Implementation Of Environmental Management Accounting Research Articles

EMA Implementation and Corporate Environmental Firm Performance: A Comparison of Institutional Pressures and Environmental Uncertainty

Environmental management accounting (EMA) practices guide a firm’s response to perceived environmental uncertainty (EU) and various institutional pressures (IP). Drawing upon institutional theory, this study explores the relative effects of institutional pressures and environmental uncertainty on the implementation of EMA, an environmental strategy (ES), and the resulting environmental performance (EP) of firms under the influence of top-management support (TMS) and perceived benefits (PB). Based on data collected from 243 firms operating in Suzhou, one of the busiest business hubs in China, this research used the structural equation modeling (SEM) technique. Findings reveal that environmental uncertainty exerts a stronger influence on the adoption of EMA practices than institutional pressures; however, the choice of a firm’s environmental strategy is more influenced by institutional pressures. Likewise, the serial-mediation effect of environmental strategy and EMA practices is observed to be the strongest in the case of coercive pressures, with some notable moderation effect for perceived benefits and top-management support. The study concludes with theoretical and managerial implications.

The Implementation of Environmental Management Accounting and Sustainable Tourism in Tourism Villages in Bali

Purpose: This study aims to analyze the implementation of sustainable tourism based on environmental management accounting in tourism villages in Bali, Indonesia.
 Research methods: This research method is qualitative which data collection techniques were done through documentation studies. This method was chosen to gain a deep understanding of the implementation of sustainable tourism based on environmental management accounting in tourism villages in Bali.
 Findings: The participation of tourism actors in implementing sustainable tourism based on environmental management accounting in tourism villages in Bali is still not maximized.
 Implications: The process of community empowerment to open accommodation services in the form of homestays that use the principles of green tourism, local transportation services, the availability of craft and art communities, and local guides is still very rare.

Tackling the integration challenge between environmental strategy and environmental management accounting

PurposeThe research debate on the direct relationship between environmental strategy and environmental management accounting (EMA) is quite popular; however, integration challenges between these two factors still persist at the firm level. This paper seeks to adopt the contingency theory perspective to examine how EMA implementation varies across organizations with different intensity levels of environmental management strategy implementation (i.e. environmental management maturity, EMM).Design/methodology/approachThe paper uses a web-based survey, designed and administered to public listed companies and members of three industry chambers in Sri Lanka.FindingsThis study finds that EMA implementation is significantly different among organizations at varying EMM stages. Further, it is observed that organizations at higher stages of EMM use significantly greater domain-based EMA tools and EMA for functional purposes. Therefore, the results show that when organizations progress from reactive to proactive environmental strategies, the EMA evolves to encapsulate and diversify to deal with more-sophisticated environmental management activities.Originality/valueThis is the first study to provide cross-sectional evidence on the relationship between the application of EMA tools and functional uses and the intensity of the environmental strategy pursuance (or EMM). It also proposes a multi-item comprehensive measurement tool for EMA implementation.

IMPLEMENTATION OF ENVIRONMNETAL MANAGEMENT ACCOUNTING (EMA) TO ACHIEVE COMPETITIVE ADVANTAGE

Environmental Management Accounting (EMA) is implemented to improve company's environmental performance. In the traditional accounting system, environmental management is always associated with costs that can reduce company profits. Unlike the case with EMA which makes environmental management an investment that is expected to increase profits while developing the company continuously to achieve competitive advantage. This study aims to analyze environmental management accounting in which can create a competitive advantage. The approach model used in this study is a theoretical approach. The results of the study explain that every company that carries out activities using environmentally friendly concepts through the implementation of Environmental Management Accounting (EMA) will have a higher value than other companies, because the implementation of Environmental Management Accounting (EMA) automatically companies have made good innovations on their products, production process and waste treatment. The conclusion of competitive advantage through the application of EMA can be viewed from the management strategy carried out by the company which includes a low cost strategy, differentiation strategy, focus strategy and innovation strategy

Factors Affecting the Implementation of Environmental Management Accounting Practices through New Institutional Sociology Perspective: A case of an Apparel Manufacturer in Sri Lanka

