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Article
Publication date: 18 February 2021

Grace T. Solovida and Hengky Latan

The relationship between the elements of the triple bottom line (TBL) is a controversial area that is constantly debated in the sustainability literature. This study addresses…

Abstract

Purpose

The relationship between the elements of the triple bottom line (TBL) is a controversial area that is constantly debated in the sustainability literature. This study addresses this debate by testing the relationships between these elements, while considering environmental management accounting (EMA) as a mediating influence.

Design/methodology/approach

This paper examines survey responses from upper-level managers from ISO 14001-certified manufacturing companies listed on the Indonesian Stock Exchange (IDX). The hypotheses were tested using a partial least squares approach, and bias-corrected and accelerated bootstrap confidence intervals were used to test the significance of the relationships between variables.

Findings

The authors found a direct relationship between the TBL elements and the role of EMA and social performance in mediating the relationship between economic performance and environmental performance.

Research limitations/implications

This research also provides new insights into the progress of the social resource-based view (SRBV) theory, where the social element missing from the TBL approach can be found.

Practical implications

The findings of this article imply that it is worthwhile to invest in corporate sustainability because it is thereby possible to simultaneously achieve economic, environmental and social performance, since such elements are truly integrated. In addition, possession of EMA management tools is necessary to enhance the relationships between economic performance and environmental performance. Furthermore, social performance seems to constitute an important bond between both of these, indicating that the social element of the TBL is necessary to achieve truly competitive performance.

Originality/value

This study contributes to the corporate environmental management literature by providing empirical evidence regarding the TBL elements.

Details

Management of Environmental Quality: An International Journal, vol. 32 no. 3
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 6 November 2017

Grace T. Solovida and Hengky Latan

This paper aims to test a conceptual framework that describes the relationship between environmental strategy, environmental management accounting and environmental performance…

4538

Abstract

Purpose

This paper aims to test a conceptual framework that describes the relationship between environmental strategy, environmental management accounting and environmental performance. In this paper, the authors argue that environmental strategy can directly influence environmental performance through environmental management accounting.

Design/methodology/approach

This paper examines the survey responses of general managers, operations managers, financial managers and environmental managers in an ISO 14001 certified company listed on the Indonesia Stock Exchange. The hypotheses were tested using a consistent partial least squares approach and bias-corrected and accelerated bootstrap confidence intervals to test the significance between variables.

Findings

In general, the proposed framework obtains adequate goodness-of-fit statistics. Furthermore, the results support the argument that there is a positive and significant effect of environmental strategies on the environmental performance of companies and that the role of environmental management accounting can mediate their relationship.

Research limitations/implications

The limitations of this study relate to the small sample size, as environmental results are still regarded as confidential by many companies. A causal relationship cannot be confirmed for the results. The instrument used is fully adopted from previous research, without unidimensional re-testing. This study contributes to the natural resource-based view literature by responding to recent calls to test the combined effect of resources on environmental performance.

Practical implications

This result could serve as a specific reference for policymaking at firms to continuously improve their environmental performance. This study also has important implications for management practices by illustrating the potential of environmental strategies and environmental management accounting to improve environmental performance.

Social implications

This result indicates that the improving green accounting in Indonesia would appear to require more mandated pressure from, particularly, governmental powers.

Originality/value

This study contributes to the corporate environmental accounting literature by providing empirical evidence linking environmental strategy with environmental performance through the implementation of environmental management accounting.

Details

Sustainability Accounting, Management and Policy Journal, vol. 8 no. 5
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 27 July 2021

Che Ku Hisam Che Ku Kassim, Noor Liza Adnan and Roziani Ali

Because of the heightened environmental awareness of the public, local governments (LGs) are being pressured to improve on the extent and quality of environmental disclosures…

Abstract

Purpose

Because of the heightened environmental awareness of the public, local governments (LGs) are being pressured to improve on the extent and quality of environmental disclosures (EDs) provided in an array of reporting media. The lack of an accounting tool to identify, measure and report EDs has propelled the infusion of environmental management accounting (EMA) to support the reporting practices. This paper aims to examine the institutional pressures influencing EMA adoption by Malaysian LGs.

Design/methodology/approach

Using the consensus approach, a self-administered questionnaire survey is conducted on accountants in LGs in Peninsular Malaysia. The items in the questionnaire are based on the findings of prior studies on EMA adoption.

Findings

The results suggest that coercive isomorphism from the state government is perceived to be the influential institutional factor placing intense pressures on LGs to adopt EMA.

Research limitations/implications

The results solidify the potential role of the state government in any public policy changes which could further stimulate and promote the adoption of EMA.

Originality/value

Insufficient empirical evidence on the adoption of EMA in LGs within a developing country’s perspective contributes to a limited understanding on the development of environmental-related practices in different economic stages and environment as well as within the public sector’s perspective.

Details

Journal of Accounting & Organizational Change, vol. 18 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

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