ENVIRONTMENTAL MANAGEMENT ACCOUNTING, COMPETITIVE ADVANTAGE, FIRM PERFOMANCE: INDONESIA’S MANUFACTURING SECTOR.
Abstract
Abstrack
This study aims to examine the indirect relationship between Environmental Management Accounting (EMA) and Firm Performance through Competitive Advantage. The contribution of this paper is that there is a Competitive Advantage mediating the relationship of EMA and improving firm performance. The study was conducted on 444 manufacturing companies in Indonesia from 2013-2017. The novelty in this study is a research model that makes Competitive Advantage a mediation for EMA and Firm performance variables, and Competitive Advantage variables using market share proxy. The results of this study are EMA has a positive effect on Firm Performance, EMA has a positive effect on Competitive Advantage, Competitive Advantage has a positive effect on Firm Performance, and Competitive Advantage as Quasi Mediating from the influence of EMA on Firm Performance.
Abstrak
Penelitian ini bertujuan untuk menguji hubungan tidak langsung antara environmental management accounting (EMA) dan kinerja perusahaan (firm performance) terhadap keunggulan kompetitif (competitive advantage). Kontribusi penelitian ini ialah menunjukan keunggulan kompetitif memediasi antara EMA dan meningkatkan kinerja perusahaan. Penelitian ini dilakukan pada 444 perusahaan manufaktur di Indonesia selama 2013-2017. Kebaruan dari penelitian ini penggunaan keunggulan kompetitif sebagai variabel mediasi untuk EMA dan kinerja perusahaan, serta penggunaan pangsa pasar sebagai proksi variabel keunggulan kompetitif. Hasil penelitian ini ialah EMA memiliki pengaruh positif terhadap kinerja perusahaan, keunggulan kompetitif memiliki pengaruh positif terhadap kinerja perusahaan, dan keunggulan kompetitif, keunggulan kompetitif sebagai mediasi semu dari pengaruh EMA terhadap kinerja perusahaan.
References
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Ong, J. W., Ismail, H., & Yeap, P. F.(2018). Competitive advantage and firm performance: the moderating effect of industry forces. International Journal of Business Performance Management, 19(4), 385-407. https://doi.org/0.1504/IJBPM.2018.095069
Peteraf, M. A. (1993). The Cornerstones of Competitive Advantage: A Resource-Based View. Strategic Management Journal, 14(3), 179-191. https://doi.org/10.1002/smj.4250140303
Phan, T. N., Baird, K., & Su, S. (2018). Environmental activity management: its use and impact on environmental performance. Accounting, Auditing and Accountability Journal, 31(2), 651-673. https://doi.org/10.1108/AAAJ-08-2016-2686
Pike, S., & G. Roos. (2004). Mathematics and modern business management. Journal of Intellectual Capital, 5(2), 243-256. https://doi.org/10.1108/14691930410533678
Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press.
Porter, M. E., & Van der Linde, C. (1995). Green and competitive: Ending the stalemate. Harvard Business Review, 73(5), 120-134.
Post, C., Rahman, N., & Rubow, E. (2011). Green governance: Board of director composition and environmental corporate social responsibility. Business and Society, 50(1), 189–223. https://doi.org/10.1177/0007650310394642
Rahman, N., & Post, C. (2012). Measurement issues in environmental corporate social responsibility (ECSR): Toward a transparent, reliable, and construct valid instrument. Journal of Business Ethics, 105(3), 307–319. https://doi.org/10.1007/s10551-011-0967-x
Saeidi, S. P., Sofian, S. & Saeidi, P. (2011). Environmental management accounting and firm Performance. International Conference on Management Proceeding, 652-661.
Saedi, P. S., Othman, M. S. H., Saedi P., & Saedi P. S. (2018). The moderating role of environmental management accounting between environmental innovation and firm financial performance. International Journal of Business Innovation and Research, 19(3), 326-348.
Simpson, M., Taylor, N. & Barker K. (2004). Environmental responsibility in SMEs: does it deliver competitice advantage?. Business Strategy and the Environment. 13(3), 156-171. https://doi.org/0.1002/bse.398
Somjai, S., Fongtanakit R., & Laosillapacharoen, K.(2019). Impact of environmental commitment, environmental management accounting, and green innovation on firm performance: an empirical investigation. International Journal of Energy Economics and Policy, 10(3), 204-210. https://doi.org/10.32479/ijeep.9174
Rumelt, R.P. (1984). Towards a strategic theory of the firm. Competitive Strategic Management, 26, 556-570.
