Adoption Of Environmental Management Accounting Research Articles

Environmental management accounting for strategic decision‐making: A systematic literature review

AbstractHeightened environmental concerns have prompted businesses to align with regulatory demands, fostering a need for internal accounting tools aiding managerial decision‐making. While environmental management accounting (EMA) has become pivotal in supporting eco‐efficiency decisions within organizations, a gap persists in comprehending its genuine, proactive implementation for sustainable development in the existing literature. This study investigates why and how EMA is used for strategic decision‐making. A systematic literature review of 89 studies was conducted, and factors influencing EMA usage for strategic decision‐making were identified using the drivers–enablers–outcomes–barriers framework. Three reasons for EMA use in strategic decision‐making were identified: legitimacy, organizational efficiency, and strategic sustainable development. This study highlights the evolving use of EMA within organizations, moving from short‐term applications to recognizing its long‐term potential for strategic sustainable development. It explains the changing motives behind EMA adoption, driven by factors that encourage the use of advanced EMA tools for proactive, long‐term decision‐making in sustainable development. The integration of these tools depends on internal organizational factors like management's environmental responsibility, and proactive leadership commitment to sustainability. By exploring theoretical underpinnings and motivations of enhanced EMA usage, this research contributes to pragmatic approaches in sustainability accounting, illustrating how organizations, initially adopting EMA for legitimacy, recognize its benefits in guiding proactive, solution‐oriented managerial decisions toward strategic sustainable development.

Does air pollution motivate organisations to adopt environmental management accounting practices? Evidence from South Africa

This paper identifies the extent of air pollution in motivating companies to implement environmental management accounting (EMA) practices in 67 mining and cement companies listed on the Johannesburg Stock Exchange (JSE), South Africa, from 2012 to 2021. Pooled ordinary least squares regression is applied to analyse the data. EMA is proxied by environmental training, environmental audits and energy efficiency, while air pollution is measured based on the air quality index (AQI). The results show that air pollution is essential for companies to adopt EMA practices. This means that when air quality declines within a company’s locality, a company proactively adopts EMA practices. This suggests that air pollution is a key basis of companies' adoption of EMA, as predicted by the legitimacy theory. The study includes three control variables: size, return on assets (ROA) and number of years listed on JSE. Two control variables, namely Size and ROA, portray a positive and significant effect on adopting EMA from air pollution. This portrays that a financially stable company tends to submit to air pollution and use EMA to counter the pollution. In contrast, as the number of years increases for companies listed on JSE, EMA will likely be adopted less to reduce air pollution.

Institutional Pressures and Environmental Management Accounting Adoption: Do Environmental Strategy Matter?

This paper examines the impact of institutional pressures (IPs) on Environmental Management Accounting adoption (EMA). The current research also aims to examine the moderating effect of environmental strategy (ES) on the relationship between IP and EMA. Data were collected from managers working in all registered Egyptian manufacturing companies (N = 491). The collected data were analyzed using smart partial least squares (Smart-PLS) software. The results revealed that there is a positive significant relationship between IP’s three components, namely, coercive, normative, and mimicry pressures, and EMA. The results also revealed that ES was found to moderate the relationship between IP and EMA. The study model was able to explain 68.9% of the variance in EMA adoption. The findings of this study serve as a pivotal yardstick for guiding corporate policy formulation, offering valuable insights to drive continuous improvements in EMA, environmental performance, and sustainable development. The present investigation extends the discourse on the role of IP and ES by revealing a substantial influence on EMA adoption. Positioned as one of the initial studies to delve into the moderating role of ES in the relationship between IP and EMA adoption, this research offers insights within an emerging market context.

