Effects of Environmental Strategy, Uncertainty and Top Management Commitment on the Environmental Performance: Role of Environmental Management Accounting and Environmental Management Control System

Abstract

The aim of this paper is to check the effect of top management commitment, perceived environmental uncertainty and environmental strategy on the environmental performance (EP) of manufacturing firms of China by considering the role of environmental management accounting (EMA) and environmental management control system (EMCS). With the increase in economic activities the environmental issues have also increased. Companies are now more conscious for the preservation of environment and thus are working on it. Environmental Accounting is the system through which companies manage environmental issues. Economic development of any country along with the well-being of that country's society can only be attained when there is equilibrium between optimization of wealth and environmental protection. This perspective is raising its importance day by day and hence spreading awareness in public and government as well. Therefore, there is more pressure on companies to focus on environmental protection and to align their operations in such a way that there is no damage to the ecosystem. On the basis of results of this research it is believed that EMA and EMCS play very important role in the achievement of perfect EP. EMA and EMCS are two separate tools and good mediators which improve the performance of the firm regarding environment and align the management regarding environmental costs with sequence. This study will help government and manufacturing firms in making policies regarding environment friendliness through EMA and EMCS as previous studies have also generated same kind of help and benefits.

Management accounting systems effectiveness, perceived environmental uncertainty and companies’ performance: the case of Jordanian companies

“…New approaches are very necessary for adhering to the new surrounding under the conditions of high environmental uncertainty because that is the only possible way to IJOA 30,2 maintain company performance (Appiah et al, 2020;Chankaew and Ussahawanitchakit, 2011;Samsami et al, 2015). All in all, there is an idea that suggests perceived environmental uncertainty would create high quality of financial and nonfinancial information provided by management accounting systems-related execution with the fact that management accounting systems play a role in the performance of Jordanian companies.…”

The Relationship between the Elements of Marketing Mix and Consumer Behavior during Environmental Uncertainty:

“…Pandemic crises are one of the most important types of environmental uncertainty because they significantly increase the degree of uncertainty in organizations (Appiah et al, 2020), contribute to the disruption of strategic plans, limit the effectiveness of making decisions, and reduce the public's confidence in the organization and its vision (Darvishmotevali et al, 2020).…”

Importance of Environmentally Managerial Accounting to Environmental and Economic Performance

“…In several businesses, the intention of adopting better environmentally responsible practice is that the main indices that they refer to as competitive advantages are the usage and implementation of environmentally responsible practices (Gunarathne and Lee, 2015). The systems of environmentally managerial accounting require the continuous involvement of managerial accountants in economic performance of firms through better environmentally responsible practices (Appiah et al, 2020). Grounded on the managerial aspect of environmentally managerial accounting, Henri and Journeault (2010) investigated the linkage between environmental controlling systems and economic performance, suggesting an indirect influence of environmental controlling systems on economic performance through environmental processing.…”