Adoption Of Environmental Management Accounting Research Articles

Institutional drivers of environmental management accounting adoption in public sector water organisations

PurposeThe purpose of this paper is to examine the influences on the adoption of environmental management accounting (EMA) in corporatised water supply organisations, from an institutional theory perspective, drawing on the concepts of reflexive isomorphism and institutional logics.Design/methodology/approachThe primary research involves case analysis of three companies in the Australian water supply industry, drawing on interviews, internal documents and publicly available documents, including annual reports.FindingsTwo key drivers for the adoption and emergence of EMA are: the emergence of a government regulator in the form of the Essential Services Commission (ESC) and community expectations with regard to environmental performance and disclosure. The water organisations were found to be reflexively isomorphic, while seeking to align their commercial logic to “sustainability” and “ensuring community expectations” logics to the legitimate adoption of EMA.Originality/valueThe paper contributes to the literature by providing case study evidence of the intentions and motivations of management in adopting EMA, and the nature of that adoption process over an extended period. Further, it provides empirical evidence of the applicability of reflexive isomorphism in the context of EMA and institutional logics.

Environmental Management Accounting (EMA) Adoption Level among Listed Manufacturing Companies in Sri Lanka: Institutional Theory Perspective

This study investigates about the relationship between institutional pressure and environmental management accounting (EMA) adoption level by applying new institutional sociology perspective to assess the pressures for EMA adoption level with reference to 38 listed manufacturing companies in Colombo Stock Exchange (CSE) in Sri Lanka, based on convenient sampling method. Data were collected through structured questionnaire distributing via e-mail and postal mail for accountant or financial managers as respondents. Reliability analysis, descriptive analysis and inferential analysis were applied to analyze the data and three hypotheses were tested by multiple regression analysis. Those hypotheses were constructed to reveal about coercive isomorphism, normative pressure and mimetic processes are positively influence for EMA adoption level. The results indicate the influences of education or/and training, and political or/and legitimacy are positively pressure for the adoption of EMA; although, the pressures on standard responses to uncertainty is insignificant for EMA adoption. In addition, Coercive isomorphism; responses to political influence or/ and legitimacy influences play vital role in pressuring on EMA adoption. Further findings supports to the practical implications of Accountant role and political/ legitimacy influences are important in managing environmental issues in an organization. This study has made preliminary understanding for the new institutional sociology perspective concerning the type of pressure that influences and, provides useful contribution to the present knowledge by exploring more explanations for environmental management accounting adoption in an unexplored context in Sri Lanka.

Determinants of carbon management accounting adoption in Ghanaian firms

PurposeCarbon management accounting (CMA) is one part of sustainability accounting designed to provide information for the management of carbon dioxide (CO2) releases. Adopting the contingency framework, this paper aims to examine the contextual antecedents that influence CMA adoption in Ghanaian firms.Design/methodology/approachThe paper tests seven contextual dimensions, namely, strategy, structure, size, environmental management system (EMS), decentralization, technology and perceived environmental uncertainty, on CMA adoption from a survey of 125 accountants.FindingsConsistent with prior literature, organizational strategy, structure, environmental management accounting (EMA), firm size, technology and perceived environmental uncertainty were found to be positively associated with CMA adoption and hence support contingency theory. However, a relationship between decentralization and EMA adoption was not supported by the sample data. Also, the existence of CMA systems was found to be low in the sample firms, although more than half of the respondents have EMS.Research limitations/implicationsThe study is limited to Ghana hence possible generalization of the results is limited. Further exploration of contingency-based research in other emerging economies would provide valuable insights on CMA adoption and practices to contribute to the CMA literature.Practical implicationsThe findings suggest that although CMA adoption and practices is low in the sampled firms, both contextual and environmental factors play a vital role in the adoption of CMA in developing economies, as it pertains to the generic management accounting systems. Policies governing CMA practice should incorporate organizational contextual factors.Originality/valueThe paper presents preliminary empirical evidence on the state of adoption and practice of CMA from an emerging economy perspective, an area which lacks empirical investigation both in the EMA and the carbon accounting domain. It draws considerable novelty on the basis that despite the growing interest in climate change-based research empirical works on CO2 emissions conducted exclusively from management accounting perspective, and in developing economies in particular, have been scant. The paper extends the contingency theory framework from conventional practices to the EMA field.

