Determinants of Business Sustainability in MSMEs: A Systematic Literature Review
DOI:
https://doi.org/10.59971/meta-journal.v3i3.391Keywords:
Knowledge Management Capability, Relational Capability, Digital Transformation, Business Sustainability, Digital Banking Application, Government Policy SupportAbstract
An increasingly dynamic and competitive business environment in the digital era compels Micro, Small, and Medium Enterprises (MSMEs) to develop adaptive strategies and capabilities to maintain their sustainability. However, many MSMEs still face challenges in integrating internal resources and external opportunities to achieve long-term resilience. Therefore, this study aims to systematically identify and synthesize the key determinants influencing MSME business sustainability, focusing on managerial, technological, and relational capabilities, as well as relevant external conditions. The research employs a Systematic Literature Review (SLR) approach following the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) protocol, analyzing publications indexed in the Scopus database from 2015 to 2025. The findings reveal that Knowledge Management Capability, Relational Capability, Digital Transformation, and Organizational Agility are critical internal factors enhancing innovation, operational efficiency, and business resilience. Meanwhile, external factors such as government policy support and strategic collaboration significantly strengthen MSME sustainability. The study concludes that integrating internal capabilities with external support creates a synergistic framework that is essential for ensuring the long-term success and competitiveness of MSMEs in a rapidly evolving business landscape.
Downloads
References
Alake, O. R., Adegbuyi, O., Babajide, A. A., Salau, O. P., Onayemi, O. O., Joel, O. O., & Adesanya, O. D. (2024). Business Model Innovation and Smes’ Resilience: Technological Roadmap in Nigeria. Business: Theory and Practice, 25(2), 614–624. https://doi.org/10.3846/btp.2024.18978
Avelar, S., Borges-Tiago, T., Almeida, A., & Tiago, F. (2024). Confluence of sustainable entrepreneurship, innovation, and digitalization in SMEs. Journal of Business Research, 170. https://doi.org/10.1016/j.jbusres.2023.114346
Bachtiar, N. K., Setiawan, A., Prastyan, G. A., & Kijkasiwat, P. (2023). Business resilience and growth strategy transformation post crisis. Journal of Innovation and Entrepreneurship, 12(1). https://doi.org/10.1186/s13731-023-00345-5
Barriga, R. H., & Escandon-Barbosa, D. (2024). Synergizing board dynamics, sustainability, and strategy for international success. Corporate Social Responsibility and Environmental Management, 31(4), 3368–3378. https://doi.org/10.1002/csr.2742
Cancela, B. L., Coelho, A., & Duarte Neves, M. E. (2023). Greening the business: How ambidextrous companies succeed in green innovation through to sustainable development. Business Strategy and the Environment, 32(6), 3073–3087. https://doi.org/10.1002/bse.3287
Carlsson, R., & Nevzorova, T. (2025). Measuring sustainable transformation of small and medium-sized enterprises using management systems standards. Business Strategy and the Environment, 34(1), 708–723. https://doi.org/10.1002/bse.3995
de Andrade, R. D., Benfica, V. C., de Oliveira, H. V. E., & Suchek, N. (2025). Investigating green jobs and sustainability in SMEs: Beyond business operations. Journal of Cleaner Production, 486. https://doi.org/10.1016/j.jclepro.2024.144477
De Angelis, R. (2024). Circular economy business models as progressive business models: Evidence from circular start-ups. Business Strategy and the Environment, 33(7), 6303–6314. https://doi.org/10.1002/bse.3821
Dressler, M. (2023). Generic strategic profiling of entrepreneurial SMEs – environmentalism as hygiene factor. International Entrepreneurship and Management Journal, 19(1), 121–150. https://doi.org/10.1007/s11365-022-00809-2
Dvorsky, J., Frajtova-Michalikova, K., & Zvarikova, K. (2024). Effect of Selected Determinants on the Sustainability of SMEs: Does Gender Matter? Administrative Sciences, 14(11). https://doi.org/10.3390/admsci14110281
Elmi, M. A., Abdulkadir, F. O., Mohamud, A. M., Osman, N. H., & Abdi, I. A. (2025). Exploring the effect of financial technology on the sustainability of small and medium enterprises in Mogadishu, Somalia. Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2025.2460624
