Role Of Environmental Management Accounting Research Articles

The Role of Environmental Management Accounting in Mediating Green Innovation to Firm Value: Moderated by Quality Management

Firm value is an important indicator for increasing the competitiveness of a company amidst very tight business competition. This research aims to obtain empirical evidence regarding the influence of Green Innovation on Firm Value which is mediated Environmental Management Accounting and moderated by Quality Management. The companies that are the object of this research are manufacturing companies listed on the Indonesia Stock Exchange (BEI) for the 2020-2022 period. The sampling technique in this research used a purposive sampling method and obtained 65 companies. The multicollinearity test and heteroscedasticity test are used as classical assumption tests. Eviews 12 software with panel data regression analysis was used to test the hypothesis. Based on the research results, it was found that green innovation, environmental management accounting, green innovation have an influence on Firm Value, environmental management accounting has an influence in mediating the relationship between green innovation and Firm Value and quality management can moderate the relationship between green innovation and Firm Value.

The Role of Environmental Management Accounting in Economic Development through Corporate Product and Process Innovation in East Java Indonesia

Aims: This research aims to examine the influence of environmental management accounting on economic development through innovation
 Study Design: This research hypothesis testing was carried out using the Partial Least Square (PLS) approach.
 Place of Study: The sample data for this research was obtained from 150 respondents. The respondents in this research sample were accounting managers of manufacturing companies in East Java.
 Methodology: This research method is quantitative. This research will test the influence of the relationship between variables, namely the independent variable consisting of environmental management accounting as the independent variable (X1). The product innovation variable (Z1) and the process innovation variable (Z2) are mediating variables, and economic development (Y) is the dependent variable.
 Results: The result of the test shows that Environmental management accounting (EMA) is proven to have a positive and significant influence on Economic development, with a t value > t table (5.526 > 1.975) and a path coefficient of 0.000. The product innovation is also able to strongly mediate the relationship between environmental management accounting (EMA) and economic development, this finding is supported by the value of t count > t table (2.710 > 1.975) and a path coefficient of 0.000. The latest test results also prove that process innovation is also able to strengthen the relationship between Environmental Management Accounting (EMA) variables and economic development.
 Conclusion: Overall, the results of this study support the dimensions of management accounting environment (AML) can increase economic development even though companies carry out product innovation and process innovation activities. This research provides a perspective on possible strategies companies to achieve more effective environmental management accounting and supports company goals related to product innovation and company process innovation.

Understanding the relationship between environmental management accounting and firm performance: The role of environmental innovation and stakeholder integration – Evidence from a developing country

This study examines the role of environmental management accounting (EMA) as a mechanism for enhancing firm performance. Primary data were collected by means of a questionnaire survey of chief executive officers and finance managers of SMEs in Pakistan. Analysis of the responses received from 204 firms confirms a significant direct relationship between EMA and firm performance. We find that this effect is attributable to the mediating impact of environmental innovation. Our findings also suggest that stakeholder integration positively moderates the association between environmental innovation and firm performance, and so leverages the impact of EMA. The findings are robust to several checks and are further explored at the level of the individual dimensions of some of the constructs used. Thus, we contribute novel evidence regarding the relationship between EMA and firm performance, in the form of both environmental and financial performance. The findings offer practical implications for managers and accountants, and we make several suggestions for future research that could build on our study.

The Role of Environmental Management Accounting on the Effect of Energy Efficiency on Renewable Energy Commitments: An Empirical Study of the Hospitality Industry in Indonesia

The Role of Environmental Management Accounting on the Effect of Energy Efficiency on Renewable Energy Commitments: An Empirical Study of the Hospitality Industry in Indonesia

Impact of pollution prevention strategies on environment sustainability: role of environmental management accounting and environmental proactivity.

