Implementation Of Environmental Management Accounting Research Articles

A theoretical approach to address environmental management accounting implementation barriers in small and medium enterprises in developing countries

AbstractUniversal approaches to implementing environmental management accounting (EMA) have resulted in a paradigm shift in managing the physical and monetary aspects of the environment globally. While in developing countries, large enterprises continue to lead in implementing EMA, small and medium enterprises (SMEs) are finding it difficult to optimally benefit from embracing EMA. Hence, various players such as policymakers, academics, and environmental experts promote the establishment of new approaches that SMEs can apply to overcome a wide range of barriers inhibiting the successful implementation of EMA. Theories of small business growth, such as stakeholder and institutional, resource-based, and knowledge-based theories, advocate that an enterprise's success depends on the influence of stakeholders' expectations and institutional requirements and the management of the available resources and relevant expertise. A customised framework for applying these four (4) theories to understand the position of SMEs regarding EMA implementation barriers and the approach to address them is lacking. Therefore, in this article, we used a systematic literature review (SLR) using Preferred Reporting Items for Systematic Literature Review (PRISMA) to define the main aspects of these four (4) theories in the context of EMA implementation and identify EMA implementation barriers confronting SMEs. We recommend that SMEs consider applying the proposed framework to address EMA implementation barriers. The outcomes presented have implications for SME owners, government, environmental regulators, and large enterprises in establishing strong networks to encourage the implementation of EMA across the business spectrum.

Supplier–buyer (in)congruence in environmental management accounting for sustainable development in the context of Japan

AbstractThis study provides a comprehensive perspective on the integration of Environmental Management Accounting (EMA) in translating environmental management strategies into corporate outcomes, both at the firm and supply chain levels. Grounded in legitimacy theory and agency theory, we introduce a conceptual framework to comprehensively investigate the impact of EMA implementation on corporate environmental performance (CEP) and corporate financial performance (CFP). Additionally, by considering the dynamics of supplier–buyer relationships, this research delves into the influence of supplier–buyer alignment in EMA on corporate performance, encompassing CEP and CFP within a supply network. To collect empirical data, we partnered with two prominent information firms in Japan, Toyo Keizai Inc. and., Nikkei Inc and gathered EMA data from chief financial officers of publicly listed companies spanning multiple industries in Japan. We manually paired these public firms with their business partners, including industry buyers and suppliers, to establish focal firm‐business partner pairs. Our findings indicate a positive correlation between the extent of EMA implementation and both CEP and CFP. Furthermore, we observe that board gender diversity enhances the relationship between EMA implementation and CFP, while it exerts no influence on the connection between EMA implementation and CEP. Lastly, our study reveals that supplier–buyer congruence in EMA implementation yields positive effects on the performance of focal firms operating within a supply chain network.

The Impact of Environmental Management Accounting on Sustainable Business Outcomes: Quantitative Evidence from Multinational Corporations

Introduction: This research examines the impact of Environmental Management Accounting (EMA) on sustainable business outcomes in multinational companies. There is a knowledge gap regarding the specific influence of EMA on various sustainability performance indicators. Research Methods: This study uses quantitative methods by analysing data from 50 multinational companies listed on the stock exchange during the period 2018-2023. Results: The results show that the implementation of EMA has a positive and significant impact on energy efficiency and carbon emission reduction, but has no significant impact on green product innovation. Companies that integrate EMA into their operations show a 15% increase in energy efficiency and a 10% decrease in carbon emissions compared to companies that do not implement EMA. There is no strong evidence that EMA significantly drives green product innovation. Conclusion: These findings suggest that EMA can be an effective tool for multinational companies to improve sustainability performance through more efficient resource management and reduced environmental impacts.

