Brilliant International Journal Of Management And Tourism (BIJMT) Vol. 3, No. 3 Oktober 2023 e-ISSN: 2827-8380; p-ISSN: 2810-076X; Hal 63-77 DOI: https://doi.org/10.55606/bijmt.v3i3. Received Agustus 30, 2023; Revised September 2, 2023; Accepted Oktober 19, 2023 * Amelia Sugganga, amelia.sugangga.2304139@students.um.ac.id Measuring The Contribution Of Financial Literacy In Building The Competitive Advantage Of Msmes In Indonesia : Systematic Literature Review (SLR) Amelia Sugangga 1 , Puji Handayati 2 , Mohammad Arief 3 1 Student Management Doctoral, Universitas Negeri Malang 2,3 Lecturer Management Doctoral, Universitas Negeri Malang Address: Jl. Semarang No. 5, Sumbersari , Kec . Lowokwaru , Malang City, East Java 65145 Corresponding author: amelia.sugangga.2304139@students.um.ac.id Abstract . A country's economic growth cannot be separated from the role of Micro, Small and Medium Enterprises (MSMEs) as the backbone of a strong economy. MSMEs experience various problems, including limited access to resources, inadequate infrastructure, and the inability to compete on a larger scale. These factors become obstacles for MSMEs to optimize their potential and compete in an increasingly complex market . It is important for MSME players to improve their product advantages or marketing strategies, because MSMEs are one of the important business sectors in Indonesia. There are not many studies that systematically measure the contribution of financial literacy in building the competitive advantage of MSMEs, especially in the Indonesian context. This research tries to open a new space by using the Systematic Literature Review (SLR) method to detail the understanding of the concept of financial literacy and its implications for the competitive advantage of MSMEs in Indonesia. The importance of this research lies in the urgency to provide a more comprehensive view of how financial literacy can make a concrete contribution in establishing and maintaining the competitive advantage of MSMEs. Results of this research state that Financial literacy has a significant role in helping MSMEs face financial challenges and compete in a dynamic market. It is hoped that the results of this research can provide practical and policy implications for stakeholders, government and business people in increasing the financial literacy of MSMEs, so as to create an environment that supports the growth and competitiveness of MSMEs in Indonesia. Keywords : MSMEs, Financial Literacy, Competitive Advantage. INTRODUCTION A country's economic growth cannot be separated from the role of Micro, Small and Medium Enterprises (MSMEs) as the backbone of a strong economy. In Indonesia, the MSME sector contributes significantly to job creation and national economic growth. However, MSMEs often face challenges in facing global competition and changing market dynamics. In Indonesia, the MSME sector plays a vital role in the economic structure. The presence of MSMEs helps balance economic distribution, especially in remote areas. However, MSMEs in Indonesia are also faced with various challenges such as limited access to capital, technology and markets. MSMEs experience various problems, including limited access to resources, inadequate infrastructure, and the inability to compete on a larger scale. These factors become obstacles for MSMEs to optimize their potential and compete in an increasingly complex market. According to Sun & Lee, (2019); Vătămănescu et al., (2019) One of the critical aspects faced by MSMEs is the challenge of building and maintaining competitive advantage.