This study explores a topic that has not received enough attention in the literature: how entrepreneurs of small and medium-sized businesses (SMEs) with limited resources and insufficient capacities led digital transformation in their organizations. We carry out qualitative study on the digital transformation of seven SMEs on the Alibaba digital platform to cross-border e-commerce. We inductively derive a process model that seeks to characterize and explain how SME entrepreneurs drive digital transformation through organizational capability building, business team building, managerial social capital development, and managerial cognition renewal with assistance from the digital platform service provider. This paradigm broadens our understanding of digital transformation and digital entrepreneurship. Additionally, it offers fresh perspectives on how digital platform service providers may support SMEs' competitiveness and transformation