Intellectual capital and human dynamic capabilities in decarbonization processes for net-zero business models: an in-depth examination through a systematic literature review
| Date | 31 May 2024 |
| Pages | 23-53 |
| DOI | https://doi.org/10.1108/JIC-01-2024-0015 |
| Published date | 31 May 2024 |
| Subject Matter | Information & knowledge management,Knowledge management,HR & organizational behaviour,Organizational structure/dynamics,Accounting & finance,Accounting/accountancy,Behavioural accounting |
| Author | Assunta Di Vaio,Anum Zaffar,Meghna Chhabra |
Intellectual capital and human
dynamic capabilities in
decarbonization processes for net-
zero business models: an in-depth
examination through a systematic
literature review
Assunta Di Vaio and Anum Zaffar
Department of Law, University of Naples Parthenope, Naples, Italy, and
Meghna Chhabra
Delhi School of Business, New Delhi, India
Abstract
Purpose –Although intellectual capital (IC) and human dynamic capabilities (HDCs) play a significant role in
decarbonization processes, their measurement and reporting is under-researched. Hence, this study aims to
identify the link between HDCs, carbon accounting and integrated reporting (IR) in the transition processes,
investigating IC and HDCs in decarbonization processes to achieve net-zero business models (n-ZBMs).
Design/methodology/approach –A systematic literature review with a concise bibliometric analysis is
conducted on 229 articles, published from 1990 to 2023 in Scopus database and Google Scholar. Reviewing data
on publications, journals, authors and citations and analysing the article content, this study identifies the main
search trends, providing a new conceptual model and future research propositions.
Findings –The results reveal that the literature has rarely focussed on carbon accounting in terms of IC and
HDCs. Additionally, firms face pressure from institutions and stakeholders regarding legitimacy and
transparency, necessitating a response considering IR and requiring n-ZBMs to be developed through IC and
HDCs to meet social and environmental requirements.
Originality/value –Not only does this study link IC with HDCs to address carbon emissions through
decarbonization practices, which has never been addressed in the literature to date, but also provides novel
recommendations and propositions through which firms can sustainably transition to being net-zero emission
firms, thereby gaining competitive advantage and contributing to the nation’s sustainability goals.
Keywords Intellectual capital (IC), Human dynamic capabilities (HDCs), Net-zero business models (n-ZBMs),
Carbon accounting, Sustainability transition
Paper type Research paper
Journal of
Intellectual
Capital
23
© Assunta Di Vaio, Anum Zaffar and Meghna Chhabra. Published by EmeraldPublishing Limited. This
article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may
reproduce, distribute, translate and create derivative works of this article (for both commercial and non-
commercial purposes), subject to full attribution to the original publication and authors. The full terms of
this license may be seen at http://creativecommons.org/licences/by/4.0/legalcode
The authors would like to thank the editor-in-chief, associate editor and reviewers for handling the
manuscript, providing helpful comments and suggestions, which led to improving the article.
Funding: This work was funded by University Parthenope, Naples, Italy, (No. DM737/2021) -
Research Financial Resources, “Ministero dell’Universit
a e della Ricerca con Decreto Ministeriale del 25.
06.2021 n. 737 for research project entitled Transizione digitale per Modelli di Business Sostenibili e
Resilienti nell’interfaccia nave-porto verso l’Agenda 2030 –P.I. Prof. Dr. Assunta Di Vaio”. This work is
an outcome of the “Blue Shipping & Cruise Lab”(BSCLab), Department of Law, University of Naples
Parthenope, Naples, Italy.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1469-1930.htm
Received 14 January 2024
Revised 31 March 2024
Accepted 7 May 2024
Journal of Intellectual Capital
Vol. 25 No. 7, 2024
pp. 23-53
Emerald Publishing Limited
1469-1930
DOI 10.1108/JIC-01-2024-0015
1. Introduction
Over the last 3 decades, the world has experienced tough periods of climate change because of
which concepts of decarbonization and integrated reporting (IR) in sustainability transition
have grabbed the attention of practitioners and scholars. Therefore, regulatory bodies have
tried to get firms to take precautionary measures to minimise the negative environmental
impacts caused by them by adopting decarbonization practices and improving their
reporting capabilities according to defined standards (Eastburn, 2000;Gregurec et al., 2021).
Growing concerns regarding firms’operational activities are pressurising, firms to focus on
social issues and transparency through IR to maintain legitimacy (Khan et al., 2021). To meet
the challenges of this global threat, the United Nations (UN) Climate Change Conference
introduced the historic Paris Agreement in 2015, setting long-term goals for all nations
towards sustainability. This has led to firms facing many challenges in maintaining their
competitiveness in the decarbonization process (Singh and Rao, 2016).
Recognising this, local governments are designing short- and long-term decarbonization
practice policies at local levels (Linton et al., 2020). This is because countries that focus on
adopting sustainability practices have high disclosure quality (Stuart et al., 2023). In fact,
decarbonization depends on the complete transformation of society in terms of net-zero
business models (n-ZBMs), sustainability goals, social equity and climate change mitigation
(Linton et al., 2020). Therefore, strategic management is essential to explore dynamic
capabilities (DCs), which are defined as resources that provide business organisations with a
competitive advantage (Teece et al., 1997), and influence innovation. Most firms invest in
human resources and technological innovation to maintain their capabilities (Canibano et al.,
2000). A firm’s ambidexterity refers to its capacity to simultaneously manage business
demands in a coordinated and effective manner (explorative dynamic capability) and adapt to
environmental changes (exploitative dynamic capability) (O’Reilly III and Tushman, 2008).
Singhand Rao (2016) found that humandynamic capabilities (HDCs)and intellectual capital
(IC) enablefirms to achieve their goals becauseboth are positively associatedwith sustainable
development.The DCs are a firm’s potentialto configure its competencies to respondto rapidly
changingenvironmental challenges (Garavanet al.,2016), whereas IC, as defined by the World
IntellectualCapital Initiativeis “the dynamicexistence of internaland external intangibleassets
in an organization”(Wang et al., 2019, p. 3). Scholars are investigating these concepts from
different perspectives to understandthem deeply because they are themost important drivers
of growthand development for firms overtime (Halberstadt et al.,2019). However,the literature
lacks the development to link these conceptswith business models (Baima et al., 2020).
In the last decade, carbonaccounting has also attracted the attention of scholars as it is an
essentialtool for fighting global warmingby reducing carbon emissions(Farbstein et al., 2022).
More than a decadeago, Stechemesser and Guenther (2012)elucidated that carbon accounting
refers to endeavours to integrate climate change mitigation into accounting protocols. This
designation is employed by natural scientists and financial analysts. Stechemesser and
Guenther (2012) comprehensively reviewed carbon accounting definitions, contributing to
discussions on including both monetary and non-monetary emission values in accounting
systems, emphasising that carbon accounting definitions focus on the measurement,
compilation, evaluation and communication of emissions by firmsto inform stakeholders.
While global warming is threatening the world with its negative environmental impacts,
firms are being pressurised by institutionsand stakeholders regarding carbon emissions and
carbon accounting focus (Rohani et al., 2023). Stakeholders are more concerned about firms’
environmental issues and pressurisethem to obey regulatory body rules to meet sustainable
development (Chuang and Huang, 2018). Stakeholders also urgefirms to sustain their HDCs.
Therefore,firms must exploit IC to make theirbusinesses more effective in thedigital economy
(Gupta etal.,2020).Meanwhile, firms managetheir strategies and design their businessmodels
accordingto environmental policiesto reduce theirnegative environmental impacts(Essid and
JIC
25,7
24
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