INTEGRATING GREEN ACCOUNTING AND INTELLECTUAL CAPITAL FOR SUSTAINABLE DEVELOPMENT: INSIGHTS FROM ETHIOPIA'S MANUFACTURING INDUSTRIES

Abstract

This integrative review explores the intersection of green accounting and intellectual capital as drivers of sustainable development in Ethiopia's manufacturing sector. Drawing from international experiences and the Ethiopian context, the study synthesizes peer-reviewed literature from 2000 to 2026 to analyze prevailing practices, barriers, and enablers. It finds that while global manufacturing industries increasingly integrate environmental management into accounting and leverage intellectual capital for innovation, Ethiopian firms face significant internal barriers, including inadequate technical skills, limited awareness, and resistance to organizational change. External barriers—including weak regulatory frameworks, insufficient government incentives, and market forces focused on short-term profitability—further constrain progress. Despite these challenges, the review highlights the critical role of intellectual capital, particularly human and structural dimensions, in facilitating the adoption of green accounting and driving sustainable performance. Theoretical frameworks such as the Resource-Based View and Integrated Reporting Framework provide a foundation for understanding how these elements synergistically enhance competitiveness and value creation. The findings offer practical recommendations for policymakers and industry stakeholders, emphasizing the need for targeted incentives, capacity building, and stronger regulatory enforcement. The review also identifies research gaps and suggests future empirical investigations into the impacts of integrated approaches within the Ethiopian context. Overall, the study concludes that the convergence of green accounting and intellectual capital is essential for the sustainable transformation of Ethiopia's manufacturing sector and for aligning it with international sustainability standards. Therefore, the deliberate and simultaneous cultivation of these integrated practices is not merely beneficial but indispensable for Ethiopia to achieve a globally competitive and environmentally responsible manufacturing future.