Innovative Diversification in Mechanical Engineering

An adaptive strategic management model for the innovative diversification of an industrial enterprise, combining the principles of sustainable development (the ESG approach) and agile management methods given unstable demand and a shortening product lifecycle, is presented. Based on the theoretical and empirical analysis, the key drivers of the effectiveness of ESG oriented diversification are substantiated. An innovative diversification portfolio management model is developed, supported by a system of balanced ESG indicators.