Circular Accounting and Regenerative Business Models: How Environmental Foresight Drives SME Competitive Advantage Through Dynamic Capabilities

This study aims to investigate the critical role of circular economy capabilities in enhancing SME competitiveness by developing an integrated theoretical framework that bridges dynamic capabilities theory with circular economy principles. Employing a rigorous quantitative research design, the study...

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Main Authors: Iman Supriadi, Rahma Ulfa Maghfiroh, Rukhul Abadi
Format: Article
Language:English
Published: Universitas Mahasaraswati Denpasar 2025-06-01
Series:Jurnal Inovasi Akuntansi
Subjects:
Online Access:https://e-journal.unmas.ac.id/index.php/jia/article/view/11539
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author Iman Supriadi
Rahma Ulfa Maghfiroh
Rukhul Abadi
author_facet Iman Supriadi
Rahma Ulfa Maghfiroh
Rukhul Abadi
author_sort Iman Supriadi
collection DOAJ
description This study aims to investigate the critical role of circular economy capabilities in enhancing SME competitiveness by developing an integrated theoretical framework that bridges dynamic capabilities theory with circular economy principles. Employing a rigorous quantitative research design, the study collected comprehensive data from SMEs operating across multiple industrial sectors in Indonesia. Advanced structural equation modeling techniques were applied to analyze the complex relationships between circular economy capabilities and competitive performance outcomes, while controlling for relevant contextual factors. This methodological approach ensures a robust examination of both direct effects and mediating mechanisms. The findings reveal that circular accounting literacy and regenerative business orientation enhance competitiveness through distinct pathways, with strategic environmental foresight playing a differential mediating role. Moreover, the study makes several novel contributions by developing an integrated capability framework for circular economy implementation, establishing circular accounting literacy as a fundamental SME competency, and demonstrating how specific capability configurations influence sustainable performance outcomes. These insights significantly advance both theoretical understanding and practical strategies for adopting circular business models within the SME sector.
format Article
id doaj-art-cee3647b445746799aee1d3f9b7da50f
institution Kabale University
issn 2988-1536
language English
publishDate 2025-06-01
publisher Universitas Mahasaraswati Denpasar
record_format Article
series Jurnal Inovasi Akuntansi
spelling doaj-art-cee3647b445746799aee1d3f9b7da50f2025-08-20T03:29:19ZengUniversitas Mahasaraswati DenpasarJurnal Inovasi Akuntansi2988-15362025-06-0131384710.36733/jia.v3i1.1153912242Circular Accounting and Regenerative Business Models: How Environmental Foresight Drives SME Competitive Advantage Through Dynamic CapabilitiesIman Supriadi0Rahma Ulfa Maghfiroh1Rukhul Abadi2STIE Mahardhika SurabayaUniversitas Islam Negeri Sunan Ampel SurabayaSTEBI Syaikhona Kholil Sidogiri PasuruanThis study aims to investigate the critical role of circular economy capabilities in enhancing SME competitiveness by developing an integrated theoretical framework that bridges dynamic capabilities theory with circular economy principles. Employing a rigorous quantitative research design, the study collected comprehensive data from SMEs operating across multiple industrial sectors in Indonesia. Advanced structural equation modeling techniques were applied to analyze the complex relationships between circular economy capabilities and competitive performance outcomes, while controlling for relevant contextual factors. This methodological approach ensures a robust examination of both direct effects and mediating mechanisms. The findings reveal that circular accounting literacy and regenerative business orientation enhance competitiveness through distinct pathways, with strategic environmental foresight playing a differential mediating role. Moreover, the study makes several novel contributions by developing an integrated capability framework for circular economy implementation, establishing circular accounting literacy as a fundamental SME competency, and demonstrating how specific capability configurations influence sustainable performance outcomes. These insights significantly advance both theoretical understanding and practical strategies for adopting circular business models within the SME sector.https://e-journal.unmas.ac.id/index.php/jia/article/view/11539business model innovationcircular economydynamic capabilitiessme competitivenesssustainable transition
spellingShingle Iman Supriadi
Rahma Ulfa Maghfiroh
Rukhul Abadi
Circular Accounting and Regenerative Business Models: How Environmental Foresight Drives SME Competitive Advantage Through Dynamic Capabilities
Jurnal Inovasi Akuntansi
business model innovation
circular economy
dynamic capabilities
sme competitiveness
sustainable transition
title Circular Accounting and Regenerative Business Models: How Environmental Foresight Drives SME Competitive Advantage Through Dynamic Capabilities
title_full Circular Accounting and Regenerative Business Models: How Environmental Foresight Drives SME Competitive Advantage Through Dynamic Capabilities
title_fullStr Circular Accounting and Regenerative Business Models: How Environmental Foresight Drives SME Competitive Advantage Through Dynamic Capabilities
title_full_unstemmed Circular Accounting and Regenerative Business Models: How Environmental Foresight Drives SME Competitive Advantage Through Dynamic Capabilities
title_short Circular Accounting and Regenerative Business Models: How Environmental Foresight Drives SME Competitive Advantage Through Dynamic Capabilities
title_sort circular accounting and regenerative business models how environmental foresight drives sme competitive advantage through dynamic capabilities
topic business model innovation
circular economy
dynamic capabilities
sme competitiveness
sustainable transition
url https://e-journal.unmas.ac.id/index.php/jia/article/view/11539
work_keys_str_mv AT imansupriadi circularaccountingandregenerativebusinessmodelshowenvironmentalforesightdrivessmecompetitiveadvantagethroughdynamiccapabilities
AT rahmaulfamaghfiroh circularaccountingandregenerativebusinessmodelshowenvironmentalforesightdrivessmecompetitiveadvantagethroughdynamiccapabilities
AT rukhulabadi circularaccountingandregenerativebusinessmodelshowenvironmentalforesightdrivessmecompetitiveadvantagethroughdynamiccapabilities