Environmental sustainability involves meeting current needs without compromising the abilities of future generations. Practical steps must be taken to prevent pollution, decrease waste, and utilize resources. This study investigates the predictors of environmental sustainability in SMEs, focusing on the role of environmental management accounting and environmental proactivity in linking pollution prevention strategies to environmental sustainability using the natural resource-based view theory. This study surveyed 308 Pakistani SMEs employees and tested the data using SPSS v28 and AMOS v26. The results show that pollution control initiatives increased the usage of environmental management accounting, which in turn had a positive impact on environmental sustainability. The study also finds that environmental proactivity is significantly moderate and that environmental management accounting mediates these associations. To the best of our knowledge, this study is unique in that it is the first to provide sustainable implications based on the current framework. This study highlights the importance of implementing pollution prevention strategies, integrating environmental management accounting practices, and fostering environmental proactivity to enhance environmental sustainability performance in SMEs in Pakistan, ultimately leading to improved business competitiveness, positive environmental impacts, and a sustainable future. SMEs can focus on implementing proactive pollution prevention strategies such as waste reduction, energy conservation, and resource optimization. By adopting a proactive approach to pollution prevention, SMEs can reduce their environmental impact and enhance their sustainability performance.

MEDIATION ROLE OF ENVIRONMENTAL MANAGEMENT ACCOUNTING ON THE EFFECT OF GREEN COMPETITIVE ADVANTAGE ON SUSTAINABLE PERFORMANCE

As hotels grow, the social and environmental problems they pose are becoming more and more complex. This study aims to develop a framework to identify the role of environmental management accounting and the effects of green competitive advantage on sustainability performance. This study uses an explanatory research approach by investigating the effect of green competitive advantages on sustainability performance mediated by environmental management accounting. This study analyses the responses of general managers of hotels in Indonesia as many as 287 respondents. Data was collected by self-administered surveys and the results were analysed using structural equation modeling to test conceptual models and hypotheses. It was observed that green competitive advantage is an essential factor for companies to improve the achievement of sustainable performance. Environmental management accounting directs the management to environmental aspects, communicates the relationship between employee actions and the organization’s sustainable goals and encourages the setting of sustainability performance priorities. Competitive advantage causes variations in the application of environmental management accounting to realise sustainable practices. The findings of this study indicate the importance of implementing environmental management accounting to realise competitive advantages in organisations; therefore, environmental management accounting mediates the relationship between green competitive advantages and sustainability performance.

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

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

Promoting sustainable development through strategies, environmental management accounting and environmental performance

AbstractExtant research on environmental management accounting (EMA) has mainly emphasised its impact on environmental disclosures and cost measurements, while the role of EMA in environmental performance has largely been neglected. Hence, the study addressed the literature gap by applying the natural resource‐based view (NRBV) and the dynamic capabilities (DC) theory to investigate EMA as a fundamental managerial innovation mechanism that explains the relationship between environmental strategies and environmental performance. Questionnaires were used to gather data from 145 managers of ISO14001‐certified Malaysian companies. The results of the Partial Least Squares Structural Equation Modelling (PLS‐SEM) analysis demonstrated that EMA mediates the effects of pollution prevention and clean technology strategies on environmental performance but not the effect of the process stewardship strategy. The findings encourage companies to adopt specific environmental strategies to attain better environmental performance through EMA. Moreover, the results highlighted the company limitations in improving environmental performance. The study is one of the first few attempts to integrate EMA with environmental strategies through the application of the NRBV and the DC theory. Additionally, the study provides empirical evidence that efficient EMA management can be transformed into reasonable operational performance and produce positive outcomes.

Peran Akuntansi Manajemen Lingkungan dalam Memediasi Inovasi Ramah Lingkungan pada Nilai Perusahaan Terhadap Perusahaan di BEI

This research is about the role of environmental management accounting in mediating green innovation by using CSR disclosure on firm value. This study uses manufacturing companies in the basic and chemical industry sub-sectors listed on the IDX in 2017 – 2019 because these sub-sectors have a more significant influence on environmental pollution. The population of this study is manufacturing companies in the basic and chemical industry sectors listed on the Indonesia Stock Exchange in 2017-2019, totaling 71 companies and the research sample as many as 46 companies using the purposive sampling method. This study uses a quantitative method with a descriptive approach. The results show that green innovation affects environmental management accounting and directly affects firm value. Environmental management accounting now has a significant influence on firm value. Environmental management accounting cannot mediate between green innovation and company value in basic and chemical industrial sector companies listed on the IDX.

