Supported by a service ecosystem that is increasingly immersed in digital transformation, Small and Medium Enterprises (SMEs) have access to Information Technology (IT) applications, which may come for free but is not without worries. The purpose of this paper is to explore the knowledge about the usage of digitalized tools in SMEs. For getting the data questionnaire was issued and collected from 382 samples. A conceptual model is framed to conceptualizing digital transformation of SMEs and to find the mediating role of digitalization. Study says that job acceptance and digitalization is having a good positive impact, digitalization is the main factors which influence the satisfaction level of the employes, the mediating role of digitalization between job satisfaction and employee employer relationship is very much significant and high.