scholarly journals ENVIRONTMENTAL MANAGEMENT ACCOUNTING, COMPETITIVE ADVANTAGE, FIRM PERFOMANCE: INDONESIA’S MANUFACTURING SECTOR.

2021 ◽  
Vol 20 (2) ◽  
pp. 144-156
Author(s):  
Thomas Wijanarko ◽  
Peggy Delita Merida
Keyword(s):  
Environmental Management ◽  
Firm Performance ◽  
Competitive Advantage ◽  
Manufacturing Sector ◽  
Management Accounting ◽  
Manufacturing Companies ◽  
Performance Variables ◽  
Environmental Management Accounting ◽  
Indirect Relationship ◽  
Positive Effect

Abstrack This study aims to examine the indirect relationship between Environmental Management Accounting (EMA) and Firm Performance through Competitive Advantage. The contribution of this paper is that there is a Competitive Advantage mediating the relationship of EMA and improving firm performance. The study was conducted on 444 manufacturing companies in Indonesia from 2013-2017. The novelty in this study is a research model that makes Competitive Advantage a mediation for EMA and Firm performance variables, and Competitive Advantage variables using market share proxy. The results of this study are EMA has a positive effect on Firm Performance, EMA has a positive effect on Competitive Advantage, Competitive Advantage has a positive effect on Firm Performance, and Competitive Advantage as Quasi Mediating from the influence of EMA on Firm Performance. Abstrak Penelitian ini bertujuan untuk menguji hubungan tidak langsung antara environmental management accounting (EMA) dan kinerja perusahaan (firm performance) terhadap keunggulan kompetitif (competitive advantage). Kontribusi penelitian ini ialah menunjukan keunggulan kompetitif memediasi antara EMA dan meningkatkan kinerja perusahaan. Penelitian ini dilakukan pada 444 perusahaan manufaktur di Indonesia selama 2013-2017. Kebaruan dari penelitian ini penggunaan keunggulan kompetitif sebagai variabel mediasi untuk EMA dan kinerja perusahaan, serta penggunaan pangsa pasar sebagai proksi variabel keunggulan kompetitif. Hasil penelitian ini ialah EMA memiliki pengaruh positif terhadap kinerja perusahaan, keunggulan kompetitif memiliki pengaruh positif terhadap kinerja perusahaan, dan keunggulan kompetitif, keunggulan kompetitif sebagai mediasi semu dari pengaruh EMA terhadap kinerja perusahaan.        

scholarly journals CONSEQUENCES OF ENVIRONMENTAL MANAGEMENT ACCOUNTING (EMA): THE THEORY BEHIND

2020 ◽  
pp. 20-27
Author(s):  
Dr. Avylin Roziana Mohd Ariffin
Keyword(s):  
Environmental Management ◽  
Firm Performance ◽  
Management Accounting ◽  
Theoretical Explanation ◽  
Sustainable Growth ◽  
Process Efficiency ◽  
Business Success ◽  
Potential Cost ◽  
Environmental Management Accounting ◽  
The Impact

The need for Environmental Management Accounting (EMA) can be associated with the major problems of environmental degradation that lead to other concerns, such as legitimacy and competitive issues. EMA is seen as a management accounting innovation whose consequence is a boost to corporate performance. EMA can benefit the competitive position of a firm by directing the attention of its managers towards potential cost reduction or potential areas for differentiation. EMA can also help firms gain resource productivity and process efficiency, which will result in the reduction of waste and improved the financial profitability of the firm. In other words, EMA practically improves both the environmental and economic performance of a firm. However, despite all these success stories, many firms are still reluctant to take a more proactive approach to EMA, perhaps due to a perceived lack of evidence that the benefits exceed the costs of pursuing these initiatives. The findings so far may also not be generalizable since they are based on descriptive statistics rather than rigorous hypothesis testing. There has been little empirical evidence regarding the impact of EMA on the business success of the firm. This is due to prior EMA studies that have made limited use of a theory that attempts to explain the consequences of the practice. Most research has focused on descriptive work and researchers seem to be unwilling to move beyond action-based case studies in further develop the framework of EMA practice and firm performance. This has raised a concern on the need for theoretical explanation on the consequences of EMA. As it is important to gauge the effects of EMA on firm performance, this study provides a discussion of how EMA could help companies in Malaysia to enhance both their economic and environmental performance and by this to encourage firms to put EMA in practice for their sustainable growth.

