Developing the Concept of Sustainability Accounting Based On the Tacit Knowledge of Managers in Iran

Document Type : Original Article


1 Ph.D. student of accounting, Urmia branch, Islamic Azad University, Urmia, Iran.

2 Associate Prof., Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran.

3 Associate Prof., Department of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran.

4 Associate Prof., Department of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran


Sustainability accounting and sustainable quality gather companies to develop practical characteristics in individual and social accounting, including accounting ethics for better communication along with efficiency and strategy. This research provided a corporate sustainability accounting model following Putang (2011) by predicting the causal relationship between managers' tacit knowledge and sustainability accounting. Dimensions of managers' tacit knowledge and various structures of sustainability accounting, including ethics, volunteerism, transparency, human capital, and social responsibility reporting is identified and analyzed. The research population was all managers of the studied companies, and a standard questionnaire was used to collect data. The data were analyzed based on the Lineal Structural Relations after reliability and validity tests. The results indicated that managers' tacit knowledge regarding financial and tax issues affected sustainability structures, strengthening corporate sustainability accounting. Therefore, top and middle managers, as well as financial managers, are recommended to pay more attention to the tacit knowledge of managers and include it in their decision-making models because this factor can be a basis for strengthening sustainability accounting.


  • Khaki, Gh. 2011. Research method with an approach to dissertation writing, eighth edition, Tehran, Bazetab Publications.
  • Davari, A., Rezazadeh. Arash. 2014. Structural Equation Modeling with PLS Software, Second Edition, Tehran, Jihad Daneshgahi Publications.
  • - Seyed Abbaszadeh, M., Amani Sari Legloo, J., Khezri Azar, H. Pashavi. Gh. 2014. Introduction to Structural Equation Modeling by PLS Method and Its Application in Behavioral Sciences, First Edition, Urmia University Press.
  • Salehi, M., Hejazi, R., Talebnia, Q., Amiri. A. 2019. Providing an Adjustment Model of Capital Asset Valuation Models Using Financial Assistance Risk and Company Life Cycle, Financial Management Strategy, 7 (1): 95-122.
  • Namazi, M., Rajab Dori. H. 2017. Investigating the Interaction of Structures of Sustainable Development Model of Accounting Professional Ethics Using Fan Dimetel, Financial Accounting Research, 9 (1): 71-90.
  • Namazi, M., Kermani. A. 2008. The effect of ownership structure on the performance of companies listed on the Tehran Stock Exchange, 15 (35): 83-100.
  • Vefri, H., Darab. R. 2018. Structural equation model approach in the three-level analysis of financial distress in companies listed on the Tehran Stock Exchange. Financial Management Strategy, 6 (3): 189-215.
  • Ali, I., Rehman, K. U., Ali, S. I., Yousaf, J., & Zia, M. (2010). Corporate social responsibility influences, employee commitment, and organizational performance. African journal of Business management, 4(13), 2796-2801.
  • Aman, H., & Nguyen, P. (2008). Do stock prices reflect the corporate governance quality of Japanese firms?. Journal of the Japanese and International Economies, 22(4), 647-662.‏
  • Anand, G., Ward, P. T., Tatikonda, M. V., & Schilling, D. A. (2009). Dynamic capabilities through continuous improvement infrastructure. Journal of operations management, 27(6), 444-461.
  • Andriof, J., Waddock, S., Husted, B., & Rahman, S. S. (2017). Unfolding stakeholder thinking: Theory, responsibility and engagement. Routledge.
  • Aragón-Correa, J. A., & Rubio-Lopez, E. A. (2007). Proactive corporate environmental strategies: myths and misunderstandings. Long Range Planning, 40(3), 357-381.
  • Audretsch, D. B., Houweling, P., & Thurik, A. R. (2000). Firm survival in the Netherlands. Review of industrial organization, 16(1), 1-11.‏
  • Banerjee, S., Kauffman, R. J., & Wang, B. (2007). Modeling Internet firm survival using Bayesian dynamic models with time-varying coefficients. Electronic Commerce Research and Applications, 6(3), 332-342.‏
  • Becchetti, L., & Trovato, G. (2011). Corporate social responsibility and firm efficiency: a latent class stochastic frontier analysis. Journal of Productivity Analysis, 36(3), 231-246.‏