Ferraro, G., Passaro, R., Quinto, I., & Thomas, A. (2025). The process supporting the emergence of the environmental innovation capabilities within small businesses: An empirical investigation. Business Strategy and the Environment, 34(1), 1027–1042. https://doi.org/10.1002/bse.4015
George, W. (2025). Entrepreneurial orientation and business outcomes: Evidence from agro-dealers in Dodoma City, Tanzania. Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2025.2479172
Gomes, S., & Pinho, M. (2023). Can we count on the commitment of European SMEs to achieve SGD12? An exploratory study of business sustainability. Journal of Cleaner Production, 425. https://doi.org/10.1016/j.jclepro.2023.139016
González-Prida, V., Pariona-Amaya, D., Sánchez-Soto, J. M., Barzola-Inga, S. L., Aguado-Riveros, U., Moreno-Menéndez, F. M., & Villar-Aranda, M. D. (2025). Exploring the Effects of Financial Knowledge on Better Decision-Making in SMEs. Administrative Sciences, 15(1). https://doi.org/10.3390/admsci15010024
Hasiara, L. O., Diah, A. M., Widyanto, E. A., Hasriadi, L. M., & Yudaruddin, R. (2025). Investigating the direct and indirect effects of accounting practices on business information and entrepreneurial growth in the supporting regions of indonesia’s new capital city. Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2025.2519967
Herbert, S., Bradley, P., & Everard, M. (2023). Exploring the prioritisation of biodiversity amongst small- to medium-sized enterprise leaders with strong bigger-than-self value orientation. Business Strategy and the Environment, 32(8), 5633–5649. https://doi.org/10.1002/bse.3440
Herrero, I., López, C., & Ruiz-Benítez, R. (2024). So … are family firms more sustainable? On the economic, social and environmental sustainability of family SMEs. Business Strategy and the Environment, 33(5), 4252–4270. https://doi.org/10.1002/bse.3699
Imran, A., Sufyan, A., Tajammul, A., Gavurová, B., & Novák, P. (2023). an Economic Prognostic Study To Examine the Productivity of Agricultural Smes of Central Europe During the Covid-19 Crisis. Business: Theory and Practice, 24(2), 425–437. https://doi.org/10.3846/btp.2023.17548
Iqbal, U. P., Nooney, L. K., Al Ghafri, F. S. S., & Daniel, T. M. (2025). Sustainable business practices in SMEs: a retrospective insight on catalysts and hurdles. Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2025.2456114
Jabbour Al Maalouf, N., El Achi, S., & Balouza, M. (2025). Transformational leadership, innovation, and performance of SMEs in Europe. Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2025.2473683
Kato, A. I., Chiloane-Tsoka, E. G., & Mugambe, P. (2024). Unlocking the potential: the influence of sustainable finance solutions on the long-term sustainability of small and medium-sized enterprises. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2391122
Le, T. T., & Govindan, K. (2024). Boosting green innovation on corporate performance: Managerial environmental concern’s moderating role. Business Strategy and the Environment, 33(7), 6254–6274. https://doi.org/10.1002/bse.3795
Llivisaca-Villazhañay, J., Flores-Siguenza, P., Guamán, R., Urdiales, C., & Gento-Municio, Á. M. (2025). Key Drivers of ERP Implementation in Digital Transformation: Evidence from Austro-Ecuadorian. Administrative Sciences, 15(6). https://doi.org/10.3390/admsci15060196
Madhavan, M., Sharafuddin, M. A., & Wangtueai, S. (2024). Impact of Industry 5.0 Readiness on Sustainable Business Growth of Marine Food Processing SMEs in Thailand. Administrative Sciences, 14(6). https://doi.org/10.3390/admsci14060110
Manolchev, C., Cherrington, R., & Crabolu, G. (2024). Untangling circularity: Transitioning to a regional circular economy in the clothing and textile sector in England. Journal of Cleaner Production, 482. https://doi.org/10.1016/j.jclepro.2024.144188
Manyaga, M. B., Goldman, G. A., & Thomas, P. (2024). Sustaining SMEs through Indigenous Knowledge Systems: Exploring opportunities and challenges. Southern African Journal of Entrepreneurship and Small Business Management, 16(1), 1–12. https://doi.org/10.4102/SAJESBM.V16I1.882
Mazhar, M. U., Domingues, A. R., Yakar-Pritchard, G., Bull, R., & Ling, K. (2024). Reaching for net zero: The impact of an innovative university-led business support programme on carbon management strategy and practices of small and medium-sized enterprises. Business Strategy and the Environment, 33(7), 6940–6960. https://doi.org/10.1002/bse.3844
