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Resilience and Power Allocation for Sustainable Enterprises in Crisis

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  • Zhengwen Lu

    (School of Economics and Management, Shanghai Institute of Technology, Shanghai 200235, China)

  • Tenghao Shen

    (School of Economics and Management, Shanghai Institute of Technology, Shanghai 200235, China)

Abstract

Identifying which power allocation patterns best enable firms to withstand external shocks and achieve sustainable development remains a central concern in crisis management. Drawing on data from Chinese A-share listed companies between 2018 and 2023, this study empirically investigates the mechanisms through which power distribution influences Enterprise Resilience (ER). It further explores how business strategies and innovation demand moderate this relationship. The study finds that decentralized decision-making authority significantly enhances ER during crises. Moreover, both Prospector business strategies and innovation demand positively and significantly strengthen the relationship between degree of power decentralization (DEC) and ER. These findings offer theoretical contributions and practical insights for firms seeking to develop sustainable, resilient, dynamic, and adaptive power allocation systems in times of crisis.

Suggested Citation

  • Zhengwen Lu & Tenghao Shen, 2026. "Resilience and Power Allocation for Sustainable Enterprises in Crisis," Sustainability, MDPI, vol. 18(4), pages 1-20, February.
    • Handle: RePEc:gam:jsusta:v:18:y:2026:i:4:p:2032-:d:1866429
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