Shaping circular disclosure capital? Intellectual capital and DEI disclosure maturity in SMEs

Purpose This study aims to examine how the human, structural and relational dimensions of Circular Intellectual Capital (CIC) contribute to the development of Circular Disclosure Capital (CDC), conceptualized as a domain-specific organizational disclosure capability enabling firms to codify, formalize and legitimize DEI-related knowledge. The study adopts a strictly separated measurement architecture in which CDC items (dependent variable) and CIC items (independent variables) share no overlap, directly addressing the circularity concern raised by both reviewers. Design/methodology/approach A sequential exploratory mixed-method design was applied to a sample of 128 Italian SMEs. CDC is operationalized as a three-level ordinal variable via tertile scoring of four governance-oriented items. Hypotheses are tested with an Ordered Probit model with robust standard errors; nine robustness and sensitivity analyses are reported. Findings Under strict separation, Circular Human Capital carries the strongest single association with the maturity of Circular Disclosure Capital, alongside a sector effect, while Circular Structural and Circular Relational Capital are not independently distinguishable in the joint model owing to the high integration among the CIC dimensions, interpreted as IC co-evolution in SMEs. Robustness analyses indicate that Circular Structural Capital becomes salient when human capital is excluded and predominates among service-sector firms. The associative second-stage analysis shows Circular Disclosure Capital positively associated with all three dimensions of Circular Intellectual Capital. Research limitations/implications Cross-sectional design precludes causal inference. Low CSC reliability (a = 0.027) is acknowledged and addressed through formative interpretation. Single-country, non-random sampling limits generalizability; selection bias is quantified. Practical implications SME managers should prioritize CHC investments, leadership training, DEI awareness, female leadership promotion, as the primary lever. In services, formal DEI governance (CSC) dominates; while in manufacturing, leadership commitment (CHC) is decisive. Originality/value The study introduces a strictly separated CIC–CDC measurement model, repositions CDC as a domain-specific disclosure capability, documents CHC dominance and IC co-evolution in SMEs, and provides nine robustness checks.