Path dependence of accountants: Why are they not involved in corporate sustainability?

Research output: Journal contributionsJournal articlesResearchpeer-review

Standard

Path dependence of accountants: Why are they not involved in corporate sustainability? / Wenzig, Julius; Nuzum, Anne-Katrin; Schaltegger, Stefan.
In: Business Strategy and the Environment, Vol. 32, No. 6, 09.2023, p. 2662-2683.

Research output: Journal contributionsJournal articlesResearchpeer-review

Harvard

APA

Vancouver

Bibtex

@article{2bc67b4c46df448b96c1bfbbb5447e89,
title = "Path dependence of accountants: Why are they not involved in corporate sustainability?",
abstract = "Accounting has been identified as a key area to inform managers seeking to transform businesses towards sustainability. Empirical research, however, shows that management accountants are scarcely involved in sustainability accounting. This paper contributes to understanding their barriers, using path dependence theory as a theoretical framework to empirically investigate how accountants have become “locked in” by self-reinforcing mechanisms. Based on semistructured interviews with 33 management accountants in Germany, the paper identifies three interrelated self-reinforcing mechanisms that inhibit accountants from sustainability involvement. A strong focus on financial priorities and incremental improvements driven by top management expectations hinder the consideration of sustainability beyond its direct costs. Specialization is another barrier, as is an understanding of sustainability as peripheral rather than a core business. Contrary to prior literature, accountants express eagerness to learn, though rarely about sustainability. They rarely question assumptions about sustainability and their role, leading to missed opportunities for double-loop learning and more transformative change.",
keywords = "Sustainability sciences, Management & Economics, corporate sustainability, management accounting practices, management control systems, path dependence theory, performance measurement, sustainability accounting, corporate sustainability, management accounting practices, management control systems, path dependence theory, performance measurement, sustainability accounting",
author = "Julius Wenzig and Anne-Katrin Nuzum and Stefan Schaltegger",
note = "Funding Information: The authors thank Holger Petersen, Michael L{\"u}hn, Charlott H{\"u}bel, and the research associates of the Centre for Sustainability Management (CSM) for helpful guidance in the preparation of this article. Additionally, we are thankful for the valuable comments on an earlier version of this paper of the participants of the 23rd Environmental Management Accounting Network (EMAN) Conference. We would like to thank the Nordakademie Foundation for funding this research. Open Access funding enabled and organized by Projekt DEAL. Publisher Copyright: {\textcopyright} 2022 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.",
year = "2023",
month = sep,
doi = "10.1002/bse.3263",
language = "English",
volume = "32",
pages = "2662--2683",
journal = "Business Strategy and the Environment",
issn = "0964-4733",
publisher = "John Wiley & Sons Ltd.",
number = "6",

}

RIS

TY - JOUR

T1 - Path dependence of accountants: Why are they not involved in corporate sustainability?

AU - Wenzig, Julius

AU - Nuzum, Anne-Katrin

AU - Schaltegger, Stefan

N1 - Funding Information: The authors thank Holger Petersen, Michael Lühn, Charlott Hübel, and the research associates of the Centre for Sustainability Management (CSM) for helpful guidance in the preparation of this article. Additionally, we are thankful for the valuable comments on an earlier version of this paper of the participants of the 23rd Environmental Management Accounting Network (EMAN) Conference. We would like to thank the Nordakademie Foundation for funding this research. Open Access funding enabled and organized by Projekt DEAL. Publisher Copyright: © 2022 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.

