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Environmental Management Accounting and Performance Efficiency in the Vietnamese Construction Material Industry—A Managerial Implication for Sustainable Development

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  • Thi Tam Le

    (Department of Accounting, Thuyloi University, 175, Tay Son, Dong Da, Hanoi 100000, Vietnam)

  • Thi Mai Anh Nguyen

    (Department of Auditing, Hanoi University of Resources and Environment, Hanoi 100000, Vietnam)

  • Thi Thu Hien Phan

    (Department of Accounting, University of Economics – Technology for Industries, Hanoi 100000, Vietnam)

Abstract

This study was conducted to investigate factors impacting the application of environmental management accounting (EMA) and the relationship between EMA application and performance efficiency including financial and environmental sectors. The scope of research was to investigate construction material manufacturing enterprises in Vietnam with medium and large scales, which is considered one of the industries causing significant negative impacts on the environment. The questionnaires were sent to chief management accountants of 600 construction material enterprises in Vietnam from 2018 to 2019. This process obtained 418 valid votes. Using SPSS 22.0 software to process data, the research results indicate that there are six factors that positively influence the application of EMA practices, including government enforcement, stakeholder interest, positive environmental strategies, community expectations, professional education network, and financial condition, of which, government enforcement has the most significant and positive relationship with the adoption of EMA. On the other hand, it appears that the application of EMA positively impacts financial efficiency and environmental efficiency. As found by many previous studies, environmental efficiency also strongly positively impacts financial efficiency. Thus, innovative solutions to reduce environmental pollution can promote enterprises’ profitability.

Suggested Citation

  • Thi Tam Le & Thi Mai Anh Nguyen & Thi Thu Hien Phan, 2019. "Environmental Management Accounting and Performance Efficiency in the Vietnamese Construction Material Industry—A Managerial Implication for Sustainable Development," Sustainability, MDPI, vol. 11(19), pages 1-32, September.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5152-:d:269021
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    2. Xiaofang Chen & P.R. Weerathunga & Mohammad Nurunnabi & K.M.M.C.B. Kulathunga & W.H.M.S. Samarathunga, 2020. "Influences of Behavioral Intention to Engage in Environmental Accounting Practices for Corporate Sustainability: Managerial Perspectives from a Developing Country," Sustainability, MDPI, vol. 12(13), pages 1-30, June.
    3. Yusheng Kong & Fahad Javed & Jahanzaib Sultan & Muhammad Shehzad Hanif & Noheed Khan, 2022. "EMA Implementation and Corporate Environmental Firm Performance: A Comparison of Institutional Pressures and Environmental Uncertainty," Sustainability, MDPI, vol. 14(9), pages 1-25, May.
    4. Isaac Monday Ikpor & Enrico Bracci & Clementina Iruka Kanu & Riccardo Ievoli & Benedette Okezie & Sunday Mlanga & Charles Ogbaekirigwe, 2022. "Drivers of Sustainability Accounting and Reporting in Emerging Economies: Evidence from Nigeria," Sustainability, MDPI, vol. 14(7), pages 1-19, March.
    5. Sarfaraz Javed & Uvesh Husain, 2021. "Corporate CSR practices and corporate performance: managerial implications for sustainable development," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 48(2), pages 153-164, June.
    6. Huibrecht Margaretha van der Poll, 2022. "The barriers and drivers of environmental management accounting practices' adoption in developed and developing countries for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 1222-1234, October.
    7. Yuan Ma & Jing Wang & Yifan Bai, 2023. "Macro-Institutional Pressures and Firms’ Environmental Management Behavior: The Moderating Effect of Micro-Institutional Pressures," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    8. Albertina Paula Monteiro & Joana Vale & Amélia Silva, 2021. "Factors Determining the Success of Decision Making and Performance of Portuguese Companies," Administrative Sciences, MDPI, vol. 11(4), pages 1-24, October.
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