Taoub, O., & Issor, Z. (2019). Firm performance: definition and measurement models. European Scientific Journal, 15 (1), 93-106. https://dx.doi.org/10.19044/esj.2019.v15n1p93
Teece, D. J., Pisano, G. & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Verrecchia, R. E. (1983). Discretionary disclosure. Journal of Accounting and Economics, 5(3), 179–194. https://doi.org/10.1016/0165-4101(83)90011-3
Welsh, D. H., Davis, A. E., Desplaces, D. E., & Falbe, C. M. (2011). A resource-based view of three forms of business in the startup phase: implications for franchising. Journal of Small Business Strategy, 22(1), 47–66.
Williamson, D., Lynch-Wood, G., & Ramsay, J. (2006). Drivers of environmental behavior in manufacturing SMEs and the implications for CSR. Journal of Business Ethics, 67(3), 317–330. https://doi.org/10.1007/s10551-006-9187-1
Barney, J. B. & Clark. D.N. (2007). Resource-based theory : creating and sustaining competitive advantage. Oxford: Oxford University Press.
Berry, M. A., & Rondinelli, D. A. (1998). Proactive corporate environmental management: A new industrial revolution. Academy of Management Executive, 12(2), 38–50. http://dx.doi.org/10.5465/ame.1998.650515
Burrit, R. L., Herzig, C., Chaltegger, S., & Vierre, T. (2019). Diffusion of environmental management accounting for cleaner production: evidence from some case studies. Journal of Cleaner Production, 224, 479-491. https://doi.org/10.1016/j.jclepro.2019.03.227
Chen, Y. S., Lai, S. B., & Wen, C. T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of Business Ethics, 67(4), 331–339. https://doi.org/10.1007/s10551-006-9025-5
Chuang, S. P., & Huang, S. J. (2015). Effects of business greening and green IT capital on business competitiveness. Journal of Business Ethics, 128(1), 221–231. https://doi.org/10.1007/s10551-014-2094-y
Davidsson, H, & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301-331. http://doi.org/10.1016/S0883-9026(02)00097-6
Dunk, A. S. (2007). Assesing the effect of product quality and environmental management accounting on the competitive advantage of firms. Australasian Accounting Businss and Finance Journal, 1(1), 28-38.
Dierickx, I. and Cool, K. (1989). Asset stock accumulation and sustainability of competitive advantage. Management Science, 35(12), 1504-1511. http://dx.doi.org/10.1287/mnsc.35.12.1504
Gassman, O., & Keupp, M. M. (2007). The competitive advantage of early and rapidly internationalising SMEs in the biotechnology industry: A knowledge-based view. Journal of World Business, 42(3), 350-366. https://doi.org/10.1016/j.jwb.2007.04.006
Grant, R. M. (1999). The resource-based theory of competitive advantage: implications for strategy formulation. California Management Review, 33(3), 3-23. http://.doi.org/10.1016/B978-0-7506-7088-3.50004-8.
Hamel, G., & Prahalad. C. K. (1994). Competing for the future. Harvard: Harvard Business Review.
Helfat, C. E., & Peteraf, M. A. (2003). The dynamic resource-based view: capability lifecycles. Strategic Management Journal, 24(10),997 – 1010. https://doi.org/10.1002/smj.332
ISO 14001:2004. (2004). Environment management system—Guidelines for the implementation of ISO 14001. Retrieved October 26, 2014.
