IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i13p10645-d1187854.html
   My bibliography  Save this article

Green Environmental Management System to Support Environmental Performance: What Factors Influence SMEs to Adopt Green Innovations?

Author

Listed:
  • Abdalwali Lutfi

    (Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    Applied Science Research Center, Applied Science Private University, Amman 11931, Jordan)

  • Hamza Alqudah

    (Accounting Department, Faculty of Administrative and Financial Sciences, Irbid National University, Irbid 2600, Jordan)

  • Mahmaod Alrawad

    (Quantitative Method Department, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    College of Business Administration and Economics, Al-Hussein Bin Talal University, Ma’an 71111, Jordan)

  • Ahmad Farhan Alshira’h

    (Accounting Department, Faculty of Administrative and Financial Sciences, Irbid National University, Irbid 2600, Jordan)

  • Malek Hamed Alshirah

    (Department of Accounting, Faculty of Economics and Administrative Sciences, Al al-Bayt University, Al-Mafraq 25113, Jordan)

  • Mohammed Amin Almaiah

    (Department of Computer Networks, College of Computer Sciences and Information Technology, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    Faculty of Information Technology, Applied Science Private University, Amman 11931, Jordan
    Department of Computer Science, King Abdullah the II IT School, University of Jordan, Amman 11942, Jordan)

  • Adi Alsyouf

    (Department of Managing Health Services and Hospitals, College of Business (COB), King Abdulaziz University, Faculty of Business Rabigh, Jeddah 21991, Saudi Arabia)

  • Mohammed Faisal Hassan

    (Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

Abstract

In the current era of high environmental uncertainty, the advancement of green technologies has led to innovative practices in the manufacturing sector, becoming the preferred approach for achieving sustainable development in today’s business markets. Manufacturing firms require green innovation to improve their environmental performance and monitor operations effectively, but the adoption and implementation of these innovations is still low among manufacturing industries. To bridge this gap, a study was conducted using resource-based view (RBV) theory and the technology–organization–environment (TOE) framework to develop and validate a model that encourages firms to adopt green innovation. A survey was administered to 179 respondents from manufacturing firms, and the data were analyzed using structural equation modeling (PLS-SEM). The integrated constructs of the model—perceived benefits, top management support, coercive pressure, normative pressure, and mimetic pressure—all predicted green management accounting practices. Additionally, the study found that green management accounting practices directly and significantly impacted green environmental performance. The developed model provides clear implications for decision makers, highlighting the importance of adopting green practices and innovative technologies in order to enhance environmental performance. Advanced green technologies have shown a significant connection between green management accounting practices and environmental performance, particularly in developing economies.

