Knowledge workers are increasingly recognizing the potential of generative artificial intelligence (GenAI) tools to efficiently support their professional tasks. Extending previous research that examines GenAI in the context of digital transformation (DT), this paper considers GenAI use as a driver of IT-enabled organizational transformation (ITOT). Drawing on the concept of microfoundations, we investigate how individual-level actions and interactions shape macro-level ITOT outcomes. Given the unique characteristics of small and medium-sized enterprises (SMEs), we specifically examine the role of individuals in resource-constrained environments. This paper outlines our planned research design, which adopts a longitudinal case study approach using semi-structured interviews as the primary data source. We will contribute by advancing the understanding of the differences between ITOT and DT, examining microfoundations in the context of ITOT, and providing insights into how ITOT in SMEs evolves over time.