Vol.14, No.3, August 2025.                                                                                                                                                                          ISSN: 2217-8309

                                                                                                                                                                                                                        eISSN: 2217-8333

TEM Journal

TECHNOLOGY, EDUCATION, MANAGEMENT, INFORMATICS

Association for Information Communication Technology Education and Science

Exploring the Innovation Factor: A Systematic Review of SME Performance

Nur Yuhainis Ab Wahab, Mohamad Rohieszan Ramdan, Muhammad Fadzly Bin Zakaria, Mohamad Hanif Abu Hassan, Norlaile Salleh Hudin, Crister Kujat

© 2025 Nur Yuhainis Ab Wahab, published by UIKTEN. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. (CC BY-NC-ND 4.0)

Citation Information: TEM Journal. Volume 14, Issue 3, Pages 2134-2145, ISSN 2217-8309, DOI: 10.18421/TEM143-20, August 2025.

Received: 02 November 2024.

Revised: 12 May 2025.
Accepted: 11 June 2025.
Published: 27 August 2025.

Abstract:

This systematic literature review examines the crucial role of innovation in enhancing the performance of small and medium enterprises (SMEs). In order to succeed in competitive environments, innovation, which is the driving force of development, SMEs appear as a foundation. The study employs an established approach and follows Kraus's guidelines to ensure transparency and consistency in the evaluation process. The review analyzes four primary themes: innovation capabilities, organizational culture, strategic focus, and operational characteristics. Within these themes, eight sub-themes are identified as essential for understanding the relationship between innovation and success in small and medium-sized enterprises. Moreover, it promotes the need for future studies to prioritize qualitative methods, specifically in Asian settings, while allowing for the employing of various search strategies such as snowballing and citation tracking. Additionally, the study recommends using bibliometric analysis or meta-analysis to better understand this complex link and offer useful guidance for SMEs attempting to innovate.

Keywords – Systematic literature review, innovation, SME performance, Malaysia.

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