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)

The role of environmental management accounting and environmental knowledge management practices influence on environmental performance: mediated-moderated model

PurposeThis study aims to observe the influence of environmental management accounting (EMA) and environmental knowledge management (KM) practices on environmental performance with mediating role of top management support (TMS). Moreover, green work climate perception (GWCP) is used as a moderator between TMS and environmental performance.Design/methodology/approachPartial least square-structural equation modeling is used to test research hypotheses. Data was collected to distribute questionnaires in light of the purposive sampling technique; a total of 329 questionnaires were used for final analysis. This study is correlational and cross-sectional. Multiple regression analysis was used to see the influence of EMA, environmental KM practices, TMS and GWCP on environmental performance.FindingsThe results reveal that EMA, environmental KM practices and TMS are positively related to environmental performance. Moreover, TMS significantly mediates between EMA, environmental KM practices and environmental performance. GWCP is positively associated with environmental performance. Finally, GWCP significantly strengthens the positive relationship between TMS and environmental performance.Practical implicationsThis study highlighted a significant issue that of how top management uses EMA, environmental KM practices, TMS and GWCP in examining environmental performance. Moreover, this study covers the gap and supports top management to concentrate on exogenous variables to examine environmental performance.Originality/valueThis study adds value to literature to focus on factors that influence environmental performance. This initial research observes the influence of EMA and environmental KM practices on environmental performance with TMS as a mediator in light of the knowledge-based view. Besides, GWCP is used as a moderator between TMS and environmental performance. Finally, our research can provide benefits to researchers, students and managers.

Achieving triple bottom line performance: highlighting the role of social capabilities and environmental management accounting

PurposeThe relationship between the elements of the triple bottom line (TBL) is a controversial area that is constantly debated in the sustainability literature. This study addresses this debate by testing the relationships between these elements, while considering environmental management accounting (EMA) as a mediating influence.Design/methodology/approachThis paper examines survey responses from upper-level managers from ISO 14001-certified manufacturing companies listed on the Indonesian Stock Exchange (IDX). The hypotheses were tested using a partial least squares approach, and bias-corrected and accelerated bootstrap confidence intervals were used to test the significance of the relationships between variables.FindingsThe authors found a direct relationship between the TBL elements and the role of EMA and social performance in mediating the relationship between economic performance and environmental performance.Research limitations/implicationsThis research also provides new insights into the progress of the social resource-based view (SRBV) theory, where the social element missing from the TBL approach can be found.Practical implicationsThe findings of this article imply that it is worthwhile to invest in corporate sustainability because it is thereby possible to simultaneously achieve economic, environmental and social performance, since such elements are truly integrated. In addition, possession of EMA management tools is necessary to enhance the relationships between economic performance and environmental performance. Furthermore, social performance seems to constitute an important bond between both of these, indicating that the social element of the TBL is necessary to achieve truly competitive performance.Originality/valueThis study contributes to the corporate environmental management literature by providing empirical evidence regarding the TBL elements.

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.

Enhancing a Decision-Making Framework to Address Environmental Impacts of the South African Coalmining Industry

The South African coalmining industry has a rich and long history and contributes significantly to the economic wellbeing of the country. Despite its importance in developing the economy, the industry is causing severe environmental challenges. For example, Emalahleni, a city situated in the Mpumalanga Province in South Africa, has been exposed for over a century to the continuous mining of coal. Challenges experienced include the sterilisation of land due to underground fires, water pollution, surface collapse, and acidification of topsoil. Previous work by the researchers formulated a conceptual framework aimed at addressing some of these challenges. In an extension of this work, the authors comprehensively enhance the preliminary framework on the strength of a set of qualitative propositions coupled with a parallel, exploratory survey. Interviews among various stakeholders were conducted, aimed at enhancing the components of the framework, followed by a focus group to validate the associations among the components of the framework. Aspects reinforced by the survey findings include the role of environmental management accounting, tools like material-flow cost accounting and life-cycle costing, and regulatory and accountability aspects. New aspects elicited from the interviews and the focus group include stakeholder education and training with respect to the value of environmental management accounting for the coalmining industry; adherence to risk management linked to environmental challenges; advanced technologies, for example, financial modelling; and an improved understanding of waste management aspects around acid mine drainage, volatile organic components, CO2 emissions, and post-mine closure. The novelty of the work lies in the approach taken to address coalmining challenges. Previous authors concentrated mostly on scientific and engineering aspects, while this research looks at it from an accounting perspective using environmental management accounting tools to address these challenges.

