This study investigates how strategic leadership fosters digital organizational culture within Small and Medium-sized Enterprises (SMEs). While digitalization has become essential for business survival, SMEs do face unique challenges in cultivating digital cultures due to resource constraints and entrenched traditions. Through an interpretivist, qualitative research approach utilizing 15 semi-structured interviews with key stakeholders across digitally mature construction industry SMEs in Sweden, this study develops an integrated framework explaining how leadership shapes digital culture evolution. The findings reveal three interconnected dimensions that collectively enable digital transformation: (1) strategic direction and disciplined change governance, balancing ambitious digital visions with pragmatic implementation; (2)visible leadership mobilization and distributed ownership, combining executive commitment with empowered champions across organizational levels; and (3) skill building and inclusive learning climate, pairing structured capability development with psychological safety. These dimensions function as a reinforcing cycle, where strategic vision provides purpose, leadership mobilization creates momentum, and capability building enables sustained implementation.This research addresses significant gaps in understanding the human dimensions of digital transformation in SMEs and offers practical guidance for leaders navigating cultural change in increasingly digital business environments. Limitations include the industry-specific focus and cross-sectional design, suggesting opportunities for future research across diverse sectors and using longitudinal approaches.