This research sheds light on the fact that SMEs' competitive resilience can be attributed to the mixed culture of innovation, digital competency, and customer value orientation along with the value proposition standing as the key mediator. At present, amidst the conditions being turbulent and cut-throat, the SMEs have shifted the sustaining resilience act from being a survival skill into becoming a strategic one. Based on the Resource Based View and Value Creation Theory, the study takes the internal ability and value centric perspective. The goal of the study is to describe the way intangible resources are turned into competitive resilience through organizational resources. A quantitative research design was employed, and the data for the research was collected from 429 SMEs' owners and senior managers from various sectors. The results have shown that a culture of innovation, digital competency, and customer value orientation are significantly enhancing firms' value propositions. This not only supports the primary role of innovation climate, digital skills, and customer-focused thinking in market shaping, but also marks their importance. The conclusions drawn from the study prominently add to the understanding of SME resilience by proposing the value proposition as a main strategic lever connecting internal capabilities to the durable competitive advantage in dynamic markets.