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The Impact of Management Accounting Systems, Eco-Innovations and Energy Efficacy on Firm s Environmental and Economic Performance

Author

Listed:
  • Gholam Reza Zandi

    (Universiti Kuala Lumpur Business School, Kuala Lumpur, Malaysia,)

  • Erlane K. Ghani

    (Faculty of Accountancy, Universiti Teknologi MARA, Shah Alam, Malaysia,)

  • Retno Martanti Endah Lestari

    (Department of Accounting, Faculty of Economics and Business, Padjadjaran University, Sumedang, Indonesia,)

  • Siti Maimunah

    (Department of Accounting, Student Doctoral Accounting, Padjadjaran University, Sumedang, Indonesia.)

Abstract

The current study aims to explore the effect of ecological innovations, energy efficiency and management accounting systems in influencing firms environmental performance of Indonesian manufacturing companies. The study further analyzed the relationship of ecological innovation, energy efficiency, and management accounting system with an organization s economic performance. The present study is therefore novel in addressing the vital connection of technology with organizations performance in ecologically driven settings. The total valid sample for the present study is 310. The results of PLS-SEM confirm that all selected variables have a positive and significant impact on economic performance and environmental performance in the manufacturing sector in Indonesia. Moreover, the outcomes of the PLS-SEM confirm that economic and environmental performances have positively and expressively impacted by management accounting system, energy efficiency, and ecological innovations. The outcomes of partial least square structural equation modeling also indicate that efficient and better utilization of energy and management accounting system provide an improve economic and environmental condition for the Indonesian manufacturing sector. The study further recommended that the government needs to regulate some policy in which adoption of the management accounting system for all small, medium and large firms are compulsory in order to get sustainable development and environment.

Suggested Citation

  • Gholam Reza Zandi & Erlane K. Ghani & Retno Martanti Endah Lestari & Siti Maimunah, 2019. "The Impact of Management Accounting Systems, Eco-Innovations and Energy Efficacy on Firm s Environmental and Economic Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 394-400.
    • Handle: RePEc:eco:journ2:2019-06-47
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    References listed on IDEAS

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    2. Ayres, Robert U. & Turton, Hal & Casten, Tom, 2007. "Energy efficiency, sustainability and economic growth," Energy, Elsevier, vol. 32(5), pages 634-648.
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    More about this item

    Keywords

    Management accounting system; energy efficiency; environmental performance; Indonesia.;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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