Search results

1 – 1 of 1
Article
Publication date: 27 October 2020

Ria Nelly Sari, Aura Pratadina, Rita Anugerah, Kamaliah Kamaliah and Zuraidah Mohd Sanusi

This study aims to determine (1) the effect of environmental management accounting on organizational performance and (2) the mediating effect of process innovation on the…

2341

Abstract

Purpose

This 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/approach

This research uses survey methods designed for management accountants of large manufacturing companies in Indonesia. Data from 123 respondents were analyzed using the WarpPLS.

Findings

The 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/implications

These 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 implications

These 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/value

This study documents the importance of environmental management accounting to assist companies in getting accurate information on environmental issues and environmental costs.

Details

Business Process Management Journal, vol. 27 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

1 – 1 of 1