Suggested Citation

  • Abdalwali Lutfi & Hamza Alqudah & Mahmaod Alrawad & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Mohammed Amin Almaiah & Adi Alsyouf & Mohammed Faisal Hassan, 2023. "Green Environmental Management System to Support Environmental Performance: What Factors Influence SMEs to Adopt Green Innovations?," Sustainability, MDPI, vol. 15(13), pages 1-20, July.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:13:p:10645-:d:1187854
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/13/10645/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/13/10645/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Adjei, Joseph K. & Adams, Samuel & Mamattah, Lovestone, 2021. "Cloud computing adoption in Ghana; accounting for institutional factors," Technology in Society, Elsevier, vol. 65(C).
    2. Qaisar Iqbal & Noor Hazlina Ahmad & Zeyun Li & Yongmei Li, 2022. "To walk in beauty: Sustainable leadership, frugal innovation and environmental performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 738-750, April.
    3. Kaveh Asiaei & Nick Bontis & Raziye Alizadeh & Mehdi Yaghoubi, 2022. "Green intellectual capital and environmental management accounting: Natural resource orchestration in favor of environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 76-93, January.
    4. Akif Lutfi Al-Khasawneh & Hamdi Jaber Barakat, 2016. "The Role of the Hashemite Leadership in the Development of Human Resources in Jordan: An Analytical Study," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 654-667.
    5. Jinqiu He & Huiwen Su, 2022. "Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    6. Bishawjit Chandra Deb & Md. Mominur Rahman & Muhammad Shajib Rahman, 2022. "The impact of environmental management accounting on environmental and financial performance: empirical evidence from Bangladesh," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 19(3), pages 420-446, July.
    7. repec:eme:aaaj00:aaaj-08-2016-2686 is not listed on IDEAS
    8. Puertas, Rosa & Guaita-Martinez, José M. & Carracedo, Patricia & Ribeiro-Soriano, Domingo, 2022. "Analysis of European environmental policies: Improving decision making through eco-efficiency," Technology in Society, Elsevier, vol. 70(C).
    9. Abdalwali Lutfi & Adi Alsyouf & Mohammed Amin Almaiah & Mahmaod Alrawad & Ahmed Abdullah Khalil Abdo & Akif Lutfi Al-Khasawneh & Nahla Ibrahim & Mohamed Saad, 2022. "Factors Influencing the Adoption of Big Data Analytics in the Digital Transformation Era: Case Study of Jordanian SMEs," Sustainability, MDPI, vol. 14(3), pages 1-17, February.
    10. Thu Hien Nguyen, 2022. "Factors affecting the implementation of environmental management accounting: A case study of pulp and paper manufacturing enterprises in Vietnam," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2141089-214, December.
    11. Thanh Nguyet Phan & Kevin Baird & Sophia Su, 2018. "Environmental activity management: its use and impact on environmental performance," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 31(2), pages 651-673, February.
    12. Gao, Wei & Jiang, Ning & Guo, Qingqing, 2023. "How do virtual streamers affect purchase intention in the live streaming context? A presence perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    13. Esraa Esam Alharasis & Ahmad Saleem Tarawneh & Maha Shehadeh & Hossam Haddad & Ahmad Marei & Elina F. Hasan, 2022. "Reimbursement Costs of Auditing Financial Assets Measured by Fair Value Model in Jordanian Financial Firms’ Annual Reports," Sustainability, MDPI, vol. 14(17), pages 1-21, August.
    14. Badar Latif & Zeeshan Mahmood & Ong Tze San & Ridzwana Mohd Said & Allah Bakhsh, 2020. "Coercive, Normative and Mimetic Pressures as Drivers of Environmental Management Accounting Adoption," Sustainability, MDPI, vol. 12(11), pages 1-14, June.
    15. Yenny Naranjo Tuesta & Cristina Crespo Soler & Vicente Ripoll Feliu, 2021. "Carbon management accounting and financial performance: Evidence from the European Union emission trading system," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1270-1282, February.
    16. Ayman Abdalmajeed Alsmadi & Marwan Alzoubi, 2022. "Green Economy: Bibliometric Analysis Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 282-289, March.
    17. Shanyong Wang & Hualong Wang & Jing Wang, 2019. "Exploring the effects of institutional pressures on the implementation of environmental management accounting: Do top management support and perceived benefit work?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 233-243, January.
    18. Suijun Chen & Pankaewta Lakkanawanit & Muttanachai Suttipun & He Xue, 2023. "Environmental regulation and corporate performance: The effects of green financial management and top management’s environmental awareness," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2209973-220, December.