The role of corporate environmental ethics in shaping environmental management accounting adoption under the institutional theory

This study aims to investigate the complex association between institutional pressure, adoption of environmental management accounting (EMA), and financial performance, with corporate environmental ethics as a moderating component. It explains why and how firms adopt EMA in response to institutional demand to factor environmental factors into their strategic decision-making processes. Quantitative information is gathered using a structured questionnaire from 256 manufacturing companies’ environmental managers and executives who monitor environmental practices and policies and decision-makers who shape business environmental ethics and strategy in the Indian state of Karnataka. Data are analyzed using SmartPLS 4, and PLS-SEM tests the hypotheses. The results show that coercive pressure (β = 0.244, p = 0.000), mimetic pressure (β = 0.221, p = 0.000), and normative pressure (β = 0.209, p = 0.000) have a major role in determining the rate of EMA adoption. It is further identified that EMA adoption (β = 0.217, p = 0.000) positively influences the organization's financial performance. Furthermore, EMA adoption mediates the relationship between coercive pressure (β = 0.053, p = 0.000), normative pressure (β = 0.045, p = 0.000), mimetic pressure (β = 0.048, p = 0.000), and firm’s financial performance. Coercive pressure is associated with higher EMA adoption, although the impact of this link is moderated by corporate environmental ethics (β = 0.069, p = 0.000).

Adoption of environmental management accounting in Vietnamese enterprises: An empirical analysis of influencing determinants.

Along with the process of rapid economic development and integration, Vietnam is facing serious environmental problems, largely caused by manufacturing enterprises. Environmental management accounting (EMA) is a strong management tool to improve an organization's financial and environmental performance, hence supporting businesses for sustainability. This study focused on examining the factors that influence the firms' intention to adopt EMA in Vietnam. The study used the theory of planned behavior and the technology acceptance model to develop an empirical model and hypotheses. Research data was collected through a survey of 330 businesses in 4 provinces in the North region. We analyzed the data using descriptive statistics, Anova test, Cronbach' s Alpha analysis, Exploratory factor analysis, and regression. The results showed that there are 6 significant factors driving EMA applying intention including environmental attitude, perceived benefits of EMA, subjective norms, coercion and social pressure, perceived control and barrier, and policy mix condition, in which coercion and social pressure was the strongest influencing factor. From there, the study makes some implication for government and business sectors aimed at encouraging the implementation of EMA in Vietnam.

Barriers to Implementation of Environmental Management Accounting in South African Small and Medium Enterprises for Sustainable Performance

The key aim of the study is to establish barriers to environmental management accounting (EMA) adoption by manufacturing small and medium enterprises (EMA) in Gauteng province, South Africa from an institutional theory standpoint. To attain the aim of the study 34 in-depth interviews were undertaken with manufacturing SME owners and managers on 34 SMEs. Thematic analysis was adopted to analyze interview transcripts and revealed that lack of government support, financial barriers, lack of incentives to adopt EMA, and absence of guidance to adopt EMA are acting as barriers of SMEs in South Africa from adopting EMA. As a result, the study proposes various incentives such as tax concessions and discounts on eco-materials to encourage SME EMA adoption. Also, the government should take center-stage in making available green training and amplifying awareness of environmental management within SMEs in South Africa. Overall, the study would help regulators and policymakers to align regulations and green strategies with factors that hinder EMA adoption in a ploy to overcome them.

EFFECTS OF INSTITUTIONAL PRESSURES, ORGANISATIONAL RESOURCES, AND CAPABILITIES ON ENVIRONMENTAL MANAGEMENT ACCOUNTING FOR SUSTAINABILITY COMPETITIVE ADVANTAGE

This study investigates the primary role of institutional pressure specifically (coercive, mimetic, and normative pressures) to implement environmental management accounting (EMA) among SMEs in Kenya, and how such influences are affected by organisational resources and capabilities, with a focus on the function of EMA, on sustainable competitive advantage (SCA). Using an online survey, random samples of 1,162 Kenyan manufacturing SMEs provided the data. The empirical findings indicate that normative and coercive forces have a substantial and direct relationship with EMA adoption. However, there was no correlation between mimetic pressure and the adoption of EMA. In addition, the results revealed that only environmental innovation capability positively and substantially mitigated the effect of coercive and normative pressure on EMA adoption. Our PLS analysis discovered a significant and direct relationship between EMA and SCA. In conclusion, the current research expands our understanding of how firms create EMA through the interaction of institutional forces (i.e., coercive and normative constraints) and environmental innovation potential. Furthermore, this study highlights the relevance and use of EMA in giving information to Kenyan SMEs to conduct superior SCA.

