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

Author

Listed:
  • Yusheng Kong

    (School of Finance & Economics, Jiangsu University, Zhenjiang 212013, China)

  • Fahad Javed

    (School of Finance & Economics, Jiangsu University, Zhenjiang 212013, China
    Faculty of Business & Commerce, GIFT University, Gujranwala 52250, Pakistan)

  • 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)

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.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5662-:d:810695
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