Institutional Pressures and Environmental Management Accounting Adoption: Do Environmental Strategy Matter?

Musaab Alnaim and Abdelmoneim Bahyeldin Mohamed Metwally ()
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Musaab Alnaim: Department of Accounting, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Abdelmoneim Bahyeldin Mohamed Metwally: Department of Accounting, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia

Sustainability, 2024, vol. 16, issue 7, 1-20

Abstract: This paper examines the impact of institutional pressures (IPs) on Environmental Management Accounting adoption (EMA). The current research also aims to examine the moderating effect of environmental strategy (ES) on the relationship between IP and EMA. Data were collected from managers working in all registered Egyptian manufacturing companies (N = 491). The collected data were analyzed using smart partial least squares (Smart-PLS) software. The results revealed that there is a positive significant relationship between IP’s three components, namely, coercive, normative, and mimicry pressures, and EMA. The results also revealed that ES was found to moderate the relationship between IP and EMA. The study model was able to explain 68.9% of the variance in EMA adoption. The findings of this study serve as a pivotal yardstick for guiding corporate policy formulation, offering valuable insights to drive continuous improvements in EMA, environmental performance, and sustainable development. The present investigation extends the discourse on the role of IP and ES by revealing a substantial influence on EMA adoption. Positioned as one of the initial studies to delve into the moderating role of ES in the relationship between IP and EMA adoption, this research offers insights within an emerging market context.

Keywords: environmental management accounting; institutional pressures; environmental strategy; sustainability; emerging economy; Egypt (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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