Environmental Management Accounting Adoption in Gunungpati Community Self-Help Group (CSHG) – A Case Study

Public organizations increase awareness of environmental issues by encouraging Environmental Management Accounting (EMA), which has been said to deliver numerous benefits to users. This paper proposes to investigate the adoption of EMA in public corporatized water supply organizations. This study was a case study in the Gunungpati Community Self-Help Group (CSHG). Data was from interviews with managers, internal data, and financial report documents. Data were analyzed using the Miles and Huberman technique including data reduction, data presentation, and conclusions. The findings show that Gunungpati CSHG provides water and sanitation services to 198 households, distributing to an estimated population of 103,000 individuals. Five broad categories were identified, four containing physical and monetary information. Product output, non-product output, waste flows, indirect costs, and externalities exist. They produce the volume of water purchased and extracted, water lost, environmental benefits from water recycling, potable water substituted with river saved, and damage to river health from operations. Meanwhile, the organization pay attention to the impact of the organization on the environment to maintain the ecosystem.

Adoption of environmental management accounting

The use of environmental management accounting concepts for companies encourages the ability to minimize the environmental problems it faces. The same is the case with five-star hotel companies in the Nusa Dua area. this study aims to examine the adoption of EMA in the hotel industry in Nusa Dua and the Adoption of Environmental Management Accounting (EMA) among hotel companies in Nusa Dua. This research is qualitative research. Data collection is done by survey, interview, and observation. Data analysis used interactive model of analysis from Miles and Huberman. The findings that can be seen are scale of environmental costs and contemporary management accounting practices affect the implementation of environmental management accounting in the hotel industry. The company considers that the implementation of Activity Based Costing provides better insight into the structure of hotel expenses.

ENVIRONMENTAL MANAGEMENT ACCOUNTİNG: BUSINESSES IN ISO 2020 IMPLEMENTATION

Çevresel açıdan sürdürülebilirliğin önemi konusunda toplumun yüksek düzeydeki farkındalığından dolayı, günümüzde işletmelerin geçmişe oranla daha fazla ilgili olması beklenmektedir. Çevresel korumayla ilgili artan ilgi nedeniyle işletmelerin uygulamalarında çevresel verilere olan ihtiyaç artmaktadır. Bu durum da muhasebenin bir yandan işletmenin çevresel etkilerini ve performanslarını değerlendirmesine, diğer yandan da gerekli çevre ile ilgili verileri açıklamalarına olanak sağlayan bir rol oynamasına neden olmaktadır. Bu ihtiyaçlar sonucunda çevre yönetim muhasebesi (ÇYM) ortaya çıkmış olup, literatürde ve uygulamada gelişimini sürdürmektedir. Çalışmada İstanbul Sanayi Odası tarafından açıklanan 2020 yılı Türkiye’nin büyük sanayi kuruluşları listesinde yer alan imalat sanayi işletmeleri örnek olarak alınmıştır. Çevrimiçi olarak gerçekleştirilen anket çalışması ile işletmelerin ÇYM uygulamalarını gerçekleştirme durumları ve ÇYM’yi benimsemeleri üzerindeki motivasyon kaynakları belirlenmeye çalışılmıştır. Elde edilen veriler, frekans dağılımı, ortalama ve standart sapma ve Bağımsız Örneklemler T-Testi ve ANOVA yöntemleri ile analiz edilmiştir. Katılımcıların çevre muhasebesi eğitimi almış olmaları ile ÇYM’nin benimsenmesi arasında anlamlı farklılık olmadığı Bağımsız örneklem T-Testi ile tespit edilmiştir. ANOVA Analizi ile katılımcıların pozisyonları, tecrübeleri, işletmenin faaliyet gösterdiği pazar ve faaliyet konusu ile ÇYM’nin benimsenmesi arasında anlamlı farklılık olup olmadığı test edilmiş ve anlamlı farklılık olmadığı tespit edilmiştir. Çalışmada sağlanan verilerin analizinde, işletmeler ÇYM uygulamaları konusunda verilen ifadelerden yalnızca yatırım kararlarında potansiyel çevresel etkilerin dikkate alınmakta olduğu ifadesine katılmışlar, diğer ifadeler konusunda ise kararsız kalmışlarıdır. Dolayısıyla katılımcı işletmeler bu uygulamaları düşük bir seviyede benimsemektedirler. ÇYM’nin benimsenmesi üzerinde etkili olan faktörler açısından bakıldığında; kamuoyu üzerinde olumlu bir imaj bırakılması, toplumun artan çevre bilinci ve finansal kurumlardan uygun finansman sağlanması ifadeleri öne çıkan ifadeler olmuştur.

