Abstract
Microfinance institutions are challenged by changes in competition, which impact them in various ways. Competition among microfinance institutions is unique because service to the poor, rather than profit alone, is their primary goal. Scientific research on microfinance institutions has increased dramatically over the last two decades. However, previous research lacked a systematic approach in reviewing the literature on the impact of competition in microfinance institutions. This study bridges this gap by reviewing 67 journal articles regarding competition among microfinance institutions. It outlines existing research topics related to the impact of competition on microfinance institutions and offers recommendations for future research. We referred to the RepOrting Standards for Systematic Evidence Syntheses review protocol to conduct a systematic literature review. We also conducted a bibliometric analysis for thematic observations. The results revealed the following four clusters on the impact of competition: social impact, performance, market structure, and relationships with other financial institutions. In conclusion, competition will positively impact microfinance institutions if they accept its inevitability and strive to adapt. Moreover, this study suggests a direction for subsequent research on policies.