Integrating sustainability – an institutional perspective on change

Leanne Johnstone and Matti Skoog

Journal of Accounting & Organizational Change, 2025, vol. 21, issue 7, 386-415

Abstract: PurposeThis study aims to better understand the role of institutions for sustainability integration within organisations and the broader debate on whether the integration of sustainability with existing systems of management accounting and control should be pursued.Design/methodology/approachA longitudinal case study (2017–2023) of a large European logistics company, based on 23 interviews, site visits and other secondary data sources, was conducted. An institutional framework was used to frame two analytical levels of integration (i.e. strategic and tactical/operational) and institutions (i.e. external and internal) over time.FindingsThere is resistance to integration along organisational, technical and cognitive dimensions. Sustainability roles and functions remain decoupled from financial ones, and cognitive integration remains limited to tactical levels and sustainability personnel. Meanwhile, the rules of existing accounting systems have not changed, while the informal routines associated with them have, in response to broader institutional demands, particularly for environmental information.Research limitations/implicationsBeyond contributing to the sustainability integration concept, the study adds to institutional research on management accounting change by suggesting that changes in system use, rather than system design, are important for sustainability issues.Practical implicationsManagers in large organisations should focus on the technical and cognitive aspects of integration to develop common calculation infrastructures and shared mindsets around sustainability. Meanwhile, specialised personnel still appear necessary to coordinate and control sustainability efforts.Originality/valueThe study provides a nuanced understanding of the integration concept and the role of institutions in the integration process – particularly the degree of integration across different levels and dimensions, as well as the various, parallel integration pathways.

Keywords: Sustainability integration; Management accounting change; Institutional framework; Sustainability control systems (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaocpp:jaoc-03-2025-0061

DOI: 10.1108/JAOC-03-2025-0061

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