Green Environmental Management System to Support Environmental Performance: What Factors Influence SMEs to Adopt Green Innovations?

Abdalwali Lutfi (), Hamza Alqudah, Mahmaod Alrawad (), Ahmad Farhan Alshira’h, Malek Hamed Alshirah, Mohammed Amin Almaiah, Adi Alsyouf and Mohammed Faisal Hassan
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Abdalwali Lutfi: Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Hamza Alqudah: Accounting Department, Faculty of Administrative and Financial Sciences, Irbid National University, Irbid 2600, Jordan
Mahmaod Alrawad: Quantitative Method Department, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Ahmad Farhan Alshira’h: Accounting Department, Faculty of Administrative and Financial Sciences, Irbid National University, Irbid 2600, Jordan
Malek Hamed Alshirah: Department of Accounting, Faculty of Economics and Administrative Sciences, Al al-Bayt University, Al-Mafraq 25113, Jordan
Mohammed Amin Almaiah: Department of Computer Networks, College of Computer Sciences and Information Technology, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Adi Alsyouf: Department of Managing Health Services and Hospitals, College of Business (COB), King Abdulaziz University, Faculty of Business Rabigh, Jeddah 21991, Saudi Arabia
Mohammed Faisal Hassan: Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia

Sustainability, 2023, vol. 15, issue 13, 1-20

Abstract: In the current era of high environmental uncertainty, the advancement of green technologies has led to innovative practices in the manufacturing sector, becoming the preferred approach for achieving sustainable development in today’s business markets. Manufacturing firms require green innovation to improve their environmental performance and monitor operations effectively, but the adoption and implementation of these innovations is still low among manufacturing industries. To bridge this gap, a study was conducted using resource-based view (RBV) theory and the technology–organization–environment (TOE) framework to develop and validate a model that encourages firms to adopt green innovation. A survey was administered to 179 respondents from manufacturing firms, and the data were analyzed using structural equation modeling (PLS-SEM). The integrated constructs of the model—perceived benefits, top management support, coercive pressure, normative pressure, and mimetic pressure—all predicted green management accounting practices. Additionally, the study found that green management accounting practices directly and significantly impacted green environmental performance. The developed model provides clear implications for decision makers, highlighting the importance of adopting green practices and innovative technologies in order to enhance environmental performance. Advanced green technologies have shown a significant connection between green management accounting practices and environmental performance, particularly in developing economies.

Keywords: environmental management accounting; environmental sustainability; green practices; institutional pressure; resource-based view; technology; organization–environment framework (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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