TY - JOUR
T1 - Understanding the relationship between environmental management accounting and firm performance
T2 - The role of environmental innovation and stakeholder integration – Evidence from a developing country
AU - Gerged, Ali Meftah
AU - Zahoor, Nadia
AU - Cowton, Chris
N1 - Funding Information:
The authors whose names are listed immediately below certify that they have NO affiliations with or involvement in any organization or entity with any financial interest or non-financial interest in the subject matter or materials discussed in this manuscript.
Publisher Copyright:
© 2023 The Authors
PY - 2024/3/1
Y1 - 2024/3/1
N2 - This study examines the role of environmental management accounting (EMA) as a mechanism for enhancing firm performance. Primary data were collected by means of a questionnaire survey of chief executive officers and finance managers of SMEs in Pakistan. Analysis of the responses received from 204 firms confirms a significant direct relationship between EMA and firm performance. We find that this effect is attributable to the mediating impact of environmental innovation. Our findings also suggest that stakeholder integration positively moderates the association between environmental innovation and firm performance, and so leverages the impact of EMA. The findings are robust to several checks and are further explored at the level of the individual dimensions of some of the constructs used. Thus, we contribute novel evidence regarding the relationship between EMA and firm performance, in the form of both environmental and financial performance. The findings offer practical implications for managers and accountants, and we make several suggestions for future research that could build on our study.
AB - This study examines the role of environmental management accounting (EMA) as a mechanism for enhancing firm performance. Primary data were collected by means of a questionnaire survey of chief executive officers and finance managers of SMEs in Pakistan. Analysis of the responses received from 204 firms confirms a significant direct relationship between EMA and firm performance. We find that this effect is attributable to the mediating impact of environmental innovation. Our findings also suggest that stakeholder integration positively moderates the association between environmental innovation and firm performance, and so leverages the impact of EMA. The findings are robust to several checks and are further explored at the level of the individual dimensions of some of the constructs used. Thus, we contribute novel evidence regarding the relationship between EMA and firm performance, in the form of both environmental and financial performance. The findings offer practical implications for managers and accountants, and we make several suggestions for future research that could build on our study.
KW - Developing economy
KW - Environmental innovation
KW - Environmental management accounting
KW - Pakistan
KW - Small and medium-sized enterprises
KW - Stakeholder integration
UR - http://www.scopus.com/inward/record.url?scp=85171367350&partnerID=8YFLogxK
U2 - 10.1016/j.mar.2023.100865
DO - 10.1016/j.mar.2023.100865
M3 - Article
VL - 62
JO - Management Accounting Research
JF - Management Accounting Research
SN - 1044-5005
M1 - 100865
ER -