<![CDATA[The increasingly dynamic business environment requires business actors to continuously innovate in order to maintain their competitiveness. In this context, Innovative Work Behavior (IWB) has become a crucial factor influenced by various psychological aspects, particularly Psychological Capital (PsyCap) and Work Engagement (WE). Although the relationships among these variables have been widely investigated, previous studies have reported inconsistent findings and have predominantly focused on formal organizational settings, while research in Micro, Small, and Medium Enterprises (MSMEs) remains limited. This study aims to synthesize empirical findings on the relationships among Psychological Capital, Work Engagement, and Innovative Work Behavior, while identifying research gaps and future research opportunities in the MSME context. This study employed a Systematic Literature Review (SLR) approach following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. A total of 20 journal articles published between 2022 and 2025 were selected based on predetermined inclusion and exclusion criteria and analyzed using thematic synthesis. The findings indicate that Psychological Capital consistently has a positive influence on both Work Engagement and Innovative Work Behavior. Furthermore, Work Engagement serves as a significant mediating mechanism linking Psychological Capital to Innovative Work Behavior. This review also reveals the limited number of studies conducted within the MSME context, particularly among government-assisted MSMEs. Therefore, future research is recommended to examine the Psychological Capital–Work Engagement–Innovative Work Behavior model across different MSME settings to enrich both theoretical and practical perspectives in human resource management.]]>
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