Corporate Diversification and Sustainable Enterprise Growth in Asian and Indian Enterprises: A Resource-Based Study of Strategic Fit, Resource Sharing, Green Innovation and Firm Performance
DOI:
https://doi.org/10.66635/ep8wv559Keywords:
corporate diversification, sustainable enterprise growth, Indian enterprises, Asian emerging markets, Resource-Based View, strategic fit, resource sharing, green innovation, CSR, SME growthAbstract
Diversification remains a major corporate strategy for firms seeking growth, risk reduction and market expansion. However, in Asian emerging markets, especially India, diversification can no longer be assessed only through profitability or portfolio expansion. Firms are increasingly expected to use diversification as a route towards sustainable enterprise growth, innovation capability, responsible resource use and long-term resilience. This paper examines corporate diversification through the Resource-Based View and extends the discussion by linking strategic fit, resource sharing, innovation capability and CSR/green orientation with firm performance and sustainable performance. The study follows a quantitative and descriptive design based on 120 usable responses from managers, executives and business professionals working in diversified Indian enterprises, including small, medium and large firms. The questionnaire measured firm resources and capabilities, diversification strategy, strategic fit, resource sharing, innovation capability, CSR/green orientation, firm performance and sustainable firm performance on a five-point Likert scale. Descriptive statistics, reliability analysis, correlation analysis, regression analysis and additional SME versus large-firm descriptive comparison were used to analyse the data. The findings indicate that firm resources and capabilities significantly influence diversification strategy, while strategic fit and resource sharing positively influence firm performance. The extended results further show that diversification contributes to sustainable performance when it is supported by resource complementarity, innovation capability and CSR/green orientation. SMEs show strong sustainability intent but face resource constraints, whereas larger firms possess stronger capabilities but need clearer sustainability integration. The study contributes to diversification literature by reframing diversification as a sustainability-oriented and entrepreneurship-relevant strategy for Asian and Indian enterprises. It also offers practical implications for SME owners, growth-oriented entrepreneurs, corporate managers and policymakers who seek to build resilient, innovative and responsible business models through related diversification.
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