Promoting water accounting implementation processes: an argumentation-based Fuzzy-DEMATEL approach

Purpose This paper’s purpose is to contribute to the financial management knowledge literature by presenting the framework of water accounting factors and evaluation of its identified factors through an argumentation-based Fuzzy-DEMATEL approach. Design/methodology/approach This study adopted mixed, inductive and deductive approaches to develop a water accounting framework, validate its practicability and verify its effectiveness in selected firms listed on the Tehran Stock Exchange (TSE). In developing the framework and implementation procedure, the study employed an exploratory data collection (qualitative) approach to review the phenomenon of water accounting factors. Then, in this study’s second phase, Fuzzy-DEMATEL is used to evaluate the areas identified in the presented framework. In this study, Fuzzy-Delphi is also used to verify the reliability of the core components so that it is possible to generalize the factors to the Fuzzy-DEMATEL process. Findings The results obtained from the process of ground theory indicate the identification of 3 categories, 6 core components and 29 propositional themes, which are considered to constitute the framework of water accounting. Besides was determined in the quantitative phase that the optimal water consumption efficiency is considered the most effective component of implementing water accounting in capital market firms. Originality/value This research is one of the few studies in the field of water accounting framework and Fuzzy evaluation of its functions in the capital market. Because prior research has only described the importance of financial functions and sustainability in the form of a case study, this study seeks to achieve a framework for the implementation of water accounting. Also, through the evaluation of Fuzzy-DEMATEL, this study tries to develop the strategic functions of firms in managing water consumption. The originality of this study is, firstly, the identification of the driving fields of the water accounting, and secondly, the study follows the Fuzzy-Delphi and Fuzzy-DEMATEL of the factors identified in the TSE. Both implications raised in this section show the knowledge-enhancing and practical capacities of the study.