Top Management Teams (TMT) in Small and Medium Enterprises (SMEs) play a pivotal role in the growth of SMEs in emerging markets. In the extant literature TMT alignment is identified as one of the key factors in TMTs' effectiveness indicated by firm performance, both financial and non-financial. However, there is limited research examining the factors that impact or facilitate TMT alignment, specifically in an SME context. This paper covers a systematic literature review (SLR) of the field that revealed the fragmented body of knowledge with multiple perspectives and definitions of TMT alignment, specifically in SME context. Using the Input Mediator Moderator and Outcome (IMMO) model, the study attempts to understand the micro foundations of TMT functioning that facilitate their transformation into and operating as, an aligned TMT. Integrating the literature using the team processes and emergent states framework a unified definition of TMT alignment in SMEs is proposed. Key contributions of this research to literature include, a comprehensive literature map of TMT alignment in SMEs and a unified definition that includes co-creation processes and emergent states of alignment.