias, suggesting the need for more diverse methodological approaches to fully understand the transformative potential of digital technologies for SMEs.