Influential factors of small and medium-sized enterprises growth across developed and developing countries: A systematic literature review

Abstract

Small and medium-sized enterprises (SMEs) are contributors to economic growth. Many studies have mentioned a broad range of factors that influence the development of SMEs. However, studies examining SME growth between developed and developing countries have not been comprehensively investigated. The growth of SMEs relies on the entrepreneurial skills of the entrepreneur, who has the ability to manage business effectively, achieve profit, identify market opportunities, and enhance innovation by optimizing all available resources. The objective of this article was to synthesize the factors that influence the growth of small and medium-sized enterprises (SMEs) across developed and developing countries. This study particularly synthesized interrelationship factors depicted in a framework addressing resources and capabilities for SME growth. A systematic literature review (SLR) was employed to examine the research activities on this topic, referring to 108 articles from the Scopus and Web of Sciences databases. The articles synthesized individual studies to analyze the trend of SME growth research in developed and developing countries. Next, the factors of SME growth were identified into 6 (six) categories, including human capital resources, entrepreneurial perspectives on marketing, innovation, SMEs partnership, technology, and entrepreneur personality. The result represents that the factor extensively studied concerning SME growth is innovation capability, both in developed and developing countries. Differences exist in both critical factors and interrelationships among factors in developed and developing countries, particularly in the innovation capability, SME partnership and marketing capabilities.