<![CDATA[The extent of digital transformation has influenced micro, small, and medium enterprises (MSMEs) to use Internet of Things (IoT)–based information systems to mitigate certain operational inconsistencies. The objective of this research is to find out the impact of IoT-based information systems on the operational efficiency of MSMEs in the context of the digital transformation. Using the systematic literature review methodology with the PRISMA approach, this research evaluates 20 peer-reviewed articles published from 2020 to 2025 and sourced from Google Scholar. The results show that operational efficiency within IoT-based information systems is enhanced and achieved through the ability to collect data in real-time, automate processes, greater monitoring, and the mitigation of human error. The extent of the efficiency gains, however, differs from one context to the other. Additionally, the efficiency gains are influenced by the level of infrastructure, digital skills, managerial proficiency, and system collaboration. The review also differentiates that incomplete and sporadic IoT adoption mainly restricts the possible rewards. The findings of this research indicate that within MSMEs, the IoT phenomenon should be viewed as a valuable operational resource and not merely an advancement in technology.]]>
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