Critical success factors of environmental management accounting practices: findings from Malaysian manufacturing industry

2019 ◽  
Vol 23 (1) ◽  
pp. 1-14 ◽  
Author(s):  
Nursyazwani Mohd Fuzi ◽  
Nurul Fadly Habidin ◽  
Sharul Effendy Janudin ◽  
Sharon Yong Yee Ong
Keyword(s):  
Environmental Management ◽  
Critical Success Factors ◽  
Manufacturing Industry ◽  
Success Factors ◽  
Management Accounting ◽  
Manufacturing Companies ◽  
Content Type ◽  
Critical Success ◽  
Environmental Management Accounting ◽  
Practical Implications

Purpose The purpose of this paper is to identify the critical success factors of environmental management accounting practices in Malaysian manufacturing industry. Design/methodology/approach A pilot study was carried out on a sample of 60 manufacturing companies from Malaysian manufacturing industry. A survey instrument including 25 measurement items was designed to identify the level of environmental management accounting practices implementation in the Malaysian manufacturing industry. Descriptive statistical analysis and reliability analysis were used to analyze the data with SPSS software. Findings Findings indicate that environmental safety is one of the critical success factors that play the key role in ensuring the safety awareness at workplace. Companies in the manufacturing industries need to obtain critical success factors of environmental management accounting practices implementation to enhance performance, particularly for Malaysian manufacturing industry. Research limitations/implications The limitation of this study has been the difficult to find the literature on environmental management accounting practices in the Malaysian manufacturing industry. Another limitation is this study only conducted to 60 manufacturing companies from Malaysian manufacturing industry. Practical implications For practical implications, the development of instruments in this study may be valuable tools to evaluate Environmental Management Accounting Practices (EMAP) in Malaysian manufacturing industry. This study also provides important guidelines for Malaysian manufacturing industry to implement EMAP. This research finding would provide new insights for the critical success factors of EMAP to improve performance in Malaysian manufacturing industry. Originality/value This study makes a new contribution to environmental management accounting practices in Malaysian manufacturing industry. This study also provides important information for decision makers involved in environmental management accounting practices implementation and also provides useful reference for future researchers in this research area.

scholarly journals Environmental Management Accounting and Environmental Performance

2018 ◽  
Vol 1 (2) ◽  
pp. 33-36 ◽  
Author(s):  
Rapiah Mohamed
Keyword(s):  
Environmental Management ◽  
Developing Countries ◽  
Environmental Performance ◽  
Current Practice ◽  
Manufacturing Sector ◽  
Management Accounting ◽  
Environmental Accounting ◽  
Environmental Management Accounting ◽  
The Relationship ◽  
A Company

This paper investigates the relationship between environmental management accounting (EMA) and environmental performance in the Malaysian small-medium (SMEs) sized manufacturing sector. The issue of environmental have affected many businesses regardless of the types and sizes of organisation. Ferreira et.al. (2010) argue that the use of EMA technique is not driven by the size of a company, but by the type of industry it relates to. EMA practices involve the tracking, tracing and treatment of costs, earnings and savings incurred in relation to the company’s environmental-related activities Burrit et. al. (2002),. Environmental accounting is still new in Malaysia and the managers and accountants are lack of knowledge in this matter (Jusoh et al., 2018), therefore it is need more empirical evidence on EMA practices especially in developing countries, such as Malaysia. Thus, this study is important to explain the current practice of EMA in SMEs and its influence on environmental performance.   The results reveal that the physical EMA has the highest mean compared to monetary EMA. The results show that the level of EMA practices are not at an encouraging level. The regression results indicate that both types of EMA practices (monetary and physical) have a positive significant effect on environmental performance.

scholarly journals AKUNTANSI MANAJEMEN LINGKUNGAN, ALAT BANTU UNTUK MENINGKATKAN KINERJA LINGKUNGAN DALAM PEMBANGUNAN BERKELANJUTAN

2017 ◽  
Vol 17 (3) ◽  
pp. 279
Author(s):  
Dian Imanina Burhany ◽  
Nurniah Nurniah
Keyword(s):  
Environmental Management ◽  
Sustainable Development ◽  
Environmental Performance ◽  
Management Accounting ◽  
System Development ◽  
Accounting Information ◽  
Environmental Accounting ◽  
Manufacturing Companies ◽  
Environmental Aspect ◽  
Environmental Management Accounting

Sustainable development contains three aspects those are ecological, social and economic. With increasing of environmental damages, ecological/environmental aspect is being an important concern. In this regard, environmental management accounting can help management to improve company’s environmental performance to support sustainable development. This study aims to determine management’s understanding about importance of environmental performance in sustainable development, identify environmental accounting information is needed by management, determine accountant’s understanding about environmental management accounting, and measure effectiveness of environmental management accounting in improving environmental performance. Analysis method uses descriptive verificative by simple regression analysis. Sample are 28 manufacturing companies in Bandung and Makassar. The study result shows that: (1) Management sufficiently understand about importance of environmental performance in sustainable development, (2) Environmental management accounting information that are the most needed by management are the amount of energy consumed, waste disposed, generated and processed, cost of evaluating and selecting waste processing equipment, system development, and cost of audit, regulation and waste, (3) Management accountant sufficiently understand about environmental management accounting, and (4) Environmental management accounting is effective to improve environmental performance.

scholarly journals IMPLEMENTASI ENVIRONMENTAL MANAGEMENT ACCOUNTING DAN NILAI PERUSAHAAN: KINERJA OPERASIONAL PERUSAHAAN SEBAGAI PEMEDIASI

