A Systematic Literature Review on Micro, Small, and Medium Enterprises (MSMEs) Performance: National and International Evidence
https://doi.org/10.35877/454RI.daengku4302
Keywords:
MSME performance; Innovation; Entrepreneurial orientation; Financial literacy; Digitalization; Sustainability; Developing and developed countries
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Abstract
This study investigates the performance of Micro, Small, and Medium Enterprises (MSMEs) by synthesizing evidence from recent empirical studies through a systematic literature review approach. The research analyzes thirty-three peer-reviewed journal articles published between 2020 and 2025 that explicitly discuss MSME performance from multidimensional perspectives. The data collection process followed established systematic review protocols, including identification, screening, eligibility, and inclusion of relevant literature. The methodology employed thematic content analysis to classify findings into four major categories: performance measurement, internal determinants, external support, and international comparisons. The results reveal that MSME performance is not only measured by financial indicators such as profit, revenue, and cash flow but also by non-financial aspects including innovation, customer satisfaction, and sustainability criteria. The analysis shows that innovation, entrepreneurial orientation, financial literacy, and human resource capacity are the most influential internal factors, while government policies, financial institutions, market access, and infrastructure represent crucial external enablers. The findings further indicate that digitalization and technology adoption play a pivotal role in strengthening MSME competitiveness and resilience, particularly during economic crises and the COVID-19 pandemic. Finally, the review highlights significant differences between developing and developed countries, where MSMEs in emerging economies face more structural challenges yet often experience greater marginal benefits from digital transformation.
References
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Behl, A., Jayawardena, N., Pereira, V., & Dwivedi, Y. K. (2022). Responsible AI for resilient SMEs in supply chains: Concept, framework, and research agenda. Technological Forecasting and Social Change, 180, 121692. https://doi.org/10.1016/j.techfore.2022.121692
Bhatti, S. H., Ahmed, A., Ferraris, A., Hussain, W. M. H. W., & Wamba, S. F. (2022). Big data analytics capabilities and MSME innovation and performance: A double mediation model of digital platform and network capabilities. Technological Forecasting and Social Change, 180, 121692. https://doi.org/10.1016/j.techfore.2022.121692
Cancelyn, S. P., Handayani, N. P. D. R., & Wardhaningrum, O. A. (2021). Innovation, competitive strategy and MSME performance: A survey study on culinary SMEs in Indonesia during the COVID-19 pandemic. Journal of Asian Finance, Economics and Business, 8(5), 945–954. https://doi.org/10.13106/jafeb.2021.vol8.no5.0945
Damiyana, D., Maulina, E., Muftiadi, A., Auliana, L., & Kurniadi, K. (2021). The influence of innovation, knowledge management, and e-commerce adoption on MSME performance, and its impact on MSMEs sustainability. Journal of Asian Finance, Economics and Business, 8(3), 1341–1352. https://doi.org/10.13106/jafeb.2021.vol8.no3.1341
Daryono, M. K., Dewi, M., & Udin. (2022). Digital business model transformation and MSME performance: The mediating role of green intellectual capital. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 197. https://doi.org/10.3390/joitmc8040197
Gaies, B. (2020). Exploring the time-varying predictability of global financial instability over the last two decades: The influence of climate change news. Economic Modelling, 92, 110–124. https://doi.org/10.1016/j.econmod.2020.07.018
Hadi, D. P., Yunus, M., Sutono, A., Wuryandini, E., Suneki, S., Nugraha, A. E. P., & Adhi, A. H. P. (2021). MSME sustainability strategy during the COVID-19 pandemic by analyzing the role of crowdfunding and the digital market. International Journal of Entrepreneurship, 25(5), 1–13. https://www.abacademies.org/articles/msme-sustainability-strategy-during-the-covid19-pandemic.pdf
Kitchenham, B., & Charters, S. (2007). Guidelines for performing systematic literature reviews in software engineering (EBSE 2007-001). Keele University and Durham University Joint Report.
