Accounting going green: The move toward environmental sustainability in Vietnamese manufacturing firms

Abstract

AbstractThis study investigates how environmental management accounting (EMA) usage mediates the impact of green dynamic capabilities on environmental performance. Furthermore, the moderating effects of green mindfulness on the relationship between green dynamic capabilities and EMA usage are investigated. The proposed model and its hypotheses are evaluated using partial least squares structural equation modeling (PLS‐SEM) with survey data from 394 large Vietnamese manufacturing firms. The study's findings are as follows: (1) green dynamic capabilities positively affect EMA usage, which, in turn, affects environmental performance; (2) when green mindfulness is strong, the effect of green dynamic capabilities on EMA usage is amplified. These findings demonstrate how the interaction between green dynamic capabilities and green mindfulness can contribute to the success of manufacturing firms that use EMA systems in emerging markets. Additionally, the current study elucidates the mechanism by which green dynamic capabilities influence EMA usage, and it aims to contribute to green dynamic capabilities research in accounting by introducing green mindfulness as a boundary condition.