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Material Flow Cost Accounting in Developing Countries: A Systematic Review

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  • Thuy Thanh Tran

    (Department of Management in the International Food Industry, University of Kassel, Steinstraße 19, 37213 Witzenhausen, Germany
    School of Accounting, University of Economics Ho Chi Minh City, 279 Nguyen Tri Phuong, District 10, Ho Chi Minh City 700000, Vietnam)

  • Christian Herzig

    (Department of Management in the International Food Industry, University of Kassel, Steinstraße 19, 37213 Witzenhausen, Germany)

Abstract

This study aims to provide a better understanding of material flow cost accounting (MFCA) application in developing countries, which are characterized by rapid structure transformation leading to serious environmental problems. By systematically reviewing the existing literature, our analysis of 28 studies from nine developing countries (China, Indonesia, Iran, Malaysia, South Africa, Sri Lanka, Thailand, the Philippines, and Vietnam) shows that MFCA research has primarily focused on Asian developing countries. Moreover, while the use of MFCA is often associated with improving eco-efficiency, the reviewed studies also indicate a high relevance for strategic decision-making processes within organizations. Finally, one of the key challenges in MFCA application reported in developing country studies lies in existing accounting systems with limited data availability and insufficient cost allocation. Based on our findings and gaps identified in the MFCA literature, we suggest paths for further research, including the necessity of quantitative research and comparative analysis of MFCA application across countries, the further investigation of MFCA application in small and medium-sized enterprises as well as in various manufacturing and service sectors in developing countries.

Suggested Citation

  • Thuy Thanh Tran & Christian Herzig, 2020. "Material Flow Cost Accounting in Developing Countries: A Systematic Review," Sustainability, MDPI, vol. 12(13), pages 1-18, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:13:p:5413-:d:380278
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    Cited by:

    1. Chris A. Kelsall, 2020. "Ecological Management Accounting—Taking into Account Sustainability, Does Accounting Have Far to Travel?," Sustainability, MDPI, vol. 12(21), pages 1-20, October.
    2. Sanhong Liu & Ying Xie & Wen Liang, 2024. "Optimisation of the Circular Economy Based on the Resource Circulation Equation," Sustainability, MDPI, vol. 16(15), pages 1-23, July.
    3. Tran, Thuy Thanh & Herzig, Christian, 2021. "Improving decision-making through material flow cost accounting: the case of VietGreen bottled mineral water company," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(1), August.
    4. Silas Mukwarami & Chekani Nkwaira & Huibrecht Margaretha van der Poll, 2023. "Environmental Management Accounting Implementation Challenges and Supply Chain Management in Emerging Economies’ Manufacturing Sector," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    5. Caitlin Walls & Almy Ruzni Keumala Putri & Gesa Beck, 2023. "Material Flow Cost Accounting as a Resource-Saving Tool for Emerging Recycling Technologies," Clean Technol., MDPI, vol. 5(2), pages 1-23, May.
    6. Ghani, Latifah Abdul & Mahmood, Noor Zalina, 2023. "Modeling domestic wastewater pathways on household system using the socio-MFA techniques," Ecological Modelling, Elsevier, vol. 480(C).

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