The emergence of contemporary business environment and technologies, customer driven business perspective, and transparent and accountable business practices have led different stakeholders to demand information in relation to the management of the environment. Consequently, organizations tend to develop their strategies in line with achieving these financial and environmental performances. The apparel industry is one of the significant contributors in the Sri Lankan economy and it can be seen that Environmental Management Accounting (EMA) is often practiced in this industry. However, it is a matter of consideration for the real reason behind the adoption and implementation of Environmental Management Accounting Practices (EMAPs) in this industry. Accordingly, this study is focused on identifying the actual factors that have influenced a manufacturer in the apparel industry in Sri Lanka to adopt and implement EMAPs with the perspective of the New Institutional Sociology Theory. This study takes a case study approach. Therefore, one of the leading manufacturing companies in the apparel industry was selected as the case company. The primary data were collected through a semi-structured interview and questionnaire survey. The validity of findings was assessed through data triangulation. It was identified that the environmental cost accounting, environmentally induced capital expenditure and revenue are the mostly used EMAPs whereas the payback period method is often applied in the organization for investment appraisal activities. In terms of factors that have influenced to adopt and implement EMAPs through the Institutional Theoretical Perspective, it was found that coercive isomorphism was the most significant factor whereas the least influential factor was the normative isomorphism on the adoption and the implementation of the EMAPs in the organization. In terms of coercive isomorphism, the government regulations are the most influential force on this adoption and the implementation. Further, the study found some reasons behind the adoption of more Physical EMAPs (PEMAPs) than the Monetary EMAPs (MEMAPs) by the organization. The study contributes to minimize the gap by revealing the types of EMAPs that have been adopted and implemented and revealing the actual factors that have led to adopt and implement those practices in a manufacturer of the apparel industry.

IMPLEMENTASI ENVIRONMENTAL MANAGEMENT ACCOUNTING DAN NILAI PERUSAHAAN: KINERJA OPERASIONAL PERUSAHAAN SEBAGAI PEMEDIASI

The aim of this study is to test the implementation of environmental management accounting (EMA) on firm value indirectly through operational performance. EMA consists of Monetary Environmental Management Accounting (MEMA) and Physical Environmental Management Accounting (PEMA). This study uses 329 and 325 firm respectively for MEMA and PEMA. Research samples are manufacturing companies listed in Indonesian Stock Exchange during the period of 2017-2019. The results show that EMA, MEMA, and PEMA have no statistically effect on either to operational performance and firms’ value. It indicates that operational performance has no mediating role in the relationship between EMA and firm’s value. This study uses robustness test by replacing MEMA, PEMA with Environmental Quality Cost (EQC) approach as the measurement of EMA. EQC consists of prevention, detection, internal failure and external failure. The robustness test shows that EQC has positive impact on firms’ value indirectly through operational performance. It means that operational performance has mediating role in the relationship between EQC and firm’s value. This study contributes academically that EQC approach is the best measurement for EMA in manufacturing companies. Therefore, we suggest for the next study can adopt the EQC approach as the measurement of EMA.

Environmental Management Accounting Perception and Implementation in the Automobile Industry in Vietnam

This study aims to investigate the factors which impact the possibility of Environmental Management Accounting (EMA) implementation in automobile companies in Vietnam. A survey was carried out with automobile enterprises' managers, getting 198 usable respondents, with data and theoretical model analyzed by using SPSS with EFA method. Results indicated that in Vietnamese automobile enterprises, the possibility of EMA implementation was driven by elements including motivation to reduce production costs, reactions to environmental issues, compliance to legislation, procedures and processes in the working environment which they are in business. The government and professional institutions should play a vital role in promoting EMA practices by issuing specific guidelines and continuous training. Besides, tax authorities should apply the favor policies such as tax incentives to stimulate interest enterprises to implement EMA. However, this study's results only reflect about 63.7% of the impact to the implementation of EMA in Vietnamese automotive enterprises, so there are still some other factors that should be found out in the future researches. This is the first attempt to systematically analyze enterprises' perception and willingness to apply EMA in Vietnamese automobile industry. This study contributes to not only the existing empirical literature of EMA but also enterprises' managers in Vietnam and other transitional economies.

