INSTITUTIONAL PERSPECTIVE TOWARDS THE ADOPTION OF ENVIRONMENTAL MANAGEMENT: A CONCEPTUAL FRAMEWORK
Abstract
Previous literatures have shown that the practice of Environmental Management Accounting (EMA) is underutilized and diverse, even among those firms which are regarded as being more environmentally-sensitive. This has led to the gap in the literature pertaining to what motivates firms to develop environment-related management accounting and what conditions facilitate the implementation. Further promotion is needed if it is to help the business to move towards sustainability. Therefore, this research is interested in extending the focus of EMA adoption among companies in Malaysia and understands the factors influencing them. Based on institutional framework perspective, this study attempts to look at how institutional isomorphism’s concept may explain organisational change, and in this context, the adoption of EMA. Three types of institutional isomorphism namely the coercive isomorphism, mimetic isomorphism and normative isomorphism are explained in this study to develop hypotheses related to the factors that might influence the adoption of EMA. This paper aims at providing a picture of the diffusion of EMA and an understanding of how it can further be promoted to help the country achieve a balance in its environmental and economic performance.
References
Aerts, W., & Cormier, D. (2009). Media legitimacy and corporate environmental communication. Accounting, Organizations and Society, 34(1), 1-27.
Aerts, W., Cormier, D., & Magnan, M. (2006). Intra-industry imitation in corporate environmental reporting: An international perspective. Journal of Accounting and Public Policy, 25(3), 299-331.
Baughn, C.C., Bodie, N.L., and McIntosh, J.C. (2007). Corporate social and environmental responsibility in Asian countries and other geographical regions. Corporate Social Responsibility and Environmental Management, 14(4), 189-205.
Belal, A.R., Cooper, S.M., and Roberts, R.W. (2013). Vulnerable and exploitable: The need for organizational accountability and transparency in emerging and less developed economies. Accounting Forum, 37, 81-91.
Bjornenak, T. (1997). Diffusion and accounting: The case of ABC in Norway. Management Accounting Research, 8, 3-17.
Bouma, J.J. and van der Veen. (2002). Wanted: A theory for environmental management accounting. In Bennett, M., Bouma, J.J. and Wolters, T. (Eds), Environmental Management Accounting: Informational and institutional developments (279-290). Dordrecht: Kluwer Academic Publishers.
Burritt, R.L., and Saka, C. (2006). Environmental Management Accounting applications and eco-efficiency: Case study from Japan. Journal of Cleaner Production, 4(10), 1262-1275.
Chang, H.C., and Deegan, C. (2008). Environmental Management Accounting and environmental accountability within universities: Current practice and future potential. In Schaltegger, S., Bennett, M., Burritt, R.L, and Jasch, C. (Eds), Environmental Management Accounting for cleaner production (301-320). The Netherlands: Springer.
Clarke, K., and O’Neill, S. (2006). Is the environmental professional…an accountant? Greener Management International, 49, 111-124.
Contrafatto, M. (2014). The institutionalization of social and environmental reporting: An Italian narrative. Accounting, Organizations and Society, 39(6), 414-432.
Contrafatto, M., and Burns, J. (2013). Social and environmental accounting, organisational change and management accounting: A processual view. Management Accounting Research, 24(4), 349-365.
Dayana, J. (2010). Environmental management accounting: A study of manufacturing companies in Malaysia. Unpublished PhD thesis, International Islamic University Malaysia, Kuala Lumpur.
Deegan, C. (2003a). Environmental Management Accounting: An introduction and case studies for Australia. Sydney: Institute of Chartered Accountants in Australia.
Deegan, C. (2003b). Introduction: The legitimising effect of social and environmental disclosures – a theoretical foundation. Accounting, Auditing and Accountability Journal, 15(3), 282-311.
Deegan, C., and Rankin, M. (1996). Do Australian companies objectively report environmental news? An analysis of environmental disclosures by firms successfully prosecuted by the Environmental Protection Authority, Accounting, Auditing and Accountability Journal, 9(2), 50-67.
Deegan, C., and Gordon, B. (1996). A study of environmental disclosure practices of Australian corporations. Accounting and Business Research, 26 (3), 187-199.
Delmas, M., and Toffel, M.W. (2004). Stakeholders and environmental management practices: An institutional framework. Business Strategy and the Environment, 13(4), 209-222.
DiMaggio, P.J. and Powell, W.W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48 (April), 147-160.
DiMaggio, P.J., and Powell, W.W. (1991). The new institutionalism in organisational analysis. Chicago: University of Chicago Press.
Ervin, D., Wu, J., Khanna, M., Jones, C., and Wirkkala, T. (2013). Motivations and barriers to corporate environmental management. Business Strategy and the Environment, 22(6), 390-409.
Gale, R. (2006a). Environmental costs at a Canadian paper mill: A case study of Environmental Management Accounting (EMA). Journal of Cleaner Production, 14(14), 1237-1251.
Gale, R. (2006b). Environmental Management Accounting as a reflexive modernization strategy in cleaner production. Journal of Cleaner Production, 14(14), 1228-1236.
