Accounting going green: The move toward environmental sustainability in Vietnamese manufacturing firms

Abstract

This study investigates how environmental management accounting (EMA) usage mediates the impact of green dynamic capabilities on environmental performance. Furthermore, the moderating effects of green mindfulness on the relationship between green dynamic capabilities and EMA usage are investigated. The proposed model and its hypotheses are evaluated using partial least squares structural equation modeling (PLS-SEM) with survey data from 394 large Vietnamese manufacturing firms. The study's findings are as follows: (1) green dynamic capabilities positively affect EMA usage, which, in turn, affects environmental performance; (2) when green mindfulness is strong, the effect of green dynamic capabilities on EMA usage is amplified. These findings demonstrate how the interaction between green dynamic capabilities and green mindfulness can contribute to the success of manufacturing firms that use EMA systems in emerging markets. Additionally, the current study elucidates the mechanism by which green dynamic capabilities influence EMA usage, and it aims to contribute to green dynamic capabilities research in accounting by introducing green mindfulness as a boundary condition.

Promoting sustainable development: Multiple mediation effects of green value co‐creation and green dynamic capability between green market pressure and firm performance

“…Third, GDC provides a firm with unprecedented decision‐making options, thereby unlocking potential for increased revenue or profits (Teece, 2018a; Teece & Leih, 2016). In other words, GDC can enhance firm performance by expanding the current resource configurations to create novel decision‐making options (Drnevich & Kriauciunas, 2011; Eisenhardt & Martin, 2000; Hoai et al, 2023; Teece, 2018b, 2019).…”

“…In other words, GDC can enhance firm performance by expanding the current resource configurations to create novel decision-making options (Drnevich & Kriauciunas, 2011;Eisenhardt & Martin, 2000;Hoai et al, 2023;Teece, 2018bTeece, , 2019. Furthermore, from the perspective of stakeholder, customers and competitors exert GMP that drives enterprises to actively implement environmental strategies (Dai et al, 2018).…”

“…The development of GDC can be a viable strategy for companies to respond to GMP , as it enables them to meet the needs of customers and competitors while also reducing the risk of resource withdrawal from stakeholders and enhancing stakeholder engagement (Choi et al, 2019; Singh et al, 2022). Moreover, companies that possess robust GDC are more likely to develop deeply ingrained competencies that positively impact their overall performance (Chen et al, 2015; Drnevich & Kriauciunas, 2011; Hoai et al, 2023; Hsu & Wang, 2012; Li, 2022). Therefore, GDC may also play as an unexplored mediator between GMP and FP , which has not been explicitly explored yet.…”

The Concept of Carbon Accounting in Manufacturing Systems and Supply Chains

“…Similarly, ref. [64] suggests that the current systems often have limited boundaries when it comes to implementing environmental management accounting systems within supply chains. These critiques underscore the need for a more holistic and expansive approach to carbon accounting that considers the full extent of emissions throughout supply chains.…”

“…Ref. [64] cautions against overlooking the complex causal links between capabilities and environmental performance, emphasising the importance of empirical research to understand the dynamics of implementation. Ref.…”