Abstract
This paper explores the impact of institutional pressures on the adoption of environmental management accounting (EMA). EMA has been recognized as a valuable mechanism to deal with environmental issues. This paper uses institutional theory to explain the drivers of EMA adoption in Pakistan. Data were collected from the manufacturing sector in Pakistan through a questionnaire-based survey. The study concludes that coercive, normative and mimetic pressures have a significant and positive impact on the adoption of EMA.
Highlights
The world today is facing the adverse impacts of climate change and environmental degradation
In order to address these gaps, this paper aims to explore the drivers of Environmental Management Accounting (EMA) adoption in Pakistan using institutional theory
These pressures ensure that customers and suppliers operating in the external environment and organizations operate in a social compliant manner, encouraging the adoption of EMA
Summary
The world today is facing the adverse impacts of climate change and environmental degradation. The conventional and traditional accounting systems have failed to uphold and provide environmental information in their financial accounting [2] This means that environmental information is missing from various decision making techniques and models, necessitating a new field of environmental management accounting (hereafter EMA) to address these issues [3]. The implementation of EMA is low and very few organizations are using it for decision making [9] In this context, there is a need to explore the drivers of the adoption of EMA due to its significance. In order to address these gaps, this paper aims to explore the drivers of EMA adoption in Pakistan using institutional theory. This paper provides evidence on the role of various institutional pressures on EMA adoption with the potential to contribute to sustainable development [15,16].
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