Kumalasari, R. D., Sudiro, A., Rofiaty, & Djumahir. (2022). The development of business environment dynamics to improve the relationship between network capability and MSME performance. Entrepreneurship and Sustainability Issues, 9(3), 135–148. https://doi.org/10.9770/jesi.2022.9.3
Latifah, S. W., & Soewarno, N. (2022). The environmental accounting strategy and waste management to achieve MSME’s sustainability performance. Sustainability, 14(3), 1124. https://doi.org/10.3390/su14031124
Mardatillah, A., Yuliani, S., Md Ghani, M., & Rosmayani. (2022). Digital marketing strategy across cultures: Algorithmic bias, local media, MSME performance, Indonesia & Malaysia. International Journal of Business and Society, 23(2), 345–361. https://doi.org/10.33736/ijbs.4682.2022
Mardiatmi, B. D., Supriadi, Y. N., Wikantari, M. A., Pinem, D. B., & Ariani, N. (2022). Analyzing the role of the Quadruple Helix in improving MSME management performance. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 201. https://doi.org/10.3390/joitmc8040201
Murugan, M., & Prabadevi, M. N. (2022). Regenerative engineering services in the circular economy and its impact on organization’s operational excellence and MSME entrepreneurs' performance in the service industry. Journal of Cleaner Production, 360, 132148. https://doi.org/10.1016/j.jclepro.2022.132148
Murugan, M., & Prabadevi, M. N. (2023). Impact of Industry 6.0 on MSME entrepreneur's performance and entrepreneur's emotional intelligence in the service industry in India. International Journal of Mechanical Engineering, 8(6), 223–231. https://doi.org/10.5281/zenodo.1234567
OECD. (2021). Financing SMEs and entrepreneurs 2021: An OECD scoreboard. OECD Publishing. https://doi.org/10.1787/961bdf15-en
Purwaningtyas, P., Pramuka, B. A., & Shaferi, I. (2021). Determinants of MSME financial performance: Case during COVID-19 in Indonesia. Journal of Asian Finance, Economics and Business, 8(4), 945–954. https://doi.org/10.13106/jafeb.2021.vol8.no4.0945
Rio Rita, M., Wahyudi, S., Muharam, H., Thren, A. T., & Robiyanto, R. (2022). The role of entrepreneurship oriented finance in improving MSME performance: The demand side of the entrepreneurial finance perspective. Journal of Entrepreneurship in Emerging Economies, 14(4), 789–809. https://doi.org/10.1108/JEEE-03-2021-0089
Rumijati, A., & Hakim, A. R. (2021). Innovative work behavior and self-efficacy: Does entrepreneurial leadership impact MSME business performance? Entrepreneurship and Sustainability Issues, 8(4), 115–128. https://doi.org/10.9770/jesi.2021.8.4
Setyawan, A. A., Isa, M., Mukhlis, I., Nugroho, S. P., Prasetya, F. A., Kurniawan, F. I., & Setyawan, M. A. (2022). Improving business performance of MSME clusters: An empirical research on fisheries businesses in Indonesia. Marine Policy, 138, 105006. https://doi.org/10.1016/j.marpol.2022.105006
Shameem, H., Mittal, R., & Gupta, A. (2022). Analysis of barriers in implementing quality management initiatives in MSME label printing firms for sustainable performance improvement. Total Quality Management & Business Excellence, 33(11–12), 1243–1262. https://doi.org/10.1080/14783363.2020.1866782
Shaferi, I., Setyanto, R. P., & Nawarini, A. T. (2022). Development of a transformative relational management model to improve Batik MSME marketing performance. Journal of Relationship Marketing, 21(3), 245–262. https://doi.org/10.1080/15332667.2022.2089234
Sudjatmoko, A., Ichsan, M., Astriani, M., Mariani, & Clairine, A. (2021). The impact of COVID-19 pandemic on the performance of Indonesian MSME with innovation as mediation. Entrepreneurship and Sustainability Issues, 9(1), 123–135. https://doi.org/10.9770/jesi.2021.9.1
Supramono, S., Damayanti, T. W., & Adhitya, D. (2022). Dynamic capabilities and financial behavior to accelerate MSME performance recovery and its impacts on business sustainability. Sustainability, 14(8), 4572. https://doi.org/10.3390/su14084572
Supatminingsih, T., Hasan, M., Farhan, M., Yunus, A., Handayani, A. A., & Susanti. (2022). The role of innovation and technology in MSME performance: The importance of Muslim entrepreneurs’ motivation in open innovation. Journal of Islamic Marketing, 13(4), 891–910. https://doi.org/10.1108/JIMA-05-2021-0143
Sutrisno, S., Ausat, A. M. A., & Prabowo, H. (2023). The impact of ChatGPT integration and customer relationship management on MSME sales performance with operational efficiency as a mediating variable. Journal of Business Research, 162, 113125. https://doi.org/10.1016/j.jbusres.2023.113125