Jordao, R. V. D., & Almeida, V. R. d. (2017). Performance measurement, intellectual capital & financial sustainability. Journal of Intellectual Capital, 18(3), 643-666. https://doi.org/10.1108/JIC-11-2016-0115
Klassen, R. D., & McLaughlin, C. P. (1996). The impact of environmental management on firm performance. Management Science, 42(8), 1199–1214. http://dx.doi.org/10.1287/mnsc.42.8.1199
Kraaijenbrink, J., Spender, J. C., Groen, A. J. (2010). The Resource-Based View: A Review and Assessment of Its Critiques. Journal of Management, 36(1), 349-372. https://doi.org/10.1177/0149206309350775
Mahoney, T. & Pandian. J. R. (1992). The resource-based view within the conversation of strategic management. Strategic Management Journal, 13(5), 363-380. https://doi.org/10.1002/smj.4250130505
Mohamed, R., Hui, W. S., Rahman, I. K. A., & Aziz, R. A. (2010). Strategic performance measurement system, organisational capabilities, and competitive advantage. Asian Journal of Accounting and Governance, 1, 27-50. https://doi.org/10.17576/ajag-2010-1-6545
Ong, J. W., Ismail, H., & Yeap, P. F.(2018). Competitive advantage and firm performance: the moderating effect of industry forces. International Journal of Business Performance Management, 19(4), 385-407. https://doi.org/0.1504/IJBPM.2018.095069
Peteraf, M. A. (1993). The Cornerstones of Competitive Advantage: A Resource-Based View. Strategic Management Journal, 14(3), 179-191. https://doi.org/10.1002/smj.4250140303
Phan, T. N., Baird, K., & Su, S. (2018). Environmental activity management: its use and impact on environmental performance. Accounting, Auditing and Accountability Journal, 31(2), 651-673. https://doi.org/10.1108/AAAJ-08-2016-2686
Pike, S., & G. Roos. (2004). Mathematics and modern business management. Journal of Intellectual Capital, 5(2), 243-256. https://doi.org/10.1108/14691930410533678
Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press.
Porter, M. E., & Van der Linde, C. (1995). Green and competitive: Ending the stalemate. Harvard Business Review, 73(5), 120-134.
Post, C., Rahman, N., & Rubow, E. (2011). Green governance: Board of director composition and environmental corporate social responsibility. Business and Society, 50(1), 189–223. https://doi.org/10.1177/0007650310394642
Rahman, N., & Post, C. (2012). Measurement issues in environmental corporate social responsibility (ECSR): Toward a transparent, reliable, and construct valid instrument. Journal of Business Ethics, 105(3), 307–319. https://doi.org/10.1007/s10551-011-0967-x
Saeidi, S. P., Sofian, S. & Saeidi, P. (2011). Environmental management accounting and firm Performance. International Conference on Management Proceeding, 652-661.
Saedi, P. S., Othman, M. S. H., Saedi P., & Saedi P. S. (2018). The moderating role of environmental management accounting between environmental innovation and firm financial performance. International Journal of Business Innovation and Research, 19(3), 326-348.
Simpson, M., Taylor, N. & Barker K. (2004). Environmental responsibility in SMEs: does it deliver competitice advantage?. Business Strategy and the Environment. 13(3), 156-171. https://doi.org/0.1002/bse.398
Somjai, S., Fongtanakit R., & Laosillapacharoen, K.(2019). Impact of environmental commitment, environmental management accounting, and green innovation on firm performance: an empirical investigation. International Journal of Energy Economics and Policy, 10(3), 204-210. https://doi.org/10.32479/ijeep.9174
Rumelt, R.P. (1984). Towards a strategic theory of the firm. Competitive Strategic Management, 26, 556-570.
Taoub, O., & Issor, Z. (2019). Firm performance: definition and measurement models. European Scientific Journal, 15 (1), 93-106. https://dx.doi.org/10.19044/esj.2019.v15n1p93
Teece, D. J., Pisano, G. & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Verrecchia, R. E. (1983). Discretionary disclosure. Journal of Accounting and Economics, 5(3), 179–194. https://doi.org/10.1016/0165-4101(83)90011-3
Welsh, D. H., Davis, A. E., Desplaces, D. E., & Falbe, C. M. (2011). A resource-based view of three forms of business in the startup phase: implications for franchising. Journal of Small Business Strategy, 22(1), 47–66.
Williamson, D., Lynch-Wood, G., & Ramsay, J. (2006). Drivers of environmental behavior in manufacturing SMEs and the implications for CSR. Journal of Business Ethics, 67(3), 317–330. https://doi.org/10.1007/s10551-006-9187-1
Published
2021-12-25
How to Cite
wijanarko, thomas, & Merida, P. D. (2021). ENVIRONTMENTAL MANAGEMENT ACCOUNTING, COMPETITIVE ADVANTAGE, FIRM PERFOMANCE: INDONESIA’S MANUFACTURING SECTOR . Jurnal Riset Akuntansi Aksioma, 20(2), 144-156. https://doi.org/10.29303/aksioma.v20i2.138
Section
Articles