THE USE OF ENVIRONMENTAL MANAGEMENT ACCOUNTING IN CHINA’S MANUFACTURING INDUSTRY

With the increased number of environmental problems in the global scope, the application of environmental management accounting (EMA) in enterprises had attracted constant attention all over the world. Even though EMA has become in the world a new and hot research direction, China’s application of EMA research was relatively small. With the strengthening of environmental protection work in China, the Chinese government and enterprises had tried to accept the use of EMA and gradually caught up with the pace of international environment requirements. Previous studies showed the level of adoption and implementation of EMA was still weak, especially in developing countries. A current paper showed results of a pilot research on manufacturing companies conducted in China. Although some studies questioned the extent of the use of EMA, the findings of the research suggested that the use of EMA had potential for further development in China. However, this study is a pilot study, thus the sample size was considered insufficient but a future study had been suggested to produce more accurate results and findings.

ENVIRONMENTAL MANAGEMENT ACCOUNTING ON THE AUTOMOBILE INDUSTRY IN VIETNAM

Environmental management accounting (EMA), as part of environmental accounting, may assist managements to assess environmental impacts of organizations’ activities, particularly by providing environmental information for making decision. However, in Vietnam, the implementation of EMA is affected not only by pressure (coercive and/or normative) factors such as Government pollution standards, membership of VAMA etc but also by benefit and barriers when implementing EMA. This study found that in Vietnamese automobile enterprises, the possibility of EMA implementation was driven by some elements such as a motivation to reduce product costs, reactions to environmental issues, compliance to legislation, procedures and processes in the working environment which they are in business.

Effect of environmental management accounting practices on organizational performance: role of process innovation as a mediating variable

PurposeThis study aims to determine (1) the effect of environmental management accounting on organizational performance and (2) the mediating effect of process innovation on the relationship between environmental management accounting and organizational performance.Design/methodology/approachThis research uses survey methods designed for management accountants of large manufacturing companies in Indonesia. Data from 123 respondents were analyzed using the WarpPLS.FindingsThe implementation of environmental management accounting exerted a positive effect on organizational performance. It is evident that the implementation of environmental management accounting encourages companies to innovate processes which will improve how well the organization performs.Research limitations/implicationsThese findings still contained several limitations such as data were only collected from one province in Indonesia, and so the findings might not be generalizable to other provinces in Indonesia. Also, the number of variables studied only involved three. The study only focused on certain dimensions of environmental management accounting without considering other dimensions in-depth.Practical implicationsThese findings extend the literature on environmental management accounting and demonstrate, from a practical perspective, environmental management accounting (EMA), which prioritizes the environment, will encourage companies to innovate their processes so that they are more environmentally friendly; EMA recognizes the important role of accountants in managing environmental issues.Originality/valueThis study documents the importance of environmental management accounting to assist companies in getting accurate information on environmental issues and environmental costs.

Institutional pressures, environmental management strategy, and organizational performance: The role of environmental management accounting

AbstractThis study investigates the implementation of environmental management accounting in translating environmental management strategy into organizational performance. Further, the study identifies the influence of institutional pressures on environmental management strategy and environmental management accounting to provide a better description of the impact of the institutional environment on corporate environmental practices. The data were collected from 144 business entities in Sri Lanka using a web‐based survey and analyzed using partial least squares structural equation modeling. We found statistically significant evidence to state that the environmental management strategy is positively associated with the environmental and economic performance of organizations, whereas environmental management accounting mediates this relationship. Further, a firm's institutional environment positively affects both environmental management strategies and environmental management accounting. This study emphasizes that the organizational information systems such as environmental management accounting are useful in providing information on environmental costs and monitoring environmental and financial performance when implementing environmental management strategies in the pursuit of corporate sustainable development.

From institutional pressure to the sustainable development of firm: Role of environmental management accounting implementation and environmental proactivity

AbstractThe current study purposes to assess the impact of institutional pressures (coercive, mimetic, and normative) on environmental performance of the firm along with the mediation of implementation of environmental management accounting and moderation of environmental proactivity between them. Quantitative data are collected through structured questionnaire from 500 middle‐level and top‐level managers and owners of manufacturing firms of Pakistan. Data are analyzed through SPSS and AMOS in which structural equation modeling in performed to assess hypotheses. Findings show that coercive, mimetic, and normative pressures are significant derivers of environmental performance. It is further found that coercive, mimetic, and normative pressures significantly enhance the implementation of environmental management accounting, which in turn enhances the environmental performance of the firm. Furthermore, environmental proactivity is found to be a significant moderator between mimetic pressure and environmental performance while no moderation by environmental proactivity is confirmed in relationships of coercive pressure and normative pressure with environmental performance. The current findings are anticipated to assist practitioners in strategy development and execution to improve environmental performance of the firm and policymaking to control environmental impacts of businesses and improve environmental conditions in the country. The current study is the first one to empirically examine the moderating role of environmental proactivity and mediating role of execution of environmental management accounting between institutional pressures and environmental performance in context of Pakistan; so, it will open new areas of discussion and analysis for researchers in the domain of institutional theory.

