Innovation and Performance of MSMEs: A Systematic Literature Review

MSMEs have been considered as one of the safety valves to overcome unfavorable economic conditions. Because MSMEs are growing and developing which can absorb labor. As a result, MSMEs are considered to be able to reduce unemployment. business is increasing. One way for companies/MSMEs to be competitive is to innovate. Many discussions are sometimes still debatable stating that innovation has a role that can affect company performance. Therefore, this article aims to provide a clearer understanding on the Role of Innovation on MSME Performance by conducting a systematic literature review of 12 relevant publication articles from 2015 to 2025.The results of the analysis identify that Innovation (product innovation, marketing innovation, process innovation and organizational innovation) has a significant influence on SME performance in various countries