Dynamic capabilities and environmental accounting for the circular economy in businesses

Scarpellini, S. (Universidad de Zaragoza) ; Marín-Vinuesa, L. M. ; Aranda-Usón, A. (Universidad de Zaragoza) ; Portillo-Tarragona, P. (Universidad de Zaragoza)

Resumen: Purpose: This paper aims to define and measure the environmental capabilities that are applied when the circular economy (CE) is introduced in businesses. Founded on the dynamic capabilities theoretical approach, the study analyzes different environmental competences that firms apply during this process. Environmental management systems, corporate social responsibility, reporting and accountability and other environmental accounting practices are studied in the same analytical framework used to study the environmental capabilities that influence the circular scope (CS) of firms. This study contributes to bridging the gap between academic research focused on environmental accounting and that investigating the introduction of the CE in businesses. Design/methodology/approach: The results were obtained by using partial least squares structural equation modeling to analyze the relationship between environmental capabilities for the CE and the CS achieved by a sample of Spanish firms with more than 50 employees that expressed interest in the CE, eco-design, eco-innovation and other environmental issues. Findings: Based on an analysis using the dynamic capabilities theoretical approach, the results suggest a positive relationship between the CS of firms, their environmental accounting practices and their level of corporate social responsibility (CSR) and accountability. Stakeholders’ pressure – which has a mediating effect on the CS of firms – is also analyzed, adding new insights to recent studies of this topic at the micro-level. The authors also explore whether the CS of businesses, which is related to the degree of their development of capabilities, influences environmental and financial performance. Practical implications: The new insights obtained in this study can help overcome the limitations of conventional accounting approaches and incorporates a much broader scale of environmental information that can be applied to CE practices. These results also offer insights to practitioners regarding the internal measurement processes related to the CE and regarding CSR in particular for small and medium enterprises, because these metrics can be partially applied depending on the practices introduced in each firm. For policymakers, a better understanding of the CE’s introduction into businesses will contribute to the design of policies that can enhance its deployment, for example, by providing tools that set up regional priorities depending on the CE-related practices adopted by the firms located in the territory. Social implications: A CE involves the transformation of a linear economic model into a circular one to reduce dependence on raw materials and energy and to reduce the environmental impact of production and consumption. Understanding how to manage the specific competences that integrate capabilities applied to the CE will allow firms to improve their social and environmental reporting. In addition, other social implications of this study relate to improving relationships with consumers and stakeholders and to the practice of social corporate sustainability. Originality/value: This study goes beyond previous research on the CE to extend the authors’ knowledge about its adoption at the micro-level by taking a transversal approach, as its subject spans the fields of environmental accounting and the CE while addressing both in a framework of analysis. The analysis of the accounting concerns of the CE in businesses and the study of concerns related to endogenous environmental competences are quite original under the theoretical framework of dynamic capabilities, and this study is a first step in an incipient line of inquiry. © 2020, Sabina Scarpellini, Luz María Marín-Vinuesa, Alfonso Aranda-Usón and Pila Portillo-Tarragona.

Idioma: Inglés

DOI: 10.1108/SAMPJ-04-2019-0150

Año: 2020

Publicado en: Sustainability Accounting, Management and Policy Journal 11, 7 (2020), [30 pp]
ISSN: 2040-8021

Originalmente disponible en: Texto completo de la revista

Factor impacto JCR: 3.354 (2020)

Categ. JCR: BUSINESS, FINANCE rank: 30 / 108 = 0.278 (2020) - Q2 - T1
Categ. JCR: NURSING rank: 145 / 346 = 0.419 (2020) - Q2 - T2
Categ. JCR: ENVIRONMENTAL STUDIES rank: 58 / 125 = 0.464 (2020) - Q2 - T2
Categ. JCR: MANAGEMENT rank: 139 / 225 = 0.618 (2020) - Q3 - T2

Factor impacto SCIMAGO: 0.618 - Renewable Energy, Sustainability and the Environment (Q1) - Business, Management and Accounting (miscellaneous) (Q1)

Tipo y forma: Artículo (Versión definitiva)

Área (Departamento): Área Economía Finan. y Contab. (Dpto. Contabilidad y Finanzas)