Environmental Management Accounting Implementation and Environmental Performance through Enhanced Internal Process Innovation

Environmental Management Accounting Implementation and Environmental Performance through Enhanced Internal Process Innovation

Exploring the effects of institutional pressures on the implementation of environmental management accounting: Do top management support and perceived benefit work?

AbstractEnvironmental management accounting (EMA) has been regarded as an effective way to deal with environmental issues and economic performance. On the basis of institutional theory, this research aims to examine the effects of institutional pressures on the implementation of EMA and how such effects are affected by top management support and perceived benefit. Data were collected from the manufacturing firms in the Yangtze River Delta using questionnaire survey method. The results indicated that coercive pressure and normative pressure positively and significantly affect the implementation of EMA whereas mimetic pressure has no significant effect. Furthermore, top management support and perceived benefit play different moderating roles in the relationships between institutional pressures and the implementation of EMA. Top management support and perceived benefit positively moderate the relationships between coercive pressure, normative pressure, and the implementation of EMA although negatively moderate the relationship between mimetic pressure and the implementation of EMA. On the basis of the findings, policy implications and suggestions for future research are discussed.

Linking environmental strategy to environmental performance

PurposeThis paper aims to test a conceptual framework that describes the relationship between environmental strategy, environmental management accounting and environmental performance. In this paper, the authors argue that environmental strategy can directly influence environmental performance through environmental management accounting.Design/methodology/approachThis paper examines the survey responses of general managers, operations managers, financial managers and environmental managers in an ISO 14001 certified company listed on the Indonesia Stock Exchange. The hypotheses were tested using a consistent partial least squares approach and bias-corrected and accelerated bootstrap confidence intervals to test the significance between variables.FindingsIn general, the proposed framework obtains adequate goodness-of-fit statistics. Furthermore, the results support the argument that there is a positive and significant effect of environmental strategies on the environmental performance of companies and that the role of environmental management accounting can mediate their relationship.Research limitations/implicationsThe limitations of this study relate to the small sample size, as environmental results are still regarded as confidential by many companies. A causal relationship cannot be confirmed for the results. The instrument used is fully adopted from previous research, without unidimensional re-testing. This study contributes to the natural resource-based view literature by responding to recent calls to test the combined effect of resources on environmental performance.Practical implicationsThis result could serve as a specific reference for policymaking at firms to continuously improve their environmental performance. This study also has important implications for management practices by illustrating the potential of environmental strategies and environmental management accounting to improve environmental performance.Social implicationsThis result indicates that the improving green accounting in Indonesia would appear to require more mandated pressure from, particularly, governmental powers.Originality/valueThis study contributes to the corporate environmental accounting literature by providing empirical evidence linking environmental strategy with environmental performance through the implementation of environmental management accounting.

ENVIRONMENTAL MANAGEMENT ACCOUNTING DI UNIVERSITAS: EVALUASI KESIAPAN IMPLEMENTASI EMA DALAM KONSUMSI KERTAS, LISTRIK DAN AIR

The environmental damage has become popular issue to be concerned by society, government and business industries sectors, recently. Some studies found that most pollutions contributed by industrial sectors, therefore many tools have been applied by companies to minimize the waste. However, not for profit organization, government and society should also be responsible for the occurrence of environmental damage for their miss-consumption on fuel, paper, electricity, water, etc. University as academic institution consumes some resources mostly on paper and electricity, to support their daily learning and administration activities. In managing the resources consumption and minimising the waste, university may also apply environmental management accounting (EMA), which have been implemented at most industrial sectors. This study aims to determine the level of readiness of implementation of EMA on academic institution which most deal with resources such as paper, water and electricity. The research object of this case study is Faculty Ebiz in Surabaya, focusing on the way they consume and manage the use of paper, electricity, and water. As a qualitative research, the study uses some methods to collect data, which consists of deep interviews with some keypersons, documents analysis on the policy and data of resources’ consumption level, and observation some activities on location as non-participant observer. The results reveal that Faculty Ebiz has not been fully implemented EMA concept in the way of paper, electricity, and water consumptions. This case study determine the willingness of green commitment, and some particular activities from the civitas- academica should be supported by physical and technical policy to ensure the effectiveness of EMA’s implementation.