Environmental management accounting and innovation in water and energy reduction.

The objective of the study is to analyse the role of environmental management accounting (EMA) and the innovation of products and processes in reducing energy and water consumption. To carry out the study, data from PINTEC2017 on innovation activities from 55 sectors in Brazil from 2015 to 2017 were analysed. The hypotheses were tested with the application of structural equation modelling using SmartPLS. The results show that environmental management accounting (EMA) affects product innovation directly and process innovation indirectly through environmental management techniques. These results show that the use of EMA techniques contributes differently to each stage of innovation (processes and products). Thus, industries with new and improved products for the national market innovate their processes with the use of new technologies, training and innovation activities. These results are most evident in the sectors of paper and cellulose, petroleum products, chemicals and the manufacturing of machinery for extraction and construction. These results show that environmental management techniques interact with process innovation, mainly in industries that promote product innovation, and that process innovation has led to a reduction in water and energy consumption.

Mediating Role of Environmental Management Accounting and Control System between Top Management Commitment and Environmental Performance: A Legitimacy Theory

The purpose of current study is to assess the impact of top management commitment on firms’ performance, based on legitimacy theory with mediating role of environmental management accounting and environmental management control system. Survey-based data has been collected through questionnaires from ISO 14001 based manufacturing firms of Pakistan. Path analysis has been conducted by applying structural equation modelling on total 304 respondents' data to answer the study hypotheses by using SPSS and AMOS. Results of the study indicate that there is a positive and direct impact of top management commitment on the firms' environmental performance. Moreover, environmental management accounting and control system significantly mediate the relationship between top management commitment and environmental performance. The theoretical model of this study is first time developed and tested by the researcher in Pakistan. Practically, the findings of this research give a deep insight and understanding of how the managers in Pakistan can improve the environmental performance of their firms, through commitment and environmental management accounting as well as environmental management control system tools.

Effects of environmental strategy, environmental uncertainty and top management's commitment on corporate environmental performance: The role of environmental management accounting

This study aims to examine the effect of the combination of corporate environmental strategy, top management commitment, and environmental uncertainty, with a focus on the role of environmental management accounting (EMA), on corporate environmental performance. Using an online survey, we collect the sample data of 107 responses in ISO 14001 certified companies listed on the Indonesia Stock Exchange. The empirical evidence shows that there is a positive and significant influence between those organizational resources (corporate environmental strategy, top management commitment, and environmental uncertainty) on the use of EMA, which in turn can improve the environmental performance of companies. These findings indicate that EMA is a useful and important tool for providing information to achieve superior corporate environmental performance in Indonesian firms and the findings also suit for companies operating in other countries in terms of developing capabilities with regards to perceived environmental uncertainty to be able to manage EMA tools and, as a consequence, to improve organizational environmental performance. © 2018 Elsevier Ltd

The moderating role of environmental management accounting between environmental innovation and firm financial performance

The moderating role of environmental management accounting between environmental innovation and firm financial performance

The moderating role of environmental management accounting between environmental innovation and firm financial performance

The purpose of this paper is to investigate the relationships among innovation, environmental management accounting (EMA), and firm's financial performance. Specifically, this study explores the relationships of both product and process innovations with financial performance. Furthermore, this study examines the moderating role of EMA on the above relationships. Data were collected in a survey of top managers of the SMEs in manufacturing and consumer product industries in Iran, using a questionnaire. Hierarchical regression analysis was used to test all hypotheses. The findings revealed that both product and process innovations have positive relationships with firms' financial performance, while this effect is significant about product innovation and not significant about process innovation. Moreover, contrary to expectations, this study found a negative moderating effect of EMA on the relationship between process innovation and financial performance. However, no moderating effect of EMA was found on product innovation and financial performance relationship.

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.