scholarly journals Environmental Management Accounting (EMA) Adoption Level among Listed Manufacturing Companies in Sri Lanka: Institutional Theory Perspective

2019 ◽  
Vol 2 (1) ◽  
pp. 1-12 ◽  
Author(s):  
H B P Chathurangani ◽  
K J S Madhusanka
Keyword(s):  
Environmental Management ◽  
Sri Lanka ◽  
Stock Exchange ◽  
Management Accounting ◽  
Descriptive Analysis ◽  
Political Legitimacy ◽  
Political Influence ◽  
Manufacturing Companies ◽  
Environmental Management Accounting ◽  
Adoption Level

This study investigates about the relationship between institutional pressure and environmental management accounting (EMA) adoption level by applying new institutional sociology perspective to assess the pressures for EMA adoption level with reference to 38 listed manufacturing companies in Colombo Stock Exchange (CSE) in Sri Lanka, based on convenient sampling method. Data were collected through structured questionnaire distributing via e-mail and postal mail for accountant or financial managers as respondents. Reliability analysis, descriptive analysis and inferential analysis were applied to analyze the data and three hypotheses were tested by multiple regression analysis. Those hypotheses were constructed to reveal about coercive isomorphism, normative pressure and mimetic processes are positively influence for EMA adoption level. The results indicate the influences of education or/and training, and political or/and legitimacy are positively pressure for the adoption of EMA; although, the pressures on standard responses to uncertainty is insignificant for EMA adoption. In addition, Coercive isomorphism; responses to political influence or/ and legitimacy influences play vital role in pressuring on EMA adoption. Further findings supports to the practical implications of Accountant role and political/ legitimacy influences are important in managing environmental issues in an organization. This study has made preliminary understanding for the new institutional sociology perspective concerning the type of pressure that influences and, provides useful contribution to the present knowledge by exploring more explanations for environmental management accounting adoption in an unexplored context in Sri Lanka.

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.

scholarly journals Factors Affecting the Implementation of Environmental Management Accounting Practices through New Institutional Sociology Perspective: A case of an Apparel Manufacturer in Sri Lanka

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
K.A.T. Nethsarani ◽  
D.N. Samudrage
Keyword(s):  
Environmental Management ◽  
Sri Lanka ◽  
Management Accounting ◽  
Apparel Industry ◽  
Business Environment ◽  
Environmental Cost ◽  
Business Practices ◽  
Manufacturing Companies ◽  
Investment Appraisal ◽  
Environmental Management Accounting

The emergence of contemporary business environment and technologies, customer driven business perspective, and transparent and accountable business practices have led different stakeholders to demand information in relation to the management of the environment. Consequently, organizations tend to develop their strategies in line with achieving these financial and environmental performances. The apparel industry is one of the significant contributors in the Sri Lankan economy and it can be seen that Environmental Management Accounting (EMA) is often practiced in this industry. However, it is a matter of consideration for the real reason behind the adoption and implementation of Environmental Management Accounting Practices (EMAPs) in this industry. Accordingly, this study is focused on identifying the actual factors that have influenced a manufacturer in the apparel industry in Sri Lanka to adopt and implement EMAPs with the perspective of the New Institutional Sociology Theory. This study takes a case study approach. Therefore, one of the leading manufacturing companies in the apparel industry was selected as the case company. The primary data were collected through a semi-structured interview and questionnaire survey. The validity of findings was assessed through data triangulation. It was identified that the environmental cost accounting, environmentally induced capital expenditure and revenue are the mostly used EMAPs whereas the payback period method is often applied in the organization for investment appraisal activities. In terms of factors that have influenced to adopt and implement EMAPs through the Institutional Theoretical Perspective, it was found that coercive isomorphism was the most significant factor whereas the least influential factor was the normative isomorphism on the adoption and the implementation of the EMAPs in the organization. In terms of coercive isomorphism, the government regulations are the most influential force on this adoption and the implementation. Further, the study found some reasons behind the adoption of more Physical EMAPs (PEMAPs) than the Monetary EMAPs (MEMAPs) by the organization. The study contributes to minimize the gap by revealing the types of EMAPs that have been adopted and implemented and revealing the actual factors that have led to adopt and implement those practices in a manufacturer of the apparel industry.

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 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.

