Effect of environmental management accounting practices on organizational performance: role of process innovation as a mediating variable

• Published in: Business Process Management Journal
• Main Author: Sari R.N.; Pratadina A.; Anugerah R.; Kamaliah K.; Sanusi Z.M.
• Format: Retracted
• Language: English
• Published: Emerald Publishing 2020
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85093928747&doi=10.1108%2fBPMJ-06-2020-0264&partnerID=40&md5=96309f068dd44bd27ee20ac68fafda67

Purpose: This study aims to determine (1) the effect of environmental management accounting on organizational performance and (2) the mediating effect of process innovation on the relationship between environmental management accounting and organizational performance. Design/methodology/approach: This research uses survey methods designed for management accountants of large manufacturing companies in Indonesia. Data from 123 respondents were analyzed using the WarpPLS. Findings: The implementation of environmental management accounting exerted a positive effect on organizational performance. It is evident that the implementation of environmental management accounting encourages companies to innovate processes which will improve how well the organization performs. Research limitations/implications: These findings still contained several limitations such as data were only collected from one province in Indonesia, and so the findings might not be generalizable to other provinces in Indonesia. Also, the number of variables studied only involved three. The study only focused on certain dimensions of environmental management accounting without considering other dimensions in-depth. Practical implications: These findings extend the literature on environmental management accounting and demonstrate, from a practical perspective, environmental management accounting (EMA), which prioritizes the environment, will encourage companies to innovate their processes so that they are more environmentally friendly; EMA recognizes the important role of accountants in managing environmental issues. Originality/value: This study documents the importance of environmental management accounting to assist companies in getting accurate information on environmental issues and environmental costs. © 2020, Emerald Publishing Limited.