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The sustainability issues of diversified firms in emerging economies context: a theoretical model and propositions

Author

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  • Pratima Verma
  • R.R.K. Sharma
  • Vimal Kumar

Abstract

The purpose of this article is to analyse and propose the impact of emerging markets on existing diversified firm practices. Moreover, this paper seeks to identify the sustainability issues of diversified firms in emerging economies. In addition, based on institutional and resources-based prospective, we develop 12 propositions that can clearly identify what challenges are faced by a company when it tries to diversify in emerging economies. The paper draws from literature and experiential knowledge of the authors in the emerging markets to address the objective of the paper. The literature review starts with the influential work of Harvey et al. (1999) and ends with the report of World Economic Outlook Update, January 2015. Based on extensive literature survey, we identified some issues on diversified firms in emerging economies; and suggest some improvements that are needed in institutional and resource-based practices and condition of corporate governance for sustainability in emerging markets. These improved practices should be equally applicable to all large and small firms; so that they will have equal opportunity to grow and improve their performance.

Suggested Citation

  • Pratima Verma & R.R.K. Sharma & Vimal Kumar, 2017. "The sustainability issues of diversified firms in emerging economies context: a theoretical model and propositions," International Journal of Process Management and Benchmarking, Inderscience Enterprises Ltd, vol. 7(2), pages 224-248.
    • Handle: RePEc:ids:ijpmbe:v:7:y:2017:i:2:p:224-248
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