The impact of managers' attitudes towards environmental management accounting and green competitive advantage in Vietnam manufacturers

Environmental management accounting (EMA) has positive support for providing information for green competitive advantage. Based on upper echelons theory (UET), this study examines the impact of upper managers' attitudes towards the environment regarding the choice of green production strategy, EMA implementation, and green competitive advantage (GCA). The moderating role of regulatory pressure (RP) in some relationships is also investigated. This study, conducted in Vietnam, features a data set of 234 medium and large manufacturers. The sample is restricted to medium and large firms only, as these possess sufficient financial resources to operate independent marketing and management accounting functions. Partial Least Squares Structural Equation Modeling (PLS-SEM) is used to test hypotheses. We found that it has a significant positive and direct effect of attitude towards the environment on choosing a green production strategy and the implementation of EMA, thereby achieving a green competitive advantage. We also find that regulatory pressures have a moderator role and are positive in some relationships. This study applied UET in the management accounting field and presented the significance of the compatibility between upper managers’ attitudes towards the environment, strategies, and EMA implementation that would improve the long-term competitive advantage of the organizations.

Customer pressure and environmental stewardship: The moderator role of perceived benefit by managers.

Nowadays, environmental issues and cleaner products are interest to many customers, considering whether to buy or continue using a product. This will affect the perception, attitude of upper managers in the process of strategic choices and operational management behavior. This study is based on the Upper Echelon Theory, research under the influence of customer pressure to attitude toward the environmental, decision choices for cleaner production strategies, implementation of environmental management accounting towards achieving green competitive advantage of Vietnamese manufacturing enterprises. In addition, the role of two moderator variables: (1) perceived benefit of cleaner production strategies and (2) perceived benefit of environmental management accounting in the research model is also considered. This study surveyed 234 CEOs of Vietnamese manufacturing enterprises. This study employed PLS-SEM, version 3 for data analysis. Results have shown that all relationships are statistically significant. Moderator variables have a statistically significant and positive impact in relationships in which they play a moderator role. This study helps CEOs realize the importance of producing products that are customer-oriented, environmentally friendly, and the implementation of environmental management accounting will have a strong impact on achieving a sustainable competitive advantage.

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.

Firm Characteristic, Islamic Corporate Social Responsibility, and Implementation of Environmental Management Accounting (EMA)

Firm Characteristic, Islamic Corporate Social Responsibility, and Implementation of Environmental Management Accounting (EMA)

Environmental Management Accounting and Stakeholders Perspective: A Theoretical Perspective

This paper focus on the theoretical perspective of environmental management accounting theory and practices and derive into how this principle can impact on the financial performance of companies particularly in an emerging economy. This study will critically examine the various principles on environmental management accounting and how focus on the Nigerian Oil and Gas Companies in Nigeria because these companies are the major causes of environmental pollution and degradation in the Nigeria’s Niger Delta Region. This paper examined existing literature on the environmental management accounting theory discussions, identified the critical features of the theory that are relevant to this paper and robustly discuss the benefits and advantages of adopting environmental management accounting principles in the accounting processes of the strategic assets, oil and gas in Nigeria. This study spanned the years 1999 through 2023 where these important tools can be vital to the understanding of the various economic cycle and significant instruments for effective decisions regarding investment, monetary and fiscal policy. The periods experienced critical economic shocks such as credit boom, a financial recession, a rebound, and strong economic expansion. Furthermore, the period covered the increase demand by stakeholders of the environmental management accountability of the Oil and Gas Companies. In this study piece, a systematic literature review (SLR) was performed, and the research revealed crucial environmental management accounting theory analysis to enable this paper identify suitable articles and journals. A SLR was performed using a sample of 100 research articles chosen from a pool of 400 papers obtained from Scopus, Web of Science, Google Scholar, ABS journal and, among other sources. As a result of the review, the paper recommended that the rigorous implementation of environmental management accounting in the accounting process of Oil and Gas Companies in Nigeria. Finally, authorities should adopt laws and regulations to ensure that Nigerian oil and gas corporations understand the need of incorporating environmental and operational performance into long-term strategic goals.

