Business Innovation Ecosystems for SMEs in the Digital and Sustainable Economy

Abstract

This article examines how business innovation ecosystems help SMEs innovate while pursuing digital transformation and sustainability goals, and which ecosystem mechanisms most influence SME performance. The study’s role is to consolidate fragmented findings into a coherent account of how platforms, networks, and institutions shape SME innovation pathways. A systematic literature review of peer reviewed studies published from 2020 to 2024 was conducted to synthesize evidence on ecosystem structures, governance conditions, and capability development. The synthesized results indicate that SMEs gain the greatest benefits when ecosystem participation is coupled with internal capability building and business model innovation, and when governance arrangements clarify roles, interfaces, and value capture. The article discusses the literature through four analytic lenses: ecosystem governance, capability reconfiguration and dynamic capabilities, sustainability oriented open innovation, and orchestration practices that coordinate partners and align incentives. Overall, ecosystems can amplify SME innovation, but outcomes remain contingent on governance quality, interoperability, and robust sustainability measurement.