The purpose of this paper is to quantify the role of social and environmental accounting (SEA) on corporate environmental, social and governance (ESG) disclosure toward sustainable competitive advantage (SCA). The paper also explores whether stakeholder pressure (STP) and top management commitment (TMC) are moderators on the above links.
The quantitative research method was conducted through a data set collected from a survey of the opinions of 182 Chief Executive Officers/Chief Financial Officers in Vietnamese manufacturing firms.
Using partial least squares structural equation modeling, the results discovered that SEA as a prerequisite has a positive contribution to ESG disclosure. The authors also find that increasing ESG disclosure leads to a higher level of SCA. Through this, an indirect influence of SEA on SCA through the mechanism of ESG disclosure is also confirmed. Besides, the study also shows that at higher levels of STP and TMC, the positive impact of SEA on ESG disclosure becomes stronger. Furthermore, STP acts as a catalyst to enhance the contribution of ESG disclosure to SCA. These findings support dynamic capability and stakeholder theories.
This paper advances the literature by unveiling SEA as a prerequisite for effective ESG disclosure and establishing its indirect effect on SCA. Furthermore, this study introduces a novel dual-moderation framework, highlighting the moderating roles of STP and TMC in strengthening these relationships.
