Abstract: In the digital economy era, pursuing the “specialized, refined, differentiated, and innovative (SRDI)” development path is an important strategic pathway for the high-quality growth of small- and medium-sized enterprise (SMEs) in China. Based on the theory of firm endogenous growth mechanism, this study explores the intrinsic mechanisms and boundary conditions of the digital technology application empowering the growth of SMEs. Empirical analysis reveals that the digital technology application enhances the growth of SMEs by strengthening their “SRDI” strategic orientation. However, the impact of digital technology application on SMEs’ “SRDI” strategic orientation is moderated by external market conditions and the SMEs’ ability to acquire ecological resources. Specifically, the more intense the market competition or the easier the access to ecological resources, the weaker the impact of digital technology application on the “SRDI” strategic orientation. The study enriches the theory of firm endogenous growth in the digital economy era and provides guidance for SMEs to undertake digital transformation and achieve sustainable growth.