    19. Abdalwali Lutfi & Akif Lutfi Al-Khasawneh & Mohammed Amin Almaiah & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Adi Alsyouf & Mahmaod Alrawad & Ahmad Al-Khasawneh & Mohamed Saad & Rommel Al Ali, 2022. "Antecedents of Big Data Analytic Adoption and Impacts on Performance: Contingent Effect," Sustainability, MDPI, vol. 14(23), pages 1-23, November.
    20. Sayedeh Parastoo Saeidi & Mohd Shahwahid Haji Othman & Parvaneh Saeidi & Sayyedeh Parisa Saeidi, 2018. "The moderating role of environmental management accounting between environmental innovation and firm financial performance," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 19(3), pages 326-348.
    21. Stephen Brammer & Stefan Hoejmose & Kerry Marchant, 2012. "Environmental Management in SMEs in the UK: Practices, Pressures and Perceived Benefits," Business Strategy and the Environment, Wiley Blackwell, vol. 21(7), pages 423-434, November.
    22. Abdalwali Lutfi & Akif Lutfi Al-Khasawneh & Mohammed Amin Almaiah & Adi Alsyouf & Mahmaod Alrawad, 2022. "Business Sustainability of Small and Medium Enterprises during the COVID-19 Pandemic: The Role of AIS Implementation," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    23. Kevin Zhu & Kenneth L. Kraemer & Sean Xu, 2006. "The Process of Innovation Assimilation by Firms in Different Countries: A Technology Diffusion Perspective on E-Business," Management Science, INFORMS, vol. 52(10), pages 1557-1576, October.
    24. Yusheng Kong & Fahad Javed & Jahanzaib Sultan & Muhammad Shehzad Hanif & Noheed Khan, 2022. "EMA Implementation and Corporate Environmental Firm Performance: A Comparison of Institutional Pressures and Environmental Uncertainty," Sustainability, MDPI, vol. 14(9), pages 1-25, May.
    25. Salim Chouaibi & Matteo Rossi & Dario Siggia & Jamel Chouaibi, 2021. "Exploring the Moderating Role of Social and Ethical Practices in the Relationship between Environmental Disclosure and Financial Performance: Evidence from ESG Companies," Sustainability, MDPI, vol. 14(1), pages 1-17, December.
    26. Smangele Nzama & Odunayo Magret Olarewaju & Omolola A Arise & Idris Ganiyu, 2022. "Environmental Management Accounting (EMA) practices and plastic pollution control in selected food and beverage firms," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2085368-208, December.
    27. Abdalwali Lutfi & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Manaf Al-Okaily & Hamza Alqudah & Mohamed Saad & Nahla Ibrahim & Osama Abdelmaksoud, 2022. "Antecedents and Impacts of Enterprise Resource Planning System Adoption among Jordanian SMEs," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    28. Qaisar Iqbal, 2020. "The Era of Environmental Sustainability: Ensuring That Sustainability Stands on Human Resource Management," Global Business Review, International Management Institute, vol. 21(2), pages 377-391, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ionel Sergiu Pirju & Gabriela Marchis & Manuela Panaitescu & Nicolae Florin Prunău & Alisa Mihaela Ambrozie, 2023. "Foreign Direct Investments—A Perspective of Sustainability: Evidence from the Austrian and German Labor Market," Sustainability, MDPI, vol. 15(18), pages 1-18, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lutfi, Abdalwali & Alrawad, Mahmaod & Alsyouf, Adi & Almaiah, Mohammed Amin & Al-Khasawneh, Ahmad & Al-Khasawneh, Akif Lutfi & Alshira'h, Ahmad Farhan & Alshirah, Malek Hamed & Saad, Mohamed & Ibrahim, 2023. "Drivers and impact of big data analytic adoption in the retail industry: A quantitative investigation applying structural equation modeling," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    2. Yusheng Kong & Fahad Javed & Jahanzaib Sultan & Muhammad Shehzad Hanif & Noheed Khan, 2022. "EMA Implementation and Corporate Environmental Firm Performance: A Comparison of Institutional Pressures and Environmental Uncertainty," Sustainability, MDPI, vol. 14(9), pages 1-25, May.
    3. Musaab Alnaim & Abdelmoneim Bahyeldin Mohamed Metwally, 2024. "Institutional Pressures and Environmental Management Accounting Adoption: Do Environmental Strategy Matter?," Sustainability, MDPI, vol. 16(7), pages 1-20, April.
    4. Alrawad, Mahmaod & Lutfi, Abdalwali & Alyatama, Sundus & Al Khattab, Adel & Alsoboa, Sliman S. & Almaiah, Mohammed Amin & Ramadan, Mujtaba Hashim & Arafa, Hussin Mostafa & Ahmed, Nazar Ali & Alsyouf, , 2023. "Assessing customers perception of online shopping risks: A structural equation modeling–based multigroup analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    5. Mahmaod Alrawad & Abdalwali Lutfi & Mohammed Amin Almaiah & Adi Alsyouf & Hussin Mostafa Arafa & Yasser Soliman & Ibrahim A. Elshaer, 2023. "A Novel Framework of Public Risk Assessment Using an Integrated Approach Based on AHP and Psychometric Paradigm," Sustainability, MDPI, vol. 15(13), pages 1-17, June.