Gibson, K.C., and Martin, B.A. (2004). Demonstrating value through the use of Environmental Management Accounting. Environmental Quality Management, 13(3), 45-52.
Hofer, C., Cantor, D.E., and Dai, J. (2012). The competitive determinants of a firm's environmental management activities: Evidence from US manufacturing industries. Journal of Operations Management, 30(1), 69-84.
Hopper, T., Tsamenyi, M., Uddin, S., and Wickramasinghe, D. (2009). Management accounting in less developed countries: What is known and needs knowing. Accounting, Auditing and Accountability Journal, 22(3), 469-514.
Islam, M.A., and Deegan, C. (2008). Motivations for an organisation within a developing country to report social responsibility information: Evidence from Bangladesh. Accounting, Auditing and Accountability Journal, 21(6), 850-874.
Jasch, C. (2006). How to perform an environmental management cost assessment in one day. Journal of Cleaner Production, 14(14), 1194-1213.
Jasch, C. (2009). Environmental and Material Flow Cost Accounting: Principles and procedures. The Netherlands: Springer.
Jones, M.J. (2010). Accounting for the environment: Towards a theoretical perspective for environmental accounting and reporting. Accounting Forum, 34 (2), 123-138.
Lapsley, I., and Wright, E. (2004). The diffusion of management accounting innovations in the public sector: A research agenda. Management Accounting Research, 15(3), 355-374.
Meyer, J.W, and Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2), 340-363.
Onishi, Y., Kokubu, K., and Nakajima, M. (2008). Implementing material flow cost accounting in a pharmaceutical company. In Schaltegger, S., Bennett, M., Burritt, R.L, and Jasch, C. (Eds), Environmental Management Accounting for cleaner production (395-410). The Netherlands: Springer.
Pondeville, S., and De Ronge, Y. (2013). Environmental management control systems: The role of contextual and strategic factors. Management Accounting Research, 24(4), 317-332.
Qian, W., and Burritt, R.L. (2008). The development of Environmental Management Accounting: An Institutional view. In Schaltegger, S., Bennett, M., Burritt, R.L, and Jasch, C. (Eds), Environmental Management Accounting for cleaner production (233-248). The Netherlands: Springer.
Rodrigue, M., Magnan, M., and Boulianne, E. (2013). Stakeholders’ influence on environmental strategy and performance indicators: A managerial perspective. Management Accounting Research, 24(4), 301-316.
Zhang, B., Wang, Z., Yin, J., and Su, L. (2012). CO2 emission reduction within Chinese iron and steel industry: Practices, determinants and performance. Journal of Cleaner Production, 33, 167-178.
Zhu, Q., and Geng, Y. (2013). Drivers and barriers of extended supply chain practices for energy saving and emission reduction among Chinese manufacturers. Journal of Cleaner Production, 40, 6-12.
Aerts, W., Cormier, D., & Magnan, M. (2006). Intra-industry imitation in corporate environmental reporting: An international perspective. Journal of Accounting and Public Policy, 25(3), 299-331.
Baughn, C.C., Bodie, N.L., and McIntosh, J.C. (2007). Corporate social and environmental responsibility in Asian countries and other geographical regions. Corporate Social Responsibility and Environmental Management, 14(4), 189-205.
Belal, A.R., Cooper, S.M., and Roberts, R.W. (2013). Vulnerable and exploitable: The need for organizational accountability and transparency in emerging and less developed economies. Accounting Forum, 37, 81-91.
Bjornenak, T. (1997). Diffusion and accounting: The case of ABC in Norway. Management Accounting Research, 8, 3-17.
Bouma, J.J. and van der Veen. (2002). Wanted: A theory for environmental management accounting. In Bennett, M., Bouma, J.J. and Wolters, T. (Eds), Environmental Management Accounting: Informational and institutional developments (279-290). Dordrecht: Kluwer Academic Publishers.
Burritt, R.L., and Saka, C. (2006). Environmental Management Accounting applications and eco-efficiency: Case study from Japan. Journal of Cleaner Production, 4(10), 1262-1275.
Chang, H.C., and Deegan, C. (2008). Environmental Management Accounting and environmental accountability within universities: Current practice and future potential. In Schaltegger, S., Bennett, M., Burritt, R.L, and Jasch, C. (Eds), Environmental Management Accounting for cleaner production (301-320). The Netherlands: Springer.
Clarke, K., and O’Neill, S. (2006). Is the environmental professional…an accountant? Greener Management International, 49, 111-124.
Contrafatto, M. (2014). The institutionalization of social and environmental reporting: An Italian narrative. Accounting, Organizations and Society, 39(6), 414-432.
Contrafatto, M., and Burns, J. (2013). Social and environmental accounting, organisational change and management accounting: A processual view. Management Accounting Research, 24(4), 349-365.
Dayana, J. (2010). Environmental management accounting: A study of manufacturing companies in Malaysia. Unpublished PhD thesis, International Islamic University Malaysia, Kuala Lumpur.