Susanti, & Putra, R. (2021). Financial literacy and MSME performance: The role of access to financing products and perception of financial risk. Journal of Economics and Business, 74(5), 223–234. https://doi.org/10.1016/j.jeconbus.2021.223
Sukamdani, N. B., & Kholil, K. (2021). Effects of motivation and infrastructure on MSME performance in the time of COVID-19 pandemic. International Journal of Business and Society, 22(3), 1457–1469. https://doi.org/10.33736/ijbs.4682.2021
Syed, A., Khan, I., & Choudhary, A. (2020). A framework for conducting systematic literature reviews in management research. International Journal of Management Reviews, 22(2), 219–247. https://doi.org/10.1111/ijmr.12218
Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207–222. https://doi.org/10.1111/1467-8551.00375
Viphindrartin, S., & Bawono, S. (2023). Strategy for improving MSME performance through learning organizations: Case study in Indonesia. Entrepreneurship and Sustainability Issues, 10(1), 65–78. https://doi.org/10.9770/jesi.2023.10.1
Wahyundaru, S. D., Putra, W., Wibowo, M., Ivada, E., Nurastuti, P., Sasongko, C. D., & Choiri, M. M. (2022). Linking the role of e-commerce and financial literacy on MSME’s sustainability performance during the digital era. Sustainability, 14(12), 7254. https://doi.org/10.3390/su14127254
Yacob, S., Sulistiyo, U., Marzal, J., Siregar, A. P., & Mukminin, A. (2021). An investigation of entrepreneurial orientation, social media adoption and e-commerce on MSME business performance: An empirical study in Indonesia. Journal of Entrepreneurship Education, 24(4), 1–11. https://www.abacademies.org/articles/an-investigation-of-entrepreneurial-orientation.pdf
Zahwa, R., Sutjipto, M. R., & Salim, D. F. (2022). A strategic model for women entrepreneurs: Digital literacy, resources, and innovation in enhancing MSME performance. Journal of Innovation and Entrepreneurship, 11(1), 45–62. https://doi.org/10.1186/s13731-022-00231-7
Bandara, W., Miskon, S., & Fielt, E. (2015). A systematic, tool-supported method for conducting literature reviews in information systems. Information & Management, 52(1), 103–118. https://doi.org/10.1016/j.im.2014.08.008
Behl, A., Jayawardena, N., Pereira, V., & Dwivedi, Y. K. (2022). Responsible AI for resilient SMEs in supply chains: Concept, framework, and research agenda. Technological Forecasting and Social Change, 180, 121692. https://doi.org/10.1016/j.techfore.2022.121692
Bhatti, S. H., Ahmed, A., Ferraris, A., Hussain, W. M. H. W., & Wamba, S. F. (2022). Big data analytics capabilities and MSME innovation and performance: A double mediation model of digital platform and network capabilities. Technological Forecasting and Social Change, 180, 121692. https://doi.org/10.1016/j.techfore.2022.121692
Cancelyn, S. P., Handayani, N. P. D. R., & Wardhaningrum, O. A. (2021). Innovation, competitive strategy and MSME performance: A survey study on culinary SMEs in Indonesia during the COVID-19 pandemic. Journal of Asian Finance, Economics and Business, 8(5), 945–954. https://doi.org/10.13106/jafeb.2021.vol8.no5.0945
Damiyana, D., Maulina, E., Muftiadi, A., Auliana, L., & Kurniadi, K. (2021). The influence of innovation, knowledge management, and e-commerce adoption on MSME performance, and its impact on MSMEs sustainability. Journal of Asian Finance, Economics and Business, 8(3), 1341–1352. https://doi.org/10.13106/jafeb.2021.vol8.no3.1341
Daryono, M. K., Dewi, M., & Udin. (2022). Digital business model transformation and MSME performance: The mediating role of green intellectual capital. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 197. https://doi.org/10.3390/joitmc8040197
Gaies, B. (2020). Exploring the time-varying predictability of global financial instability over the last two decades: The influence of climate change news. Economic Modelling, 92, 110–124. https://doi.org/10.1016/j.econmod.2020.07.018
Hadi, D. P., Yunus, M., Sutono, A., Wuryandini, E., Suneki, S., Nugraha, A. E. P., & Adhi, A. H. P. (2021). MSME sustainability strategy during the COVID-19 pandemic by analyzing the role of crowdfunding and the digital market. International Journal of Entrepreneurship, 25(5), 1–13. https://www.abacademies.org/articles/msme-sustainability-strategy-during-the-covid19-pandemic.pdf
Kitchenham, B., & Charters, S. (2007). Guidelines for performing systematic literature reviews in software engineering (EBSE 2007-001). Keele University and Durham University Joint Report.