Environmental Management Accounting Practices and their Diffusion: The Sri Lankan Experience

When implementing environmental management strategies it is important to use effective accounting tools to facilitate corporate decision making. In this context, a body of accounting practices, known as Environmental Management Accounting (EMA), has emerged as an interface between management accounting and environmental management. This paper attempts to provide a snapshot of EMA practices in Sri Lanka using the authors’ experience in dealing with several industries. It presents the commonly observed EMA tools and techniques used in Sri Lankan organizations while discussing how they have been diffused through adopters and propagators. Despite the rapid diffusion, the authors do not find a comprehensive and systematic adoption of EMA in Sri Lanka. This situation offers opportunities for Sri Lankan organizations to benefit from the proper adoption of EMA in the future.

Environmental management accounting (EMA) in the developing economy: A case of the hotel sector

The adoption of EMA is triggered by certain factors such as human resources, compliance to legislation, market factors, just to name but a few. However, the literature points out that there are limiting factors that impede the application of EMA, particularly in the developing economy. Currently, there is limited existing research on EMA practices available for use by the hotel sector in the developing economies. The overall aim of this study was to, therefore, investigate and describe factors that enable and limit the use of EMA tools by the hotel sector in South Africa, a developing economy. The research was an exploratory study and qualitative in nature using a single case study with embedded units approach. ABC Hotel Management Group formed part of this study along its 3 hotels which met the selection criteria. In-depth semi-structured interviews comprised the main method of data collection. Additional documents were analysed which included financial statements, policy documents, the Group’s website, the hotels’ websites, Group Energy Profile Analysis (GEPA) programme, and Building Monitoring Systems (BMS). There were 10 participants in this case study which included the group engineer, who is the main custodian of the Group’s environmental management systems, 3 general managers, 3 financial managers, and 3 maintenance managers. The study discovered certain external and internal factors enabling the implementation of EMA tools; and there was the existence of limiting factors, internal and external, such as the shortage of skills and knowledge

Theoretical Developments In Environmental Management Accounting And The Role And Importance Of MFCA

Abstract Environmental Management Accounting (EMA) is a broader concept of accounting which uses accounting tools and practices to support company-internal management decision making on environmental issues and its impact on company performance. Research on EMA can be divided into two broad categories: theoretical and empirical studies. The theoretical studies based on framework that aim to explain the nature of the relationship between economic and environmental performance and the adoption of Environmental Management Accounting in a business environment. The empirical studies follow two lines of research, instrumental studies aim to empirically test the relationships hypothesized in theoretical studies; descriptive studies are intended to examine the factors that encourage the adoption of EMA. This review paper examined the role of MFCA in identifying non-product output (waste) and its impact on an organisations profitability. Various case studies are examined in this article that demonstrates MFCA to an important environmental management tool to ensure future sustainability of an organisation.

Assessment of environmental management accounting at South African universities: Case of Tshwane University of Technology

The overall objective of the paper is to assess the application of environmental management accounting (EMA) at Tshwane University of Technology (TUT) as a service organization and examine how the institution manages, account and report environmental cost. Data was collected by means of exploratory and explanatory research techniques using two data sets; documentary and fourteen in-depth individual face-to-face interviews employing a semi-structured questionnaire with closed and open ended questions to collect primary data. The results indicate that; the implementation of EMA and general governance for environmental responsibility and accountability is extremely weak. The potential use of EMA is neglected and, as such, EMA implementation is not considered a priority. Three barriers to the adoption of EMA within TUT were identified as: institutional pressures, a low profile of accounting for the environment, and management’s attitudes. A general ledger model and action plan for the implementation of EMA at TUT utilizing the use of activity based costing has been suggested.

Understanding environmental management accounting (EMA) adoption: a new institutional sociology perspective

PurposeThe purpose of this research paper is to report the results of a study that explains the relationship between institutional pressure and environmental management accounting (EMA) adoption. Specifically, it looks at the pressure of government and other parties in society concerning EMA adoption among manufacturing companies in Malaysia.Design/methodology/approachDrawing from the new institutional sociology theory, the paper seeks to identify the extent to which institutional pressure influences EMA adoption level. A total of 74 accountants from manufacturing companies in Malaysia participated in the survey. Institutional pressure (coercive isomorphism, normative pressure and mimetic processes) was tested against the level of EMA adoption via multiple regression analysis. Next, semi‐structured interviews were employed with four survey participants to gain further insights into the survey results.FindingsThe findings of this study reveal some influence of institutional pressure on EMA adoption. Of these, normative pressure in terms of training and accounting body membership was found to be the most forceful.Practical implicationsRecognising the important role of accountants in managing environmental issues in organisations, this study highlights the influence of education and training as determinants of EMA adoption.Originality/valueThis paper offers a preliminary understanding from the new institutional sociology perspective concerning the type of pressure that influences manufacturing companies in Malaysia to adopt EMA.