The Relationship of Environmental Uncertainty, Ais Efficiency and Energy Efficiency With Environmental and Operational Performance in Indonesia

Abstract

Focusing on the current environmental era, the present study aims to evaluate the role of accounting and environment in driving the firm's performance. Therefore, the study is motivated to evaluate the specific relationship of energy efficiency, accounting information system efficiency and environmental uncertainty with business performance. The current study measures the empirical impact of the performance drivers on two vital domains of a firm's performance. The results of partial least square structural equational modelling confirm that energy efficiency and accounting information system efficiency have a positive and significant impact on operational and environmental performance. Moreover, the results further suggested that environmental uncertainty have a negative and significant impact on operational and environmental performance in multinational firms of Indonesia.

Exploring the impact of environmental uncertainty and strategic management accounting on competitive advantage and performance: Empirical insights from SMEs in Indonesia

“…According to the findings of the first hypothesis test, performance (KN) is negatively impacted by environmental uncertainty (KL). These findings are consistent with those of Aprisma and Sudaryati (2020), Sajilan et al (2019), andSingh (2019). This indicates that the high level of environmental uncertainty (KL) that occurred during the COVID-19 pandemic has triggered a decline in performance (KN).…”

“…Uncertainty in the environment is the absence of knowledge about environmental factors that have an impact on a company's performance (Chen, 2013). Empirical findings showed that environmental uncertainty affects firm performance (Aprisma & Sudaryati, 2020;Sajilan et al, 2019;Singh, 2019;Mukherji & Mukherji, 2017;Abdallah & Persson, 2014;Bastian & Muchlish, 2012;Sung et al, 2010). According to Mukherji and Mukherji (2017), Abdallah and Persson (2014), Bastian and Muchlish (2012), and Sung et al (2010), high levels of environmental uncertainty have a positive effect on company performance.…”

“…While environmental uncertainty affects organizations (Yu et al, 2016), empirical studies showed improved organizational performance during environmental uncertainty (Mukherji & Mukherji, 2017;Abdallah & Persson, 2014;Bastian & Muchlish, 2012;Sung et al, 2010). However, several studies have also found negative effects on organizational performance (Aprisma & Sudaryati, 2020;Sajilan et al, 2019;Singh, 2019). Of the pressing uncertainties, market and customer demands still remains a problem for SMEs (Siow, 2021), caused by the COVID-19 pandemic's unexpected shifts in consumers' preferences and lifestyles (Davina, 2021).…”

Environmental Performance and Firm Value: Testing the Role of Firm Reputation in Emerging Countries

“…In the era of firms in the direction of a green firm, accountants have an important factor in changing the views of the firm because accountants have to present information on the firm's operations in the form of financial statements, including if there are environmental activities carried out by the firm. So from that reporting carried out must be based on environmental accounting (Meiryani et al, 2018;Sajilan et al, 2019).…”