Linking environmental management accounting to environmental performance: the role of top management support and institutional pressures

Abstract

Using two theoretical lenses—knowledge-based view (KBV) and the institutional theory—the current study aims to examine the relationship of environmental management accounting (EMA) to environmental performance (EP), in addition to explore the mediating effect of top management support (TMS) and the moderating effect of institutional pressures (IP). A cross-sectional study using a structured questionnaire was conducted on 299 Yemeni manufacturing SMEs. Partial least square structural equation modeling (PLS-SEM) technique via Smart PLS version 4 software was used for the analysis of quantitative data collected from the respondents. The results indicated that EMA positively and directly affects EP, and indirectly through TMS. Additionally, TMS partially mediates the EMA-EP link. More importantly, IP positively moderates the impact of EMA on EP. Furthermore, EP positively affects FP. The theoretical and practical implications of these results are also discussed.

IMPACT STATEMENT

This study investigates the correlation between environmental management accounting (EMA) and environmental performance within the context of manufacturing SMEs in Yemen, considering the influence of top management support and institutional pressures. The significance of this study arises from the relatively nascent status of EMA as a branch of accounting, leading to a scarcity of related research. Moreover, existing studies on this subject have predominantly been conducted in developed nations, leaving a notable gap in empirical research for developing and less developed countries. Yemen’s current industrial practices, influenced by the energy sector, manufacturing industries, and ongoing conflicts, have resulted in environmental pressures and adverse impacts. The environmental challenges, particularly those stemming from manufacturing activities, remain intricate. Therefore, this study aims to promote the integration of EMA practices in manufacturing SMEs in Yemen, with the goal of advancing environmental protection objectives. The findings from this research serve as valuable resources for policymakers, professionals, and enterprises, offering insights that can contribute to the development and implementation of mechanisms and policies fostering sustainability in Yemen’s manufacturing SMEs.

Keywords:

• Environmental management accounting
• environmental performance
• top management support
• institutional pressures
• financial performance

Reviewing Editor:

• Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland

JEL CLASSIFICATIONS:

• M41
• M19
• Q65

Authors’ contributions

Saqr Ali Saleh Hasan: Conception and design of the work, acquisition of data, or analysis and interpretation of data; Drafting the article or revising it critically for important intellectual content; Final approval of the version to be published; Agreement to be accountable for all aspects of the work in ensuring that questions related to the accuracy or integrity of any part of the work are appropriately investigated and resolved. Email: [email protected]. S. N. Waghule: Conception and design of the work; Drafting the article or revising it critically for important intellectual content; Final approval of the version to be published. Email: [email protected]. Murad Baqis Hasan: Drafting the article or revising it critically for important intellectual content; Final approval of the version to be published. Email: [email protected].

Disclosure statement

The authors declare that they have no competing interests.

Data availability statement

The datasets used and/or analysed during the current study are available from the corresponding author on reasonable request.

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Additional information

Funding

This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

Notes on contributors

Saqr Ali Saleh Hasan

Saqr Ali Saleh Hasan is currently a PhD scholar at Department of Commerce, Dr. Babasaheb Ambedkar Marathwada University, Aurangabad, India. He is working as a senior lecturer in the department of Accounting at Thamar University, Yemen. His research interests include managerial and cost accounting, accounting information system, and environmental management accounting.

S. N. Waghule

S. N. Waghule is Professor in the Department of Commerce, Anandrao Dhonde Alias Babaji College, B. A. M. University, Aurangabad, India. His research interests are financial management, corporate accounting, entrepreneurship and innovation. He has published several papers. He has participated in several international and national conferences.

Murad Baqis Hasan

Murad Baqis Hasan is currently a PhD scholar at Department of Financial Administration, Central University of Punjab - India. His research interests include ESG (environmental, social, and governance), green innovation, and sustainability.