Business model innovation in SMEs for sustainable and digital transformation: a systematic review and integrative framework

Abstract

Small- and medium-sized enterprises (SMEs) increasingly need to reconfigure how they create, deliver, and capture value in response to digitalisation, sustainability demands, and environmental uncertainty. This study systematically reviews 162 English-language articles published in SSCI-indexed journals to integrate fragmented research on business model innovation (BMI) in SMEs. Descriptive analysis, keyword co-occurrence analysis, and article-level qualitative content analysis are combined. The findings identify four broad knowledge domains and show that 41 studies treat BMI primarily as an outcome, 44 as an organisational process, 17 as an antecedent of subsequent outcomes, and 36 as part of a combined causal relationship; a further 24 studies are descriptive or typological. Across these roles, the literature explains BMI through resource mobilisation, entrepreneurial action logics, absorptive and dynamic capabilities, experimentation, and network mobilisation. Its effects on performance, growth, resilience, internationalisation, and sustainability depend on complementary resources, implementation capabilities, stakeholder alignment, and environmental conditions. The evidence supports an adaptive and iterative interpretation of SME BMI, but direct evidence of recursive feedback remains limited. Resource constraints also have conditional effects, stimulating bricolage and focused experimentation in some circumstances while inhibiting substantive change when shortages become severe. The review provides an integrative synthesis specific to SMEs and advances digital business model innovation research by explaining how digital pressures are translated into changes in value proposition, value creation and delivery, and value capture through organisational and relational mechanisms.