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Factors Affecting Environmental Management Accounting and Environmental Performance: An Empirical Assessment

Author

Listed:
  • Gholamreza Zandi

    (Universiti Kuala Lumpur, Business School, Malaysia,)

  • Hoyoung Lee

    (KIMEP University, Almaty, Kazakhstan.)

Abstract

In today s world, businesses have no apparent geographical boundaries for functioning, trading and delivering products and services. However, given the threats to environmental sustainability, modern businesses are restricted to adopt several environmental policies to operate in existing the present globalized ecosphere. Thus, the present study aims to examine the relationship between internal and external drivers of environmental management accounting. In doing so, the study seeks out the association of customer influence, regulatory pressure and firm s moral and social responsibility on environmental management systems in the Indonesian manufacturing industry. Moreover, the current study is also motivated to investigate the impact of EMA on a firm s environmental performance. The current study applied a partial least square structural equation modelling. The results of PLS-SEM confirm that all variables have a positive and significant impact on environmental performance. The results conclude that customer influence, regulatory pressure, and moral & social responsibility have a positive and significant contributor in enhancing environmental management accounting system. Moreover, the results further confirm that environmental management accounting system also plays a significant role in boosting the environmental performance in Indonesia. Therefore, the current study recommends SMEs to give more focus on enhancing the moral and social responsibility among its employees and also make a good control over the regulation and customer influence.

Suggested Citation

  • Gholamreza Zandi & Hoyoung Lee, 2019. "Factors Affecting Environmental Management Accounting and Environmental Performance: An Empirical Assessment," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 342-348.
    • Handle: RePEc:eco:journ2:2019-06-40
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    References listed on IDEAS

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    Cited by:

    1. Candy Chamorro Gonzalez & Jesús Peña-Vinces, 2023. "A framework for a green accounting system-exploratory study in a developing country context, Colombia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 9517-9541, September.
    2. Quang Linh Huynh & Tran Thi Ngoc Lan, 2021. "Importance of Environmentally Managerial Accounting to Environmental and Economic Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 381-388.
    3. Quang Linh Huynh & Van Kha Nguyen, 2024. "The Role of Environmental Management Accounting in Sustainability," Sustainability, MDPI, vol. 16(17), pages 1-21, August.
    4. Iryna Zamula & Maryna Tanasiieva & Vitalii Travin & Vitalii Nitsenko & Tomas Balezentis & Dalia Streimikiene, 2020. "Assessment of the Profitability of Environmental Activities in Forestry," Sustainability, MDPI, vol. 12(7), pages 1-15, April.

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    More about this item

    Keywords

    Customer influence; Moral & Social Responsibility; Environmental Performance; Indonesia.;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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