Effects of environmental management accounting on environmental performance of manufacturing companies in Malaysia
Environmental issues are attracting increase attention in Malaysia with tremendous increase in waste generation; cost of production and waste treatment is getting expensive. Environmental data shows that 80% of the wasted was generated by the manufacturing industry. It also indicates that future...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2016
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/69645/1/GSM%202016%2027%20IR.pdf |
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| Summary: | Environmental issues are attracting increase attention in Malaysia with tremendous
increase in waste generation; cost of production and waste treatment is getting
expensive. Environmental data shows that 80% of the wasted was generated by the
manufacturing industry. It also indicates that future natural resources are being
squandered as waste due to less exposure in the environmental management
accounting which end up to unproductivity, overproduction, increase in total delivery
cost or inefficiency in manufacturing plant.
Purpose - This research exploits the quantitative research methodology to understand
the relationship between contingent factors which are uncertainty environment,
organizational size, environmental strategy, regulatory pressure and top management
commitment that influence the environmental management accounting and
environmental performance among manufacturing companies in Klang Valley,
Selangor.
Design/methodology/approach – Survey conducted on manufacturing companies
that are located in Klang Valley, from the Federal Malaysian Manufacturer (FMM)
database. 600 questionnaires were sent out to manufacturing companies, with most of
the question using Likert scale. Smart PLS 3 the second generation multivariate was
used to simulate the model.
Findings – Total usable sample was 114 manufacturing companies, which suggested
that uncertainty in the environment, regulator pressure and top management
commitment significantly impact environmental management accounting. With environmental management accounting, the companies able to improve environmental
performances for example input and output target yield of raw material being define,
in daily routine reporting and meeting it to be discuss too. If the yield of that day was
below the target this indicating that more wastage had occur. At that point the
management team could immediately detect and address the issue promptly to avoid
further waste from occurring.
Originality/value of paper – This study presents empirical knowledge towards the
understanding of the driving factors of environmental management accounting
practices in Malaysia. It considers that environmental issues are closely associated with
business sustainability agendas; policy makers should recognize the need to instill
efficiency, productivity, wastage and lower total delivery cost in all manufacturing
practices. |
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