Understanding environmental management accounting (EMA) adoption: a new institutional sociology perspective

Abstract

Purpose -The purpose of this research paper is to report the results of a study that explains the relationship between institutional pressure and environmental management accounting (EMA) adoption. Specifically, it looks at the pressure of government and other parties in society concerning EMA adoption among manufacturing companies in Malaysia.Design/methodology/approach -Drawing from the new institutional sociology theory, the paper seeks to identify the extent to which institutional pressure influences EMA adoption level. A total of 74 accountants from manufacturing companies in Malaysia participated in the survey. Institutional pressure (coercive isomorphism, normative pressure and mimetic processes) was tested against the level of EMA adoption via multiple regression analysis. Next, semi-structured interviews were employed with four survey participants to gain further insights into the survey results.Findings -The findings of this study reveal some influence of institutional pressure on EMA adoption. Of these, normative pressure in terms of training and accounting body membership was found to be the most forceful.Practical implications -Recognising the important role of accountants in managing environmental issues in organisations, this study highlights the influence of education and training as determinants of EMA adoption.Originality/value -This paper offers a preliminary understanding from the new institutional sociology perspective concerning the type of pressure that influences manufacturing companies in Malaysia to adopt EMA.

Managerial perceptions of corporate sustainability reporting determinants in Nigeria

“…The survey finds significant relationship between normative and coercive isomorphism and level of sustainability reporting. The findings of this study agree with Jalaludin et al (2011) where mimetic pressure are not found to influence environmental management accounting practices. However, coercive and normative pressures are found to be associated with the adoption of such accounting practices.…”

“…Consequently, codes of corporate governance, Securities and Exchange Commission Laws, Central Bank Laws pertaining to sustainability reporting are coercive pressure mechanisms that influence companies' practices. Studies (Jalaludin, Sulaiman & Ahmad, 2011;Goswami & Lodhia, 2012) find that coercive pressures influenced reporting practices.…”

“…The more the networking of professionals or other bodies that brings companies together, the more the likelihood of increased reporting practices among such companies where those professionals are domiciled. It has also been argued by Jalaludin et al (2011) that such professionalism stimulates education among the members of such professional circles.…”

Environmental Management Accounting Practices in Small Medium Manufacturing Firms

“…Adapting from Burritt et.al. (2002) and Jalaludin et al (2011), respondents were asked to measure on a scale of 1 (not at all) to 5 (to a great extent) the extent of EMA practices. Table 2 shows the practices of EMA and indicates that the mean scores for the two continuums of EMA types are 2.483 and 2.560, respectively.…”

An Information Framework for Facilitating Cost Saving of Environmental Impacts in the Coal Mining Industry in South Africa

“…In Malaysia, the authors of [28] established that sociological alignment may directly impact the company systems thus bringing about backing for the new institutional sociology viewpoint of institutional theory, wherein tough pressure of normative and isomorphism were identified as having a positive influence on the embracing level of EMA. Most significantly, the research indicates the essential role played by academic institutions such as accounting associations, policymakers, the department of education (DOE), the Inland Revenue Board including EMA adoption by companies specialising in manufacturing in Malaysia.…”