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

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.

THE EFFECT OF ENVIRONMENTAL MANAGEMENT ACCOUNTING ON FIRM VALUE

This research study aims to examine the effect of implementing environmental management accounting in increasing firm value in Tangerang Raya. This research uses a population of 2,579 manufacturing industrial companies in Banten province spread across Cilegon City, Serang Regency and City, Pandeglang City, Lebak City and Tangerang Raya. The samples were selected using predetermined criteria with quantitative methods. Based on the multiple linear regression testing that has been carried out, the following results are obtained: there is a significant positive effect between the material input aspect and the environmental complaint mechanism aspect on firm value. Furthermore, the results of non-output aspects of products and aspects of compliance have a significant negative effect on firm value. However, there are three aspects of the proxy for the application of environmental management accounting which consist of transportation aspects, other aspects, and supplier assessment aspects that have a positive and insignificant effect on firm value. Simultaneously, the effect of the application of environmental management accounting proxied through material input, environmental complaint mechanism, non-product output, compliance, transportation, supplier assessment and others have a significant effect on firm value.

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

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.

Application of environmental management accounting by small and medium enterprises in South Africa

By focusing on environmental management accounting in SMEs, the study helps SME managers to effectively understand and find better ways of improving environmental management. The paper investigates environmental management accounting applications in manufacturing small and medium enterprises in Gauteng province. Small and medium enterprises were chosen based on their exclusion from the mainstream research on environmental management accounting (EMA). To achieve the main aim of the study, 24 in-depth interviews were undertaken among SMEs’ managers, accountants, chief executive officers, and owners. The study found that physical EMA is more common in SMEs than monetary EMA. 77% of SMEs’ respondents confirm using physical environmental information in their operations. Therefore, SMEs prefer EMA practices with little cost or no cost attached and practices that can effectively generate returns in the short term. In addition, the avoidance of monetary EMA is anchored on the premise of avoiding costly projects with no immediate material financial returns. Therefore, EMA is critical for SMEs to achieve sustainability.

A Conceptual Framework for Greener Goldmining through Environmental Management Accounting Practices (EMAPs): The Case of Zimbabwe

Goldmining contributes substantially to the Gross Domestic Product (GDP) of the Zimbabwean economy through revenue generated from exports, however it also incurred numerous challenges to the environment. Amongst others, these challenges embody ecological degradation; water and air pollution; and depletion of natural resources. In this paper, we establish the effects of mining operations on the environment through a comprehensive literature review, and how the integration of environmental management accounting practices (EMAPs) such as material flow cost accounting (MFCA), life cycle costing (LCC), and activity-based costing (ABC) could be integrated into a conceptual framework to address environmental challenges. EMAPs were chosen as they generate both physical and monetary data, which could promote transparency in material usage within the goldmining sector. Our analyses revealed a substantial body of literature on separate and individual EMAPs, yet very little was found on the integration of EMAPs. The main contribution of this work is the development of an integrated conceptual EMAPs framework on the strength of sets of qualitative propositions, aimed at promoting green goldmining for Zimbabwe as a developing economy. Future work would involve the validation of the framework among key stakeholders in the Zimbabwean goldmining industry.

Does Environmental Management Accounting Matter in Promoting Sustainable Development? A study in Iraq

Purpose of this study is to examine the extent to which Iraqi industrial companies are aware of the concept of environmental management accounting (EMA), to examine the role of EMA in providing information that might influence decisions related to environmental protection and preservation of natural resources to contribute to the development of sustainable development. A sample of Iraqi industrial firms was surveyed by distributing a questionnaire to a random sample of the research community in the context of Iraqi firms. In addition, it also considers the social dimensions of sustainable development and the economy. The resolution data were analyzed using a statistical program (SPSS). When analyzing the data, the findings of the current study indicate that Iraqi industrial companies have an awareness of environmental management accounting concepts. In addition it provides information that contributes to the promotion of sustainable development. This study recommends the need to implement environmental management accounting (EMA) in Iraqi industrial companies because of its important role in providing information that leads to the reduction of negative environmental impacts resulting from the practice of its activities.

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

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.

Environmental Management Accounting System and Value Creation: An institutional perspective

The emergence of environmental issues has increased environmental protection awareness among society and pushed organizations to become environmentally responsible. Many companies currently consolidate environmental matters into their corporate strategic plan by adopting a comprehensive Environmental Management Accounting System (EMAS) to create more value. However, a lack of understanding on the institutional pressures persuading EMAS adoption within the organizations has reduced the urgency for the company to adopt the EMAS. This paper aims to explain the management's behavioral issues towards accepting EMAS adoption and how this behavior would lead to value creation. Keywords: Environmental Management Accounting System (EMAS), behavioral barriers, value creation, institutional theory eISSN: 2398-4287© 2021. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v6i17.2866