Environmental Management System, Environmental Management Accounting, and Firm Performance in China’s Manufacturing Companies

Abstract

The aim of this study is to propose the relationship between environmental management system (EMS), environmental management accounting (EMA) and firm performance (FP) based on the Chinese manufacturing industry. Although the previous literature has already explored the effect of EMS adoption on FP, findings are inconclusive. Since there is also evidence that both EMS and EMA could potentially influence FP, it is worth considering the role of EMA as an intervening variable in this relationship. The survey of the study involved 131 manufacturing companies conducted in China. The data are analyzed using Smart Partial Least Square (SmartPLS) version 3 to evaluate the hypotheses of the study. The results showed that EMA mediates the relationship between EMS and firm performance. Therefore, this study contributes to the growing body of knowledge on EMS, EMA and firm performance, especially in the relatively new topic in China.