Profitability as a Moderator in the Implementation of Environmental Management Accounting for Corporate Sustainability

This study aims to examine the effect of implementing environmental management accounting on corporate sustainability moderated by company profitability in mining and manufacturing companies listed on the Indonesia Stock Exchange from 2019-2022. Environmental management accounting is measured by eco-efficiency, and company sustainability is measured by GRI standards using content analysis with a scoring approach in assessing environmental and social achievements. Profitability is measured by return on equity (ROE). This research uses a panel data method with a fixed effect model approach. The sampling technique was purposive sampling with the criteria of companies that publish annual reports, and disclose sustainability reporting successively during the 2019-2022 period so that a total of 33 companies were obtained. The research results show that there is a positive influence on the application of environmental management accounting on corporate sustainability strengthened by profitability as a moderator. The application of environmental management accounting can increase its influence on corporate sustainability when the company's profitability is high. This condition is expected to have an impact on achieving corporate sustainability by fulfilling economic, environmental, and social aspects by the triple bottom line concept as a pillar that can create a sustainable business.

Analisis Penerapan Akuntansi Manajemen Lingkungan Dalam Pengungkapan Biaya Lingkungan Berdasarkan Perspektif Islam

In this modern economic era there are various rumors related to the surrounding area such as global warming, eco-efficiency. There are many illustrations of the interrelated issues of environmental degradation due to waste and exploitation. Environmental issues are becoming increasingly interesting to research along with the advancement of technology and global economy. This research seeks to reveal the application of environmental accounting in the disclosure of environmental costs based on an Islamic perspective at the sei baruhur plantation office of PT Perkebunan Nusantara III. This type of research uses qualitative methods, which are included in field research. The results showed that the analyzed company applies the ISO 14001 standard, from the environmental cost disclosure segment the company still does not carry out accounting practices in the form of comprehensive disclosure, and does not yet have a special accounting segment that deals with environmental issues. However, there has been a positive effort to provide simple details even though it is only about waste management, which can be considered a form of voluntary disclosure. Based on the Islamic Perspective, the implementation of Environmental Management Accounting and disclosure of environmental costs has been carried out in accordance with Islamic provisions.

Influence of Barriers to Environmental Sustainability on Environmental Management Accounting in the Food and Beverage Manufacturing Firms

Most companies make extensive use of environmental sustainability as they receive pressure to operate in an environmentally sustainable manner. Companies are struggling to implement environmental management accounting practices in their operations. Accordingly, research on environmental sustainability difficulties in the context of environmental management accounting in food and beverage manufacturing enterprises is limited. The paper investigates how the barriers to environmental sustainability influence the implementation of environmental management accounting (EMA) in the food and beverage manufacturing firms in Durban, South Africa. A quantitative research approach was applied, using convenience sampling because the data was collected during the strict regulations of the Covid-19 period. The Likert questionnaire (five-point scale) collected quantitative data and it was analyzed using SPSS, performing Pearson's correlation research and regression analysis. The Pearson's correlation coefficient findings show a statistically significant association between environmental sustainability bottlenecks and environmental management accounting in food and beverage manufacturing enterprises at (r = .250, p < 0.0005). As barriers to sustainability decrease, the implementation of environmental management accounting practices will be easier for these firms. The results of regression analysis, show the independent variable, barriers to sustainability, as a major predictor of environmental management accounting, B= 0.442, p< 0.05. It can be suggested that the SA government make the use of EMA practices mandatory for companies that have a negative impact on the environment.

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.

Implementation of Environmental Management Accounting and Energy Efficiency for Green Economy Achievements in the Textile Industry in Indonesia

This paper aims to examine the conceptual framework that describes the relationship between environmental management accounting, energy efficiency and green economy outcomes. In this paper, the authors argue that environmental management accounting and energy efficiency can directly influence the achievement of a green economy. This paper examines survey responses of top management in an East Java textile company registered with the Indonesian Central Bureau of Statistics. The time horizon for data collection is cross-sectional. The hypothesis was tested using a multiple linear regression analysis approach, by interpreting the regression model through the significance coefficient value to see the partial effect. In general, the proposed framework obtains adequate fit statistical results. Furthermore, the results support the argument that there is a positive and significant effect of environmental management accounting and energy efficiency on achieving a company's green economy. The limitations of this study relate to the small sample size, because environmental results and energy use are still considered confidential by many companies in Indonesia. These results can be a specific reference for policy making in companies to continue to support the achievement of green economy goals in Indonesia. This study contributes to the accounting literature, particularly in the mechanism of environmental management accounting information through empirical evidence.