  • Bhattacharya, C. B., & Sen, S. (2003). Consumer–company identification: A framework for understanding consumers’ relationships with companies. Journal of marketing, 67(2), 76-88.‏
  • Brammer, S., Millington, A., & Rayton, B. (2007). The contribution of corporate social responsibility to organizational commitment. The International Journal of Human Resource Management, 18(10), 1701-1719.‏
  • Branco, M. C., & Rodrigues, L. L. (2008). Factors influencing social responsibility disclosure by Portuguese companies. Journal of business Ethics, 83(4), 685-701.‏
  • Bushman, R. M., Piotroski, J. D., & Smith, A. J. (2004). What determines corporate transparency?. Journal of accounting research, 42(2), 207-252.‏
  • Cernusca, L. (2007). Ethics in accounting: The WorldCom inc. scandal. Lex ET Scientia Int'l J., 14, 239.‏
  • Chin, W. W., Marcolin, B.L., and Newsted, P.R., (2003). A partial least squares latent variable modeling approach for measuring interaction effects: Results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study, Information systems research, 14(2), PP: 189-217
  • Choo Huang, C., Luther, R., Tayles, M., & Haniffa, R. (2013). Human capital disclosures in developing countries: figureheads and value creators. Journal of Applied Accounting Research, 14(2), 180-196.‏
  • Clarkson, M. E. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. Academy of management review, 20(1), 92-117.‏
  • Daske, H., Hail, L., Leuz, C., & Verdi, R. (2013). Adopting a label: Heterogeneity in the economic consequences around IAS/IFRS adoptions. Journal of Accounting Research, 51(3), 495-547.‏
  • Davari, A., and Rezazadeh, A., (2014), Structural Equation Modeling with PLS Software, Second Edition, Tehran, Jahad University Press, (In Persian).
  • Dellana, S., & West, D. (2016). Survival analysis of supply chain financial risk. The Journal of Risk Finance, 17(2), 130-151.‏
  • Falck, O., & Heblich, S. (2007). Corporate social responsibility: Doing well by doing good. Business Horizons, 50(3), 247-254.‏
  • Foster, D., & Jonker, J. (2005). Stakeholder relationships: the dialogue of engagement. Corporate Governance: The international journal of business in society, 5(5), 51-57.‏
  • Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press.‏
  • Freeman, R. Edward.(1984). Strategic Management, A Stakeholder Approach. Massachusetts, Pitman.
  • Greening, D. W., & Turban, D. B. (2002). Corporate social performance as a competitive advantage in attracting a quality workforce. Business & Society, 39(3), 254-280.‏
  • Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., and Tatham, R.L., (2006), Multivariate data analysis 6th Edition. Pearson Prentice Hall, New Jersey. Humans: Critique and reformulation. Journal of Abnormal Psychology, 87, PP: 49-74
  • Hopwood, A. G., Unerman, J., & Fries, J. (Eds.). (2010). Accounting for sustainability: Practical insights. Earthscan.‏
  • Johnson, G., & Scholes, K. (1999). Exploring Corporate Strategy, Prentice Hall. Europe.‏
  • Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnér, P. (2011). Exploring strategy. Financial Times Prentice Hall.‏
  • Keller, A. C., Smith, K. T., & Smith, L. M. (2007). Do gender, educational level, religiosity, and work experience affect the ethical decision-making of US accountants?. Critical perspectives on accounting, 18(3), 299-314.‏
  • Khaki, G.R., (2011), Research Methodology with a Thesis Approach, Eighth Edition, Tehran, Baztab Publishing (In Persian).
  • Kusnetzky, Dan, (2010), Microsoft: market share, growth and market value.,
  • Lee, J., Park, S.Y., Baek, I. and Lee, C.S., (2008), the impact of the brand management system on brand performance in B–B and B–C environments, Industrial marketing management, 37(7), PP: 848-855
  • Linck, J. S., Lopez, T. J., & Rees, L. (2007). The valuation consequences of voluntary accounting changes. Review of Quantitative Finance and Accounting, 28(4), 327-352.‏
  • Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of marketing, 70(4), 1-18.‏
  • Madhoshi, M., and Nasiri, A., (2010), the Impact of Industry Features on the Survival of Newly-Entered Companies; Case Study: Conversational Industries of Mazandaran Province, Executive Management, Year 10, Issue 1, Successive 38, PP: 127-147 (In Persian).
