EMA Implementation and Corporate Environmental Firm Performance: A Comparison of Institutional Pressures and Environmental Uncertainty

Yusheng Kong, Fahad Javed, Jahanzaib Sultan, Muhammad Shehzad Hanif and Noheed Khan
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Yusheng Kong: School of Finance & Economics, Jiangsu University, Zhenjiang 212013, China
Fahad Javed: School of Finance & Economics, Jiangsu University, Zhenjiang 212013, China
Jahanzaib Sultan: Lyallpur Business School, G.C. University, Faisalabad 38860, Pakistan
Muhammad Shehzad Hanif: UCP Business School, University of Central Punjab, Lahore 44600, Pakistan
Noheed Khan: Department of Management Sciences and Commerce, Alhamd Islamic University, Islamabad 45400, Pakistan

Sustainability, 2022, vol. 14, issue 9, 1-25

Abstract: Environmental management accounting (EMA) practices guide a firm’s response to perceived environmental uncertainty (EU) and various institutional pressures (IP). Drawing upon institutional theory, this study explores the relative effects of institutional pressures and environmental uncertainty on the implementation of EMA, an environmental strategy (ES), and the resulting environmental performance (EP) of firms under the influence of top-management support (TMS) and perceived benefits (PB). Based on data collected from 243 firms operating in Suzhou, one of the busiest business hubs in China, this research used the structural equation modeling (SEM) technique. Findings reveal that environmental uncertainty exerts a stronger influence on the adoption of EMA practices than institutional pressures; however, the choice of a firm’s environmental strategy is more influenced by institutional pressures. Likewise, the serial-mediation effect of environmental strategy and EMA practices is observed to be the strongest in the case of coercive pressures, with some notable moderation effect for perceived benefits and top-management support. The study concludes with theoretical and managerial implications.

Keywords: environmental management accounting; institutional pressures; environmental uncertainty; environmental performance; environmental strategy; perceived benefit; top-management support (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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