EFFECTS OF INSTITUTIONAL PRESSURES, ORGANISATIONAL RESOURCES, AND CAPABILITIES ON ENVIRONMENTAL MANAGEMENT ACCOUNTING FOR SUSTAINABILITY COMPETITIVE ADVANTAGE

Authors

  • Khaled M.A Salim School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia
  • Amizawati Mohd Amir School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia,
  • Ruhanita Maelah School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia
  • Dayana Jalaludin Department of Accounting, Faculty of Business and Economics, Universiti Malaya

DOI:

https://doi.org/10.33736/ijbs.6421.2023

Keywords:

Institutional Pressure, Natural Resource Based View, EMA, SCA, SMEs, Kenya

Abstract

This study investigates the primary role of institutional pressure specifically (coercive, mimetic, and normative pressures) to implement environmental management accounting (EMA) among SMEs in Kenya, and how such influences are affected by organisational resources and capabilities, with a focus on the function of EMA, on sustainable competitive advantage (SCA). Using an online survey, random samples of 1,162 Kenyan manufacturing SMEs provided the data. The empirical findings indicate that normative and coercive forces have a substantial and direct relationship with EMA adoption. However, there was no correlation between mimetic pressure and the adoption of EMA. In addition, the results revealed that only environmental innovation capability positively and substantially mitigated the effect of coercive and normative pressure on EMA adoption. Our PLS analysis discovered a significant and direct relationship between EMA and SCA. In conclusion, the current research expands our understanding of how firms create EMA through the interaction of institutional forces (i.e., coercive and normative constraints) and environmental innovation potential. Furthermore, this study highlights the relevance and use of EMA in giving information to Kenyan SMEs to conduct superior SCA.

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Published

2023-12-26

How to Cite

Khaled M.A Salim, Amizawati Mohd Amir, Ruhanita Maelah, & Dayana Jalaludin. (2023). EFFECTS OF INSTITUTIONAL PRESSURES, ORGANISATIONAL RESOURCES, AND CAPABILITIES ON ENVIRONMENTAL MANAGEMENT ACCOUNTING FOR SUSTAINABILITY COMPETITIVE ADVANTAGE. International Journal of Business and Society, 24(3), 1284–1313. https://doi.org/10.33736/ijbs.6421.2023