An Integrated Dynamic Framework of Accounting Theories for Enhancing Explanatory and Predictive Power in the Digital and Sustainability Era
Keywords:
Accounting Theory, Integrated Dynamic Framework, Institutional TheoryAbstract
This academic article aims to systematically synthesize and integrate accounting theory knowledge to develop a conceptual framework that enhances the explanatory and predictive power of accounting phenomena in the context of digital transformation and sustainability. The study employs documentary research combined with a Systematic Literature Review (SLR), analyzed through content analysis and inductive synthesis, classifying accounting theories into three groups: Mainstream Accounting Theory, Organizational Economics Theory, and Socio-Institutional Theory. The synthesis reveals that each group of theories possesses distinct strengths and limitations and does not exist in isolation; rather, the theories are dynamically interconnected and mutually reinforcing in explaining accounting standards, managerial behavior, disclosure, governance mechanisms, and responses to institutional pressures. The article therefore proposes the Integrated Dynamic Framework of Accounting Theories (IDFAT) as a new body of knowledge that links the roles of theories across three dimensions: (1) the establishment of accounting norms, (2) the explanation and prediction of stakeholder behavior, and (3) adaptation to the digital context, sustainability, and institutional pressures. Rather than replacing existing theories, the IDFAT framework elevates the analysis from a fragmented approach to a systemic and dynamic explanation of accounting phenomena, particularly regarding Artificial Intelligence (AI), Blockchain, Real-time Accounting Information Systems, Sustainability Reporting, and Environmental, Social and Governance (ESG) disclosures. The framework can be systematically applied to research, professional accounting practice, and policy formulation in the digital and sustainability era.
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