Our explorative, qualitative study uncovers the dynamic processes of agility unleashing or inhibiting potentials within German small and medium sized enterprises through the lens of digitization. Based on an analysis of 22 interviews, we propose a conceptual model, which illuminates antecedents and external determinants of agility and their impact on potentials and performance in organizational settings. In this process we determine digitization both as an external driver and as an internal provider of agility. Resource constraints and traditional leadership styles are SME-specific barriers to agility. How extensively the potentials of agility can be utilized dependents on the moderating factors firm size and department.