  • Madhoshi, M., and Tari, G., (2007), The Impact of Primary Capital on the Survival of Small and Medium-Sized Enterprises in Iran, Knowledge and Development, Issue 20, PP: 147-166 (In Persian).
  • Marion, Allison M. and Cengage, Gale, (2011). Ethics in Accounting, Encyclopedia of Business and Finance., encyclopedia/ethics-accounting.
  • Marzuki, M., Subramaniam, N., Cooper, B., and Dellaportas, S., (2017), Accounting academics’ teaching self-efficacy - and ethics integration in accounting courses: A Malaysian study, Asian Review of Accounting, Vol. 25. PP: 1-39
  • Mowday, R. T., Porter, L. W., & Steers, R. M. (2013). Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic press.‏
  • Namazi, M., and Kermani, E., (2008), Investigating the Effects of Ownership Structure on The Performance of the Companies Accepted in the Tehran Stock Exchange. Accounting and Auditing Review, Vol. 15, PP: 83-100 , (In Persian).
  • Namazi, M., and Rajabdari, H., (2016), Studying the Interaction of Constructs of the Model of Sustainable Development Professional Accounting Ethics via DEMATEL Technique, Financial Accounting Research, Year 9, Issue 1, PP: 71-90, (In Persian).
  • Persson, Helena, (2004). The Survival and Growth of New Establishments in Sweden, 1987-1995 Small Business Economics, 23, 423–440.
  • Pothong, O., & Ussahawanitchakit, P. (2011). Sustainable accounting and firm survival: An empirical examination of Thai listed firms. Journal of Academy of Business and Economics, 11(3), 1-28.‏
  • Provan, K. G., & Lemaire, R. H. (2012). Core concepts and key ideas for understanding public sector organizational networks: Using research to inform scholarship and practice. Public Administration Review, 72(5), 638-648.
  • Rasool Qahrvadi, M., and Fakhraei, E., (2017), the Effect of Capital Structure and Ownership Structure on the Survival of Companies in the Stock Exchange, Quarterly of Planning and Budget, Vol. 23, No. 1, PP: 73-101(In Persian).
  • Salehi, M., Hejazi, R., Talibnia, G., and Amiri, A., (2019), Presentation of a model of capital asset valuation models using financial distress risk and company life cycle, Financial Management Strategy, Seventh Year, Vol. 1, PP: 95-12, (In Persian).
  • Sayed Abbaszadeh, M.M., Amani Sarie Leglo, J., Khezri Azar, H., and Pashaei, Q., (2012), An Introduction to Structural Equation Modeling by PLS Method and Its Application in Behavioral Sciences, First Edition, Urmia University Press (In Persian).
  • Schwartz, M. (2009). Beyond incubation: an analysis of firm survival and exit dynamics in the post-graduation period. The Journal of Technology Transfer, 34(4), 403-421.‏
  • Simsek, Z., & Heavey, C. (2011). The mediating role of knowledge‐based capital for corporate entrepreneurship effects on performance: A study of small‐to medium‐sized firms. Strategic Entrepreneurship Journal, 5(1), 81-100.‏
  • Steers, R. M., Mowday, R., & Porter, L. (1982). Employee-organization linkages: The psychology of commitment, absenteeism, and turnover. New York: Academic.‏
  • Tari, G., (2012), Investigating the Effects of Average Occupation and Investment in the Industry on the Survival of New Companies, Financial Knowledge Analysis of Securities, Vol. 5, No. 4, PP: 121-136 (In Persian).
  • Vaghefi, S.H., and Darabi, R., (2018), The Structural Equation Modeling Approach in Three-Level Analysis of Financial Distress in Companies Accepted in Tehran Stock Exchange, Financial Management Strategy, Vol. 6, Issue 3, PP: 189-215, (In Persian).
  • Vance, Robert J, (2006), Engagement and Commitment A guide to understanding, measuring and increasing engagement in your organization.,
  • Wahlqvist, I. (2014). The Capital Structure, Ownership and Survival of Newly Established Family Firms (Doctoral dissertation, BI Norwegian Business School).‏
  • Wang, H., Tong, L., Takeuchi, R., and George, G., (2016), corporate social responsibility: An overview and new research directions: Thematic Issue on Corporate Social Responsibility
  • Williams, C. C. (2005). Trust diffusion: The effect of interpersonal trust on structure, function, and organizational transparency. Business & Society, 44(3), 357-368.‏
  • Wilson, N., Wright, M., & Scholes, L. (2013). Family business survival and the role of boards. Entrepreneurship Theory and Practice, 37(6), 1369-1389.‏
  • Xian-hua, Z. H. O. U., Wei, H. A. N., & Yu-zhou, W. A. N. G. (2010). The market reaction on the human resources information disclosure in Chinese listed companies. Journal of Modern Accounting and Auditing, 6(5), 37.‏