In today’s fast-paced business environment, firms are constantly pressured to innovate in order to remain competitive. Business model innovation (BMI) has recently attracted increasing attention as a promising approach to achieve competitive advantage in the face of fierce competition. Despite its great potential, however, BMI also entails high degrees of complexity, uncertainty and financial risk. Fueled by the rise of digital technologies, BMI has become increasingly open and collaborative in the recent past. The aim of this paper is to investigate the role and implications of open and collaborative practices in BMI and to provide a comprehensive review of available literature in this field. Therefore, a systematic review of literature at the intersection of Open Innovation (OI) and BMI has been carried out. Our analysis of the literature identified two major research streams in open business model innovation (OBMI): OBMI trends (customer-driven BMI, BM co-creation, early BM validation, virtual collaboration, design thinking) and OBMI effects. Overall, the findings support a growing trend of collaboration and co-creation in BMI supported by digital or tangible tools, and further reveal that OI has a direct positive effect on BMI success. Analysis of the literature also shows that the field of OBMI is still an under-researched area.