This paper aims to explore the potential for repositioning multi-capital accounting (MCA) from a diagnostic tool for assessing the (un)sustainability of existing operations to a strategic asset in the strategic innovation process to help regenerative business model innovation emerge and gain traction.
This paper draws on existing literature and on the practical experience of the author in supporting business model innovation for strong sustainability to explore opportunities for MCA to facilitate the shift from volume-based to regenerative approaches.
The analysis highlights the importance of bringing a systemic perspective to performance and a new hierarchy of norms into the strategic innovation process. It shows how MCA could effectively capture the unique performance dynamics and complexities of regenerative business models as a holistic management information system and serve as a source of institutional support. To achieve this repositioning of MCA as a proactive resource in the conception, design, evaluation and management of innovative or inherently regenerative business models, it is imperative to forge connections between MCA researchers and those specializing in business model innovation for sustainability.
By aligning MCA models with the strategy innovation process, strategic decision-makers can benefit from better data, insight and confidence to identify opportunities for innovative business models for regeneration. They also develop the relevant analytical and information infrastructure to improve the ability to properly operate these innovative business models.
Failure to accelerate business model innovation will further delay progress on achieving the sustainable development goals with potentially devastating consequences for people and the planet.
The discussion calls for building a bridge between MCA and business model innovation for regeneration, which could be mutually beneficial. It encourages these research and practice communities to collaborate in better integrating MCA with the strategic innovation process. Ultimately, this would transform MCA from a reporting tool based on past performance into a forward-looking instrument that assists a company’ decision-makers in designing their strategy and addressing key strategic asset for a broader range of stakeholders.
