Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in economic growth, employment generation, and innovation. However, MSMEs face several challenges, including limited resources, market uncertainty, technological changes, and increasing pressure to adopt sustainable business practices. Business Model Innovation (BMI) has become an important strategy that helps MSMEs improve competitiveness, sustainability, and organisational resilience by changing the way they create, deliver, and capture value. This study presents a systematic literature review of peer-reviewed articles published between 2016 and 2025, following the Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR) framework. A total of 54 articles were selected from the Scopus and Web of Science databases. The review is analysed using the Theory-Context-Characteristics-Methodology (TCCM) and Antecedents-Decisions-Outcomes (ADO) frameworks to examine the theories, contexts, methods, drivers, and outcomes related to BMI in MSMEs. The findings show that research on BMI in MSMEs has increased significantly in recent years. The study identifies four major drivers of BMI adoption: resource constraints, institutional pressures, managerial orientation, and digital capabilities. However, the existing literature remains theoretically fragmented and mainly focused on cross-sectional quantitative studies, with limited attention to sustainability and resilience perspectives. This study provides a clear and structured understanding of BMI research and also suggests future research directions, including the need for longitudinal studies, comparative regional analysis, and greater integration of sustainability, resilience, and digital transformation in MSME business models.
Priya et al. (Fri,) studied this question.