Megawati, S., Herdiansyah, H., Machmud, A., Antriyandarti, E., & Sudirman, S. (2024). Integrating Circular Economy, Digital Economy, and Social Protection Policies To Drive Green Business Innovation: Insights From Indonesia’S Culinary Smes. Problems and Perspectives in Management, 22(4), 368–381. https://doi.org/10.21511/ppm.22(4).2024.28
Perramon, J., Bagur-Femenías, L., Alonso-Almeida, M. del M., & Llach, J. (2024). Does the transition to a circular economy contribute to business resilience and transformation? Evidence from SMEs. Journal of Cleaner Production, 453. https://doi.org/10.1016/j.jclepro.2024.142279
Pham, C. M., Lokuge, S., Ho, N. T. T., Le, H. N. M., & Ho, D. Q. (2025). Exploring Knowledge Management Enablers Towards Attaining Sustainability Goals in Vietnamese Family Businesses. Business Strategy and the Environment, 34(5), 6229–6248. https://doi.org/10.1002/bse.4288
Rajan Kumar, V. K., Saunila, M., Rantala, T., & Ukko, J. (2025). The interplay between smart technologies, business sustainability, and environmental sustainability: An empirical analysis of SMEs. Corporate Social Responsibility and Environmental Management, 32(1), 835–848. https://doi.org/10.1002/csr.2966
Sabando-Vera, D., Montalván-Burbano, N., Parrales-Guerrero, K., Yonfá-Medranda, M., & Plaza-Úbeda, J. A. (2025). Growing a greener future: A bibliometric analysis of green innovation in SMEs. Technological Forecasting and Social Change, 212. https://doi.org/10.1016/j.techfore.2025.123976
Schröder, S., Wiek, A., Farny, S., & Luthardt, P. (2023). Toward holistic corporate sustainability—Developing employees’ action competence for sustainability in small and medium-sized enterprises through training. Business Strategy and the Environment, 32(4), 1650–1669. https://doi.org/10.1002/bse.3210
Singh, V. K., Keshari, A., Singh, D., Singh, P. C., & Gautam, A. (2024). Green export strategies and SMEs export performance: mediating roles of innovation, readiness, and activities. Journal of Innovation and Entrepreneurship, 13(1). https://doi.org/10.1186/s13731-024-00451-y
Sohns, T. M., Aysolmaz, B., Figge, L., & Joshi, A. (2023). Green business process management for business sustainability: A case study of manufacturing small and medium-sized enterprises (SMEs) from Germany. Journal of Cleaner Production, 401. https://doi.org/10.1016/j.jclepro.2023.136667
Sukri, N. K. A., Zulkiffli, S. N. ‘Atikah, Mat, N. H. N., Omar, K., Mawardi, M. K., & Zaidi, N. F. Z. (2023). An Analysis of Eco-Innovation Capabilities among Small and Medium Enterprises in Malaysia. Administrative Sciences, 13(4). https://doi.org/10.3390/admsci13040113
Sultana, N., Alam, S. M. S., & Bokhari, R. P. (2025). Exploring cashless technology continuance among SME entrepreneurs: an integrated approach with sustainability mediation and demographic moderation. Journal of Innovation and Entrepreneurship, 14(1). https://doi.org/10.1186/s13731-025-00522-8
Tuffour, J., Acheampong, A., Mensah-Williams, E., & Hector Amonoo, J. (2025). Debt capital access procedures for small and medium-sized enterprises in an emerging economy: does financial knowledge matter? Cogent Business and Management, 12(1). https://doi.org/10.1080/23311975.2025.2508368
Valdez-Juárez, L. E., Ramos-Escobar, E. A., Hernández-Ponce, O. E., & Ruiz-Zamora, J. A. (2024). Digital transformation and innovation, dynamic capabilities to strengthen the financial performance of Mexican SMEs: a sustainable approach. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2318635
van Wyk, I. (2023). Strategic decision-making in small and medium enterprises in South Africa. Southern African Journal of Entrepreneurship and Small Business Management, 15(1). https://doi.org/10.4102/SAJESBM.V15I1.684
Westman, L., Luederitz, C., Kundurpi, A., Mercado, A. J., & Burch, S. L. (2023). Market transformations as collaborative change: Institutional co-evolution through small business entrepreneurship. Business Strategy and the Environment, 32(2), 936–957. https://doi.org/10.1002/bse.3083
Zaman, M., Tanewski, G., & Ekanayake, G. (2025). What does sustainability mean for small and medium enterprises: A systematic literature review. Journal of Cleaner Production, 492. https://doi.org/10.1016/j.jclepro.2025.144830