Deegan, C. (2003a). Environmental Management Accounting: An introduction and case studies for Australia. Sydney: Institute of Chartered Accountants in Australia.
Deegan, C. (2003b). Introduction: The legitimising effect of social and environmental disclosures – a theoretical foundation. Accounting, Auditing and Accountability Journal, 15(3), 282-311.
Deegan, C., and Rankin, M. (1996). Do Australian companies objectively report environmental news? An analysis of environmental disclosures by firms successfully prosecuted by the Environmental Protection Authority, Accounting, Auditing and Accountability Journal, 9(2), 50-67.
Deegan, C., and Gordon, B. (1996). A study of environmental disclosure practices of Australian corporations. Accounting and Business Research, 26 (3), 187-199.
Delmas, M., and Toffel, M.W. (2004). Stakeholders and environmental management practices: An institutional framework. Business Strategy and the Environment, 13(4), 209-222.
DiMaggio, P.J. and Powell, W.W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48 (April), 147-160.
DiMaggio, P.J., and Powell, W.W. (1991). The new institutionalism in organisational analysis. Chicago: University of Chicago Press.
Ervin, D., Wu, J., Khanna, M., Jones, C., and Wirkkala, T. (2013). Motivations and barriers to corporate environmental management. Business Strategy and the Environment, 22(6), 390-409.
Gale, R. (2006a). Environmental costs at a Canadian paper mill: A case study of Environmental Management Accounting (EMA). Journal of Cleaner Production, 14(14), 1237-1251.
Gale, R. (2006b). Environmental Management Accounting as a reflexive modernization strategy in cleaner production. Journal of Cleaner Production, 14(14), 1228-1236.
Gibson, K.C., and Martin, B.A. (2004). Demonstrating value through the use of Environmental Management Accounting. Environmental Quality Management, 13(3), 45-52.
Hofer, C., Cantor, D.E., and Dai, J. (2012). The competitive determinants of a firm's environmental management activities: Evidence from US manufacturing industries. Journal of Operations Management, 30(1), 69-84.
Hopper, T., Tsamenyi, M., Uddin, S., and Wickramasinghe, D. (2009). Management accounting in less developed countries: What is known and needs knowing. Accounting, Auditing and Accountability Journal, 22(3), 469-514.
Islam, M.A., and Deegan, C. (2008). Motivations for an organisation within a developing country to report social responsibility information: Evidence from Bangladesh. Accounting, Auditing and Accountability Journal, 21(6), 850-874.
Jasch, C. (2006). How to perform an environmental management cost assessment in one day. Journal of Cleaner Production, 14(14), 1194-1213.
Jasch, C. (2009). Environmental and Material Flow Cost Accounting: Principles and procedures. The Netherlands: Springer.
Jones, M.J. (2010). Accounting for the environment: Towards a theoretical perspective for environmental accounting and reporting. Accounting Forum, 34 (2), 123-138.
Lapsley, I., and Wright, E. (2004). The diffusion of management accounting innovations in the public sector: A research agenda. Management Accounting Research, 15(3), 355-374.
Meyer, J.W, and Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2), 340-363.
Onishi, Y., Kokubu, K., and Nakajima, M. (2008). Implementing material flow cost accounting in a pharmaceutical company. In Schaltegger, S., Bennett, M., Burritt, R.L, and Jasch, C. (Eds), Environmental Management Accounting for cleaner production (395-410). The Netherlands: Springer.
Pondeville, S., and De Ronge, Y. (2013). Environmental management control systems: The role of contextual and strategic factors. Management Accounting Research, 24(4), 317-332.
Qian, W., and Burritt, R.L. (2008). The development of Environmental Management Accounting: An Institutional view. In Schaltegger, S., Bennett, M., Burritt, R.L, and Jasch, C. (Eds), Environmental Management Accounting for cleaner production (233-248). The Netherlands: Springer.
Rodrigue, M., Magnan, M., and Boulianne, E. (2013). Stakeholders’ influence on environmental strategy and performance indicators: A managerial perspective. Management Accounting Research, 24(4), 301-316.
Zhang, B., Wang, Z., Yin, J., and Su, L. (2012). CO2 emission reduction within Chinese iron and steel industry: Practices, determinants and performance. Journal of Cleaner Production, 33, 167-178.
Zhu, Q., and Geng, Y. (2013). Drivers and barriers of extended supply chain practices for energy saving and emission reduction among Chinese manufacturers. Journal of Cleaner Production, 40, 6-12.
Published
2019-08-14
How to Cite
MOHD ARIFFIN, Avylin Roziana.
INSTITUTIONAL PERSPECTIVE TOWARDS THE ADOPTION OF ENVIRONMENTAL MANAGEMENT: A CONCEPTUAL FRAMEWORK.
Asian Journal of Research in Business and Management, [S.l.], v. 1, n. 1, p. 9-15, aug. 2019.
Available at: <https://myjms.mohe.gov.my/index.php/ajrbm/article/view/6603>. Date accessed: 27 apr. 2025.
Section
Articles