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.

scholarly journals PENERAPAN AKUNTANSI MANAJEMEN LINGKUNGAN TERHADAP LIMBAH PADA PABRIK GULA PRADJEKAN

2017 ◽  
Vol 2 (01) ◽  
Author(s):  
Eko Gunaawan ◽  
Sugeng Sugeng
Keyword(s):  
Environmental Management ◽  
Management Accounting ◽  
Case Study Research ◽  
Environmental Problems ◽  
Environmental Cost ◽  
Manufacturing Companies ◽  
Social Burden ◽  
Environmental Management Accounting ◽  
Cost Report

ABSTRACTThe impact of a company's production activities can cause various environmental problems that are detrimental to various parties. This is a social burden, which must be taken seriously. Environmental Management Accounting (EMA) is a concept that helps companies in loading business impacts in the form of monetary units. The application of Environmental Management Accounting helps companies with environmental problems by recording all of their production activities to be reported in the company's environmental cost report. This research is a case study research in manufacturing companies, namely PG.PRADJEKAN. This study aims to evaluate the application of Environmental Management Accounting PG.PRADJEKAN. From the results of research on PGADJEKAN, it is known that the company has not fully implemented Environmental Management Accounting. Especially for accountant staff who do not understand about Environmental Management Accounting should be given a study of Environmental Management Accounting. From the implementation of Environmental Management Accounting in 2011 until now the company has a good waste management system so as to minimize environmental pollution caused by production activities in the milling season. From the evaluation results in this study it can be seen that the company's accountants play a full role in the application of Environmental Management Accounting, but accountants need to conduct further environmental studies to understand their application, because the application of Environmental Management Accounting in PG.PRADJEKAN has only been running for four years.Keywords: Evaluation, Application of Environmental Management Accounting, Environmental Costs 

Environmental management accounting practices, management system, and performance

2019 ◽  
Vol 37 (9/10) ◽  
pp. 1165-1182
Author(s):  
Nursyazwani Mohd Fuzi ◽  
Nurul Fadly Habidin ◽  
Sharul Effendy Janudin ◽  
Sharon Yong Yee Ong
Keyword(s):  
Environmental Management ◽  
Organizational Performance ◽  
Management System ◽  
Manufacturing Industry ◽  
Management Accounting ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Content Type ◽  
Environmental Management Accounting ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between environmental management accounting practices (EMAP), environmental management system (EMS) and organizational performance (OPM) for Malaysian manufacturing industry by using structural equation modeling (SEM) approach. Design/methodology/approach The population of the Malaysian manufacturing industry comprised 2,600 manufacturing companies. The unit of analysis is the organization that participated in the survey comprised of automotive/machinery, plastics/rubber/metal, food/tobacco, electrical/electronics and chemical/woods. Out of the 2,600 questionnaires sent to the respondents, 395 were received from manufacturing companies. The collected data are analyzed with the IBM SPSS Statistics and SEM technique. Findings Findings found that EMS implementation as a partial mediator to improve EMAP and OPM for Malaysian manufacturing industry. Further, the implementation of EMS was found to mediate the relationship between EMAP and OPM. Research limitations/implications The understanding of the importance of studying the relationship between EMAP, EMS and OPM has been emphasized in the present study. In fact, the findings of this study along with its limitations have paved the way for future research in EMAP, EMS and OPM areas. Practical implications This research provides important guidelines for manufacturers and related companies to implement EMAP and EMS in order to improve OPM. Hence, the Malaysian manufacturing industry may need to consider the measurement of EMAP, EMS and OPM as beneficial to their manufacturing companies. Originality/value The research contributes to the environmental management accounting by empirically linking the relationship between EMAP, EMS and OPM for Malaysian manufacturing industry.

scholarly journals Analisis Penerapan Akuntansi Manajemen Lingkungan dalam Meningkatkan Inovasi Produk

2019 ◽  
Vol 5 (2) ◽  
pp. 1457-1466
Author(s):  
Hanifah Mulyani ◽  
Rini Lestari ◽  
Nurleli .
Keyword(s):  
Environmental Management ◽  
Product Innovation ◽  
Business Processes ◽  
Management Accounting ◽  
Business Environment ◽  
Primary Data ◽  
Manufacturing Companies ◽  
Good Product ◽  
Environmental Management Accounting ◽  
Data Source

The existence of the facts of environmental pollution problems undertaken by manufacturing companies as a result of the company's production process are mostly found in Indonesia. This causes a business environment must be able to maintain its business processes so that the company must implement appropriate strategies for the achievement of the company's going concern and sustainable development. Thus the demand for environmentally friendly products should be a concern in the continuous development of the industry. This study was conducted with the aim to analyze the application of environmental management accounting in improving the product innovation, in Industry Pabrik Tahu Jembar Manah. The research used an analytical descriptive method. The data source used is the primary data source. The data collection techniques used are interviews and questionnaires. The results show that the company has applied neutral environmental management accounting and good product innovation. This indicates that the Pabrik Tahu Jembar Manah has implemented an environmental management accounting that produces information for owners and managers in which environmental management accounting provides control over factory activities, but does not report environmental costs and does not report revenue on waste recycling management. In addition, the application of good product innovation will improve the ability of Pabrik Tahu Jembar Manah to create a quality product, so it can be said that environmental management accounting is a control tool to improve product innovation.

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