PY - 2023/9

Y1 - 2023/9

N2 - Accounting has been identified as a key area to inform managers seeking to transform businesses towards sustainability. Empirical research, however, shows that management accountants are scarcely involved in sustainability accounting. This paper contributes to understanding their barriers, using path dependence theory as a theoretical framework to empirically investigate how accountants have become “locked in” by self-reinforcing mechanisms. Based on semistructured interviews with 33 management accountants in Germany, the paper identifies three interrelated self-reinforcing mechanisms that inhibit accountants from sustainability involvement. A strong focus on financial priorities and incremental improvements driven by top management expectations hinder the consideration of sustainability beyond its direct costs. Specialization is another barrier, as is an understanding of sustainability as peripheral rather than a core business. Contrary to prior literature, accountants express eagerness to learn, though rarely about sustainability. They rarely question assumptions about sustainability and their role, leading to missed opportunities for double-loop learning and more transformative change.

AB - Accounting has been identified as a key area to inform managers seeking to transform businesses towards sustainability. Empirical research, however, shows that management accountants are scarcely involved in sustainability accounting. This paper contributes to understanding their barriers, using path dependence theory as a theoretical framework to empirically investigate how accountants have become “locked in” by self-reinforcing mechanisms. Based on semistructured interviews with 33 management accountants in Germany, the paper identifies three interrelated self-reinforcing mechanisms that inhibit accountants from sustainability involvement. A strong focus on financial priorities and incremental improvements driven by top management expectations hinder the consideration of sustainability beyond its direct costs. Specialization is another barrier, as is an understanding of sustainability as peripheral rather than a core business. Contrary to prior literature, accountants express eagerness to learn, though rarely about sustainability. They rarely question assumptions about sustainability and their role, leading to missed opportunities for double-loop learning and more transformative change.

KW - Sustainability sciences, Management & Economics

KW - corporate sustainability

KW - management accounting practices

KW - management control systems

KW - path dependence theory

KW - performance measurement

KW - sustainability accounting

KW - corporate sustainability

KW - management accounting practices

KW - management control systems

KW - path dependence theory

KW - performance measurement

KW - sustainability accounting

UR - http://www.scopus.com/inward/record.url?scp=85139192472&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/882e20ec-407b-34dd-b9bf-4f51de14d47b/

U2 - 10.1002/bse.3263

DO - 10.1002/bse.3263

M3 - Journal articles

VL - 32

SP - 2662

EP - 2683

JO - Business Strategy and the Environment

JF - Business Strategy and the Environment

SN - 0964-4733

IS - 6

ER -

DOI

Recently viewed

Publications

  1. Negotiated third party access
  2. Report on the relative strengths and weaknesses of the United States in PISA 2012 mathematics
  3. Resource Allocation in Startup Teams: Exploring Entrepreneurial Coping with Radical Uncertainty during the Corona Pandemic
  4. Conclusion
  5. Generation of 3D representative volume elements for heterogeneous materials
  6. Acidification effects on in situ ammonia emissions and cereal yields depending on slurry type and application method
  7. Ästhetikkolumne
  8. More than the sum of its parts? Synergy and picturebook translation
  9. Optimisation of root traits to provide enhanced ecosystem services in agricultural systems
  10. Geteilter Frequenzumrichter
  11. Democratization
  12. Data practices
  13. One Size fits None
  14. Seeing red
  15. Utilization of food waste in continuous flow cultures of the heterotrophic microalga Chlorella pyrenoidosa for saturated and unsaturated fatty acids production
  16. Moving beyond unlearning unsustainable consumption
  17. Process Stability and Reproducibility of the Dieless Drawing Process for AZ31 Magnesium Wires
  18. Workshop on impacts of the EU-UK Trade and Cooperation Agreement on fisheries and aquaculture in the EU
  19. Development of a procedure for forming assisted thermal joining of tubes
  20. Necessity and inefficiency in the generation of waste
  21. Evidence-Based Management and Organizational Reality
  22. Anpassung oder Widerstand?
  23. Speaking about vision, talking in the name of so much more
  24. Measuring Method Effects
  25. Fair Value
  26. Sustainability Reporting as a Consequence of Environmental Orientation
  27. Carbon Management Accounting and Reporting in Practice
  28. Design, construction, and operation of tailored permeable reactive barriers
  29. "Hilf mir es selbst zu tun"