Linking environmental strategy to environmental performance

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.

PurposeThis study aims to examine the intricate connections between environmental management accounting (EMA) and environmental performance (ENP) through the mediating and moderating roles of green technology innovation, including green process innovation (GSI), green product innovation (GPI) and environmental strategy (EST). The study uses a mediated moderation model with the lenses of legitimacy theory and the natural resource-based view to explore how these constructs interact. It then offers insights into how organizations can improve ENP by integrating EMA, green technology innovation and EST.Design/methodology/approachThis study uses a quantitative approach and collects data from a survey of 325 senior managers and chief accountants of manufacturing firms in Vietnam. The author conducts validation and reliability assessments using SmartPLS4 software and uses partial least squares structural equation modeling to validate the research hypotheses.FindingsThe results indicate significant positive correlations between EMA, GSI, GPI and ENP. Additionally, the findings reveal that two forms of green technology innovation, namely, GSI and GPI, mediate the relationship between EMA and ENP. Finally, this study confirms that EST moderates the connections between GSI and ENP, as well as GPI and ENP.Originality/valueThis study offers novel perspectives on how organizations address the effective harmonization of diverse green assets, such as EMA, GSI, GPI and EST, to enhance ENP. Therefore, the findings of this research provide a valuable understanding of the correlations between EMA, GSI, GPI, EST and ENP for the manufacturing sector in the emerging economy.

Nowadays, carbon and other ozone harming emanations are one of the fundamental drivers of this overshoot. In the light of this discussion, the current examination aims to investigate the relationship between accounting, management and environment in realizing firm performance. In doing so, the current examination opted to inspect the critical relationship of environmental management accounting (EMA), environmental strategies (ENS) and managerial commitment (MAC) in driving firm performance. Given the concerns within the literature that environmental processing within organization enhance financial costs, the authors of the study are motivated to analyze the impact of the variables on both environmental and economic performance of SMEs in Indonesia. We apply novel partial least square structural equation modelling by collected the data from 317 respondents of different small and medium size enterprises of Indonesia. The results of SEM confirm that economic performance and environmental performance have significantly and positively impacted by environmental strategy. The outcomes of partial least square structural equation modelling also indicate that economic and environmental performance have also positively and significantly impacted by the environmental management accounting. Finally, the results of PLS-SEM also specified that economic performance and environmental performance have significantly and positively affected by managerial commitment. Keywords: Environmental Strategy, Managerial Commitment, Environmental Management Accounting.JEL Classifications: Q55, Q50DOI: https://doi.org/10.32479/ijeep.8284

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.

Institutional pressures in the environmental management accounting process through coercive pressure, normal pressure and mimetic pressure that could foster practices and significantly heightens the likelihood of achieving firms' environmental performance. Although a substantial body of literature has outlined the theoretical mechanisms through which institutional pressures in the environmental management accounting process might boost firms' environmental performance, the generally inconsistent and unclear findings of empirical studies have kept researchers interested in exploring this topic further. The present study has investigated the simultaneous impact of coercive pressure, normal pressure, and mimetic pressure of institutional pressures on firms' environmental performance. Based on the institutional theory and the literature review, this study has examined the direct effect of institutional pressures on environmental management accounting, as well as the direct relationship between environmental management accounting and environmental performance. In addition, environmental management accounting has been determined to be mediators in linking the coercive pressure, normal pressure and mimetic pressure of institutional pressures and their effects on firms' environmental performance. JEL Codes: M40, M41, Q56. Keywords: Institutional pressures; environmental management accounting; environmental performance.

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.

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.

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.

