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Sustainability Management Accounting and Organizational Performance: The Mediating Role of Environmental Management System

Author

Listed:
  • Nursyazwani Mohd Fuzi

    (Faculty of Management, Universiti Teknologi Malaysia, Johor Bahru 81310, Johor, Malaysia)

  • Sabrinah Adam

    (Faculty of Management, Universiti Teknologi Malaysia, Johor Bahru 81310, Johor, Malaysia)

  • Mohamad Rohieszan Ramdan

    (Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim 35900, Perak, Malaysia)

  • Sharon Yong Yee Ong

    (Faculty of Humanities, Management and Science, Universiti Putra Malaysia Bintulu Sarawak Campus, Bintulu 97007, Sarawak, Malaysia)

  • Juliana Osman

    (Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim 35900, Perak, Malaysia)

  • Subramaniam Kolandan

    (Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim 35900, Perak, Malaysia)

  • Siti Zubaidah Mohd Ariffin

    (Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim 35900, Perak, Malaysia)

  • Nor Sa’adah Jamaluddin

    (Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim 35900, Perak, Malaysia)

  • Karmilah Abdullah

    (Faculty of Humanities, Management and Science, Universiti Putra Malaysia Bintulu Sarawak Campus, Bintulu 97007, Sarawak, Malaysia)

Abstract

The aim of this study was to investigate the relationship between sustainability management accounting, environmental management system, and organizational performance for the Malaysian manufacturing industry. The data were collected from 350 manufacturing companies in Malaysia using online questionnaires. Structural equation modeling was used to investigate the relationship between sustainability management accounting, environmental management system, and organizational performance. The findings showed that there was a significant positive relationship between sustainability management accounting and organizational performance (β = 0.530, p < 0.001), sustainability management accounting and environmental management system (β = 0.583, p < 0.001), and environmental management system and organizational performance (β = 0.168, p < 0.05). The findings also found an indirect effect of sustainability management accounting on organizational performance (β = 0.271, p < 0.05) through environmental management system implementation. Results show that environmental management systems can be considered as partial mediators. The environmental management system as a mediator for the Malaysian manufacturing industry increased the impact of sustainability management accounting on organizational performance. This study provides a fundamental approach for practitioners and manufacturing researchers to improve organizational performance through the implementation of sustainability management accounting and environmental management systems.

Suggested Citation

  • Nursyazwani Mohd Fuzi & Sabrinah Adam & Mohamad Rohieszan Ramdan & Sharon Yong Yee Ong & Juliana Osman & Subramaniam Kolandan & Siti Zubaidah Mohd Ariffin & Nor Sa’adah Jamaluddin & Karmilah Abdullah, 2022. "Sustainability Management Accounting and Organizational Performance: The Mediating Role of Environmental Management System," Sustainability, MDPI, vol. 14(21), pages 1-17, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:14290-:d:960381
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    References listed on IDEAS

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    1. Loai Ali Zeenalabden Ali Alsaid & Jean Claude Mutiganda, 2024. "Sustainability Management Accounting in Urban Development: A Case Study of an Egyptian State-Owned Enterprise," Sustainability, MDPI, vol. 16(18), pages 1-25, September.

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