eISSN: 3087-4084 editor@aimjournals.com
All Journals
Submit your article

International Journal of Management and Business Development

Open Access Peer Review International
Open Access

The Strategic Integration of Environmental Management Accounting and Dynamic Capabilities: A Framework for Circular Economy Transition and Organizational Resilience in The Post-Pandemic Era

DOI
PDF
Sakshi Tejankar 1 ,
4 Department of Sustainable Economics, Global Institute for Business Research, United States of America

Abstract

The global shift toward sustainable development has necessitated a radical reimagining of corporate accounting and management practices. This research article explores the strategic intersection of Environmental Management Accounting (EMA), dynamic capabilities, and organizational resilience within the context of the circular economy. By synthesizing contemporary research on institutional pressures, green human resource management, and digital convergence, this study provides a comprehensive theoretical elaboration on how firms navigate the complexities of environmental strategy. We analyze the mediating roles of green employee empowerment and ICT regulation in fostering e-participation and sustainable production. The study specifically addresses the unique challenges faced by Small and Medium Enterprises (SMEs) as key drivers of inclusive green growth, particularly in the wake of the COVID-19 pandemic. Using a descriptive analysis of structural equation modeling (SEM) and necessary condition analysis (NCA), the research identifies the critical business factors that enable firms to operate within safe and just planetary boundaries. The findings suggest that EMA acts as a vital strategic tool for internalizing environmental costs, enhancing performance efficiency, and securing long-term financial stability. This article contributes to the "Doughnut Economics" framework by aligning corporate performance with ecological ceilings and social foundations, offering a robust research agenda for business resilience in the face of climate change and shifting global reporting standards.

Keywords

Environmental Management Accounting, Dynamic Capabilities, Circular Economy, Organizational Resilience

References

Adu Sarfo et al. (2024) Influence of green human resource management on firm's environmental performance: green employee empowerment as a mediating factor. PLoS One
Anjali Kale. (2025). Environmental Accounting: A Strategic Tool for Sustainable Development. European Economic Letters (EEL), 15(4), 2269–2276. https://doi.org/10.52783/eel.v15i4.4050
Liengaard, P. N. Sharma, G. T. M. Hult, M. B. Jensen, M. Sarstedt, J. F. Hair, C. M. Ringle (2021) Prediction: Coveted, yet forsaken? Introducing a cross-validated predictive ability test in partial least squares path modeling. Decision Sciences 52(2):362–392
K. Macbeth (2002) Emergent strategy in managing cooperative supply chain change. International Journal of Operations and Production Management 22(7):728–740
Pearce (1993) Blueprint 3: Measuring Sustainable Development. Earthscan
W. O’Neill, A. L. Fanning, W. F. Lamb, J. K. Steinberger (2018) A good life for all within planetary boundaries. Nature Sustainability 1(2):88–95
Lopez, J. A. Flecha-Ortiz, M. Santos-Corrada, V. Dones (2024) The role of organizational resilience in SME service innovation and value cocreation. Journal of Services Marketing 38(4):443–459
E. W. Liguori, T. G. Pittz (2020) Strategies for small business: Surviving and thriving in the era of COVID-19. Journal of the International Council for Small Business 1(2):106–110
Al-Mawali et al. (2018) Environmental strategy, environmental management accounting and organizational performance: evidence from the United Arab Emirates market. Journal of Environmental Accounting and Management
Latan, C. J. Chiappetta Jabbour, L. de Sousa, A. B. Jabbour, S. F. Wamba, M. Shahbaz (2018) Effects of environmental strategy, environmental uncertainty and top management’s commitment on corporate environmental performance: The role of environmental management accounting. Journal of Cleaner Production 180:297–306
O. Adam et al. (2021) The mediating role of ICT regulation on the effects of ICT access and ICT use on e-participation: evidence from structural equation modelling and necessary condition analysis. African Journal of Science, Technology, Innovation and Development
Rockström et al. (2009) A safe operation space for humanity. Nature 461:472–475
Rockström, J. Gupta, D. Qin et al. (2023) Safe and just earth system boundaries. Nature 619:102–111
Raworth (2012) A safe and just space for humanity: can we live within the doughnut? Oxfam Discussion Paper
K. Raworth (2017) Why it’s time for doughnut economics. IPPR Progressive Review 24(3):217–222
Koirala S (2019) SMEs: Key drivers of green and inclusive growth. OECD Green Growth Papers
Wang et al. (2023) How to improve the initiative and effectiveness of enterprises to implement environmental management system certification? J. Clean. Prod.
Alnaim et al. (2024) Institutional pressures and environmental management accounting adoption: do environmental strategy matter? Sustainability
M. J. Milne, R. Gray (2013) W(h)ither ecology? The triple bottom line, the global reporting initiative, and corporate sustainability reporting. Journal of Business Ethics 118(1):13–29
M. K. Linnenluecke (2017) Resilience in business and management research: A review of influential publications and a research agenda. International Journal of Management Reviews 19(1):4–30
M. Linnenluecke, A. Griffiths (2010) Beyond adaptation: Resilience for business in light of climate change and weather extremes. Business and Society 49(3):477–511
Naess A (1989) From ecology to ecosophy, from science to wisdom. World Futures: Journal of General Evolution 27(2–4):185–190
Adu Sarfo et al. (2024) Influence of green human resource management on firm's environmental performance: green employee empowerment as a mediating factor. PLoS One
S. Ali et al. (2024) Nexus of environmental accounting, sustainable production and financial performance: an integrated analysis using PLS-SEM, fsQCA, and NCA. Environ. Chall.
S. Kraus, M. Breier, S. Dasí-Rodríguez (2020) The art of crafting a systematic literature review in entrepreneurship research. International Entrepreneurship and Management Journal 16(3):1023–1042
S. M. Lee, S. Trimi (2021) Convergence innovation in the digital age and in the COVID-19 pandemic crisis. Journal of Business Research 123:14–22
S. Scarpellini et al. (2020) Dynamic capabilities and environmental accounting for the circular economy in businesses. Sustain. Account. Manag. Policy J.
Schaltegger S, Burritt R, Zvezdov D, Hörisch J, Tingey-Holyoak J (2015) Management roles and sustainability information. Exploring corporate practice. Australian Accounting Review 25(4):328–345
T. T. Le, T. M. A. Nguyen, T. T. H. Phan (2019) Environmental management accounting and performance efficiency in the Vietnamese construction material industry-A managerial implication for sustainable development. Sustainability 11(19):1–32
X. Wen et al. (2023) Why does “green” matter in supply chain management? Exploring institutional pressures, green practices, green innovation, and economic performance in the Chinese chemical sector. J. Clean. Prod.

Most read articles by the same author(s)

1 2 3 4 5 6 7 8 > >> 

Similar Articles

11-20 of 64

You may also start an advanced similarity search for this article.