Abstract:
Different countries have exhibited dissimilar levels of adoption of IR. Yet, we still do not know why some countries enjoy more competitive advantage than others in IR adoption. The chapter addresses this gap by selecting Sri Lanka, a country which exhibits a high rate of adopting IR, to explain the national competitive advantage in its readiness for IR adoption. The chapter draws on its theoretical framing of Porter’s Diamond Theory. Ample availability of professional accountants, mounting stakeholder demands, a supportive accounting profession and intense competition among organizations aided by award schemes play a key role in propelling Sri Lanka towards a high adoption level of IR. Authors also identify the national culture of the country plays a key role in this process. In addition to its theoretical contributions, this chapter also sheds light on important implications for local and international institutions, policy makers, and various professions in identifying the requisite conditions for promoting new managerial tools and techniques such as IR or sustainability reporting (SR).