1 Adopting Environmental Management Accounting: EMA as a Value-adding Activity.- I Conceptual Developments and Tools of Ema.- 2 The Sustainability Balanced Scorecard as a Framework to Link Environmental Management Accounting with Strategic Management.- 3 Environmental Cost Accounting: Classifying and Comparing Selected Approaches.- 4 The Professionalisation of Environmental and Social Reporting - What has it Achieved.- II Policies and Initiatives for the Promotion of Ema.- 5 Austrian Pilot Projects on Environmental Management Accounting Following the UN DSD EMA Methodology.- 6 Two Governmental Initiatives on Environmental Management Accounting and Corporate Practices in Japan.- 7 The Danish Green Accounts: Experiences and Internal Effects.- 8 Environmental Management Accounting, Eco-Efficiency Profiles, and Effluent Charges for Costa Rican Coffee Mills.- III Developments in Ema Adoption in Practice.- 9 Environmental Management Accounting for Staff Appraisal: Evidence from Australia, Germany and Japan.- 10 Environmental Performance Measurement through Accounting Systems: A Survey of UK Practice.- 11 Cost Management in the Textile Chain: Reducing Environmental Impacts ana Costs for Green Products.- 12 Institutional Changes and Environmental Management Accounting: Decentralisation and Liberalisation.- 13 Introducing Environmental Management Accounting into Small and Medium-Sized Enterprises.- 14 EMA in SMEs: Ten Italian Case Studies.- 15 Green Success: Process-based Environmental Cost Accounting - Implementation in SME's in Germany.- IV Effects of Ema.- 16 The Influence of ISO 14001 and EMAS Certification on Environmental and Economic Performance of Firms: an Empirical Analysis.- 17 Economic Valuation of the Environment: an Institutional Perspective.

Research aim: This research investigates the relationship between EMA (monetary and physical) and environmental performance Design/ Methodology/ Approach: This is a questionnaire-based survey study whereby the questionnaires are sent to 69 large manufacturing companies in Malaysia that are certified with ISO 14001 Environmental Management System.  Research finding: The study found no relationship between EMA (monetary and physical) and environmental performance. Theoretical contribution/ Originality: The study highlights that the EMA literature is not yet comprehensive and as such, may result in the lack of a relationship with EMA. Practitioner/ Policy implication: The results suggest that a formal environmental management accounting by the government may be able to assist to the lack of relationship between EMA and environmental performance. Limitation/ Implication: The study sampled only large Malaysian manufacturing companies with ISO 14001 Environmental Management System. Additionally, a larger sample size may provide better results. Type of article: Research paper Keywords: Environmental Performance, Monetary Environmental Management Accounting, Physical Environmental Management Accounting, ISO 14001 Environmental Management System JEL Classification: C30

The impact of tourism industry 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 is a concept that helps companies contain business impacts in the form of monetary units. The application of Environmental Management Accounting helps companies deal with environmental problems by recording all production activities to be reported in the company's environmental cost report. Although until now there is no standard that requires full environmental accounting disclosure. The research methodology uses case studies. This research aims to develop a model in the form of an accounting policy that contains the concept; emphasize relationship patterns and clarify environmental management accounting practices in the hotel industry. Data analysis was carried out using the Miles and Huberman model. The research results show that environmental management accounting is still considered necessary because it does not affect the business climate. In addition, the relationship between a company's environmental performance presented in the company's accountability report and its financial or economic performance is still doubtful.

The development of industry and technology has brought about changes both in company operations and in the business environment op­erations. Industry 4.0 is a digital revolution that is based on innovative tech­nological solutions and in which technology occupies an important place in the production process, business entity, but also in the lives of individuals. It encompasses new technologies the implementation of which causes costs, requires time, but also requires knowledge. In accordance with the Industry 4.0 requirements, changes in environmental management accounting en­sued, because today most countries strive to achieve a healthy life and do business in a healthy environment. Environmental management account­ing allows collecting data and making business decisions that will have an impact on company performance and environmental performance. The aim of this paper is to identify the advantages and disadvantages of Indus­try 4.0 as well as the impact of Industry 4.0 on environmental management accounting.

This research explores the role of Environmental Management Accounting (EMA) as a mediator in the relationship between green innovation and sustainable growth. This research utilized the STATA 14 program to test hypotheses using the path analysis test and the Sobel test. The analysis was conducted on 2,716 observations from 539 non-financial corporates listed on the Indonesia Stock Exchange (IDX) between 2013 and 2020. The path analysis findings indicate that (1) green innovation positively influences EMA; (2) green innovation positively affects sustainable growth; (3) EMA does not have a significant impact on sustainable growth; and (4) EMA does not operate as a mediator between green innovation and sustainable growth. Additionally, the present research conducted a rigorous robustness test, which yielded results that aligned with those obtained from the path analysis test. Incorporating environmentally focused innovation into company plans provides substantial benefits for achieving sustainable growth, including cost reduction, improved competitive advantage, compliance with regulations, and exploring new market opportunities.

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

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.