Linking Advanced Technology Industry 4.0 to Environmental Management Accounting (Ema): Impact on Environmental Performance

Sustainability has become vital today as stakeholders demand more information related to the company's environmental and social performance. In order to gather eco-efficient data, companies need to have a good infrastructure or appropriate system for data gathering and sharing in the supply chain. Prior researchers have discussed the use of environmental management accounting (EMA) as one of the tools that can provide environmental information that helps in dealing with environmental issues. Nevertheless, environmental information may not be shared effectively due to poor communication links and the inconsistency of information systems. The motivation to conduct this study is to examine factors that can be solutions to several challenges discovered by prior studies to effectively implementing EMA. Besides that, there are mixed discussions on previous research suggested examining factors that influence the EMA adoption to enhance environmental performance. One of the recent issues is the rise of advanced technology from the Fourth Industrial Revolution (Industry 4.0), which was discussed briefly in recent prior studies. Prior research highlighted advanced technology under Industry Revolution (IR) 4.0 might enhance environmental information. Therefore, the purpose of this study is to investigate the relationship of advanced technology Industry 4.0 on the adoption of EMA leads to the improved environmental performance of the Malaysian electrical and electronic industry. Keywords: Environmental management accounting (EMA), advanced technology Industry 4.0, industrial revolution 4.0, environmental performance

A Systematic Review of Barriers in Adoption of Environmental Management Accounting in Chinese SMEs for Sustainable Performance.

Small- and medium-sized enterprises (SMEs) play an important role in sustainable development not only for their significant contribution to China's economy but also for their large share of total discharged pollutants. Despite the widely acknowledged importance and benefits of environmental management accounting (EMA), the level of adoption and implementation of EMA practice is still weak within SMEs in many countries, especially in China. The current systematic review aims to identify the barriers affecting the Chinese SMEs for adopting EMA practices along with the critical success factors required for adopting EMA practices by SMEs and their top management for ensuring sustainable corporate environmental performance in China. The study is carried out following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. In total, 73 articles were found to be eligible to be included in the systematic review, which was published on EMA in small- and medium-sized enterprises in China. Our study aims to document barriers to the adoption of EMA among Chinese SMEs. The review concluded that strict legislation and the availability of flexible financing options for SMEs can promote the adoption of EMA by SMEs. The establishment of environmental reporting systems and auditing mechanisms can further increase the utilization of EMA by small and medium firms. Barriers to EMA adoption can be mitigated after careful consideration of the current situation in SMEs. Documentation of significant barriers may help to form supportive policies which ultimately add to the efforts toward climate change mitigation.

