Does one size fit all? Environmental reporting in New Zealand: the perspective of configuration theory

Abstract

Purpose This study aims to examine how different combinations of firm determinants enhance environmental reporting (ER) in New Zealand. Design/methodology/approach This study collects data from annual and sustainability reports of 145 listed companies in New Zealand. This study uses content analysis to examine the extent of ER and then the fuzzy set qualitative comparative analysis (FsQCA) to determine the configurations of determinants of reporting. Findings The findings reveal ten configurations of determinants showing that ER relies on the existence or non-existence of other firm determinants such as firm size, profitability, ownership and presence of an environment committee (EC). Among ten configurations, ER*∼ROE (ROE denotes return on equity; firms with no profitability but with ECs) stands out, indicating that ER is strongly influenced by the presence of an EC when no profitability exists. Research limitations/implications The configuration analysis in this study extends the current ER literature. Practical implications The findings provide insight into the management to look for new paths when they make environmental-related strategies based on the existence and non-existence of firm determinants. The findings also support policymakers considering multiple combinations of criteria when mandating ER to promote better climate risk reporting in New Zealand. Originality/value Previous studies on determinants of ER mainly use regression analysis to analyse their data. In contrast, the current study uses configuration analysis.

Value co-creation via machine learning from a configuration theory perspective

“…A configuration represents a multidimensional entity made of peculiar and separate features that are tightly interrelated and mutually reinforcing, so that they are significant jointly rather than individually (Dess et al, 1993). When investigating a complex phenomenon, it is not possible to assume that these features are linked by linear or cause-and-effect relationships (Perera, 2023), but a holistic posture is required, aimed at exploring how these multidimensional entities interact to create order within an organization (Meyer et al, 1993;Miller, 1996). According to configuration theory, indeed, multiple conditions can lead to the same outcome (Fiss, 2007;Woodside, 2014).…”

“…, 1993). When investigating a complex phenomenon, it is not possible to assume that these features are linked by linear or cause-and-effect relationships (Perera, 2023), but a holistic posture is required, aimed at exploring how these multidimensional entities interact to create order within an organization (Meyer et al. , 1993; Miller, 1996).…”