    6. Mohammed Amin Almaiah & Shaha Al-Otaibi & Rima Shishakly & Lamia Hassan & Abdalwali Lutfi & Mahmoad Alrawad & Mohammad Qatawneh & Orieb Abu Alghanam, 2023. "Investigating the Role of Perceived Risk, Perceived Security and Perceived Trust on Smart m-Banking Application Using SEM," Sustainability, MDPI, vol. 15(13), pages 1-17, June.
    7. Abdalwali Lutfi & Manaf Al-Okaily & Adi Alsyouf & Mahmaod Alrawad, 2022. "Evaluating the D&M IS Success Model in the Context of Accounting Information System and Sustainable Decision Making," Sustainability, MDPI, vol. 14(13), pages 1-17, July.
    8. Abdalwali Lutfi & Akif Lutfi Al-Khasawneh & Mohammed Amin Almaiah & Adi Alsyouf & Mahmaod Alrawad, 2022. "Business Sustainability of Small and Medium Enterprises during the COVID-19 Pandemic: The Role of AIS Implementation," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    9. Abdalwali Lutfi & Mohamed Saad & Mohammed Amin Almaiah & Abdallah Alsaad & Ahmad Al-Khasawneh & Mahmaod Alrawad & Adi Alsyouf & Akif Lutfi Al-Khasawneh, 2022. "Actual Use of Mobile Learning Technologies during Social Distancing Circumstances: Case Study of King Faisal University Students," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    10. Abdalwali Lutfi & Hamza Alqudah, 2023. "The Influence of Technological Factors on the Computer-Assisted Audit Tools and Techniques Usage during COVID-19," Sustainability, MDPI, vol. 15(9), pages 1-22, May.
    11. Adi Alsyouf & Abdalwali Lutfi & Nizar Alsubahi & Fahad Nasser Alhazmi & Khalid Al-Mugheed & Rami J. Anshasi & Nora Ibrahim Alharbi & Moteb Albugami, 2023. "The Use of a Technology Acceptance Model (TAM) to Predict Patients’ Usage of a Personal Health Record System: The Role of Security, Privacy, and Usability," IJERPH, MDPI, vol. 20(2), pages 1-24, January.
    12. Abdalwali Lutfi & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Manaf Al-Okaily & Hamza Alqudah & Mohamed Saad & Nahla Ibrahim & Osama Abdelmaksoud, 2022. "Antecedents and Impacts of Enterprise Resource Planning System Adoption among Jordanian SMEs," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    13. Abdalwali Lutfi & Akif Lutfi Al-Khasawneh & Mohammed Amin Almaiah & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Adi Alsyouf & Mahmaod Alrawad & Ahmad Al-Khasawneh & Mohamed Saad & Rommel Al Ali, 2022. "Antecedents of Big Data Analytic Adoption and Impacts on Performance: Contingent Effect," Sustainability, MDPI, vol. 14(23), pages 1-23, November.
    14. Agus Joko Pramono & Suwarno & Firdaus Amyar & Renny Friska, 2023. "Sustainability Management Accounting in Achieving Sustainable Development Goals: The Role of Performance Auditing in the Manufacturing Sector," Sustainability, MDPI, vol. 15(13), pages 1-13, June.
    15. Mutasim Asa’d & Wan Norhayati Wan Ahmad & Hazeline Ayoup, 2024. "Environmental Management Accounting Information and Environmental Performance, the Mediating Effect of Environmental Decision Quality," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 562-573, March.
    16. Christos Bialas & Dimitrios Bechtsis & Eirini Aivazidou & Charisios Achillas & Dimitrios Aidonis, 2023. "A Holistic View on the Adoption and Cost-Effectiveness of Technology-Driven Supply Chain Management Practices in Healthcare," Sustainability, MDPI, vol. 15(6), pages 1-22, March.
    17. Rima H. Binsaeed & Adriana Grigorescu & Zahid Yousaf & Florin Radu & Abdelmohsen A. Nassani & Alina Iuliana Tabirca, 2023. "Harnessing Big Data Analytics to Accelerate Innovation: An Empirical Study on Sport-Based Entrepreneurs," Sustainability, MDPI, vol. 15(13), pages 1-13, June.
    18. Jiahao Gu & Liyuan Zheng & Changgao Cheng & Mengjiao Wang, 2023. "The Configuration Effect of Institutional Environment, Organizational Slack Resources, and Managerial Perceptions on the Corporate Water Responsibility of Small- and Medium-Sized Corporations," Sustainability, MDPI, vol. 15(10), pages 1-16, May.
    19. Shanyong Wang & Hualong Wang & Jing Wang, 2019. "Exploring the effects of institutional pressures on the implementation of environmental management accounting: Do top management support and perceived benefit work?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 233-243, January.
    20. Huibrecht Margaretha van der Poll, 2022. "The barriers and drivers of environmental management accounting practices' adoption in developed and developing countries for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 1222-1234, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:13:p:10645-:d:1187854. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.