Theory of Planned Behavior on The Implementation of Environmental Management Accounting

G20 2022 put some emphasis on recent environmental issues; one of them is that water pollution that may cause by not only the large company but also micro, small and medium enterprise (MSME) waste, especially textiles, the most found in Denpasar City. This study examines the influence of attitude toward behaviour (ATT), subjective norm (SN) and perceived behavioural control (PBC) on the intention and then the implementation of environmental management accounting (EMA) using legitimacy theory and theory of planned behaviour (TPB). The results showed that ATT and PBC positively influenced the intention to EMA, while SN did not. PBC influence the implementation of EMA positively, while the intention did not. This research enriches legitimacy theory and TPB by revealing the two theories not being able to fully predict the implementation of EMA due to the geographical area, lack of political interest and government regulations that still need improvement.
 Keywords: attitude toward behavior, subjective norm, perceived behavioral control, environmental management accounting

Environmental Management Accounting Implementation Challenges and Supply Chain Management in Emerging Economies’ Manufacturing Sector

Environmental management accounting (EMA) implementation challenges within supply chain management systems (SCMSs) and environmental awareness in emerging economies should be addressed for sustainable development. Therefore, this study explores EMA implementation challenges in the supply chain in manufacturing to propose a framework to guide manufacturing companies to achieve a cleaner production chain. After conducting an extensive literature review on literature related to EMA in developing countries, challenges characterising EMA implementation have been identified. These include incoherent government policies and regulations; unavailability of resources; technological incapability; inadequate training and expertise; allocation of environmental costs; and environmental reporting. Hence, it is suggested that manufacturing companies must understand the financial and environmental benefits of achieving cleaner production through implementing EMA. Managers can make more environmentally friendly decisions based on their supply chain using the developed framework. Regulators may need key regulatory framework reforms and policies to monitor and assess environmental compliance throughout the supply chain. Longitudinal and quantitative data from manufacturing companies in developing countries are suggested to validate the existence of EMA implementation challenges.

Factors affecting the application of environment management accounting: Evidence from manufacturing enterprises

This study was conducted to identify and measure the factors affecting the applicability of environmental management accounting (EMA) in Vietnamese manufacturing enterprises. It was based on institution theory, contingency theory, stakeholder theory, and theory of planned behavior. The method used in this research is a mixed research method. The qualitative method was used by consulting 14 experts through a survey to check whether the factors and models established are appropriate in the current context in Vietnam. Then, the quantitative method was used to test the hypotheses developed from the qualitative research results. Data was collected from 238 manufacturing enterprises in Vietnam from July 2022 to November 2022. The results find seven factors affecting the application of EMA in Vietnamese manufacturing enterprises. There are recommendations to help enterprises improve their ability to apply EMA. This study contributes to enriching the previous literature in two ways. First, it extends the strand of research on EMA application in developing countries, such as Vietnam (Alkisher, 2013; Wachira, 2014), highlighting the role of EMA implementation in these countries. Second, it extends the research about the factors affecting the application of EMA in enterprises, especially in manufacturing enterprises (Jalaludin et al., 2011; Nguyen, 2019).