PENERAPAN AKUNTANSI MANAJEMEN LINGKUNGAN TERHADAP LIMBAH PADA PABRIK GULA PRADJEKAN

ABSTRACTThe impact of a company's production activities can cause various environmental problems that are detrimental to various parties. This is a social burden, which must be taken seriously. Environmental Management Accounting (EMA) is a concept that helps companies in loading business impacts in the form of monetary units. The application of Environmental Management Accounting helps companies with environmental problems by recording all of their production activities to be reported in the company's environmental cost report. This research is a case study research in manufacturing companies, namely PG.PRADJEKAN. This study aims to evaluate the application of Environmental Management Accounting PG.PRADJEKAN. From the results of research on PGADJEKAN, it is known that the company has not fully implemented Environmental Management Accounting. Especially for accountant staff who do not understand about Environmental Management Accounting should be given a study of Environmental Management Accounting. From the implementation of Environmental Management Accounting in 2011 until now the company has a good waste management system so as to minimize environmental pollution caused by production activities in the milling season. From the evaluation results in this study it can be seen that the company's accountants play a full role in the application of Environmental Management Accounting, but accountants need to conduct further environmental studies to understand their application, because the application of Environmental Management Accounting in PG.PRADJEKAN has only been running for four years.Keywords: Evaluation, Application of Environmental Management Accounting, Environmental Costs

Corporate characteristics and environmental management accounting (EMA) implementation: evidence from Malaysian public listed companies (PLCs)

Adopting the contingency theory framework, this study investigated the extent to which Malaysian public listed companies (PLCs) implement environmental management accounting (EMA) and whether the implementation varies across corporate characteristics. Five corporate characteristics, namely, environmental sensitivity of industry, company size, ownership status, Environmental Management System (EMS) adoption and the proportion of non-executive directors (NEDs), were examined. The results, derived from postal questionnaires, indicate that the extent of EMA implementation was moderate and that more emphasis was placed on environmental cost effectiveness activities. The results also imply that complying with environmental regulations is more important than incorporating EMA information into performance measurement, control and reporting. Except for ownership status, the extent of EMA implementation, however, did not vary among corporate characteristics, and thus, provides limited support to contingency theory in explaining the extent of EMA implementation among Malaysian PLCs.

Environmental Management Accounting (EMA) for environmental management and organizational change

Purpose– The purpose of this paper is to identify the development and implementation of Environmental Management Accounting (EMA) and environmental management at the level of a firm in the hotel sector in Sri Lanka.Design/methodology/approach– Case study method was used in the study. The primary data were collected through semi-structured interviews supported by observations of various facility centers (on-site assessment). Accounting records such as the Green Book, daily and monthly material and energy records, online resources and various other documents were content analyzed as sources of secondary data.Findings– The study observed that the hotel had reinvigorated some of its environmental management and EMA practices in an urgent, cost-saving bid when faced with a financial crisis. Having realized their cost-saving potential and strategic benefits, the management developed these selective practices over time into comprehensive practices that are integrated into the daily management process supported by all stakeholders. The development stages of EMA reflect how the hotel moved from a survival phase to an integration phase.Originality/value– The paper attempts to apply an integrated eco-control approach in an emerging South Asian country, Sri Lanka. Because eco-control of EMA is a new approach in developing countries, this paper provides important insights into the development of eco-control and EMA.

The Implementation of Environmental Management Accounting and Environmental Reporting Practices: A Social Issue Life Cycle Perspective

While the pressure of legitimacy was found to greatly influence companies’ environmental reporting (ER) practices, being environmentally responsible however is not necessarily reflected through positive and descriptive environmental information. Unless companies begin to truly commit to upholding environmentally responsible, that is, to be accountable towards their business environmental impacts, the issue of incompleteness and incredibility of ER will remain topical. For companies to effectively measure and report their environmental performance, the implementation of Environmental Management Accounting (EMA) is essential as conventional accounting systems disregard the generation of environmental information. Using social issue life cycle theory as an interpretive lens, this paper aims to propose a theoretical framework to investigate the relationship between the extent of EMA implementation and ER practices.