AJAR ◽  
2021 ◽  
Vol 4 (02) ◽  
pp. 110-132
Author(s):  
Ester Putri Gita Pratiwi ◽  
Dyna Rachmawati
Keyword(s):  
Environmental Management ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Management Accounting ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Mediating Role ◽  
Environmental Management Accounting ◽  
The Relationship

The aim of this study is to test the implementation of environmental management accounting (EMA) on firm value indirectly through operational performance. EMA consists of Monetary Environmental Management Accounting (MEMA) and Physical Environmental Management Accounting (PEMA). This study uses 329 and 325 firm respectively for MEMA and PEMA. Research samples are manufacturing companies listed in Indonesian Stock Exchange during the period of 2017-2019. The results show that EMA, MEMA, and PEMA have no statistically effect on either to operational performance and firms’ value. It indicates that operational performance has no mediating role in the relationship between EMA and firm’s value. This study uses robustness test by replacing MEMA, PEMA with Environmental Quality Cost (EQC) approach as the measurement of EMA. EQC consists of prevention, detection, internal failure and external failure. The robustness test shows that EQC has positive impact on firms’ value indirectly through operational performance. It means that operational performance has mediating role in the relationship between EQC and firm’s value. This study contributes academically that EQC approach is the best measurement for EMA in manufacturing companies. Therefore, we suggest for the next study can adopt the EQC approach as the measurement of EMA.

The potential for environmental management accounting development in China

2015 ◽  
Vol 11 (3) ◽  
pp. 406-428 ◽  
Author(s):  
Wei Qian ◽  
Roger Burritt ◽  
Jin Chen
Keyword(s):  
Environmental Management ◽  
Management Accounting ◽  
Data Gathering ◽  
Central China ◽  
Manufacturing Companies ◽  
Content Type ◽  
Perceived Need ◽  
Region Data ◽  
Environmental Management Accounting ◽  
China Region

Purpose – This paper aims to explore the extent to which Chinese businesses are ready for Environmental Management Accounting (EMA) development as a means to help address ongoing tensions between economic growth and environmental degradation. Design/methodology/approach – Case studies were conducted in three large manufacturing companies in the Central China region. Data gathering included 34 interviews with managers at different levels and departments in these companies. Findings – Through the institutional lens of EMA development, it was found that coercive and cognitive institutions have helped build the potential for EMA development. Coercive institutions encouraging corporate EMA development are manifested through increasing regulatory pressure for environmental management and reporting and increasing pressure for compliance under certified environmental management systems. Cognitive pressures are mainly from the perceived need for cognition by international supply chain alliances. Results also revealed that normative institutions serve to reduce the positive impacts of coercive and cognitive institutions on EMA development. Research limitations/implications – Findings imply that managers in heavy manufacturing companies are generally willing to change and prepare for EMA development under perceived high regulatory, economic, environmental and international pressures. However, the readiness of managers to embrace EMA depends on how soon concerns about regulatory inconsistency at local levels and low environmental awareness among employees can be resolved. Originality/value – This is the first study of EMA in the largest developing country. It enhances the understanding of environmental activities in business and identifies issues associated with the development of EMA in Chinese industries.

Effect of environmental management accounting practices on organizational performance: role of process innovation as a mediating variable

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ria Nelly Sari ◽  
Aura Pratadina ◽  
Rita Anugerah ◽  
Kamaliah Kamaliah ◽  
Zuraidah Mohd Sanusi
Keyword(s):  
Environmental Management ◽  
Organizational Performance ◽  
Management Accounting ◽  
Environmental Issues ◽  
Process Innovation ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Content Type ◽  
Environmental Management Accounting

PurposeThis study aims to determine (1) the effect of environmental management accounting on organizational performance and (2) the mediating effect of process innovation on the relationship between environmental management accounting and organizational performance.Design/methodology/approachThis research uses survey methods designed for management accountants of large manufacturing companies in Indonesia. Data from 123 respondents were analyzed using the WarpPLS.FindingsThe implementation of environmental management accounting exerted a positive effect on organizational performance. It is evident that the implementation of environmental management accounting encourages companies to innovate processes which will improve how well the organization performs.Research limitations/implicationsThese findings still contained several limitations such as data were only collected from one province in Indonesia, and so the findings might not be generalizable to other provinces in Indonesia. Also, the number of variables studied only involved three. The study only focused on certain dimensions of environmental management accounting without considering other dimensions in-depth.Practical implicationsThese findings extend the literature on environmental management accounting and demonstrate, from a practical perspective, environmental management accounting (EMA), which prioritizes the environment, will encourage companies to innovate their processes so that they are more environmentally friendly; EMA recognizes the important role of accountants in managing environmental issues.Originality/valueThis study documents the importance of environmental management accounting to assist companies in getting accurate information on environmental issues and environmental costs.

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