THE INTERPLAY OF FINANCE AND GREEN STRATEGIES IN MSME GROWTH: A SYSTEMATIC REVIEW
Keywords:
MSME Growth, Green Strategy, Circular Economy, Financial Strategy, Digital TransformationAbstract
This systematic literature review synthesizes empirical research from the last decade to investigate the synergistic interplay between financial strategies and green initiatives in driving the growth of Micro, Small, and Medium-sized Enterprises (MSMEs). The transition towards a circular economy and sustainable development presents both a significant challenge and a strategic opportunity for MSMEs, which are often constrained by limited resources and capabilities. This study aims to map the conceptual and empirical landscape, identifying key mechanisms, outcomes, and research gaps. Employing the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, we systematically analyzed 65 peer-reviewed articles from the Scopus and Web of Science databases, published between 2014 and 2024. Quantitative analysis of publication trends reveals a marked 120% increase in relevant research output post-2019. Thematic analysis identified four primary clusters of interplay: 1) Digital Finance and Green Innovation, 2) Strategic Management and Green Capabilities, 3) Technology Adoption and Green Performance, and 4) Supply Chain Integration and Value Creation. A key finding is that MSMEs integrating FinTech solutions with circular economy practices report a 25-40% higher improvement in sustainability performance metrics compared to those adopting isolated strategies. The discussion elucidates how digital platforms and an entrepreneurial mindset act as critical moderators, enabling MSMEs to overcome financial and technical barriers to green transition. This review contributes a coherent framework that links financial enablers with green strategic actions, offering actionable insights for MSME managers and policymakers to foster resilient and sustainable growth. Limitations include a potential bias towards English-language publications and the evolving nature of the field. Future research should employ longitudinal designs to establish causality and explore sector-specific dynamics.
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