Factors affecting the implementation of environmental management accounting: A case study of pulp and paper manufacturing enterprises in Vietnam

Vietnam’s pulp and paper industry has contributed significantly to socio-economic growth but is also one of the industries with a very high risk of environmental pollution. Stems from the goal of economic growth coupled with environmental protection operations in Vietnam, this study examines the factors affecting the implementation of environmental management accounting (EMA) in manufacturing enterprises in Vietnam’s pulp and paper industries. The data used in the study were collected through survey questionnaires in the form of face-to-face interviews or sent by e-mail or post to survey respondents at 290 manufacturing enterprises pulp and paper in provinces and cities of Vietnam. Survey subjects are managers (directors, deputy directors, chief accountants) and accountants who have knowledge of EMA in these enterprises. The survey results were obtained from 250 valid survey questionnaires used in this study. This study uses Cronbach’s alpha analysis, exploratory factor analysis, and linear regression analysis using SPSS 20 statistical software. The results show that coercive pressure, normative pressure, awareness of the benefits of applying EMA, environmental strategy, managers’ perception, and qualifications of accountants have a positive impact on EMA implementation. In which, coercive pressure has the strongest impact, and awareness of the benefits of applying EMA has the weakest impact on EMA implementation in these enterprises.

Factors Affecting the Implementation of Environmental Management Accounting: A Case Study in Manufacturing Enterprises in Danang City

Sustainable development is an inevitable development trend of modern society, that is, a development that can meet the needs of the present without affecting the ability of future generations to meet their own needs. Therefore, in the 70s, environmental management accounting (EMA) has increasingly received the attention of authorities, enterprises, and researchers because this is a means for enterprises to balance business management and environmental sustainability. Thus, this study surveyed 321 chief accountants and managers working for 200 manufacturing enterprises in Da Nang, Vietnam. The study aims to determine the factors affecting EMA implementation and measure the influence of the factors on the implementation of EMA in manufacturing enterprises in Da Nang. This research uses a combination of qualitative research methods to identify influencing factors and quantitative research to measure the influence of factors on EMA implementation. Research results show five factors affecting EMA implementation: technology level, enterprise characteristics; performance pressure; accounting staff qualifications, and managers' awareness. Research on EMA in Vietnam is relatively new and has not been studied much. At the same time, there is currently no research on EMA in manufacturing enterprises in Da Nang city. Therefore, the study also contributes to the theoretical basis of the factors affecting EMA implementation.

Technology Industry Revolution 4.0 and Environmental Performance: The Mediating Role of Environmental Management Accounting

Objective - The study aims to examine the relationship between advanced technology in IR 4.0 and the implementation of Environmental Management Accounting (EMA) and its impact on environmental performance. The research also proposes the mediating effect of EMA that there is an indirect effect of technology IR4.0 and environmental performance through EMA. Methodology/Technique – Online survey questionnaires were used to collect data distributed to the managers of the Malaysian electrical and electronic companies which are members of the Electrical and Electronics Association of Malaysia (TEEAM). Data analysis was performed using Partial Least Squares (PLS) analysis for the hypotheses testing. Findings - The findings confirmed that advanced technology significantly and positively influenced EMA and environmental performance. EMA significantly and positively influenced environmental performance. Evidence of EMA as a mediator was identified in the relation between advanced technology and environmental performance. Novelty - Environmental data with inadequate credibility prevents management from making informed decisions. Technology IR 4.0 is a key to solving EMA issues, enhancing real-time environmental data, and improving the production process, thus leading to efficient environmental management and improved environmental performance. The study was conducted due to insufficient empirical evidence on the employment of IR 4.0 advanced technology in the use of EMA that leads to enhanced environmental performance. Type of Paper: Empirical. JEL Classification: Q50, Q55 Keywords: Environmental Management Accounting; Advanced Technology Industrial Revolution 4.0; Environmental Performance, Contingency Theory, Electrical Electronic Industry. Reference to this paper should be referred to as follows: Rasit, Z.A; Bahari, N.A.M; Urus, S.T; Ismail, A.H. (2022). Technology Industry Revolution 4.0 and Environmental Performance: The Mediating Role of Environmental Management Accounting, Acc. Fin. Review, 7(1), 62 – 78. https://doi.org/10.35609/afr.2022.7.1(3)