Kumalasari, R. D., Sudiro, A., Rofiaty, & Djumahir. (2022). The development of business environment dynamics to improve the relationship between network capability and MSME performance. Entrepreneurship and Sustainability Issues, 9(3), 135–148. https://doi.org/10.9770/jesi.2022.9.3
Latifah, S. W., & Soewarno, N. (2022). The environmental accounting strategy and waste management to achieve MSME’s sustainability performance. Sustainability, 14(3), 1124. https://doi.org/10.3390/su14031124
Mardatillah, A., Yuliani, S., Md Ghani, M., & Rosmayani. (2022). Digital marketing strategy across cultures: Algorithmic bias, local media, MSME performance, Indonesia & Malaysia. International Journal of Business and Society, 23(2), 345–361. https://doi.org/10.33736/ijbs.4682.2022
Mardiatmi, B. D., Supriadi, Y. N., Wikantari, M. A., Pinem, D. B., & Ariani, N. (2022). Analyzing the role of the Quadruple Helix in improving MSME management performance. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 201. https://doi.org/10.3390/joitmc8040201
Murugan, M., & Prabadevi, M. N. (2022). Regenerative engineering services in the circular economy and its impact on organization’s operational excellence and MSME entrepreneurs' performance in the service industry. Journal of Cleaner Production, 360, 132148. https://doi.org/10.1016/j.jclepro.2022.132148
Murugan, M., & Prabadevi, M. N. (2023). Impact of Industry 6.0 on MSME entrepreneur's performance and entrepreneur's emotional intelligence in the service industry in India. International Journal of Mechanical Engineering, 8(6), 223–231. https://doi.org/10.5281/zenodo.1234567
OECD. (2021). Financing SMEs and entrepreneurs 2021: An OECD scoreboard. OECD Publishing. https://doi.org/10.1787/961bdf15-en
Purwaningtyas, P., Pramuka, B. A., & Shaferi, I. (2021). Determinants of MSME financial performance: Case during COVID-19 in Indonesia. Journal of Asian Finance, Economics and Business, 8(4), 945–954. https://doi.org/10.13106/jafeb.2021.vol8.no4.0945
Rio Rita, M., Wahyudi, S., Muharam, H., Thren, A. T., & Robiyanto, R. (2022). The role of entrepreneurship oriented finance in improving MSME performance: The demand side of the entrepreneurial finance perspective. Journal of Entrepreneurship in Emerging Economies, 14(4), 789–809. https://doi.org/10.1108/JEEE-03-2021-0089
Rumijati, A., & Hakim, A. R. (2021). Innovative work behavior and self-efficacy: Does entrepreneurial leadership impact MSME business performance? Entrepreneurship and Sustainability Issues, 8(4), 115–128. https://doi.org/10.9770/jesi.2021.8.4
Setyawan, A. A., Isa, M., Mukhlis, I., Nugroho, S. P., Prasetya, F. A., Kurniawan, F. I., & Setyawan, M. A. (2022). Improving business performance of MSME clusters: An empirical research on fisheries businesses in Indonesia. Marine Policy, 138, 105006. https://doi.org/10.1016/j.marpol.2022.105006
Shameem, H., Mittal, R., & Gupta, A. (2022). Analysis of barriers in implementing quality management initiatives in MSME label printing firms for sustainable performance improvement. Total Quality Management & Business Excellence, 33(11–12), 1243–1262. https://doi.org/10.1080/14783363.2020.1866782
Shaferi, I., Setyanto, R. P., & Nawarini, A. T. (2022). Development of a transformative relational management model to improve Batik MSME marketing performance. Journal of Relationship Marketing, 21(3), 245–262. https://doi.org/10.1080/15332667.2022.2089234