Barriers of environmental management accounting practices in developing country

The use of environmental management accounting (EMA) benefits organisations by providing them with different information for decision-making (Burritt, Hahn, & Schaltegger, 2002; Adams & Zutshi, 2004; International Federation of Accountants IFAC, 2005). EMA has received increasing attention since 2000 and is now considered an effective tool for dealing with environmental issues and the economic performance of companies and countries (Elhossade, Abdo, & Mas’ud, 2021). This paper purposes to present an empirical case for research in EMA. The paper provides an analysis of the current status of EMA practices in manufacturing companies operating in Libya and identified the barriers preventing such practices. Data were collected from a sample of companies in Libyan manufacturing industry contexts utilizing a questionnaire survey. To analyse these data, two statistical techniques were employed: factor analysis and descriptive tools analysis. The current level of EMA adoption among manufacturing companies in Libya was found to be low. The findings of the study reveal that institutional barriers constituted the greatest obstacle to the adoption of EMA in manufacturing companies in Libya. This was followed by management barriers, informational barriers, financial barriers, and, lastly, attitudinal barriers. This paper concluded that Libyan universities should include EMA in the management accounting syllabus, provide books, and conduct research into practices related to EMA. Furthermore, the Libyan government and other stakeholders should play an active role in enacting and enforcing further strict environmental regulations and laws. This would be useful, as it would increase the concern of local communities about environmental issues; this would, in turn, make companies more concerned about improving their environmental performance.

Institutional pressures influencing environmental management accounting adoption by Malaysian local governments

PurposeBecause of the heightened environmental awareness of the public, local governments (LGs) are being pressured to improve on the extent and quality of environmental disclosures (EDs) provided in an array of reporting media. The lack of an accounting tool to identify, measure and report EDs has propelled the infusion of environmental management accounting (EMA) to support the reporting practices. This paper aims to examine the institutional pressures influencing EMA adoption by Malaysian LGs.Design/methodology/approachUsing the consensus approach, a self-administered questionnaire survey is conducted on accountants in LGs in Peninsular Malaysia. The items in the questionnaire are based on the findings of prior studies on EMA adoption.FindingsThe results suggest that coercive isomorphism from the state government is perceived to be the influential institutional factor placing intense pressures on LGs to adopt EMA.Research limitations/implicationsThe results solidify the potential role of the state government in any public policy changes which could further stimulate and promote the adoption of EMA.Originality/valueInsufficient empirical evidence on the adoption of EMA in LGs within a developing country’s perspective contributes to a limited understanding on the development of environmental-related practices in different economic stages and environment as well as within the public sector’s perspective.

The Influence of Technological Factors on Environmental Management Accounting Adoption in Libyan Oil Firms

This study investigates the extent influence of technological factors on the environmental management accounting (EMA) adoption. Technological, Organizational and Environmental (TOE) framework with Diffusion of Innovation (DOI) Theory is employed. The data in this study is collected by 44 questionnaires delivered to both of environmental and financial managers in Libyan oil firms. The findings show that most firms have a great intention and willingness to adopt EMA practices. The study found that both of technological characteristics (perceived benefits/ perceived importance) are significant factors for adopting EMA and therefore, more attention for enhancing employees’ awareness towards the importance and benefits of EMA adoption should be increased by top management in Libyan oil firms.

Disclosures of the Environmental Management Accounting Practices in the Banking Sector of Bangladesh

The disclosure of environmental management accounting (EMA) practices determine the eco-friendly business activities and helps to measure costs and benefits of environmental preservation of any organizations. The study aims to identify the disclosures status of EMA practices in the in PCBs in Bangladesh. The study also aims to examine the factors (total assets, total investment, profit after tax, ROA, ROE, and EPS) influencing disclosure of the adoption of environmental management accounting in listed PCBs in Bangladesh. This study applied quantitative research method to collect and analyze data. EMA disclosure data is collected from the annual reports of the banks and panel data is used to data analysis of the factors. The collected data is analyzed using descriptive statistics, inferential statistics, correlation, and multiple linear regression analysis. Six hypotheses are developed and tested at 5% significance level. The study concludes that the private banks disclose 71.15% information of EMA practices.