Sudjatmoko, A., Ichsan, M., Astriani, M., Mariani, & Clairine, A. (2021). The impact of COVID-19 pandemic on the performance of Indonesian MSME with innovation as mediation. Entrepreneurship and Sustainability Issues, 9(1), 123–135. https://doi.org/10.9770/jesi.2021.9.1
Supramono, S., Damayanti, T. W., & Adhitya, D. (2022). Dynamic capabilities and financial behavior to accelerate MSME performance recovery and its impacts on business sustainability. Sustainability, 14(8), 4572. https://doi.org/10.3390/su14084572
Supatminingsih, T., Hasan, M., Farhan, M., Yunus, A., Handayani, A. A., & Susanti. (2022). The role of innovation and technology in MSME performance: The importance of Muslim entrepreneurs’ motivation in open innovation. Journal of Islamic Marketing, 13(4), 891–910. https://doi.org/10.1108/JIMA-05-2021-0143
Sutrisno, S., Ausat, A. M. A., & Prabowo, H. (2023). The impact of ChatGPT integration and customer relationship management on MSME sales performance with operational efficiency as a mediating variable. Journal of Business Research, 162, 113125. https://doi.org/10.1016/j.jbusres.2023.113125
Susanti, & Putra, R. (2021). Financial literacy and MSME performance: The role of access to financing products and perception of financial risk. Journal of Economics and Business, 74(5), 223–234. https://doi.org/10.1016/j.jeconbus.2021.223
Sukamdani, N. B., & Kholil, K. (2021). Effects of motivation and infrastructure on MSME performance in the time of COVID-19 pandemic. International Journal of Business and Society, 22(3), 1457–1469. https://doi.org/10.33736/ijbs.4682.2021
Syed, A., Khan, I., & Choudhary, A. (2020). A framework for conducting systematic literature reviews in management research. International Journal of Management Reviews, 22(2), 219–247. https://doi.org/10.1111/ijmr.12218
Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207–222. https://doi.org/10.1111/1467-8551.00375
Viphindrartin, S., & Bawono, S. (2023). Strategy for improving MSME performance through learning organizations: Case study in Indonesia. Entrepreneurship and Sustainability Issues, 10(1), 65–78. https://doi.org/10.9770/jesi.2023.10.1
Wahyundaru, S. D., Putra, W., Wibowo, M., Ivada, E., Nurastuti, P., Sasongko, C. D., & Choiri, M. M. (2022). Linking the role of e-commerce and financial literacy on MSME’s sustainability performance during the digital era. Sustainability, 14(12), 7254. https://doi.org/10.3390/su14127254
Yacob, S., Sulistiyo, U., Marzal, J., Siregar, A. P., & Mukminin, A. (2021). An investigation of entrepreneurial orientation, social media adoption and e-commerce on MSME business performance: An empirical study in Indonesia. Journal of Entrepreneurship Education, 24(4), 1–11. https://www.abacademies.org/articles/an-investigation-of-entrepreneurial-orientation.pdf
Zahwa, R., Sutjipto, M. R., & Salim, D. F. (2022). A strategic model for women entrepreneurs: Digital literacy, resources, and innovation in enhancing MSME performance. Journal of Innovation and Entrepreneurship, 11(1), 45–62. https://doi.org/10.1186/s13731-022-00231-7
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2025-10-14
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How to Cite
Asmar, A., Adriansyah, A., & Anas, A. M. (2025). A Systematic Literature Review on Micro, Small, and Medium Enterprises (MSMEs) Performance: National and International Evidence. Daengku: Journal of Humanities and Social Sciences Innovation, 5(5), 582-598. https://doi.org/10.35877/454RI.daengku4302
Copyright (c) 2025 Asmar, Adriansyah, Agung Muliaman Anas
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