Environmental Management Accounting Adoption Barriers Among Malaysian Hotel Companies

Environmental management has become a main concern to the hotel industry with regards to waste reduction, energy savings and water conservation. The hotel industry is frequently accompanied by many adverse environmental impacts as hotel companies extensively consume large amounts of energy, water and non-durable products. Environmental Management Accounting (EMA) is tools that can be used to assist these companies to trace, collect, and analyse physical and monetary environmental information for decision-making purpose and consequently, improves financial and environmental performances. However, there are barriers to EMA adoption. This study aims to examine level of EMA adoption among the hotel companies and the barriers influencing EMA adoption. This study utilises the quantitative research design; using questionnaire survey. A total of 212 usable questionnaires were collected from the hotel companies in Selangor and Kuala Lumpur. Multiple regression analysis was conducted for hypotheses testing. The results of this study show that EMA has yet to be extensively adopted among the hotel companies in Malaysia. The result also shows that the adoption level of both Physical EMA (PEMA) and Monetary EMA (MEMA) are still low. The result further indicates that the low adoption of EMA is caused by the lack of institutional pressures. Specifically, this study shows that financial barrier, informational barrier and institutional barrier significantly influence EMA adoption among the hotel companies in Malaysia. This study is significant to the hotel managers, government authorities and environmental regulatory agencies in understanding the level of EMA adoption in the Malaysian hotel industry. In addition, this study provides valuable contributions to the existing literature by providing useful insights on the barriers influencing EMA adoption in the hotel industry in developing countries.

Coercive, Normative and Mimetic Pressures as Drivers of Environmental Management Accounting Adoption

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.

The Perceived Attributes of EMA and its Relation to the Adoption of the Practice: Malaysian Evidence

Environmental Management Accounting (EMA) is an extension to the traditional management accounting that helps the managers to identify environmental costs and realize the impact of their operation towards the environment. The adoption of this practice is critical in order to address environmental issues. However, as most of the practice of EMA is underutilized and diverse, further promotion is needed if it is to help the business to move towards sustainability. Surprisingly, even those firms which are regarded as being more environmentally-sensitive are not necessarily to use environmental management accounting. This has led to the literature gap pertaining factors that influence firms to apply environmental accounting. Therefore, this research is interested in extending the focus of EMA adoption in environmentally sensitive industries and understands the factors influencing them. Based on Diffusion of Innovation (DOI) perspective, this study attempts to look at how accountants perceived EMA and how this may affect the adoption of the system. By utilising a survey, questionnaires were mailed to the accountants of public listed companies in Malaysia. Six attributes namely the cost, relative advantage, compatibility, complexity, compatibility and trialabilty are tested in this paper to determine the motivations of EMA adoption. The findings of the study are expected to explain the conditions that facilitate the implementation of the practice and help to provide ways to increase the adoption rate among companies.

Survival of New Institutional Sociology Theory

This study explores the extent to which institutional pressures influence the adoption of environmental management accounting (EMA) within the Egyptian manufacturing companies through an institutional perspective that relies on the new institutional sociology theory. The study has conducted interviews with staff members in 18 Egyptian manufacturing companies (organizational level), and with other different actors (organizational-field level), influencing the adoption of EMA in Egyptian companies. The study finds that there is some influence of institutional pressures on EMA's adoption in Egyptian manufacturing companies. The study finds that coercive pressure has more influence on companies to adopt EMA than normative and mimetic pressures. The poor influence of Egyptian accounting professional associations and environmental institutions has weakened the impact of normative pressures. More investigation is needed regarding the political and socio-economic factors surrounding the adoption of EMA in Egyptian context through the multi-levels institutional perspective.